chief executive Malcolm Harris announces results for a "challenging year", blaming several interest rate rises
Bovis Homes has said sales in 2008 will be “well below” last year unless interest rates are cut now.
Announcing the company’s results for the year to 31 December 2007, chief executive Malcolm Harris said: “Cumulative sales reservations for 2008 to 7 March are 1,262 as compared to 1,582 at the same point in the previous year.”
In 2007, pre-tax profit at Bovis was down 9% from £135.5m to £123.6m and turnover fell 7% from £597.3m to £555.7m.
During the year Bovis completed 2,930 homes compared to 3,123 in 2006.
Harris said: “2007 was a challenging year for the industry following several interest rate increases, allied with a reduction in availability of funding, particularly for first-time buyers. Against that background the group delivered a good performance.”
It held its sector-high operating margin of 22.8%.
Citigroup called the performace “ok” and Kaupthing said the results were “broadly as expected although a touch light”.
Harris also announced that he was stepping up from chief executive to non-executive chairman on 2 July. Current managing director David Ritchie will replace Harris and current chairman Tim Melville-Ross will leave the group.
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