Housebuilder Bovis Homes Group said it is expecting to make record profits this year in its trading update for the year ended 31 December.
The group built 3,759 new homes in the year, an increase of 3% on the previous year of which around two thirds were properties for private sale.
Bovis attributed its performance to operational improvements, improved margins, strong customer demand alongside low interest rates as well as Help to Buy. It added that private sales of larger properties had slowed down, but that the group had increased its level of private sales to housing associations, and sees further opportunities here.
Greg Fitzgerald, Chief Executive said: “The significant improvement in operational performance across all areas of the business is expected to deliver a record year of profits for the Group. Customer satisfaction is a key priority and the Group’s return to 4 star housebuilder status along with another controlled and disciplined period end reflect this. We are looking forward to delivering the first homes from our new housing range in 2019 and continuing to make further operational and financial progress.”
Government stimulus alongside a decade of low interest rates means that housebuilders are pretty much expected to report positive results right now. The update is fairly non-committal as to the future, although remarks about increasing private sales to housing associations are perhaps noteworthy bearing in mind the current outlook for the housing market.
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