Bovis' profits doubled by booming housing market

BOVIS Homes has reported a more than doubling of pre-tax profits to nearly £50million, as it benefited from a booming house market in the south in the first half.

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Chief executive David Ritchie said: “The group is delivering on its growth strategy and combined with housing market improvements is producing better returns.” 

The house builder, which is mainly focused on southern England, said it would be nearly double the number of houses it sells to between 5,000 and 6,000 over the next few years. 

Pre-tax profits more than doubled to £49.4million in the first six months while revenues were up 75 per cent to £322.1million, sending the shares 36p higher to 837½p.

While the housing market has been buoyant in the first half, Bovis said it was experiencing a summer lull as the activity around the Government’s Help to Buy scheme fades

Bovis said the average selling price for private homes during the period was £239,500, 20 per cent up on a year earlier. 

While the housing market has been buoyant in the first half, Bovis said it was experiencing a summer lull as the activity around the Government’s Help to Buy scheme fades. 

Bovis has been proactively investing in land and said it had picked up 4,600 plots on 23 sites in the period. Analysts broadly welcome the results, though some were cautious about Bovis’ high-volume growth strategy.

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