The housebuilder reported strong profit growth for the first half of the year
Bovis Homes said it has reassured its subcontractors that the firm will continue building across all of the firm鈥檚 UK locations following the EU referendum.
The housebuilder also reported in its half year results that it plans to maintain its production programmes to deliver 鈥渁n appropriate level of work in progress鈥� going into next year, but would be cautious and watch the market closely.
The company reported a 15% increase in pre-tax profit to 拢62m for the six months to June 2016, up from 拢54m for the previous year. Revenue was also up 18% to 拢413m, up from 拢351m.
Customer confidence has been 鈥渞obust鈥� and the underlying fundamentals of for UK housebuilding 鈥漴emain positive鈥� with high levels of demand for new homes and ongoing under supply, Bovis Homes reported.
However, the company has increased the minimum return it expects from projects to mitigate any potential downside risk and market uncertainty and has reviewed and accelerated its marketing programme to increase sales activity on developments.
Bovis Homes also reported increasing build costs as labour remains constrained, but sees cost inflation running at a lower level than last year.
The firm added that the positive influence of the government鈥檚 Help to Buy scheme and planning policy remained high at what it was an important time to drive new build activity in the UK.
David Ritchie, chief executive of Bovis Homes said: 鈥淲hilst it is too early to judge the impact of the EU Referendum and the Bank鈥檚 monetary policy response on the UK housing market, the underlying market fundamentals for UK housing remain positive.
鈥淲e have been pleased with the resilient level of interest shown by potential home buyers contacting us鈥�
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