Bovis Homes today posted a doubling in half-year profits and said it expects more big gains despite tougher trading conditions since June.
The housebuilder increased its number of sales outlets by a fifth in the first half of 2012 - focusing on the more robust southern market - as pre-tax profits jumped to £16.2 million from £8.1 million a year earlier.
And despite a quieter than usual summer, Bovis said its profits should "continue to increase significantly" in the second half of this year. It doubled its half-year dividend to 3p a share in a sign of its confidence.
Like other housebuilders, it is benefiting from an increasing proportion of sales on sites acquired at cheaper prices after the housing market downturn.
Bovis completed 944 house sales in the first half of the year, up 18% on a year earlier and with an average sale price of £164,400. It said prices in the south, where it has 70% of its land bank, were more robust than in locations further north.
The company added: "In the short term, the group expects market pricing to remain relatively stable at the current levels, as the group foresees few significant changes in either housing market supply or overall customer demand."
Shares rose 2% after the half-year results beat market expectations.
Numis Securities analyst Chris Millington said it was testament to the investment in new land which has boosted turnover and profit margins.
He has increased his full-year profits forecast from £46.6 million to £50 million and by £3 million to £67.4 million for the following year.
Bovis said the improved result was achieved against the backdrop of "stable, but challenging, UK housing market conditions, reflecting the continuing restriction of higher loan to value mortgage lending."
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It added that the usual summer seasonality effect on the housing market was more marked than was seen in either 2010 or 2011.
