Bovis Homes sees strong rise in second-half profit

The company said today profit before tax for the six months to the end of June was £16.2m, versus £8.1m in the same period in 2011. Revenue rose 27 per cent to £170.3m.

The number of its active sales outlets increased by 21 per cent to 82 over the period, versus 68 in the same period in 2011, it said.

“As a result of a greater number of active sales outlets with an increasing proportion of new, more profitable sites, the group’s profits will, subject to stable market conditions, continue to increase significantly in the second half of 2012, in line with the group’s expectations,” chief executive David Ritchie said in a statement.

The company and its rivals have enjoyed continued strong demand for homes despite the UK’s tough economic outlook thanks to a lack of available new homes in Britain and government schemes to spur the market.

They also seized upon the financial crisis as a chance to buy up cheaper developer land and have focused on building in regions where house prices have stayed strong, which has helped them to improve profitability.

Bovis Homes said it completed 944 homes in the six months, versus 801 in the same period last year. The average sales price also rose to £164,000 from £163,400.

It said it expected the average sales price for 2012 to be six per cent higher than 2011 and that the company’s return on capital for the 2012 full year would rise to 7.5 per cent from five percent in 2011.

Shares in Bovis Homes closed at 493 pence on Friday, valuing the company at £660.7m.