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Bovis Homes says underlying pricing remains firm

"Market conditions remain robust and we are on track to deliver another controlled period end"

A Bovis house
"We are making good progress with our four major margin initiatives covering price optimisation, specification review, cost reduction and the launch of our new housing range"

Bovis Homes Group PLC (LON:BVS) said total sales for the year so far are in line with expectations and pricing is strong.

In a trading update released ahead of the houses builder's annual general meeting (AGM), the company said the average private sales rate per week for the year to date is up 6% to 0.52 from 0.49 in the corresponding period of 2017.

READ: Bovis on the comeback trail as it rewards patient shareholders with promise of special dividends

Since allowing quality control to slide earlier this decade the company has made a point of highlighting in its stock market statements its increased focus on customer service and this morning was no different, with the group saying its HBF Customer Satisfaction score since the beginning of October of last year has been trending well above 80%.

“Market fundamentals remain strong. We continue to see good levels of demand for new homes across all our operating regions with underlying pricing remaining firm,” the firm's AGM statement said.

“The group is making clear progress towards its medium-term targets including a 23.5% gross margin and 25% return on capital employed. In the first five months we have seen positive results from our margin initiatives which represent further margin potential for the group in the medium term,” Bovis said.

Shares in Bovis were down 0.8% at 1,280.5p in mid-morning trading.

Quick facts: Bovis Homes

Price: 1168 GBX

LSE:BVS
Market: LSE
Market Cap: £17.49 m
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