UK house builder Bovis has announced a 48% increase in pre tax profits from £53.2m to £78.8m on revenues of £556m. Its operating profit margin was 14.9%, up from 13.3% in 2012, despite an increase in brick supplier costs.
The surge comes after increasing sales on larger homes and investing in a greater proportion of higher value sites in the south of England.
David Ritchie, chief executive, said: “The housing market is recovering. Buyers are more confident and Help To Buy has helped first-timers get on the ladder. We don’t expect growth to stop.
“We are doing what the Government is looking for us to do and that is build more. We will double the size of the business. It is another major step up for us and shows we are not lacking in ambition.”
The group also saw a 14 % increase in average selling prices to £195,100 helped by more demand for larger, two-storey homes and fewer townhouses. Its order book was up 77 % to 1,377 homes and shares jumped 21½p to 921½p.
The company shared plans to build between 4,000 and 5,000 new homes by 2016 in the Midlands and the south of England.