In a trading update this morning, Bovis announced thatit expects to deliver an operating margin of at least 7% for the six months to 30 June, compared to 4.2% in the first half of last year.
With market conditions now considered to be ‘stable’, Bovis achieved 802 net private reservations in the first six months (2010: 691), a 16% increase. The net private sales rate per site per week was 0.45 (H1 2010: 0.42) with sales prices in line with expectations.
For the six months ended 30 June 2011 Bovis legally completed 801 homes, compared to 803 homes in the same period in 2010. The 2010 legal completions benefited from the sale of 215 units into a private rental joint venture. The average sales price increased by circa 3% year on year and the housing gross margin was circa 20% (H1 2010: 16.6%).
Bovis is planning to launch 33 new sales outlets during 2011, of which 19 opened in the first half of the year. The average number of sales outlets for the full year will be 73 (2010: 66).
Chief executive David Ritchie said: "On the basis of the current stable market conditions continuing, the group remains confident that it can deliver on its expectations for 2011 and will continue to invest to increase output capacity to deliver higher returns to shareholders."
Got a story? Email news@theconstructionindex.co.uk
