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The Markets
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The Markets
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Builders and building materials

Bovis hails record profit on more sales and higher house prices

The company said it sold more houses last year than the year before and was boosted by rising house prices.

Housebuilder Bovis Homes (LON:BVS) expects record profits and a big hike in revenue for 2015.

The company said it sold more houses last year than the year before and was boosted by rising house prices.

Bovis is the latest in a string of housebuilders to report strong price rises and higher completion rates for 2015.

The Kent-based group sold 3,934 homes, around 8% more than the previous year, at an average price of £231,000, which was 7% higher than in 2014.

David Ritchie, chief executive, said: "We have delivered the group's highest ever level of profit driven by another year of record volume in 2015.”

Margins improved to 17%, Bovis said, though this is still below the 20% threshold crossed by Taylor Wimpey (LON:TW.).

Cash in the business improved to £30mln from £5mln.

Ritchie said: “Assuming market conditions remain stable we are confident in our ability to improve return on capital employed further in 2016.”

Shares climbed around 3% to 952p in early deals on Friday.

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