Property boom boosts Bovis profits

Posted: 12 Sep 2006 12:36:18 GMT

Housebuilder Bovis Homes has announced that it has witnessed profits soar by almost a fifth (18 per cent) over the first six months of 2006.

The company's half-year results are in excess of analysts' expectations and reflect a strengthening of Britain's housing market and improved buyer confidence.

The Kent-based firm has moved consciously away from the cheaper end of the housing market, as building and materials costs have continued to soar.

Net income over the half year was £39.7 million, up from £31.5 million for the same period of last year, while sales were up by 17 per cent at £250.5 million.

Bovis chief executive officer, Malcolm Harris, said in a statement: "The steady housing market experienced during the first six months has continued through July and August. Looking forward, based upon the group's trading experience to date, the board's expectations remain unchanged in respect of profits for the full year."

According to Bovis, costs are continuing to spiral, with the price of land rising rapidly, and the company has been forced to increase production on more expensive private housing as a result.

The decision last month by the Bank of England's Monetary Policy Committee (MPC) seems to have little effect on house prices or buyer confidence, with a number of recent reports indicating that the market is continuing to strengthen.

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