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Bovis Homes sales tick higher as demand builds

By Iain Gilbert

Date: Wednesday 22 May 2019

Bovis Homes sales tick higher as demand builds

(Sharecast News) - Housebuilder Bovis Homes detailed its "strong" year-to-date performance on Wednesday, driven by an uptick in its sales on the back of "good" levels of demand for new homes.
Bovis' average rate of private sales per site per week rose to 0.61 in the first few months of the year - up 17% from the 0.52 recorded a year earlier.

Elsewhere, Bovis revealed it had already opened seven new developments in 2019 and expected to open a further 16 sites before the year was done, aiming for average active sites to be at a similar level this year to the 87 on the go in 2018.

The FTSE 250 resident also said its efforts to control costs had offset the impact of limited sales price inflation and a rise in build costs of 3 to 4%.

Looking forward, Bovis assured investors that current market fundamentals remained "strong" and said that it continues to see "good levels of demand" for new homes across all of its operating regions. Bovis claimed to have "excellent visibility" on land with 98% of that needed for its 2020 completions secured and 68% secured for 2021.

Chief executive Greg Fitzgerald said: "We have seen a strong period of trading including a step up in our sales rate. I am delighted to see the transformation in the way we operate reflected in our high build quality and continued strong improvements in customer satisfaction.

"We are on track to deliver another controlled and disciplined period end and make further operational and financial progress in this financial year."

Bovis upped its total dividend for 2018 to 57p per share from 47.5p per share a year earlier.

As of 0915 BST, Bovis shares had dipped 0.85% to 1,036.17p.


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