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Better volumes and prices see Bovis Homes profits soar 74%

Bovis Homes Group has reported a pre-tax profit of £32.1m for 2011, a 74% increase on the £18.5m profit it made in 2010.

The firm says the jump in profits is down to increased volumes, improved sales prices and stronger margins.

It legally completed 2,045 homes last year, a rise of 8% on the 1,901 homes completed in 2010.

The average price of a private sale was £180,100 in 2011, up 5% on 2010’s average of £172,300. And the firm’s housing gross margin was 20.8% last year, compared with 17.9% in 2010.

It says sales prices achieved in 2012 so far have been modestly ahead of expectations, and it is on track to have 85 active sales outlets this year, compared with 73 in 2011.

David Ritchie, chief executive of Bovis Homes Group, says: “Progress has also been made in positioning the group for continued improving returns. The substantial land investment in recent years will deliver a strong increase in active sales outlets in 2012.

“Based on current market conditions, this will enhance volumes, sales prices and profit margins.”

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