Bovis profits surge 150%

Graham_Devon

Thanks to "pricing improvements".

Can you imagine Brtiish Gas, train companies, Tescos or water companies getting away with such an article in the BBC?

If British Gas had suggested their profits had surged thanks to "pricing improvements" the BBC would have lynched them!

House builder Bovis Homes has reported a 150% rise in pre-tax profits to £49.4m in the six months to the end of June compared with £18.6m a year earlier.

It said house sales had benefitted from a "modest" improvement in house prices.

Bovis reported a sharp rise in both the number and value of the properties sold.

It completed 1,487 property sales in the first half of the year, 54% higher than the same period a year earlier.

Bovis which builds the majority of its properties in Southern England, added it expected to complete 3,530 property sales this year, an increase of just over 1,000 sales compared with 2013.

The property developer also gave a robust forecast for the years ahead, saying it expected see new property sales increase to between 5,000 and 6,000 annually.

The average price paid for a new build property was 20% higher at £239,500 compared with £200,200 a year earlier it added.

http://www.bbc.co.uk/news/business-28833339

System

That's good, it will encourage them to build more.

wotsthat

Graham_Devon wrote: »

If British Gas had suggested their profits had surged thanks to "pricing improvements" the BBC would have lynched them!

54% increase in units sold might have something to do with it too
Improved mix of property sales
Modest increase in house prices (they've gone up you know)

Think more BA than BG. i.e. higher sales, higher proportion in business class and price increases across the board.

From the horses mouth..

http://www.bovishomesgroup.co.uk/media-centre/press-releases/press-release-158/interim-trading-results-2014/

CLAPTON

Graham_Devon wrote: »

Thanks to "pricing improvements".

Can you imagine Brtiish Gas, train companies, Tescos or water companies getting away with such an article in the BBC?

If British Gas had suggested their profits had surged thanks to "pricing improvements" the BBC would have lynched them!


http://www.bbc.co.uk/news/business-28833339

many of us don't see the BBC as an arbiter of business or economic competence or common sense.


so, a company that very recently was loss making and now sees a massive increase in sales and higher margins has a large percentage increase in reported profits.


what do your consider the 'correct' return on capital should be for house builders ?

shortchanged_2

Joeskeppi wrote: »

That's good, it will encourage them to build more.

Doubt it. I'm sure we'll continue to see more drip fed house building even though there is this huge demand.

CLAPTON

shortchanged wrote: »

Doubt it. I'm sure we'll continue to see more drip fed house building even though there is this huge demand.

do you have direct evidence of a location where they are lots of willing buyers who are being refused a house?






Graham claims to know of such a location but refuses to say where it is.

wotsthat

shortchanged wrote: »

Doubt it. I'm sure we'll continue to see more drip fed house building even though there is this huge demand.

They've 'drip fed' 54% more house building than the same period last year.

shortchanged_2

wotsthat wrote: »

They've 'drip fed' 54% more house building than the same period last year.

Yes and I'm sure they could build a lot more. The house building market in the UK is deliberately stifled in order to keep prices up.

CLAPTON

shortchanged wrote: »

Yes and I'm sure they could build a lot more. The house building market in the UK is deliberately stifled in order to keep prices up.

what evidence do you have?


why don't new entrants come into the market to make a killing with the high prices?
why don't you and your mates do that and become millionaires over night for doing practically nothing?

shortchanged_2

CLAPTON wrote: »

what evidence do you have?


why don't new entrants come into the market to make a killing with the high prices?
why don't you and your mates do that and become millionaires over night for doing practically nothing?

I'm not sure if my diy skills are quite up to building thousands of houses. I'm not sure if the banks would lend me the millions to start a house building firm seeing as I have no experience in the building trade. Do you think they would CLAPTON?

wotsthat

shortchanged wrote: »

Yes and I'm sure they could build a lot more. The house building market in the UK is deliberately stifled in order to keep prices up.

You've been asked the question - where is it that Bovis have been turning away potential buyers?

Not seen a Bovis site recently but if they're like others they usually have show homes and a sales office containing a salesperson trying to sell them as quick as they can.