Bovis Homes

20/2/2017 Final Result 2016

  • Weaknesses in our production process and a high level of customer service issues leading to a one‐off £7m customer care provision
  • over 3,000 plots added to our high quality consented landbank
  • net cash increasing to £38.6m
  • Dividend of 45.0 pence per share, an increase of 13%
  • we are slowing our rate of production and targeting completion on volumes for 2017 to be c. 10% to 15% below the 2016 level
  • The average selling price is again expected to increase reflecting the mix coming through our landbank. We continue to see market inflation impacting both the cost of subcontract labour and material supplies. To deliver on our operational priorities we will also see an increased level of investment in 2017 across the business.
  • This shortfall in performance had two underlying causes which inevitably have their origins in preceding periods. Firstly, our production processes have not been sufficiently robust to cope with the twin pressures of our growth strategy and the resource shortages across the industry. Secondly, we have not designed and resourced our customer service proposition and processes appropriately to deliver a ‘customer first’ culture.
  • We believe that the key factors which supported the positive market conditions in 2016 remain in place for 2017. The fundamental lack of supply in the UK housing market and the current strong demand from customers together provide a robust footing for the business.
  • The current shortage of skilled construction labour in the industry remains an operational challenge for the industry as a whole.
  • a final dividend for 2016 of 30.0 pence per share will be recommended.
  • David Ritchie, our previous Chief Execu ve, who stepped down in January 2017 a er eighteen years of valued service. Earl Sibley, the Group Finance Director, has taken on the role of Interim Chief Executive and the search for a permanent Chief Executive Officer is underway.
  • The Group’s customer service levels have experienced a decline in recent years, as evidenced by our HBF customer satisfaction rating.
  • The Group’s average construction cost per square foot in 2016 excluding the one off customer care provision was 11% higher than in 2015.
  • for the year inflationary pressures increased our total build costs by c. 5%.
  • The Group has recognised a tax charge of £33.9 million at an effective tax rate of 21.9% (2015: tax charge of £32.1 million at an effective rate of 20.0%).
  • Net assets per share as at 31 December 2016 were 757p (2015: 714p).
  • the deferral of c. 180 almost complete homes into 2017
  • We have a committed revolving credit facility of £250 million in place which was extended for one year during 2016 and now expires in December 2021.
  • shares (diluted) at 31 December 134,322,449

20/01/2017 Standard Life Investments

9,544,517; 5%

9/01/2017 Directorate Change

David said: “It has been a privilege to serve Bovis Homes as its Chief Executive over the last eight years as the Group has doubled in size and delivered record profits. I believe now is the right time for someone new to lead the Group into its next phase of development. I have spent over 18 years working for this great company and I wish Bovis Homes every success in the future.”

2/1/2017 Standard Life Investments

9,733,135 => 9,544,517; 7.095%

30/12/2016 capital consists of 134,522,340 Ordinary


  • 180 largely built and sold private homes which were expected to complete in 2016 being deferred into early 2017.
  • the profit before tax for the year ending 31 December 2016 is expected to be within a range of £160 million to £170 million (2015: £160.1 million) depending on the final volume delivery.
  • the Group is expecting to hold around 900 private forward sales at the start of 2017 (2016: 841).

17/11/2016 Legal & General

4,047,987 – 3.00%

10/11/2016 [Wrong]

Another year of both growth in volume and increase in average sales price is expected to deliver record revenues for the Group in 2016. As a result, we are on track to deliver increased profit and a further improvement in return on capital employed, in line with our expectations.

9/11/2016 Norges Bank

5,423,428 => 5,356,208; 3.98 %

4/10/2016 Standard Life Investments

13,415,807 => 10,815,824; 8.041%