16th Jan 2014 07:34
LONDON (Alliance News) - Bovis Homes Group PLC Thursday said it expects to announce a significant increase in profit before tax for 2013, in line with market expectations.
In a trading update, the builder reported a 19% growth in legal completions to 2,813 from last year's 2,355, including a 26% increase in private homes to 2,330.
Average sales price increased 14% to 195,100 pounds from 170,700 pounds, primarily due to an improved mix of larger homes with a greater proportion of higher value Southern site.
Operating profit margin approached 15% compared to 13.3% last year, driven by an increasing contribution from legal completions on sites acquired since the housing market downturn and by improving overhead efficiency.
Bovis said the strong growth in profitability would enable the group to achieve its expected material improvement in ROCE to in excess of 10% for 2013, compared to 7.7% last year.
Copyright RTT News/dpa-AFX
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