House builder in profit surge
A house builder has reported a significant rise in turnover and profit for 2011.
Bovis confirmed expectations of a markedly improved performance for the year by posting a revenue of £364.8 million, up 22 per cent on 2010. Pre-tax profit was up by 74 per cent to £32.1 million, while gross profit benefited from a 35 per cent bump to stand at £72.2 million.
As previously announced in a January trading update, legal completions were up 8 per cent to 2,045 driven in part by a large rise in completions of social homes. The group completed 421 social homes through the year, more than a third more than in 2010.
Bovis said it expected to achieve a return on capital of 7 per cent in 2012, depending on continuing market conditions.
David Ritchie, chief executive at Bovis, said: ‘This profit improvement has been delivered through the compound positive effect of increased volumes, improved sales prices and stronger margins.
‘Significant progress has also been made in positioning the group for continued improving returns. The substantial land investment in recent years will deliver a strong increase in active sales outlets in 2012. Based on a continuation of current market conditions, this will further enhance volumes, sales prices and profit margins.’