Bovis profits double as construction costs fall
Bovis Homes has seen its profit more than double over the first six months of 2011 on the back of increased margins and lower construction costs.
Pre-tax profits for the group soared to £8.1 million from £3.5 million in the first half of 2010, while operating margin increased by 79 per cent to stand at 7.5 per cent. Turnover was up 16 per cent to £133.6 million against £115.6 million last year.
The results meant that the house builder was able to pay a windfall of 1.5p per share on its half-year results, having not paid any dividend in 2010.
David Ritchie, Bovis Homes chief executive, said: ‘The Group has delivered a strong performance during the first half of 2011 with profit before tax more than doubling, against the backdrop of stable, but challenging, market conditions.’
‘As a result of opening a significant number of the new, more profitable sites, active sales outlets will grow through 2011, supporting higher sales.
‘Subject to current market conditions continuing, the group’s profit margins will continue to improve, particularly in 2012 when a significant proportion of housing completions will come from these new sites.’
Completions for the first six months were down slightly from 803 in 2010 to 801 this year. But the average sales price rose by 3.2 per cent to £163,400 as build costs fell.