11th Jan 2008 07:00
Bovis Homes Group PLC Trading Update 11 January 2008 Bovis Homes Group PLC is today issuing the following trading update ahead ofreporting its preliminary results for the year ended 31 December 2007 on Monday,10 March 2008. Against a backdrop of declining consumer confidence, strongly influenced byevents in the banking and financial markets over the second half of 2007, theGroup has concentrated upon delivering good margins, and was able to increasethe average private home sales price for 2007 by circa 4%. The average salesprice of the Group's legal completions as a whole for 2007 reduced to £179,400(2006: £183,700) as a result of changes in mix, predominantly arising from theincrease in the sales mix of social and partnership housing, which has increasedin contribution to 22% in 2007 from 13% in 2006. The volume of legal completionsfor 2007 decreased by 193, from 3,123 homes in 2006 to 2,930 homes in 2007. Landsales and other income were in line with the Group's expectations. Encouragingly, as a result of the Group's focus, profit margins have remainedstrong and the Group anticipates an operating margin, prior to the impact ofone-off acquisition costs, broadly in line with that achieved at the half year. Following significant investment in the second half of 2007, namely thesuccessful acquisition of Elite Homes in the North and the purchase of a keystrategic site at Filton in Bristol, the Group closed 2007 with £43 million ofnet borrowings. Net financing charges for 2007 were slightly lower thanexpected. The Group anticipates pre-tax profits for the 2007 financial year to be broadlyin line with the current average of analysts' forecasts. Looking ahead, a number of external market metrics suggest that activity in theUK housing market has slowed: both in terms of the lower rate of house pricegrowth, and in terms of the reduced number of new mortgages being issued. Giventhe rapid rate of emergence of these trends and an expectation that interestrate cuts will continue, the outlook for 2008 is not clear at present. The Groupis focusing on the key spring selling season as a likely guide to progressduring this year. Reflecting the slow down in activity during the second half of2007, the Group's 2008 forward sales position as at 31 December 2007 stood at816 reservations. This is some 19% lower than the very strong comparableposition at 31 December 2006, but is some 23% ahead of the comparable positionat 31 December 2005. Although the shorter term outlook is unclear, the Group remains confident of itslonger term prospects. This confidence is fuelled by the well publicised supplyand demand dynamic in the UK housing market and the support and encouragementthat the Government is providing to the housebuilding sector in its efforts todrive the house building activity necessary to support the development of the UKeconomy going forward. Conference Call for analysts Please note that Malcolm Harris, Chief Executive, David Ritchie, Group ManagingDirector and Neil Cooper, Group Finance Director of Bovis Homes will host aconference call at 09:00am today, Friday 11th January 2008, to discuss theyear-end trading update. To access the call please dial 020 7806 1966 and quote passcode: 4217263. Pleasedial in 5 minutes prior to the start of the conference call to allow time forregistration. A recording of the conference call will be available untilmidnight on 17th January 2008, commencing approximately 30 minutes after thelive call has finished, on: 020 7806 1970, access code: 4217263#. \* TEnquiries: Malcolm Harris, Chief Executive Bovis Homes Group Plc Tel: 01474 876200 Neil Cooper, Finance Director Bovis Homes Group Plc Tel: 01474 876200 Emily Bruning Shared Value Limited Tel: 0207 321 5027\* T Copyright Business Wire 2008Related Shares:
Vistry Grp