In a trading update today Bovis Homes said that its operational restructuring and cost reduction initiatives have now been completed.
A year ago Bovis Homes was blighted by scandal after paying residents to move into unfinished homes so that completion targets could claim to have been met. Out went chief executive Dave Ritchie and by April former Galliford Try chief Greg Fitzgerald had been recruited to sort out the problems. His prime solution was to instil discipline and slow down the build programme.
As a result, Bovis Homes delivered 3,645 completions in 2017, 8% fewer than in 2016 (3,977).
As previously disclosed, exceptional and one-off items in the year totalled £10.3m, comprising a £3.5m customer care cost, £2.8m advisory fees and £4m restructuring charge.
Bovis Homes operated from an average of 92 active sites in the year, compared to 99 in 2016. The reduction in site numbers during the year reflects the rescaling of the business and a drive to complete older sites. Average site numbers are expected to remain at a similar level in 2018.
Greg Fitzgerald said: "The group had a very disciplined year end and delivered against all of its financial and operational targets for 2017. There has been a step change in the quality of our homes delivered on completion and I'm pleased to see this reflected in our level of customer satisfaction which continues to improve. We've made excellent progress with our balance sheet restructuring resulting in a year end cash position significantly ahead of expectations. Our forward order position is strong, and with robust industry fundamentals, we expect the group to deliver a significant improvement in profitability in 2018."
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