by Trevor Sturgess

Kent-based Bovis Homes Group has reported annual pre-tax profits of £4.8m, thanks partly to cutting overheads and a gentle recovery in the housing market.

Bovis, which has its head office in New Ash Green, near Gravesend, saw a big turnaround in its fortunes following a £78.7m loss the previous year.

Its strategy of cost-cutting, including a steep reduction in job numbers, and cheaper long-term banking facilities helped restore it to the black in year ending December 31.

Bovis cut overheads by 34 per cent over 2008, and by 45 per cent over the position at the start of 2008.Reservations of private homes rose by 82 per cent

Bovis said it has started buying up land again, with the acquisition of four sites with planning consent, and terms agreed in principle on a further 15 sites.

Chief executive David Ritchie said he was pleased with the progress to date and the group was "well positioned to increase its output capacity, as markets recover, supporting future profitable growth."

Ed Woolfitt, head of trading at Galvan Research, said that as evidence emerged from all quarters of a recovery and in some cases a rapid improvement in the UK housing market, the preliminary results announced today by Bovis "support this scenario and show solid progress."

"We believe the momentum is still very much with housebuilders and construction companies as recovery plays, and although the General Election may cap short term price action, there is we believe an opportunity to pick quality housebuilder market plays on current share price weakness."

Bovis was "the pick of the bunch particularly given its stated intention to use its balance sheet strength to acquire new land for homes to support future growth."