15th Jan 2016 07:33
LONDON (Alliance News) - Bovis Homes Group PLC on Friday said it expects to deliver a big rise in pretax profit and revenue for 2015 following a strong year for the UK housebuilding industry.
The FTSE 250-listed housebuilder said it sold 3,934 homes in the year to the end of December, up 8.0% year-on-year, at an average selling price of GBP231,000, up from GBP216,600. Bovis said its operating margin improved to over 17%, which should result in its return on capital employed for the year rising to over 18%, up from 16.2% in 2014.
Bovis said the UK land market remains strong, and it expects to increase its estate of sales outlets in 2016 as it remains optimistic the robust conditions in the housing market will continue.
The group starts 2016 with 2,003 total reservations on its books, up 14% year-on-year, and Bovis said it has started to see stabilisation in build-cost inflation, particularly the cost of labour, meaning this issue should ease this year.
"We have delivered the group's highest ever level of profit driven by another year of record volume in 2015. Our strategic plan is on track and we have enhanced our business structure for the start of this year to manage the planned further growth in volume," said David Ritchie, Bovis' chief executive.
By Sam Unsted; [email protected]; @SamUAtAlliance
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