Profits plunge 80% at Bovis Homes

Housebuilder Bovis Homes has reported an 80% slump in first-half profit following the “toughest period of trading it has experienced in its life as a public company”.

The UK firm posted adjusted pre-tax profit of £11.7m for the six months to 30 June 2008, compared with £58.4m in the same period last year. Revenue was £149.3m, down 43% from £259.9m in the first half of 2007.

The group said that its average sale price, at £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 “well positioned” to deal with market turbulence.

David Ritchie, chief executive of Bovis Homes, said: “The group has taken decisive action in response to the toughest period of trading it has experienced in its time as a public company.

“It has largely avoided new investments in consented land, has reduced production levels and has restructured to cut operating costs.

“Having done so, the group is well positioned to deal with prevailing market conditions.”