Housebuilder Bovis Homes Group said this week that it remained on course to make a record pre-tax profit in line with market expectations.

Analysts had predicted a pre-tax profit for 2004 of £145m, up from £123m last year.

Completions in the year ending 31 December rose 9% on 2003. This is an improvement on the 6% Bovis thought possible in October when it reduced its forecast for completions 10% as the housing market slackened.

Malcolm Harris, Bovis Homes’ chief executive, said the group had experienced a good run of sales throughout November. He said: “We launched a number of developments and the products have sold well.”

Bovis has begun building smaller housing units because of the slowing market and rising interest rates. Last year it built 1550 smaller units priced under £200,000 and intends to increase the number to 2000 this year.

The average selling price of its houses increased 7% from £185,000 to £198,000 during the year, said Bovis.

We launched a number of new developments that have sold well

Malcolm Harris, Bovis Homes chief executive

The group also increased its landbank in the final quarter, building its reputation as one of the sector’s strongest landbank managers.

However one analyst warned that this competitive advantage over rivals might be coming to an end because large sites now needed increased infrastructure investment.

The analyst said: “Bovis will not see the same kind of uplift from strategic land management”.