Bovis Homes – 633p

18 January 2013 – trading update

The group has issued a very positive trading statement for the year to 31 December 2012, confirming that profit before tax will be ahead of expectations.  The results have benefited from a 15% increase in completions,  an increase in average sales price and higher operating margins.  The group has a strong balance sheet with net cash of £19m at the year end and the new year has started well.  However, the shares have enjoyed a strong run and although prospects for the new year look good, the price looks up with events.  We reduce our recommendation to HOLD.

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