Bovis Homes trading in line with expectation

Bovis Homes Group PLC interim Management Statement has revealed that during 2010 to date, its weekly reservation rates have been consistent and in line with the Group’s expectations.

The first two weeks in January were affected by poor weather. In the following 15 weeks to 30 April 2010 the Group has achieved an average private sales rate of 0.47 reservations per week per outlet, as compared to 0.41 per week throughout 2009. By 30 April 2010, the Group held 1,208 total sales for 2010 legal completion of which 643 sales were brought forward from 2009 and 565 sales were achieved in the first 17 weeks of 2010.

This is an 11% increase on the comparable 1,092 sales for 2009 legal completion held at the same point in 2009. At 30 April, the Group held 938 private sales for 2010 legal completion, up 14% on the prior year comparable of 823 sales.

As previously outlined, the Group is focusing on the acquisition of land with 811 plots added to the consented land bank across seven sites and terms agreed in principle on a further 18 sites which will provide circa 2,500 plots. This strong progress to date means the Group has already agreed land acquisition opportunities well in excess of the £59 million raised in the share placing in September 2009 to support land acquisition.

David Ritchie, Chief Executive commented"Looking ahead, the Group expects trading to continue to be stable, although the general election does create uncertainty, in particular as regards the macro-economic backdrop. Notwithstanding this uncertainty, the Group is selling homes in line with its targeted weekly sale rate and a continuation of this will allow the Group to achieve its volume expectations for 2010. "