Bovis Homes sees big jump in 2015 revenue and profit

Housebuilder Bovis Homes said on Friday that it expects to report a "significant" increase in 2015 revenue and pre-tax profit following a record number of legal completions and a big jump in prices.

The company sold 3,934 homes, up 8% from 2014, with the average price 7% higher at around £231,000.

Meanwhile, Bovis’ operating margin rose to over 17%, which it said should enable the group to lift its return on capital employed to in excess of 18% compared with 16.2% in 2014.

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

“Our strategic plan is on track and we have enhanced our business structure for the start of this year to manage the planned further growth in volume. We have invested well during 2015 in new consented land assets and achieved a strong level of conversion from our strategic land bank. Assuming market conditions remain stable we are confident in our ability to improve return on capital employed further in 2016."

Bovis, which lifted its net cash to £30m at year-end from £5m at the start, said it has kicked the new year off with a strong forward sales position, with total reservations up 14% from the previous year to 2,003.