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Fri April 16 2021

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Labour shortages mar Bovis’ record year

19 Nov 15 Despite selling a record number of homes this year and putting up its sales prices, labour shortages have hampered the ability of Bovis Homes to grow its profit margins.

In a trading update, Bovis Homes said that its sales rate has strengthened in the autumn sales period, achieving a weekly private sales rate 20% ahead of last year. The business is on course to grow volume for the year by 8%, making it a record year for unit output, and the average sales price for 2015 is roughly 7% ahead of last year.

However, labour shortages have driven up its costs. Although these pressures are now showing signs of moderating, the end result is that the operating profit margin in 2015 will not be much ahead of 2014’s 17%, the company said.

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