House builder Bovis Homes expects revenues and profits to increase when it reports its final year results thanks to a record number of completions and an increase in sale prices.

The developer, based in New Ash Green, near Brands Hatch, built 3,934 homes last year, an increase of 8%, with sale prices up by 7% to about £231,000.

The FTSE 250 company, which has developments across England, said it expects its operating profit margin to top 17%, with an 18% return on capital employed.

It acquired 35 sites with planning consent last year, adding 6,058 housing plots to its land bank, which measures about 23,000 plots.

It had £30 million in the bank at the end of last year, having started it with £5 million net cash following a year of investment in land.

However, it said the lack of subcontractor labour remains a key constraint on the housing market, which has increased costs, athough it said this was “moderating”.

It said it expects growth to continue this year.

Chief executive David Ritchie said: “We have delivered the group’s highest ever level of profit driven by another year of record volume in 2015.

“Our strategic plan is on track and we have enhanced our business structure for the start of this year to manage the planned further growth in volume.

“We have invested well during 2015 in new consented land assets and achieved a strong level of conversion from our strategic land bank.

“Assuming market conditions remain stable we are confident in our ability to improve return on capital employed further in 2016.”

Bovis Homes will report its final results for 2015 next month.