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Thu February 27 2020

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Bovis warns on profits

3 Jan 17 House-builder Bovis Homes says that its 2016 profit margins will be slightly down on the previous years.

In a 28th December pre-close update ahead of reporting its final results next month, Bovis said: “We expect the volume delivery for 2016 will be lower than previously anticipated at between 3,950 and 4,000 homes, the exact number depending on the extent of legal completions in the remaining days of the year.  We have experienced slower than expected build production across the group's sites during December, resulting in approximately 180 largely built and sold private homes which were expected to complete in 2016 being deferred into early 2017.”

It said that 2106 revenues were expected to be between £1.04bn and £1.06bn (2015: £946.5m) and pre-tax profit would be between £160m and £170m (2015: £160.1m).

"Whilst the operating profit margin is expected to reduce modestly compared to the prior year, this improved capital turn will assist in supporting return on capital employed in 2016," the board said.

Bovis Homes’ share price fell from 855 pence to 812 pence on the news, before later climbing back up to 820 pence.

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