Bovis Homes, the builder of traditional homes, has reported that its annual pre-tax profits rose 74% for the financial year ended December 31, 2011, as it sold more homes at wider margins and focuses on increasing profits combined with further improvements in the use of capital. The Group also expects to deliver strongly increasing return on capital employed in 2012 and beyond.
Profit before taxes rose to £32.1m from £18.5m which it reported a year ago, while revenue for the year increased to £364.8m from £298.6m from previous year.
Bovis entered 2012 with a forward sales order position of 568 homes, a 35% improvement on the 420 homes brought forward at the start of 2011. This improvement was contributed to by the increase in average active sales outlets to 73 in 2011 from 66 during 2010.
Commenting on the results, David Ritchie, the Chief Executive said: "Significant progress has also been made in positioning the Group for continued improving returns. The substantial land investment in recent years will deliver a strong increase in active sales outlets in 2012. Based on a continuation of current market conditions, this will further enhance volumes, sales prices and profit margins." He added: "The Group is focused on enhancing shareholder returns through improving the efficiency of its capital employed, through land bank management, including the sale of consented plots on selected sites, and by managing working capital tightly."