Bovis Homes reports rising profits

<p>Profits are up at Bovis Homes.</p>

Bovis Homes has confirmed a big rise in its profits for the first six months of the year.

It was announced by the company that its profits jumped by 19 per cent to £18.6 million in the six months to the end of June.

Average prices were revealed by Bovis to be up 15 per cent to £188,500 and the firm said it has already sold 90 per cent of its homes for this financial year. As a result of this, Bovis stated that it expects profits for the full year 2013 to be up "significantly" on 2012's data.

Bovis Homes chief executive David Ritchie stated that buyer sentiment has been improving, partly due to the government's Help to Buy scheme.

However, some economists believe the UK could be heading for another house price bubble as the value of property is being artificially inflated.

Despite announcing a strong rise in profits, the share price of Bovis Homes is slightly down in the early stages of trading this morning (August 20th). As of 08:29 BST, its stocks were selling 0.13 per cent down on the start of the day.

Find up to date information on the FTSE 100 and spread betting strategies at City Index

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.