15th May 2015 06:41
LONDON (Alliance News) - Housebuilder Bovis Homes PLC on Friday said it is on track to meet its targets for the year, with a robust forward sales position for the remainder of the year, which the company expects to be more second-half weighted than in 2014.
FTSE 250-listed Bovis said it has made solid progress in 2015 to date, with total forward sales for 2015 delivery at 3,049 homes at May 8, up 8% year-on-year. Bovis has been trading from an average of 100 sales outlets in the year so far, up 8%, while weekly sales rates have been at 0.65 net private reservations per site, slightly down against 0.69 a year earlier, which Bovis said was a strong comparable.
Sales prices have continued to increase, Bovis said, with its average private sales price achieved in 2015 so far around 2% ahead of the expectations it set out in the fourth quarter of 2014.
Housing production is currently 9% ahead year-on-year, the company said, and Bovis said it now building more than double the number of new homes per year than five years ago, when it launched its current growth strategy. Production plans for 2015 are on track, and Bovis said that while it expects cost pressure to continue in its supply chain this year, this should be offset by sales price increases.
Bovis added, however, that it expects 2015 to be more weighted to the second half than previous years, due to the lower level of work in progress at the start of the year and the timing of new site launches. Bovis said this would be more in line with traditional first half-second half splits, following the exceptionally strong first-half weighting seen in 2014.
Bovis said it is on track to meet its expectations for the year, with volumes set to grow in line with active sales outlet growth, boosted by an increase in the average sales price and robust product margins.
Bovis is holding it annual general meeting Friday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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