TIDMBVS
RNS Number : 6464R
Bovis Homes Group PLC
08 November 2011
8 November 2011
Bovis Homes Group PLC
Interim Management Statement
A growing business with improving returns
Bovis Homes Group PLC is today issuing an Interim Management
Statement for the period from 1 July 2011. In addition, the Group
is hosting a presentation for investors and analysts at 16.00 today
at the offices of RBS. Presentation slides will be available
immediately following this event on the Group's web site
www.bovishomesgroup.co.uk.
Current trading
The positive trading announced at the time of the Group's
interim results has been maintained, in line with management's
expectations.
Net private reservations achieved in the 44 weeks to 4 November
2011 were 1,480 (2010: 1,216), a 22% increase. This improvement has
been driven by two factors:
-- a 10% increase in the average number of active sales outlets
in the period to 72 from 66 in the same period in 2010; and,
-- an improvement in the net reservations per site per week of
11% to 0.47 from 0.42 in the comparative period in 2010.
In the ten week period since the interim results announcement,
the Group has achieved 393 net private reservations (2010: 304), an
improvement of 29%, representing a sales rate per site per week of
0.49 (2010: 0.45). Visitors in the same period increased by
40%.
The Group has launched 29 new sales outlets in the year to date
with a further four scheduled to launch in the remainder of 2011.
This will deliver an average of 73 active sales outlets for the
year and circa 80 active sales outlets at 31 December 2011.
Land management
The Group has continued investing in good quality land on which
hurdle rate gross margin and ROCE can be delivered based on current
sales prices, build costs and sales rates. The Group has acquired
circa 900 consented plots on eight sites in the second half of
2011, bringing the total added in the year to date to circa 2,500
consented plots across 17 sites, mainly located in the south of
England. The pipeline of consented and strategic land remains
strong, giving the Group confidence that it can continue to deliver
sales outlet growth.
The Group remains on target to achieve five land sales in 2011,
which will generate proceeds of circa GBP50 million, the major part
of which will be received in 2011 with the balance delivered as the
land is serviced.
Balance sheet
On 4 November 2011, the Group had net debt of GBP31 million.
Given the phasing of housing revenues relative to land and
construction cost cash flows, as well as the benefit of land sale
proceeds, the Group expects to return to a modest net cash position
at the year end.
Outlook
As at 4 November 2011, cumulative sales achieved to date
expected to legally complete during 2011 were in excess of 2,000
homes. In line with previous guidance, the Group is on track to
deliver legal completion volume for 2011 between 5% and 10% ahead
of the prior year's 1,901 homes.
Sales prices achieved to date reflect the general stability of
the housing market with small differentials experienced in
different locations, prices being generally stronger in the south
of England. The Group expects its average sales price on private
legal completions in 2011 to be circa GBP180,000 (2010:
GBP172,300).
Given the Group's ongoing strong cost control, the housing
operating margin (excluding land sales) for 2011 is expected to
approach 10%, significantly ahead of 2010's operating margin of 7%,
with ROCE approaching 5%.
Further to the strong growth in active sales outlets in 2011, as
at 4 November 2011 80 of the targeted 85 average active sales
outlets for 2012 are already owned or controlled by the Group.
Subject to current market conditions continuing, the Group is
confident that it can deliver an increase in ROCE in 2012 to at
least 7% and make further strong improvements in 2013 and
beyond.
Enquiries: David Ritchie, Chief Executive
Jonathan Hill, Finance Director
Bovis Homes Group PLC
Tel: 07855 432 699
Andrew Jaques/Reg Hoare/James White
MHP Communications
Tel: 020 3128 8100
Conference Call for analysts
David Ritchie, Chief Executive, and Jonathan Hill, Finance
Director, of Bovis Homes will host a conference call at 08.00
today, Tuesday 8 November 2011, to discuss the Interim Management
Statement.
To access the call please dial +44 (0)20 3140 0668 and quote
passcode: 868503#. Please dial in 5 minutes prior to the start of
the conference call to allow time for registration. A recording of
the conference call will be available until midnight on 8 December
2011 on 020 3140 0698, accessible with the passcode 380717#.
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Certain statements may be forward looking statements. Forward
looking statements involve evaluating a number of risks,
uncertainties or assumptions that could cause actual results to
differ materially from those expressed or implied by those
statements. Forward looking statements regarding past trends,
results or activities should not be taken as a representation that
such trends, results or activities will continue in the future.
Undue reliance should not be placed on forward looking
statements.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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