Bovis Homes says trading strong, on track for profit growth

LONDON, Nov 8 (Reuters) - Bovis Homes (LSE: BVS.L - news) said buoyant trading conditions continued in the third quarter, placing the British housebuilder firmly on track to achieve strong profit growth in 2013.

The Kent-based firm, one of the smallest UK-listed construction companies in terms of market capitalisation, said it hit its target number of private reservations for 2013 at the end of September, significantly earlier than in prior years.

It also significantly improved its forward sales position for 2014.

"Our forward order book is in its best position for many years," said Bovis Chief Executive David Ritchie in a statement on Friday.

"The group is confident of its future prospects and ability to deliver significantly improved returns," he added.

Net (Berlin: NETK.BE - news) private reservations in the 44 weeks to Nov. 1 stood at 2,390, 45 percent ahead of the same period in 2012, and the group predicted operating margin for 2013 to approach 15 percent, higher than the 13.4 percent last year.

Bovis is one of a number of builders benefiting from government schemes to boost the housing market and it said improved access to higher loan to value mortgages and government support from the Help to Buy scheme have contributed to an already more confident housing market.

Earlier in the week, Persimmon (Dusseldorf: OHP.DU - news) , the largest UK housebuilder, said it was experiencing strong sales activity, though it had yet to gain any significant benefit from the government's mortgage guarantee scheme.

Shares in Bovis, which have risen by around 30 percent this year, closed at 162 pence on Thursday, valuing the company at 1 billion pounds ($1.6 billion).