16th May 2014 07:03
LONDON (Alliance News) - Bovis Homes PLC Friday said it has ramped up house building in 2014 with 80% more homes built in the first four months of the year, compared with the same period in 2013, while it is now confident of achieving a strong increase in return on capital employed to at least 15% this year, assuming stable market conditions.
The housebuilder said it achieved 1,151 net private reservations in the 18 weeks of 2014 to May 9, up from 927 reservations a year earlier, while net private reservations per site per week improved 21% to 0.69 from 0.57 a year ago.
The company, which is holding its annual general meeting this afternoon, said total private sales for 2014 totalled 2,096 units compared with 1,176 units a year ago - an increase of 78%.
To date in 2014, Bovis said it has added 3,273 consented plots on 17 sites to its landbank, while it controls under conditional contract a further 808 plots on eight sites which are expected to be added to the landbank during the remainder of 2014.
Looking ahead, Bovis said given the current sales position for 2014 combined with improved sales prices and profit margin, it is confident of achieving its targets in 2014.
"With the aim to deliver between 3,650 and 3,850 legal completions in 2014 and a clear focus on controlling the capital employed of the group, return on capital employed is now expected to increase strongly to at least 15% in 2014," the firm said.
The return on capital employed in 2013 was 10.4%.
Bovis Homes shares were up 2.0% at 769.98 at the open Friday.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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