Housebuilder hails “strong improvement in profit” in a “challenging but stable” market

Bovis Homes has reported a 69% jump in operating profits for 2011 and an 8% rise in legal completions to some 2,045 residential properties for the year.

The housebuilder’s preliminary results for the year to December 31, 2011 show revenue of £364.8m, up 22% on 2010, with operating profit of £36.4m - a 69% increase on the previous year.

Average private sales were £180,100 per home, a 5% increase on 2010.

Bovis Homes Group chief executive David Ritchie said the preliminary figures represented a “strong improvement in profit” in a “challenging but stable” market.

“This profit improvement has been delivered through the compound positive effect of increased volumes, improved sales prices and stronger margins,” he said.

“Significant progress has also been made in positioning the group for continued improving returns.

“Substantial land investment in recent years will deliver a strong increase in active sales outlets in 2012.

“Based on a continuation of current market conditions, this will further enhance volumes, sales prices and profit margins.”

The company said 2012 private reservations had increased by 41% from a 28% increase in active outlets.

It had an average of 73 such outlets in 2011, against 66 in 2010.