Bovis Homes (BVS) reports half-year results on Monday and the housebuilder has already provided a taste of what to expect with last month's trading statement. Legal completions in the first half have risen 54 per cent to a record 1,487, while average selling prices increased 11 per cent to £210,000.
Moreover, the operating margin is set to rise to 15 per cent from last year's 11.1 per cent and the group has continued to expand its consented land bank, adding 4,597 plots. That, though, has boosted net debt from £18m at end-2013 to £45m. Crucially, the return on capital employed is expected to have nearly doubled to 13.2 per cent. True, trading in recent weeks has moderated - as it always does at this time of the year. But despite some tough comparatives - last year's performance around this time was boosted by the first wave of Help to Buy purchasers - net private reservations per site per week are still ahead by 10 per cent.
Shore Capital expects full-year pre-tax profit of £130m, giving EPS of 76.2p (from £79m and 44.9p in 2013).
