Bovis Homes Group Plc Builds On Positive Sentiment

Bovis Homes Group Plc (LON:BVS) is the latest housebuilder to report continuing improvement.

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

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.

If you are keen to earn such superb returns from ordinary shares, this free Fool report explains how buying into turnaround situations such as Bovis Homes is a vital step on the path to the serious investment success.

You never know, maybe one day your portfolio could be transformed by a quick 100% gain such as that enjoyed by Bovis’ shareholders.

Just click here to download this exclusive wealth-building report today.

> Sam does not own shares in any of the companies mentioned.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

More on Company Comment

Hand of person putting wood cube block with word VALUE on wooden table
Company Comment

Value has been building behind the Diageo share price

Despite the business growing, the Diageo share price first reached its current level just over 19 months ago and hasn't…

Read more »

Older couple walking in park
Investing Articles

5 stocks to buy for high and rising dividend income

I can see a host of shares to buy on the FTSE 100 offering me exceptional levels of income. Here…

Read more »

Young mixed-race woman looking out of the window with a look of consternation on her face
Investing Articles

I don’t care if FTSE 100 shares fall further, I’m buying them today

I'm happy to go shopping for FTSE 100 shares today, even though I accept that they could have further to…

Read more »

Happy young female stock-picker in a cafe
Investing Articles

Rolls-Royce shares are down 18% in a month and I’m finally going to buy them

Investors who bought Rolls-Royce shares have been repeatedly disappointed, but I'm willing to take a chance on them before they…

Read more »

Storytelling image of a multiethnic senior couple in love - Elderly married couple dating outdoors, love emotions and feelings
Investing Articles

How I’d invest £10k in a Stocks and Shares ISA today

Now looks like a good time to buy cheap FTSE 100 shares inside a Stocks and Shares ISA. These are…

Read more »

Black father holding daughter in a field of cows
Investing Articles

Today’s financial crisis is the perfect moment to buy cheap shares

I'm building a portfolio of FTSE 100 stocks by purchasing cheap shares whenever I see an opportunity. There's a good…

Read more »

Long-term vs short-term investing concept on a staircase
Investing Articles

I’d buy Tesco shares in October to bag their 5.4% yield 

Tesco shares have fallen lately but I think this makes them attractively valued for a dividend stock I would aim…

Read more »

Young mixed-race woman looking out of the window with a look of consternation on her face
Investing Articles

I would do anything to hold Diageo in my portfolio (but I won’t do that)

Diageo is one of my favourite stocks on the entire FTSE 100 and I'd love to hold it, but one…

Read more »