Bovis Homes (LON:BVS) shares edge higher on Friday after the house builder tipped 2012’s pre-tax profits to be ahead of market expectations.
The company, which unveils the results on February 25, was lifted by 15% growth in legal completions to 2,355, a 5% increase in the average sales price to £171,000 and a significant rise in operating profit margin to around 13.5%, compared with 10% in 2011.
Bovis said that assuming market conditions hold firm, it will continue to drive growth in returns in 2013 as it acquires more land.
“2012 was a successful year for Bovis Homes,” said chief executive David Ritchie.
“We delivered significant growth in profits and returns as a result of our continued strategy for growth through investment in high quality consented and strategic land.
“This strategy will be further progressed in 2013, which, subject to stable market conditions, should deliver strong improvements in the group's returns in 2013 and beyond.”
Shares lifted 3.5p to 640p each.