Bovis Homes profit jumps 50 pct as sales prices rise
LONDON Aug 19 (Reuters) - British housebuilder Bovis Homes posted a 50 percent jump in first-half profit on the back of higher sales prices and said it expects current strong trading to significantly boost full year profits.
Bovis, one of a number of builders that are benefiting from recent government schemes that have lifted home buyer sentiment, on Monday said it had secured 1,712 private reservations in the 32 weeks to Aug. 9, a 43 percent increase compared to the same period last year, and was now 90 percent sold for the full year 2013.
Its operating profit for the six months to the end of June rose to 20.4 million pounds ($31.85 million) from 13.6 million pounds a year ago, on a 17 percent increase in revenue to 183.2 million pounds. Pretax profit rose 19 percent over the period to 18.6 million pounds.
"The positive trading position, combined with an increasing proportion of legal completions on new, more profitable sites, will enable the group to increase profits significantly in 2013 in line with its expectations," Chief Executive David Ritchie said.
"With a further increase in capital turn, this strong profit is expected to generate a return on capital for 2013 of at least 10 percent," he said.
The company's average sales price rose 15 percent to 188,500 pounds, ahead of its own expectations, primarily due to it building more lucrative family homes than apartments. It said it sees the average sales price for 2013 completions to be at least 10 percent greater than 2012.
It increased its interim dividend by 33 percent to 4 pence per share.
Shares in Bovis closed at 778.5 pence last Friday, valuing the company at 1.04 billion pounds.
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