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Bovis Homes based in New Ash Green sees pre-tax profits grow by nearly half - 48% - thanks to schemes like Help to Buy

24 February 2014
by Chris Price

House-building giant Bovis Homes saw pre-tax profits grow by nearly 50% in 2013, in a performance buoyed by the Help to Buy scheme.

Based in New Ash Green, near Brands Hatch, the company is hoping for a repeat performance in 2014 after a “strong” start to the year.

Pre-tax profits reached £78.8m in the year ending December 31, 2013, up 48% from £53.2m in 2012.

The house-building sector is growing thanks to schemes like Help to Buy

The house-building sector is growing thanks to schemes like Help to Buy

In its end of year results, the firm said revenues increased 31% to £556m, thanks to a 19% growth in legal completions to 2,813 homes.

Bovis Homes Group chief executive David Ritchie said: “The group has a clear and robust growth strategy, which has enabled the delivery of an excellent performance in 2013, with strong growth in profit and return on capital employed.

“A rigorous focus on targeted land acquisition, together with tight management of costs and capital have enabled the group to take full advantage of the more favourable market conditions to increase volumes, improve sales prices and strengthen margins.”

In the first seven weeks of this year, the company is holding 1,875 homes for legal completion, up from 1,064 in the same period last year.

It has also taken 468 private reservations, up 64%.

Mr Ritchie added: “With the current strong sales position and assuming current market conditions continue, the group is confident of its ability to deliver strong increases in volume, revenue and profit in 2014 with the aim of achieving a return on capital employed for the year of at least 14%.”

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