After a record 2014, Bovis Homes is planning for even more growth in 2015.
In 2014 Bovis Homes saw a 29% growth in legal completions to a record number of 3,635 new homes (2013: 2,813), the company revealed in a trading update.
The average sales price rose 11% to £216,600 (2013: £195,100) and the operating profit margin rose to 17% (2013: 15%)
But twice as fast as Bovis sold homes, it added to its land bank. In a record year of land investment, it added 7,300 plots to the consented land bank across 42 sites in 2014. The land bank now stands at 18,000 consented plots, equivalent to five years of consented land supply at 2014 volume levels.
Despite this investment, the £18m net debt at the start of 2014 had become a net cash position of £5m by the year end.
While the company expects further growth in both revenues and profits in 2015, the increase will not be as dramatic as in 2014.
Chief executive David Ritchie said:
“We have delivered significant growth in 2014 with record volumes, and material increases in revenue, profits and returns. We have continued to execute our strategic plan successfully despite the housing market moderating in the second half of 2014. The size of the business is set to grow further after a record year of land investment in 2014. Subject to market conditions being similar to 2014, we expect to deliver further growth in revenue and profit, giving rise to further improvement in returns in 2015.”