AGM Statement

RNS Number : 9468O

Bovis Homes Group PLC

23 May 2018

 

23 May 2018

BOVIS HOMES GROUP PLC

Trading statement for the period covering 1 January 2018 to date

Bovis Homes Group PLC is holding its Annual General Meeting ("AGM") at 2:00pm today in Tunbridge Wells. This statement comments on the Group's current trading and outlook for the financial year.

Greg Fitzgerald, Chief Executive commented:

"Market conditions remain robust and we are on track to deliver another controlled period end.  Our HBF customer satisfaction score continues to trend well above 80% and with our exciting new housing range launched in April, we are well placed to meet our customers' needs and increase output, whilst optimising price and driving profitability."

Current trading

Customer satisfaction remains a key priority for the Group and following our focus on customer service in 2017 through investment and training, the Group's HBF Customer Satisfaction score (1 October 2017 to date) continues to trend at well above 80%, a 4 star rating, with 3 of our regions trending at 5 star (90% and above). 

Total sales for the year are in line with our expectations and pricing is strong. Our average private sales rate per site per week for the year to date is up 6% to 0.52 (2017: 0.49).  This rate excludes the sale of 275 units to Heylo Housing Association to be completed in 2018.

We have opened 12 new developments in the year and are operating from an average of 84 active sites. As planned, we have 11 new sites launching in the coming months, and expect our average active sites number to increase in the second half.

We are making good progress with our four major margin initiatives covering price optimisation, specification review, cost reduction and the launch of our new housing range.  In particular, our focus on driving prices across all our product whilst delivering high levels of customer service, has seen positive movements in pricing for the year to date.

We are delighted to have launched our new housing range for both private and affordable homes, The Phoenix Collection, in late April.  This market leading range will deliver exciting, high quality new homes as well as drive further price optimisation and a reduction in our costs.  We have already identified more than 50% of the private units in our owned land bank to be replanned, and expect our first completions from the new range from Spring 2019.

Our discussions regarding joint ventures and the reduction of our investment at our larger sites at Sherford, near Plymouth and Wellingborough are progressing well, and we are on track to deliver a total of at least £180 million of additional cash into the business by December 2018.

Dividends

Subject to shareholder approval at today's AGM a final dividend of 32.5p per share (2016: 30.0p per share) will be paid on 25 May 2018, giving a total dividend for 2017 of 47.5p per share (2016: 45.0p per share).

Outlook

Market fundamentals remain strong. We continue to see good levels of demand for new homes across all our operating regions with underlying pricing remaining firm.

The Group is making clear progress towards its medium term targets including a 23.5% gross margin and 25% return on capital employed. In the first 5 months we have seen positive results from our margin initiatives which represent further margin potential for the Group in the medium term.

Certain statements in this press release are 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 representative on that such trends, results or activities will continue in the future. Undue reliance should not be placed on forward looking statements.

For further information please contact:

Bovis Homes Group PLC Earl Sibley, Group Finance Director Susie Bell, Head of IR	01474 876219 07811 988617
Maitland Neil Bennett James McFarlane	020 7379 5151

 

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