Kent-based Bovis Homes Group builds profits and sales
business editor Trevor Sturgess
A Kent-based housebuilder achieved higher sales and profits in a
difficult market last year.
Bovis Homes Group, which has its head office in New Ash Green,
said in a trading update that growth had been driven by a 15% rise
in legal completions to 2,355 (2011: 2,045), of which 1,854 were
private and 501 social.
Operating profit margin increased to 13.5% (2011: 10%), while
the average price of a Bovis home edged up 5% to £170,700 (2011:
During the year, Bovis bought 3,500 plots of land with planning
consent on 24 sites, and sold three sites for a combined price of
It entered 2013 with forward sales of 778 homes, up 37% on the
same time a year ago. Bovis said this reflected stronger
private reservations and an improved level of social housing
It started 2013 with 90 sales outlets, up 13% on the 80 at the
start of 2012, and plans to add more.
Bovis said if the market remains stable, the increase would
continue to drive growth in 2013.
Bovis ended the year with net cash of £19million after starting
it with £51million, the fall largely attributed to its land
Chief executive David Ritchie said: "2012 was a successful year
for Bovis Homes. We delivered significant growth in profits and
returns as a result of our continued strategy for growth through
investment in high quality consented and strategic land.
"This strategy will be further progressed in 2013, which,
subject to stable market conditions, should deliver strong
improvements in the Group’s returns in 2013 and beyond."
The full results for the year ending December 31 will be
published on February 25.