Bovis Homes Group PLC Trading Statement (3754W)
November 14 2017 - 2:00AM
UK Regulatory
TIDMBVS
RNS Number : 3754W
Bovis Homes Group PLC
14 November 2017
14 November 2017
BOVIS HOMES GROUP PLC
Trading update
Bovis Homes Group PLC (the 'Group') is today issuing a trading
update in respect of the period from 1 July to 10 November 2017
(the 'period').
Greg Fitzgerald, Group CEO said
"We are making encouraging progress towards all of our medium
term performance targets with continued improvement in customer
satisfaction and excellent progress in optimising the balance sheet
and bringing additional cash into the business. We expect to have a
net cash position of at least GBP100 million as at 31 December
2017. Trading is in line with expectations, the market remains
strong, and we are on track to deliver another disciplined period
end."
Strong sales position
We are fully sold for our targeted FY 2017 completions with an
average sales rate over the period of 0.52 (H1 2017: 0.48).
Pricing remains robust and we expect to deliver an increase in
the average selling price for FY 2017, largely driven by changes in
mix with a modest increase in underlying prices.
Significant improvement in customer satisfaction
Delivering a high level of customer satisfaction across the
Group remains a key priority and we are pleased to report that our
HBF Customer Satisfaction rating on completions since 1 February
2017 has averaged 75%, equivalent to a 3-star rating. We remain
confident in achieving our medium term target of a 4-star
rating.
Operating structure
Our initiatives to simplify and streamline our operating
structure to reduce costs and make us more agile, are progressing
well and we are on track to deliver our target of overheads being a
maximum of 5% of revenue from FY 2018 onwards. As previously
announced, we expect to take an exceptional restructuring charge of
c. GBP4 million in H2 2017.
We are advancing the development of our new product range which
will provide us with c. 22 attractive, new house types to be
launched across the Group in 2018.
Balance sheet restructuring
We have set out a clear programme of balance sheet optimisation
targeting a minimum of GBP180 million additional cash flow into the
business by December 2018.
We are pleased to have concluded the disposal of the Group's
shared equity portfolio in the period, generating a cash receipt of
GBP21.9 million. We are very focused on reducing our level of work
in progress and have seen a significant reduction in our holdings
of both stock properties and part-exchange units during the
period.
We have also made two land sales in the period realising
proceeds of GBP12.9 million. We will continue to review our land
bank as we progress towards our target of reducing to 3.5 to 4.0
years of owned land (14,000 - 16,000 plots).
We therefore expect the Group to have a strong net cash position
as at 31 December 2017 of at least GBP100 million.
Outlook
The demand for new homes continues to be robust across all our
regions and customer interest remains good. The industry
fundamentals are strong given the Government's housing policy, in
particular Help to Buy, the low interest rate environment, and the
competitive mortgage market.
We set out our clear operational priorities for 2017 to
transform and re-set the business and have made positive progress
against these. We are confident of delivering profit, pre one-off
and exceptional costs, in-line with the Board's expectations for FY
2017 and a significant improvement in profits for FY 2018.
For further information please contact:
Bovis Homes Group PLC 01474 876219
Earl Sibley, Group Finance
Director 07811 988617
Susie Bell, Head of Investor
Relations
Maitland
Neil Bennett
James McFarlane 020 7379 5151
This information is provided by RNS
The company news service from the London Stock Exchange
END
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