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Bovis Homes has started raising money as it targets £180m of additional cashflow by December to boost its recovery.
The huge house builder issued a trading update for the past five months, detailing the initial results of its recovery efforts after appointing Greg Fitzgerald as its new chief executive.
Bovis said it had generated £21.9m from selling its shared equity portfolio and is reducing its level of work in progress. It also raised £12.9m from selling land and is continuing a review of its land bank, which it will reduce.
Mr Fitzgerald said: “We are making encouraging progress towards all of our medium-term performance targets, with continued improvement in customer satisfaction and excellent progress in optimising the balance sheet and bringing additional cash into the business.
“We expect to have a net cash position of at least £100m as at 31 December 2017. Trading is in line with expectations, the market remains strong, and we are on track to deliver another disciplined period end.”
Bovis’ former chief executive resigned in January this year after a profit warning at the end of 2016, but rejected merger bids from Redrow and Galliford Try in March.
It recorded a 31% fall in its profits for the six months to June 2017 as it went through what Mr Fitzgerald called at the time “a period of stabilisation and strategic reorganisation”.