Bovis Homes Group PLC (BVS.LN), a second tier national British house building company, said Monday the group has maintained a solid sales rate for the period from July 1 to Nov. 5 against the backdrop of a market which continues to be challenging.

MAIN FACTS:

-To Nov. 5, the group has achieved 1,900 home sales which are anticipated to legally complete during 2010.

-Group currently has over 250 forward sales for legal completion during 2011, a total which will grow through the remaining eight weeks of 2010.

-Based on the Group's average number of active sales outlets of 66 for 2010 to date, the group has achieved an average sales rate per outlet per week of 0.42 homes as compared to 0.37 sales per outlet per week in the same period of 2009, representing an improvement of 14%.

-Group has succeeded in achieving sales prices above its internal target levels during 2010.

-Group expects the average sales price of legal completions in 2010 to be GBP160,000, some 3% ahead of 2009's average sales price of GBP154,600.

-This, when combined with the initial benefits of construction cost savings, has generated improvement in both gross profit margin and operating profit margin.

-Group anticipates that its 2010 operating margin will exceed the previous year's level of 6.2%.

-Group has acquired a further 1,381 consented plots, of which 92% are located in the south of England, in the second half of the year to date.

-In total, the group has now added 3,255 consented plots during 2010 at a cost of GBP182 million.

-Land additions to date are anticipated to generate returns in line with the Group's investment hurdle rates, with revenue of GBP628 million and gross profit of GBP158 million during their development period, based on current prices and costs.

-In addition, the group has agreed terms to acquire a further 2,500 plots with many now at an advanced stage in the acquisition process.

-Net cash position, with GBP14 million of net cash at the end of October, after land cash payments in 2010 to date of GBP106 million.

-Group anticipates generating net cash inflows during the balance of 2010 based on the remaining trading activity in the year.

-Total land cash payments for the 2010 year are expected to be GBP147 million.

-Group anticipates that its average number of sales outlets during 2011 will be 76, representing an increase of 15% over 2010.

-Expects market conditions to remain challenging over the coming months.

-Shares on Friday closed at 350.20 pence.

-By Tapan Panchal, Dow Jones Newswires. Tel +44(0)207-842 9448, tapan.panchal@dowjones.com
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