Bovis Homes is poised to deliver a huge increase in their annual profits after a strong year where the company sold houses at higher prices, maintaining a run of upbeat trading statements.
According to This Is Money, Bovis Homes' upbeat update comes only a couple of months after the firm hit a rough patch and released a statement saying that it would be affected by rising costs caused by labor shortages and planning delays.
Bovis Homes alarmed the investors when they warned that they anticipated the operating profit margin for 2015 to be just 17 percent more than the 2014 figures.
In their recent statement, which comes ahead of their total annual results issued on Feb. 22, the company said they sold 3,934 houses throughout 2015. This exceeds the prior year's sales by eight percent, with the average selling price increased from £216,600 to £231,000.
This led analysts to start writing in annual profit forecasts for Bovis Homes of £158 million, higher than 2014's £133.5 million and above its record level seen in 2004 at £145 million.
The house builder shares on the FTSE 250 index increased one percent, or 5p at 927p, in early Friday afternoon trading.
An article from Telegraph says three-quarters of Bovis land is in South of England, the largest fraction of any national house builder. It is protected from the uneasy market in London since they do not do business there.
They are the last of the house builders to report strong price rises in a sector gaining from government-backed housing programs, same as Help to Buy.
Bovis CEO David Ritchie said: "We have delivered the Group's highest ever level of profit driven by another year of record volume in 2015. Our strategic plan is on track and we have enhanced our business structure for the start of this year to manage the planned growth in volume."
He added that the company has "invested well during 2015 in new land assets and achieved a strong level of conversion from our strategic land bank. Assuming market conditions remain stable we are confident in our ability to improve return on capital employed further in 2016."
