Bovis first half profit up ‘significantly’

Bovis boss Greg Fitzgerald said the housebuilder would be reporting a “significant” improvement in profitability and a more-than-doubled cash position when it publishes its first half figures in September.

Last year the group reported a 41% increase in first half pre-tax profit.

Fitzgerald (pictured) said the business had seen an “excellent first half performance”, including a 15% increase in its average private sales rate per site per week in the period to 0.6, from 0.52 last year.

Bovis reported 1,647 completions in the half year, up 4% year-on-year, with 1,031 being private units, level with the same time last year, and 616 affordable, up 12%.

Despite the rise in affordable homes in the first six months Bovis said it expected to deliver more or less the same proportion of affordable homes over the financial year as in 2018, around 32%.

The firm’s private average selling price rose 2% to £342,000, with overall underlying pricing remaining broadly flat. The total average selling price increased by 3% to £270,000.

A series of land-led partnerships with housing associations have been agreed in the first six months of the year, following the creation of Bovis’ partnerships division in February.

The housebuilder said it had seen an increase in its level of private sales to housing associations, with units geared towards shared ownership.

Net cash at the end of June 2019 would be around £103m, more than double last year’s £43m.

The group said market fundamentals “remain stable and despite the ongoing uncertainty surrounding Brexit, we continue to see good demand for our new homes across all our operating regions”.

Bovis will report its results for the six months to 30 June 2019 on 10 September 2019.