Kent-based Bovis in the black and buying land again
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by Trevor
Sturgess
Kent-based Bovis Homes Group has reported annual pre-tax profits
of £4.8m, thanks partly to cutting overheads and a gentle recovery
in the housing market.
Bovis, which has its head office in New Ash Green, near
Gravesend, saw a big turnaround in its fortunes following a £78.7m
loss the previous year.
Its strategy of cost-cutting, including a steep reduction in job
numbers, and cheaper long-term banking facilities helped restore it
to the black in year ending December 31.
Bovis cut overheads by 34 per cent over 2008, and by 45 per cent
over the position at the start of 2008.Reservations of private
homes rose by 82 per cent
Bovis said it has started buying up land again, with the
acquisition of four sites with planning consent, and terms agreed
in principle on a further 15 sites.
Chief executive David Ritchie said he was pleased with the
progress to date and the group was "well positioned to increase its
output capacity, as markets recover, supporting future profitable
growth."
Ed Woolfitt, head of trading at Galvan Research, said that as
evidence emerged from all quarters of a recovery and in some cases
a rapid improvement in the UK housing market, the preliminary
results announced today by Bovis "support this scenario and show
solid progress."
"We believe the momentum is still very much with housebuilders
and construction companies as recovery plays, and although the
General Election may cap short term price action, there is we
believe an opportunity to pick quality housebuilder market plays on
current share price weakness."
Bovis was "the pick of the bunch particularly given its stated
intention to use its balance sheet strength to acquire new land for
homes to support future growth."
Monday, March 08 2010
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