Housebuilder becomes latest to issue gloomy forecast for 2008, predicting 29% drop in pre-tax profit

Bovis Homes has become the fourth housebuilder this week to issue a gloomy financial forecast for 2008 ahead of its full results on 10 March.

Following downbeat figures from Redrow, Persimmon and Miller, it said reservations at 31 December 2007 were 19% down on the previous year against a backdrop of declining consumer confidence.

As a result Dresdner Kleinwort has cut its pre-tax profit forecast for 2008 by 29% to 拢123.6m and for 2009 by 34% to 拢132.6m.

Despite the slowdown, the group said it expects pre-tax profit for 2007 to be 鈥渂roadly in line with the current average of analysts鈥� forecasts.鈥�

The current consensus is 拢127.6m pre-tax profit on 拢583.4m turnover.

The average sale price in 2007 dropped from 拢183,700 to 拢179,400.

Bovis said the outlook for 2008 was unclear and that the spring selling season would be a guide to its progress during the year

Topics