Tuesday May 6, 07:16 AM
Profits warning at Bovis
LONDON (ShareCast) - Housebuilder Bovis Homes says housing market conditions have deteriorated sharply in the last two months and results for the first half of 2008 will be substantially lower than previously anticipated. In 2008 so far
Bovis has seen a 30% decline in the number of reservations to 1,382 homes compared to 1,979 reservations in the corresponding period of last year. Housing gross margins have been maintained at high levels but the outlook for the remainder of 2008 is difficult to predict, the company said. The company has continued to build up its land bank since the beginning of the year. The group has residential planning consent on around 5,400 plots of strategic land, of which 3,200 plots are now owned and included in the land bank, with the remaining 2.200 under option. “The underlying shortage of houses in the United Kingdom, as evidenced by the government's ambition to deliver three million new homes by 2020, will underpin housing market activity in the future. With modest gearing and a strong consented land bank, Bovis Homes remains well positioned to benefit from improved housing market conditions when they arise,” the company said.
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