9th Jul 2007 07:00
Bovis Homes Group PLC Trading Update 9 July 2007 Bovis Homes Group PLC is today issuing a trading update ahead of reporting itsinterim results for the six months ended 30 June 2007. Against a backdrop of increasing interest rates over the first half of 2007, theGroup has generated good pre-tax profit growth in line with the Group's internalexpectations. The Group legally completed 1,256 homes during the first half of 2007, ascompared to 1,262 legal completions in the same period in 2006. The averagesales price achieved was in line with the previous half year at around £189,000,and the average sales price per square foot was up by some 4%, with anoffsetting reduction in the average size of homes legally completed. Given thecurrent strength of the land market, the Group has already secured the bulk ofits planned land sales for the year with £20m of sales, as compared to £10m inthe corresponding period last year. The Group anticipates that its operatingmargin will be broadly in line with that produced in the first half of 2006,after adjusting out the one-off pension credit taken in the first half of 2006. The Group has enjoyed another period of positive cash generation, and exited thefirst six months of the year with net cash in hand, following a continuation ofthe Group's relative caution in investing in consented land. The consented landbank now stands at c11,600 plots as at 30 June 2007, as compared to 12,395 plotsat 31 December 2006. As a consequence of this favourable cash flow profile,financing costs in the first half of 2007 were minimal. Looking ahead, the Group has secured 2,282 cumulative reservations for the yearas at 30 June 2007, as compared to 2,273 reservations at the same point lastyear. These figures reflect a recent slowdown in both visitor rates and inreservation rates. Whilst the Group is in a good position to expand and delivershareholder value, the extent of the planned increase in volume for 2007 overthat achieved in 2006 will depend on consumer confidence over the key summer andautumn selling period. A further update on the outlook for 2007 will be provided with the interimresults, which will be announced on 10 September 2007. \* TEnquiries: Malcolm Harris, Chief Executive Emily Bruning Bovis Homes Group Plc Shared Value Limited Tel: 01474 876200 Tel: 0207 321 5027\* T Copyright Business Wire 2007Related Shares:
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