Bovis set to reveal record profit
Bovis Homes Group has said it will deliver a “significant step-up” in its 2018 operating margin and “record” profits in its full-year results, having successfully implemented operational improvements across the business.
Bovis also reported in a trading update that it anticipates delivering more than the targeted £180m cash from its balance sheet, with an additional £65m net cash benefit expected to come early this year – subject to third-party approval – from the conclusion of its joint venture in Wellingborough, Northamptonshire, with conditional contracts having now been exchanged.
The housebuilder expects its year-end balance sheet value to be around £16m, slightly down on the £19.7m in 2017, and no units owned and unsold for more than three months.
Bovis Homes Group has said it will deliver a “significant step-up” in its 2018 operating margin and “record” profits in its full-year results, having successfully implemented operational improvements across the business.
Bovis also reported in a trading update that it anticipates delivering more than the targeted £180m cash from its balance sheet, with an additional £65m net cash benefit expected to come early this year – subject to third-party approval – from the conclusion of its joint venture in Wellingborough, Northamptonshire, with conditional contracts having now been exchanged.
The housebuilder expects its year-end balance sheet value to be around £16m, slightly down on the £19.7m in 2017, and no units owned and unsold for more than three months.
Net cash balance at the year-end is also predicted to be around £127m, down from £145m in 2017. Bovis said this reflected its ongoing capital management, increased net investment at Wellingborough of some £17.5m, payment of its first special dividend and the joint venture at Wellingborough expected to complete in early 2019.
Bovis added that the number of homes it delivered increased by 3% on the previous year to 3,759, with the total average selling price on completions of around £273,000 in line with expectations.
In addition, Bovis reported that it secured 4,164 plots across 19 developments and that on average its acquired land is expected to deliver at least a 26% gross margin and 25% return on capital employed.
Looking ahead, the firm said it planned to continue to develop its fledgling partnership business and target private sales to housing associations.
Greg Fitzgerald, chief executive of Bovis, said: “The significant improvement in operational performance across all areas of the business is expected to deliver a record year of profits for the group.
“Customer satisfaction is a key priority, and the group’s return to four-star housebuilder status, along with another controlled and disciplined period end, reflects this.”
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