10th May 2016 06:23
LONDON (Alliance News) - Bovis Homes Group PLC on Tuesday said it is on track to deliver its planned growth for 2016 as sales prices continue to rise and said the upcoming UK vote on EU membership in June has had "no discernible impact" on the business.
The FTSE 250-listed housebuilder said the housing market conditions remain positive, with strong demand from home buyers benefiting from good access to mortgage finance and growth in its sales prices, driven by its "improving mix of homes".
Bovis said weekly sales rates have improved in recent weeks and in the year to date, it has achieved 0.65 net private reservations per site, in line with a year earlier.
The company said it has launched 17 new sites for sales since the start of the year, with many of its sites acquired in 2015 now launched and selling well. Bovis said a number of its sites have sold out earlier than expected and, as a result, its total number of sales outlets has remained broadly constant over the year to date.
Bovis noted the upcoming UK vote on EU membership has had "no discernible impact" on its business, with strong demand across all its operating areas, but said that there would be a heavier weighting to the second half of the year in terms of completions in a similar manner to 2015.
Increased overhead costs being incurred to manage the enlarged group were being spread across the year, the company said, adding that the level of cost inflation has moderated compared to the levels seen in 2015.
Bovis said it was investing in high quality consented land, in line with its normal disciplined approach to land investment, and noted that it has a strong land pipeline, with terms either agreed or progressing through strategic conversion to deliver the targeted level of new site acquisitions during 2016.
"We have been trading well with positive market conditions supporting activity levels and we are on track to deliver our planned growth for 2016. We continue to drive improvements in our operations across the enlarged business with strong investment in our people and focus on delivering value across the group," said Chief Executive David Ritchie.
By Hannah Boland; [email protected]; @Hannaheboland
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