Commercial Property News

Bovis Homes Group Plc today said it expects 2010 to be another subdued year as mortgage approval volumes slowly rise, but its full-year underlying profit will meet its expectations, echoing comments from peers of a stabilisation in the sector, and supported by a healthier forward order book..

However, the company said it re-entered the residential land market in the latter part of 2009, following it's £60million cash call,  and has already acquired four sites with terms agreed in principle on a further 15 sites and further acquisitions planned.

The company said that at the end of 2009 it had net cash of £113 million compared with net debt of £108 million a year earlier.

Bovis said it legally completed the sale of 1,803 homes in 2009, similar to the 1,817 in 2008. Of these, 1,527 were private homes--a 25% rise on 2008--although the average sale price of these houses fell to £165,500 from £181,000.

At the end of 2009, the company's sales order book for 2010 totaled 643 homes for delivery--some 218 homes more than at the same time a year earlier.

The company, one of the smaller midcap listed housebuilders, added it is still in line to benefit from a inventory provision release after an assessment of the value of land assets.

Toward the end of 2009, Bovis said it started talks with its banking syndicate over its existing banking facility and now has credit approval subject to documentation for a replacement £150 million syndicated facility which would mature in September 2013.

The housebuilder will post its 2009 results on March 8.