8th Jul 2014 06:59
LONDON (Alliance News) - Housebuilder Bovis Homes Group PLC Tuesday joined peers in reporting higher new house sales at higher average prices, confirming the continued strong recovery of the sector after several years in the doldrums in the wake of the financial crisis.
In a trading update, Bovis said legal completions in the first half of 2014 were 1,487, up from 963 in the first half of 2013, at an average selling proce of GBP210,000, up from GBP188.500. It said the rise in selling prices was down to it selling more expensive, larger properties, as well as "modest" improvements in house prices.
It expects its operating margin for the first half to be at least 15% as a result, up from 11.1% in the first half of last year.
"Bovis Homes has delivered its highest ever number of first half year legal completions, driven by the high quality investments made during the last few years. This is expected to lead to excellent first half results with a material improvement on last year," Chief Executive David Ritchie said in a statement.
Its outlook is also positive. Bovis' total reservations expected to complete this year stood at 3,297 homes at the end of June, up from 2,287 homes at the same stage in 2013.
"Trading continues to be robust, further increasing our confidence in delivering both strong volume growth for 2014 and an enhanced forward sales position for 2015,2 Ritchie said.
By Steve McGrath; [email protected]; @SteveMcGrath1
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