Bovis beats the drag and flags up leap
Tuesday 17 January 2012
The economy may be flirting with a double-dip, but there is scant sign of recession from housebuilder Bovis Homes, which yesterday bullishly flagged up a "significant increase" in its 2012 profits.
Bovis is paying more attention to the lucrative southern England housing market, which should account for 75 per cent of its sales in future compared with about half before the housing crash in 2007.
The 4.5 per cent rise in average selling prices to £180,100 in 2011 was almost entirely accounted for by family homes in the South, as affluent buyers and a more acute shortage of homes kept prices buoyant.
Despite the southern push, the chief executive David Ritchie has no plans to crack the capital: "London isn't our bag. We'll develop within the M25 but we're not a city-centre builder."
At the turn of this year, Bovis had orders for 566 homes, up 35 per cent on a year earlier.
Even based on current market conditions – hardly boom territory – profits will be buoyed by more sales, increased margins on land bought more cheaply after the crash, and higher selling prices from the southern drive. The housebuilder will also open more sales outlets and expects to add another 20 sites to its landbank this year.
Deutsche Bank's analyst Glynis Johnson reckons pre-tax profits will jump more than 50 per cent to £48m this year from about £31m in 2011.
The company's shares yesterday added 0.5p to 453.6p.
- 1 Migrant crisis: Greek soldier saved 20 people singlehandedly off Rhodes beach
- 2 Sofyen Belamouadden murder: The inside story of a crime that horrified Britain
- 3 UK weather: Britain braced for snow as arctic air mass moves in
- 5 'Isis' schoolgirls: Missing British teenager tweets picture of her Syrian takeaway
Migrant crisis: Greek soldier saved 20 people singlehandedly off Rhodes beach
Ian Brady: Moors murderer announces his support for Ukip and the SNP
Aaron and Melissa Klein: Oregon anti-gay bakers ordered to pay $135,000 after refusing to make cake for same-sex wedding
UK weather: Britain braced for snow as arctic air mass moves in
Power of Nepal earthquake was equivalent to 20 huge atomic bombs
General Election 2015: Chuka Umunna on the benefits of immigration, humility – and his leader Ed Miliband
The sickening truth about food banks that the Tories don't want you to know
Migrant boat disaster: Ukip candidate mocks victims in sickening Twitter post
Nigel Farage wants the BBC to stop making programmes like Doctor Who, Strictly Come Dancing, and Top Gear
Global warming: Scientists say temperatures could rise by 6C by 2100 and call for action ahead of UN meeting in Paris
General Election 2015: Britain would become a 'communist dictatorship' under Ed Miliband and Nicola Sturgeon, claims wife of Michael Gove
iJobs Money & Business
£20000 - £60000 per annum: Recruitment Genius: Are you recently QCA Level 4 qu...
£20000 - £22500 per annum + OTE £30K: SThree: SThree Group have been well esta...
£25 - 30k: Guru Careers: We are seeking an Application Support Analyst / 1st L...
£45K - £55K (DOE) + Benefits: Guru Careers: We are seeking a full stack .NET D...