More good news from another House Builder – Bovis who issued their trading update today.
A full copy of the Statement can be seen by following the links at the bottom of this post but the high lights on its land / site purchases and housing stock are posted below details regarding its trading figures and profit can be seen on our Onyx Consultants blog site:
Trading update January 2011, 14 January 2011
Overview
Bovis Homes Group PLC is today issuing the following trading update ahead of reporting its preliminary results for the year ended 31 December 2010 on Monday 14 March 2011.
The Group has achieved a significant improvement in profits in 2010 and has made strong progress in implementing its land investment strategy.
Strong balance sheet; land acquisitions to fuel growth
The cash position of the Group as at 31 December 2010 remained strong, with net cash of £52 million, having started 2010 with £113 million of net cash. The overall cash outflow was contributed to by payments during the year of c.£138 million relating to land investment, with strong operating cash inflows pre-land expenditure of c.£93 million.
The Group has outlined its growth strategy to acquire good quality residential land which will provide an increase in sales outlets to support volume growth, and based on current market conditions will deliver growth in profits and improved financial returns. The Group has been successful in 2010 in acquiring consented land, adding c.3,700 plots to the land bank at a cost of £203 million and with a gross profit potential of £181 million. This land has been purchased based on acquisition appraisals using current day sales prices and costs and which generate financial returns in line with the Group’s investment ‘hurdle’ rates. The land acquired has been geographically focused with 80% of the plots in the South of England. Furthermore, the Group has terms agreed for the acquisition of an additional c.2,500 plots.
Commenting on the progress achieved in 2010, David Ritchie , Chief Executive of Bovis Homes, said:
“We are pleased with the positive Group performance in 2010 and remain confident of our growth strategy through the acquisition of good quality residential land at attractive rates, which will provide an increase in sales outlets to support volume growth. Based on current market conditions this will deliver growth in profits and improved financial returns which will add significantly to future shareholder value.”
A full copy of the statement from Bovis Homes can be obtained from their website http://www.bovishomesgroup.co.uk/information-on/press-releases/ or the following link Statement Report
If you are a house builder and need temporary assistance with your commercial requirements or a subcontractor looking for an introduction to major house builders such as Bovis Homes then contact Andrew Fella at Onyx Construction Consultants Ltd
