Shares in Bovis Homes (LSE: BVS) lifted over 5% in early trade this morning, following a positive trading update in line with those reported by its rivals in the housebuilding sector recently.
Last week, both Taylor Wimpey and Persimmon announced improvements across the board, boosted by the government’s Help To Buy scheme, and management at Bovis Homes today were quick to acknowledge the initiatives that have “had a positive effect on customers’ confidence to buy a home and their ability to transact”.
Reservations were ahead of expectations, increasing 40% on the first half of last year, while net private sales rate per site per week rose 26% (the second quarter saw a very healthy increase of around 60% against its comparative period last year).
Chief executive David Ritchie commented:
“The Group has performed well in the first half of 2013 with a significant further improvement in housing profit, delivered from the ongoing successful execution of the Group’s growth strategy.
“Continuing its success in the land market, the Group has added 2,767 new consented plots to the land bank. With the positive progress in executing its growth strategy, the Group is well positioned to deliver higher shareholder returns.”
Management are also expected to announce a strong increase in housing profit within the company’s first-half results, due on 19 August.
Bovis Homes’ recovery has seen its shares rally from a 326p low in 2011, thereby more than doubling investments for those smart enough to spot the handsome buying opportunity as recently as two years ago.
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> Sam does not own shares in any of the companies mentioned.
