Housebuilder says first half of 2008 has been its toughest ever period of trading
Housebuilder Bovis Homes has reported an 80% slump in first-half profit following the 鈥渢oughest period of trading it has experienced in its life as a public company鈥�.
The UK firm posted adjusted pre-tax profit of 拢11.7m for the six months to 30 June 2008, compared with 拢58.4m in the same period last year. Revenue was 拢149.3m, down 43% from 拢259.9m in the first half of 2007.
The group said that its average sale price, at 拢167,600, was 12% lower than the previous year largely because of its increased level of activity in social housing construction. The proportion of its sales accounted for by social housing was 27%, compared with 13% last year.
The average sale price for private homes built by Bovis was 4% lower than during the same period in 2007.
The board said that the group remained 鈥渨ell positioned鈥� to deal with market turbulence.
David Ritchie, chief executive of Bovis Homes, said: 鈥淭he group has taken decisive action in response to the toughest period of trading it has experienced in its time as a public company.
鈥淚t has largely avoided new investments in consented land, has reduced production levels and has restructured to cut operating costs.
鈥淗aving done so, the group is well positioned to deal with prevailing market conditions.鈥�
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