Twitter Facebook RSS FEEDS

Bovis sees profits slump

Tuesday, 26 August 2008 12:00 AM

A slump in the UK property market has seen profits at Bovis slip dramatically.

The homebuilder revealed its half year results today and confirmed profits have fallen 84 per cent over the first six months, in what is described as "the toughest period of trading" the firm has experienced in its time as a public company.

While Bovis made £11.7 million in adjusted profit before tax in the first half of the year, this is down from £58.4 million in the same period last year.

In response Bovis has largely avoided new investments in consented land, reduced production levels and restructured to cut operating costs.

Commenting on the figures David Ritchie, chief executive of Bovis Homes, said: "The group considers that the current difficult trading environment will continue for the foreseeable future with continued poor mortgage liquidity limiting housing market activity.

"Actions continue to be taken to conserve cash and a realistic approach is being taken in respect of achievable net prices for the group's available homes to facilitate delivery of required volumes for the remainder of 2008," he added.

The average sale price of the company's homes has fallen by four per cent over the period. As such Bovis now sells its homes for an average of £196,700.

Earlier this year Bovis confirmed around 400 jobs are to be axed, along with the closure of its eastern regional office, with fewer subcontractors being taken on at its building sites.

Shareholders will receive a dividend of 5p a share, down from the 20p generated last year.

In response shares in Bovis fell 2.8 per cent to 416 pence at 08:52 BST this morning.

Chris O'Toole

Related stories

Savills sees profits slump

Savills sees profits slump

Savills sees profits slump

 Wolseley sees profits slump 35%

Wolseley sees profits slump 35%

Wolseley sees profits slump 35%
Construction site at sunset

Fall in housing fuels slump in construction orders

Orders for public and private housing both down in second quarter as construction industry faces up to worst prospects in 30 years.

 Building slowdown hammers Wolseley

Wolseley sees profits fall 77%

Wolseley sees profits fall 77%
mountains

Sales of property in Scotland slump

The number of properties being sold in Scotland has dropped dramatically - though some regions have fared better than others.

 Ministers say the cuts are vital to their plans to control the deficit. Image:PA

Government sees off changes to welfare reform bill

MPs overturn House of Lords amendments on bedroom tax and benefits cap.
In the market as a whole, the number of house hunters registering at estate agent branches fell slightly in October.

Home sales slump hits first-time buyers

Estate agents say mortgage and deposit problems behind fall in sales to lowest level since 2008.

 Belvidere Street in Aberdeen

Scotland sees rise in mortgage lending

Loans to first-time buyers and home movers both up in Scotland, but by less than in UK as a whole.
Bovis issues profit warning as crunch bites

Bovis issues profit warning as crunch bites

Bovis issues profit warning as crunch bites

 London continues to act as a safe haven for property investment. Image:Thinkstock

London sees only price rise in static November

Prices fall everywhere apart from the capital but national picture is no change, says LSL/Acadametrics.

Search property

Headlines

Directory

Alaris

Alaris Logo
Alaris specialise in quality Bathrooms and Kitchens along with many other unique products for your home. The range of kitchens, kitchen worktops and bathrooms is extensive and the highest quality so you are sure to find what you want. New bathroom furniture, bathroom suites, taps, showers and cabinets are added regularly.

Bathrooms365

Bathrooms365 Logo
Bathroom365 supply all areas of your new bathroom - leading-edge designed bathroom suites, stylish bathroom taps and showers, all styles and forms of shower enclosures and a vast collection of bathroom furniture.

Beds Direct

Beds Direct Logo
Whether you've just moved into a property and need to furnish it or just fancy having something new to sleep on, Beds Direct offer you a wide array of beds to order online or via the telephone.

Fitmykitchen

Fitmykitchen Logo
Fitmykitchen are specialist suppliers of kitchen appliances, sink taps, waste bins and furniture. So whatever you want from kitchen sink taps to waste bins look no further than fitmykitchen, UK, the specialist suppliers of kitchen appliances, stainless steel sink taps, waste bins and kitchen furniture.

MyStampDuty

MyStampDuty Logo
We help people buying property all over the UK to minimise Stamp Duty Land Tax on residential and commercial property. If you are looking at purchasing a new home or business premises over £500,000, contact us today by completing the form on the right

Oak Furniture Land

Oak Furniture Land Logo
For hardwood furniture, including Solid Oak, Mango, Mahogany, Sheesham, Acacia, Ash and Birch, look no further than Oak Furniture Land.

Propertywide

Propertywide Logo
Propertywide.co.uk is Countrywide plc's dedicated property website. Created to provide online access to all our estate agency, lettings and property related services, Propertywide.co.uk has been designed with the consumer at heart.

The 21st Century Radiator Company

The 21st Century Radiator Company Logo
Welcome to 21st Century Radiator Company. We supply a stunning range of traditional reproduction high quality cast-iron radiators and cast-iron baths. All our cast-iron radiators and cast-iron baths are brand new, fully tested and guaranteed for ten years.

Rated People

Rated People Logo
Whatever type of home improvement or garden remodelling project you have, Rated People can help you to identify the right tradesmen for the job in a way that is quick, easy, convenient and, as it is based on real-life recommendations, trustworthy.

Residential Land

Residential Land Logo
If you are looking for short or long term rentals in Central London, Residential Land have a portfolio of over 1200 flats and houses in the best postcodes across the Capital.

Simply Bedrooms

Simply Bedrooms Logo
Simply Bedrooms, a part of Sleepwell Bedrooms Ltd, supplying quality beds, wardrobes, sliding door wardrobes and bedroom furniture at low prices and great service, London and Home Counties Specialists.

Door Handles UK

Door Handles UK Logo
Door Handles UK is the UK's largest online range of Door Handle accessories, Door Hinges, Locks and Latches and so much more and all at genuine internet prices. We have a wide range of Chrome, Brass and Glass Crystal Mortice door knobs in both traditional and contemporary designs, whatever your taste and budget you will find a design to suit.

Woodlands Furniture

Woodlands Furniture Logo
We are an established family business situated in rural Herefordshire specialising in beautiful handcrafted classic reproduction furniture. Our comprehensive ranges are readily available from stock.

Join our directory aboutproperty.co.uk

Twitter

Join the conversation at #aboutproperty

Directory articles

Why increasing amounts of people are opting for house shares

London is an expensive place to live, however, house shares offer you the opportunity to enjoy the hustle and bustle of the capital for a fraction of the price you would pay to live on your own, making them a cost-effective way forward.

Why sliding door wardrobes are the best choice for small spaces

When bedroom space is at a premium, you need to be creative with the furniture you invest in. In terms of the wardrobe, you may want to consider those with sliding doors, as they are the most practical in small bedrooms thanks to the doors.

The durability of mahogany furniture is ideal for the office

For office-based businesses it is vital to invest in high-quality furniture that is both practical and comfortable to use. While there are many products to choose from, the benefits on hand with items made from mahogany mean it is an option you should be certain to consider.