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Bovis tells investors to expect ‘significant step up in profitability’
House builder Bovis Homes has told investors to expect “a significant step up in profitability” as it announced a modest rise in the number of homes built in the past six months.
The group, one of the largest private builders in the country, completed 1,580 homes between January and June – a 4.5% increase on the 1,512 in the same period the year before.
This comprised 1,030 private homes and 550 ‘affordable’ units, 35% of its total output, and a higher percentage than the 25% built in the same period in 2017.
However, Bovis said this “reflects the planned build programme” and advised shareholders the figure would be similar to 2017 for the full year.
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The average selling price for private homes was £335,000, a marginal increase on the £334,700 the year before.
Greg Fitzgerald, chief executive of Bovis Homes, said: “We expect to deliver a significant step up in profitability for the half-year as we start to see the financial benefits from the strategic direction, changes implemented, and specific margin initiatives launched over the past 18 months.
“In addition, we have delivered another disciplined and orderly period end, with our customer satisfaction score continuing to trend at well above 80%.”
Bovis has endured some difficult periods in the past three years, having issued a profit warning in December 2016, which saw its chief executive resign.
The company then became embroiled in a scandal over the poor quality of some new build homes, with negative stories appearing in a number of national papers.
The company’s share price has grown steadily since the start of last year, however, and rose 0.6% in the early trading this morning.
