Sales go through the roof for Bovis Homes
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by business editor Trevor
Sturgess
Kent-based housebuilder Bovis Homes has reported market
improvement and stronger sales.
The group announced today (18) that sales of private homes and
social housing since the start of the year were 150 up (2,178) up
on the same period a year ago. Private reservations (1,488) were 83
per cent ahead of last year.
Bovis, which has its headquarters in New Ash Green, near
Gravesend, said it had seen "further signs of an improving market
backdrop."
Prices had risen, helped by the low levels of second hand stock
for sale. "The Group itself has experienced a modest imporvement in
underlying private sales prices for reservations taken since its
June half year," it said.
Mortgage approvals had grown from a low base but the mortgage
market "remains difficult to access for first-time buyers and other
buyers requiring higher loan-to-value multiples."
Bovis reported £89 million of net cash which made it
well-positioned to buy land. It was also achieving cost savings in
building costs by re-specifying materials and negotiating new
labour costs.
The group expects the present situation to continue into 2010,
with stable prices and further modest growth in mortgage
availability. The Group was well placed to create value for
shareholders, it said.
Ed Woolfitt, head of trading at Galvan, said it was a bullish
statement from Bovis and he expected shares to "rapidly
return to the year highs at 560p and more."
Wednesday, November 18 2009
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