First-half results show 拢8.6m loss for housebuilder but private reservations rise 92%
Housebuilder Bovis Homes has swung to a first-half loss of 拢8.6m but benefited from a surge in private reservations.
The firm posted a pre-tax loss of 拢8.6m, after exceptional items, in the six months to 30 June 2009, compared with a profit of 拢9.5m in the same period last year.
However, net private reservations jumped by 92% to 901 during the period and the group completed 738 private homes, an 18% increase on the 624 homes completed in 2008.
Profit before one-off items fell 90% to 拢1.2m, down from 拢11.7m in the first half of 2008, while revenue slipped to 拢122.6m, down 18% from 拢149.3m last year.
Average sales prices dipped by 5% to 拢159,700 from 拢167,600 the previous year and gross margin fell from 26.3% to 16.2%.
Bovis said house prices were 鈥渄emonstrating a degree of stability鈥� and that it expects improved demand for its homes as consumer confidence grows. However, it warned that mortgage availability and rising unemployment posed continuing challenges to pricing in the short term.
The group added that it had cut its net debt from 拢108m at 31 December to 拢14m at 30 June and expects to end the year in a net cash position.
David Ritchie, chief executive of Bovis Homes, said: 鈥淭he group has made good progress during the first half of 2009, with a 92% increase in the volume of private home reservations.
鈥淭he group achieved a pre-exceptional profit before tax for the half year, despite the adverse impact from significantly lower home sales prices, as private legal completions grew by 18% and overheads were successfully reduced by 48%.鈥�
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