The company said that its profits for 2010 are set to be at the top end of expectations and ahead of the consensus forecast of 拢16.3m before tax.
The company completed 1,901 homes in 2010, which is 5% more than the 1,803 completed in 2009. Of these, 1,592 were private homes (2009: 1,527 homes) and 309 were social homes (2009: 276 social homes).聽
Average sales price in 2010 was 拢160,700, 4% higher than the equivalent of 拢154,600 in 2009.聽 This increase was driven by growth in the group's average private sales price in 2010 to 拢172,400 from 拢165,500 in 2009.
Improved sales prices and build cost savings combined to increased the gross margin to at least 7%. 聽
At 1 January 2011, Bovis Homes held a forward sales order book for 2011 delivery of 420 homes, down from 643 homes a year before.
The company says that its balance sheet is strong and growth will be fuelled by land acquisitions. Net cash on 31 December 2010 was 拢52m, having started the year with 拢113m.
Approximately 3,700 plots were added, 80% of them in the south of England. Terms have been agreed聽for the acquisition of an additional 2,500 plots.
In its trading statement to shareholders, Bovis Homes said: 鈥淭he group has delivered early success with its growth strategy and the board is confident in its further delivery, based on current market conditions. 聽Given this confidence, the board has decided to recommence the payment of dividends to shareholders.鈥�
The company said that it expects trading conditions in 2011 to remain subdued, with mortgages still hard to get. 鈥淭his all said, the long term imbalance between the demand and supply of housing remains positive for the housebuilding sector.鈥�
Chief executive David Ritchie said: "We are pleased with the positive group performance in 2010 and remain confident of our growth strategy through the acquisition of good quality residential land at attractive rates, which will provide an increase in sales outlets to support volume growth.聽 Based on current market conditions this will deliver growth in profits and improved financial returns which will add significantly to future shareholder value."
Got a story? Email news@theconstructionindex.co.uk
