Bovis Homes Reports Strong & Stable Sales

Bovis Homes posted a ‘strong performance’ in its trading update for the six months to 30 June 2019. It reported a 15% increase in average private sales rate per site per week and said this ‘reflected a step change in the Group’s performance and stable market demand.’

The company added that it delivered a total of 1,647 homes in the half year, a 4% increase on the prior year, with 1,031 private units and 616 affordable. It said that the private average selling price increased to c.£342,000 from £334,700 due to an improved geographical spread of sales but with underlying pricing remaining broadly flat. 

Greg Fitzgerald, Chief Executive, commented: “I am very pleased to report an excellent first half performance across the Group and in particular, a significant improvement in profitability, a strong cash position and a step up in our sales rate compared to the same period last year. We have had another controlled period, focused on delivering high quality homes and we are currently trending at a 5-star HBF customer satisfaction rating.  We start the second half with a strong forward sales position and expect to deliver an improved performance in 2019.”

The eagle eyed might have noticed the reference to quality discreetly tucked away in the CEO’s comments: Housebuilders including Bovis have of course been beset by criticism and complaints over the quality of their work in recent years. This latest statement together with only a modest increase in output could be taken as inferring that, in a market which tends to favour large scale new house building, Bovis instead prefer to focus on quality over quantity.

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Source London Stock Exchange
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