Interim Management Statement

Bovis Homes Group PLC
                  

                              Bovis Homes Group PLC

                          Interim Management Statement

                                 6 November 2008

Bovis Homes Group PLC is today issuing its third quarter 2008 Interim Management
Statement.

The developments in financial markets over the last year, with their
acceleration over the recent past, have generated the worst trading environment
in the housebuilding market for many years. The lack of mortgage finance, as
evidenced by the 70% year over year decline in mortgage approvals for home
purchase reported for the third quarter of 2008, has led to a sharp decline in
home buying activity. This, together with the general economic outlook, has
weakened the confidence of prospective home buyers which is now creating further
drag on housing transaction activity and placing downward pressure on house
prices.

The Group anticipates that the results for the 2008 financial year will be
broadly in line with analysts' consensus expectations. Based on the current
level of reservations achieved, the Group anticipates legally completing circa
1,800 homes in 2008, of which circa 600 units will be social and partnership
homes. The Group commented in August that it would be competitive in its pricing
to ensure volume and cashflow delivery. Given this, together with significant
pricing pressure in competitive local marketplaces, almost all home sales
achieved since that date have required greater discounts and incentives. As a
result, sales prices have endured further downward pressure which is having a
detrimental effect on profit margins.

Given the present uncertainty within the residential land market, with a low
volume of land transactions, the Group intends to defer land sales previously
targeted for the second half of 2008 and, therefore, the Group's profits from
land sales are expected to end the year at a level similar to the profit
declared in the interim results.

Having undertaken a major restructuring of the Group announced earlier in the
year, the Group has identified further overhead savings. These savings, combined
with the benefit of the restructuring already achieved, have generated a
position where general overheads for 2008 are expected to be below £45 million.

The Group has taken decisive action to limit its new investment both in land for
development and in work-in-progress. There have been no purchases of land in the
second half of 2008 to date and the Group has restricted commencement of new
sites and new build releases on existing sites. Homes under construction have
been held at a predetermined stage unless a reservation has been achieved. As
previously indicated, the Group expects that production in 2008 will be at a
level comparable with the volume of legal completions in the year. The Group
remains focused on selling its current finished stock units, which generate a
full cash margin on sale, the majority of which are houses rather than
apartments.

At the time of its interim results, the Group guided that net debt was expected
to be circa £150-160 million at 31 December 2008 with an average net debt of
£110-120 million over the year as a whole. Based on the success of the positive
measures above, the Group expects to improve on this guidance in terms of both
year-end net debt and average net debt, albeit the actual net debt position at
31 December will be influenced by the timing of a number of social housing
receipts around the year end. The Group remains in compliance with its existing
banking covenants: net debt as at the date of this statement is £124 million. As
planned, discussions have commenced with the Group's relationship banks on
refinancing the Group's facilities given their natural maturity date of February
2010.

At each period-end, the Group is required to assess the carrying value of its
inventory and now anticipates that an inventory write-down will be required at
December 2008. Whilst based on current sales prices such a write-down would not
be significant relative to its overall inventory position, the Group also needs
to take into account house price evolution between now and the date of its
preliminary results announcement in March 2009 together with any reliable
estimates for price falls beyond this latter date, and will provide further
information with its preliminary results announcement.

During the current difficult market, the Group is focusing its efforts on
trading in a manner that generates cash through the orderly sale of homes, many
of which are at an advanced stage of construction, whilst also continuing to
reduce its operating costs. The Group aims to position itself in the mid term
with the balance sheet capacity to exploit good value development opportunities
which may arise near the nadir of the current downturn, building on its strong
record of prudent land acquisition.

Conference Call for Analysts and Investors

David Ritchie, Chief Executive and Neil Cooper, Group Finance Director of Bovis
Homes will host a conference call at 08:15am today, Thursday 6 November 2008, to
discuss the interim management statement.

To access the call, please dial 020 7138 0818. Please dial in 5 minutes prior to
the start of the conference call to allow time for registration. A recording of
the conference call will be available until midnight on 13 November 2008,
accessible on 020 7806 1970, passcode: 9994541#.

Certain statements maybe forward looking statements. Forward looking statements
involve evaluating a number of risks, uncertainties or assumptions that could
cause actual results to differ materially from those expressed or implied by
those statements. Forward looking statements regarding past trends, results or
activities should not be taken as a representation that such trends, results or
activities will continue in the future. Undue reliance should not be placed on
forward looking statements.

Enquiries:

Bovis Homes Group PLC
David Ritchie, Chief Executive
Neil Cooper, Group Finance Director
Tel: [phone]

Shared Value Limited
Emily Bruning
Tel: [phone]