Bovis Homes enjoys 22% margin as profit runs to £124m
09:00 10 Mar 2008
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Bovis Homes has unveiled a pre-tax profit of £124m. Housebuilders might be claiming that times are tough, but Bovis was still able to produce a profit margin of 22%.
The latest financial figures cover the 12 months to 31 December 2007. Turnover ran to £560m.
In the previous year, turnover of £600m generated a pre-tax profit of £135m.
Malcolm Harris, chief executive, said that 2007 was a challenging year.
Looking forward he added: “The current housing market is weak. Sales reservations to 7 March 2008 are 1,262 as compared with 1,582 at the same point last year. Performance through the spring period remains critical in establishing the likely volume outcome for the current year.”
Bovis bought Elite Homes, a northern housebuilder, in October 2007, paying £72m. The sum was made up of £26m in cash and the balance was covered by additional debt.
Even so, Bovis reached the year-end with a net debt of just £44m.
Average prices achieved in 2007 by house type:
- one and two bedroom - £140,000
- three bedroom - £210,000
- four bedroom - £280,000
- five or more bedroom - £350,000
- retirement living - £280,000
- social housing - £86,000
- partnership housing - £79,000
(in partnership housing, a third party owns the land)