House builder Bovis Homes showed the EU referendum campaign had minimal effect on business as it reported growing sales and profits in the first half of the year.

Its chief executive David Ritchie said high levels of demand and ongoing under supply meant the “underlying market fundamentals for UK housing remain positive”.

Revenue increased 18% to £412.8 million while pre-tax profits jumped 15% to £61.7 million as the boss said he remained committed to the firm’s long-term growth strategy.

It comes after Bovis shares fell 37.5% in the two trading days after the EU referendum, down from £10.24 to £6.40.

They have since recovered to £8.21 at 8.50am today, although this is down 3.2% since the day began.

The New Ash Green-based company, which builds most of its developments in the south of England, completed the sale of 1,601 homes, up 5%, with an average sales price of £254,500, up 14% compared to the same time last year.

It will pay an increased interim dividend of 15p, up 9%, and said it had resilient level of prospects recorded during the summer period, with reservation rates improving after a short term slow down in July.

Mr Ritchie said: “Our forward sales position means we are well placed to continue this strong performance through the remainder of the year.

“Whilst it is too early to judge the impact of the EU referendum and the Bank’s monetary policy response on the UK housing market, the underlying market fundamentals for UK housing remain positive.

“We have been pleased with the resilient level of interest shown by potential home buyers contacting us.

“Our robust balance sheet, with debt lower than last year, means that we are well positioned to continue to take advantage of prime land opportunities at potentially higher returns.”

The company bought 1,267 plots of consented land across 11 new sites in the first half of the year, giving it a consented land bank of 19,477 plots across 138 sites at the end of June. It has 25,484 plots across 90 sites overall.

It said house prices were ahead of expectations with Help to Buy continuing to be a significant driver of sales.

Although rising construction costs are having an impact on profits, this has slowed down compared to last year.

“The combination of pricing gains and cost increases implies relatively stable land values and site profit margins,” said the firm in its report.