Bovis Homes record half year profit
Bovis Homes has revealed a pre-tax profit of £3.5 million for the first half of 2010, reflecting a turn in fortunes for the property industry.
The results certainly come as a positive for the company that recorded an £8.6 million loss for the same period last year. According to Inside Housing, the firm announced a gross profit margin of 16.3 per cent - up 8.1 per cent on 2009's revenue.
The house builder reported that it added 1,874 plots to its land portfolio, with the intention of developing these plots, creating affordable homes and building jobs for the future. This increases the company's land bank to 13,113.
Speaking to the BBC, Bovis chief executive David Ritchie said: ''Making investments in land at what we believe to be a low point in the housing market cycle is the right thing to do... We're suggesting there is an opportunity to buy land today at current prices and make strong returns.''
The Department for Communities and Local Government reported that housing starts in the UK increased by over 50 per cent in the second quarter of 2010, although sales may continue to be slow for the rest of the year due to falling consumer confidence after spending cuts and low mortgage approval rates. Nevertheless, according to Bloomberg, Bovis sold 49 more homes in the first half of 2010, compared to the year before.
Looking to the future, Ritchie was cited in Inside Housing as saying: ''The group has the ability to increase its output capacity and profitability in the future supported by a larger land bank across an increased number of housing sites, without reliance on a general housing market recovery.''
Author: Sarah Howard
Keywords: building jobs