Bovis profit down, 18% rise in completions

24th Aug 2009 07:24

Housebuilder Bovis saw profits drop sharply in the half year due to the adverse impact from significantly lower home sales prices, though private legal completions grew by 18%.Pre-exceptional profits before tax came to £1.2m in the six months ended 30 June, down from £11.7m in the first half last year. Post-exceptionals, the group made a loss before tax of £8.6m compared with a £9.5m profit last time.The group generated £122.6m of revenue, a fall of 18% versus the comparable period. Within this, housing revenue fell by 16% to £120.4m. Land write-downs came to £8.9m.Bovis legally completed 754 homes in the first half of 2009 (2008: 851 homes). Of these, 738 homes or 98% were private, an 18% increase on the comparable number in 2008 (624 homes or 73%). 'The group has made good progress during the first half of 2009, with a 92% increase in the volume of private home reservations,' said chief executive David Ritchie.'The group is well positioned now to take advantage of an increasing number of opportunities to invest in new consented residential land assets which can achieve profit returns at or above the group's investment 'hurdle' rates.'