Firm says it expects operating margin to hit 15% as completions rise

Bovis Homes

Bovis Homes said today that it expects to achieve its targets this year, hailing improved profit margins and a record forward order book.

The housebuilder said it had traded strongly since the beginning of July in an interim management statement issued today.

Bovis said its operating margin for 2013 is expected to be close to 15% compared to the 13.4% achieved in 2012.

It said it had added around 3,300 plots on 22 sites to its consented land bank during 2013 with around a further 1,200 plots on 13 sites contracted, a number of which it expects to add to its consented land bank before the year end.

Chief executive David Ritchie said: “Our strong trading performance has continued through the third quarter and we are confident of achieving our targeted result for the year as whole.
“Our forward order book is in its best position for many years. With further increases in active sales outlets, supported by ongoing assertive land buying, the group is confident of its future prospects and ability to deliver significantly improved returns.”

Bovis said it anticipates delivering around 2,800 homes in 2013 adding that it continues to expect the average sales price to be at least 10% greater than that achieved last year.