Bovis Homes Group PLC Trading Statement (4493H)
November 15 2018 - 2:01AM
UK Regulatory
TIDMBVS
RNS Number : 4493H
Bovis Homes Group PLC
15 November 2018
15 November 2018
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 11 November
2018.
Greg Fitzgerald, Group CEO said
"The Group's improved operating performance including the
transformation of our customer service and step change in build
processes and quality is driving a significant improvement in our
financial performance. We are fully sold for this year and continue
to target a record year of profits for 2018."
Strong sales position
We are fully sold for our targeted FY 2018 completions and
expect to deliver another controlled and disciplined period end in
December.
Customer satisfaction is a top priority and the Group is
consistently delivering high levels, with our HBF Customer
Satisfaction score for the year from 1 October 2017 trending at
well above 80%. We are confident of achieving our target of a HBF 4
star customer satisfaction rating for 2018.
Our sales rate per outlet per week for the year to date is 0.51
(2017: 0.51), with pricing in line with our expectations. Whilst we
have maintained our rate of sale, the uncertainty surrounding
Brexit has impacted discretionary buyers. We have increased our use
of part exchange which is running at c. 15% of reservations in the
second half. We continue to be disciplined in our use of part
exchange with completions in the period operating in line with our
policies and procedures.
Help to Buy remains an important scheme, particularly for first
time buyers, and we are pleased with the Government's extension for
a further two years to March 2023. The restrictions to the scheme
from March 2021 are not unexpected, and we do not expect any
significant reduction in the use of the scheme for our new homes as
a result.
Increased land activity
As planned we have increased our land activity to ensure we
maintain a good supply of high quality developments in line with
our target of a 3.5 to 4.0 year owned land bank. We are seeing good
opportunities in the land market and continue to make acquisitions
with an average expected gross margin of at least 26% and ROCE of
25%. In the second half to date, we have secured 1,988 plots across
9 developments of which 4 have been converted from our strategic
land bank. In addition to these developments we have agreed terms
for c.1,000 plots across 8 developments that we expect to convert
into our land bank in the balance of 2018 or the first quarter of
2019.
Balance sheet optimisation
We are advancing our 50:50 JV agreement at Wellingborough and
continue to expect to deliver our target of a minimum of GBP180m of
cash released into the business from our balance sheet optimisation
programme by December 2018.
Outlook
We are making good progress against our medium term targets and
on track to achieve a number of them as early as this December. We
expect 2018 completions to be in line with our expectations and
with progress on our margin initiatives and improved operating
performance, the Group continues to target profits for the year to
be at a record level, in-line with the Board's expectations.
For further information please contact:
Bovis Homes Group PLC 01732 280272
Earl Sibley, Group Finance Director 07811 988617
Susie Bell, Head of Investor Relations
Maitland
Neil Bennett
James McFarlane 020 7379 5151
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END
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