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News: Housing Slump To Continue, Warns Bovis Boss

Tue, 26 Aug 08

Bovis Homes’ chief executive has warned the housing market slump will continue for “the foreseeable future” after announcing disastrous latest results.

The homebuilding firm has revealed that pre tax profits fell to just £11.7m during the first half of the year, compared to £58.4m during the first six months of 2007.

Revenue is down from £259.9m in the first half of 2007 to just £149.3m this year. So far this year only 3,735 land plots have been created, compared to 14,294 during 2007.

David Ritchie, Bovis Home Group Plc chief executive, said: “The Group considers that the current difficult trading environment will continue for the foreseeable future with continued poor mortgage liquidity limiting housing market activity.”

Sales prices of its new homes are also down, by 4%, but Ritchie considers this “good” considering the current housing market.

by Joe Lepper (joe.lepper@home.co.uk)

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