Bovis Homes Group PLC (BVS.L) said that trading in the 19 weeks to 10 May 2013 has been strong with the Group achieving 989 private net reservations, a 26 percent increase year on year. The number of visitors to the Group's sites has increased by 29 percent in the year to date compared to the same period last year.
In its interim management statement, the group said it is well ahead of its plan in respect of consented land acquisitions this year and would manage investment during the remainder of 2013 to ensure that land investment is balanced suitably against improving capital turn.
Bovis Homes expects the average sales price in the half year results to be materially ahead of the prior year due to improved mix. The housing profit margin is also expected to increase compared to the first half of 2012.
Sales rates are expected to support both the delivery of the group's volume growth targets for 2013 and allow the group to enhance its year end forward order book, supporting further growth in 2014, the comany added.
Based on current market conditions continuing, it is expected that increased legal completions at a higher average sales price and at an improved gross profit margin, combined with enhanced overhead efficiency, would continue to improve the return on capital to a level approaching 10 percent for 2013 as against 7.7 percent in 2012.
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