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viewVistry Group PLC

Bovis revels in strong first half as profits rise

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Homebuilder Bovis Homes’ (LON:BVS) focus on the south of the country helped boost profits in its latest six months. 

The company said it legally completed 944 homes in the six months to the end of June, an increase of 18 per cent from the same period last year.

The average selling price grew 1 per cent to £164,000 due to the company’s focus on houses rather than flats.

“The group has performed strongly, in line with expectations, in the first half of 2012 with a significant improvement in profit delivered from the ongoing successful execution of the group's growth strategy,” said chief executive David Ritchie.

Bovis’ strategy of selling more traditional homes in the south of England at higher prices is expected to generate “strongly improved returns” as long as the housing market remains stable, it said.

The housing gross margin for the half-year was around 21 per cent, up one per cent from 2011, with a profit of £3.9 million from land sales.

The company told investors it remains confident it can enhance shareholder value and improve returns.

“The continued success in the land market during the first half of 2012, with around 2,500 new plots contracted, is positioning the group for further growth in the future,” Ritchie concluded.

Shares slipped 12.5 pence or 2.6 per cent to 462.5 pence.

Quick facts: Vistry Group PLC

Price: 781.5 GBX

LSE:VTY
Market: LSE
Market Cap: £17.28 m
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