LONDON, Jan 18 (Reuters) - Britain's Bovis Homes said itexpects to post profit before tax for the year to the end ofDecember ahead of market expectations, helped by a rise in itsaverage sales price and its investment in consented land.
The housebuilder said its profit was driven by a 15 percentrise in its legal completions to 2,355 homes, a 5 percent gainin the firm's average sales price to 170,700 pounds ($272,600)and rise in its operating profit margin to 13.5 percent.
"We delivered significant growth in profits and returns as aresult of our continued strategy for growth through investmentin high quality consented and strategic land," Chief ExecutiveDavid Ritchie said in a statement on Friday.
"This strategy will be further progressed in 2013, which,subject to stable market conditions, should deliver strongimprovements in the Group's returns in 2013 and beyond."
"The group expects to announce profit before tax for 2012ahead of market expectations," the company said.
Bovis and its rivals have so far enjoyed strong demand fortheir homes despite the UK's gloomy economic outlook, helped bygovernment schemes to boost the market, a strategy of buyingland cheaply during the recession and building in south Englandwhere house prices have stayed strong.
Barratt Developments and Taylor Wimpey saidin separate statements this week that they expect to reportsignificant increases in full-year profits.
Bovis said that at Jan. 1, it held forward sales for 2013delivery of 778 homes, an increase of 37 percent compared to the568 homes at the start of 2012. It said it started 2013 with 90active sales outlets, up from 80 at the start of 2013, andexpects to grow this number further in 2013.
Shares in Bovis closed at 636.5 percent on Thursday, valuingthe company at 270.8 million pounds.
Barratt Developments (BDEV)
Taylor Wimpey (TW.)
