Interim Results

Bovis Homes Group PLC
12 September 2005



                             BOVIS HOMES GROUP PLC
                                INTERIM RESULTS
                     for the six months ended 30 June 2005
                            Issued 12 September 2005

The Board of Bovis Homes Group PLC today announced its interim results for 2005
which have been prepared in accordance with International Financial Reporting
Standards ('IFRS') which are expected to be effective at 31 December 2005.

   • Pre tax profit of £45.1 million (2004: £66.8 million)

   • Earnings per share of 26.7 pence (2004: 39.9 pence)

   • Interim dividend increased by 30% to 8.3 pence net per ordinary share

   • Period end net borrowings of £52.6 million (9.5% gearing)

   • Operating margin at 23.0% (2004: 25.9%)

   • Plots with planning consent increased to 12,354 plots (owned: 12,097
     plots/controlled: 257 plots)

   • Strategic landholdings at 22,300 potential plots after transferring
     1,587 plots to consented landholdings during the first six months

Commenting on the results, Malcolm Harris, Chief Executive of Bovis Homes Group
PLC said:

'The Group has continued its success in procuring, promoting and achieving
residential planning consent from its strategic landholdings. During the first
half of 2005, the Group converted 1,587 plots of strategic land into its
consented land bank at a discount to market value. Further progress has also
been made in respect of promoting other large strategic landholdings.

Based on this strategic land position, the medium to long term prospects of the
Group are good. For 2005, the Group anticipates increasing the volume of legal
completions compared with that achieved in 2004, whilst maintaining the Group's
consistent objective to deliver strong margins that provides for sustainable
growth. The final outcome for volumes now depends on the number of reservations
achieved in the remaining two selling months of the year.

The Group has launched two new regions, Wessex and South Midlands, effective
from 1 July 2005 which will contribute to providing a strong base from which to
expand the Group.

The Group has increased its interim dividend by 30% to 8.3 pence per share and
the Board remains content with its stated intention to double the full year
dividend from 20.0 pence per share in 2004 to 40.0 pence per share in 2008.'

Enquiries: Malcolm Harris, Chief Executive    Results issued by: Andrew Best /
Bovis Homes Group PLC                                         Emily Bruning 
On Monday 12 September                                  Shared Value Limited
Tel: [phone]                                Tel: [phone]
Thereafter
Tel: [phone]

Chairman's interim statement

Bovis Homes Group PLC is pleased to announce its interim results for the six
months ended 30 June 2005. The interim results have been prepared in accordance
with International Financial Reporting Standards ('IFRS') which are expected to
be effective at 31 December 2005.


Results

For the six months ended 30 June 2005 the Group achieved a pre tax profit of
£45.1 million compared with the record pre tax profit of £66.8 million achieved
in the corresponding period of 2004, when the first half year profit
contribution was atypically high, driven by the exceptionally strong housing
market at that time. Earnings per share was 26.7 pence compared with 39.9 pence
achieved in the first six months of 2004. The Group's gross margin for the first
half of 2005 was 33.3% compared with 2004's half year gross margin of 34.7%. The
Group previously indicated, that during the full year 2005, it expected gross
margins to reduce by circa 2% due to the increased contribution from social
housing and construction cost increases ahead of sales price improvements. The
reduction in gross margin in the first half of the year by 1.4 percentage points
was indicative of both these factors taking effect. Lower trading activity in
the first half of 2005 reduced the efficiency of the overhead absorption in the
Group. Hence, the Group's operating margin was 23.0% compared to 25.9% achieved
in 2004.

The Group achieved total turnover of £214.5 million compared with £271.7 million
in the equivalent prior year period. Included in this year's figure were land
sales income and other income of £18.8 million compared with £9.9 million for
the first six months of 2004.

The half year results were generated from a lower volume of legal completions
than the prior year. The slowing of the second hand housing market had a
detrimental effect on the speed of conversion of reservations to contract
exchange and then onto legal completion. In the first six months of 2005, the
Group legally completed 1,089 homes compared with 1,302 legal completions in the
same period last year. As expected there was a greater contribution from social
housing in the first half of 2005 with 246 social units (22.6% of total legal
completions). This compared with 138 social units in the first half of 2004
(10.6% of total legal completions).

The Group has continued, through careful design of its sites, to move
progressively towards smaller, more affordable homes. This, combined with the
increase in social housing, has led to a smaller average size of home and
consequently a lower average sales price. The Group's average sales price per
unit for the current period was £179,700 compared to £201,100 for the comparable
six months of 2004. This represented a decrease year on year of 11%. The average
size of legally completed home decreased by 9.2% to 1,060 square feet compared
with 1,167 square feet in the equivalent period of 2004. Hence, the average
sales price per square foot decreased by 1.6%. Construction costs per square
foot during the first half of 2005 increased by 4.2% compared with the first
half of 2004.

The average sales price of the Group's private homes in the first six months of
2005 was £208,700 and compared to £214,700 in the equivalent period in 2004, a
reduction of 2.8%. The average size of private home reduced from 1,213 square
feet to 1,143 square feet, a reduction of 5.8%, hence the average sales price
per square foot of private homes year on year increased by 3.2%.

Dividends

The interim dividend of the Company will amount to 8.3 pence net per share, an
increase of 30% over 2004's interim dividend of 6.4 pence. This dividend will be
paid on 25 November 2005 to holders of ordinary shares on the register at the
close of business on 30 September 2005. The level of interim dividend represents
the first step towards the Group's commitment to increasing the 2005 full year
dividend by 25% to 25.0 pence net per share.

The Board remains content with its stated intention in respect of dividends. It
intends, conditional on any necessary approvals required at future general
meetings, to increase the full year dividend for 2005 to 25.0 pence net per
share followed by a 5.0 pence per share increase each year over the three years
2006 to 2008. This commitment, which is subject to a stable business
environment, will double the full year dividend to 40.0 pence net per share from
its 2004 base of 20.0 pence.

The Board intends to offer a scrip dividend alternative, pursuant to which the
shareholders may elect to receive the whole or part of their dividend in new
ordinary shares credited as fully paid instead of cash, for the 2005 interim
dividend.

Cash flow and borrowings

The Group's net borrowings at 30 June 2005 stood at £52.6 million compared with
opening net borrowings of £16.8 million. This level of net borrowing represented
a net debt/equity ratio of 9.5%. During the six months ended 30 June 2005, the
average net borrowings were £67.1 million and the average debt/equity ratio was
12.4%. Net borrowings included, under IFRS, fair value adjustments in respect of
interest rate swaps held against £75.0 million of the Group's borrowings. These
fair value adjustments increased net borrowings at 30 June 2005 and 31 December
2004 by £1.3 million.

As a result of adjustments required under IFRS, net financing costs, which
amounted to £4.3 million, included £1.8 million in respect of imputed interest
arising on deferred term land creditors. The remaining £2.5 million of net
finance costs reflected interest charges arising on the Group's fixed and
floating interest rate borrowings net of interest income arising on money market
deposits.

Land

The Group ended the first half of 2005 with 12,354 controlled plots in the
consented land bank (12,097 owned plots and 257 controlled third party owned
plots). This compared with 11,528 plots (11,174 owned plots and 354 controlled
third party owned plots) at 31 December 2004. During the first six months of
2005, the Group acquired 2,206 plots of land. Of this total, 1,587 plots arose
from the successful conversion of strategic land including 1,300 plots at
Brockworth Airfield, Gloucestershire, for which the Group obtained residential
planning consent on 13 January 2005, having promoted the site through the
planning system over a number of years. The controlled consented land bank
provides the Group with approximately four years of land supply. The Group has
remained cautious in the first half of 2005 in respect of purchases of consented
land, given the consistent strength of price for land which has an implementable
residential planning consent. The substantial strategic landholdings controlled
by the Group, which have short term potential for gaining residential planning
consent, provide the opportunity for the Group to limit the purchase of
consented land without reducing its ability to target volume growth over the
next few years.

The strategic land bank at 30 June 2005 stood at 22,300 potential plots compared
to 22,831 potential plots held at the start of the year. The Group added a
further 1,056 potential plots and successfully converted 1,587 plots into the
consented land bank at a discount to market value.

International Financial Reporting Standards

The results for the six months ended 30 June 2005 are the first results reported
under IFRS and have been prepared on the basis of the recognition and
measurement requirements of IFRS that are either endorsed by the EU and
effective (or available for early adoption) at 31 December 2005 or are expected
to be endorsed and effective (or available for early adoption) at that date. The
comparative results for the year ended 31 December 2004 and six months ended 30
June 2004 have been restated under IFRS. The Group published a report on 16 June
2005 entitled 'Preliminary information on the implementation of International
Financial Reporting Standards for the year ended 31 December 2004' which
provided information on the impacts of IFRS on the Group, presented the Group's
IFRS accounting policies, and restated the results for the year ended 31
December 2004 under IFRS compared to the previous UK GAAP. This report indicated
that the impact of IFRS on the Group at 31 December 2004 was to reduce net
assets by £7.1 million. As at 30 June 2005, the comparable impact of IFRS was a
reduction in net assets of £15.2 million. At 30 June 2004, the reduction in net
assets amounted to £14.6 million. The impact of IFRS on the profit and loss
account for the year ended 31 December 2004 was to reduce pre tax profits by
£0.4 million. The Group believes that the full year impact of IFRS on the 2005
results will be limited, however, due to the timing of a number of transactions
requiring adjustment under IFRS, the impact on the 2005 interim results was more
marked reducing pre tax profits by approximately £1.4 million. The corresponding
impact on the 2004 interim results was less material with a reduction of
approximately £0.4 million.

Forward order book

Against the backdrop of a challenging housing market, Bovis Homes achieved to 30
June 2005 a cumulative reservations total of 2,038 homes (excluding forward
sales for 2006) compared to 2,102 homes (excluding forward sales for 2005) at
the same time in 2004. This represented a reduction of 3% year on year. During
the first six months of 2005 the Group achieved circa 250 net reservations per
month. Social housing continues to grow as part of the Group's business,
including the Group's third party partnership developments business where
affordable homes are constructed for housing associations on their land. By the
end of the first half of 2005 the Group had secured sales on 639 social housing
units compared with 295 social housing units in the comparable period of 2004.
This increase in activity in respect of social housing is consistent with the
Group's prior indications that social housing would increase its contribution to
overall volumes during 2005.

Market conditions

The fundamentals of the UK housing market remain sound. There continues to be a
shortfall in the supply of new homes to meet the increasing number of households
in the UK. Interest rates are low relative to the long term average and buying a
house using a mortgage remains affordable.

However, activity in the UK housing market relies heavily on the confidence of
the consumer. Consumers are displaying more caution, with many delaying the
decision to move house. After a weak fourth quarter of 2004 in terms of housing
activity and a quiet start in the first quarter of 2005, the housing market
remained subdued during the second quarter of 2005. During the first half of
2005, property transactions in England and Wales, reported by National
Statistics, were 24% lower than in the first half of 2004.

The Monetary Policy Committee reduced the Bank of England base interest rate by
0.25% on 4 August 2005. The Halifax has reported that it believes this rate cut
will reduce mortgage payments as a proportion of gross income for the average
new borrower from 20% to 19%, in line with the average for the past 20 years and
well below the 34% peak in 1990.

Prospects

Looking forward to the second half of 2005, there remains considerable
uncertainty over the robustness of the UK housing market. However, recent
commentary by the Bank of England in respect of mortgage approvals indicated a
10% increase in the number of loans approved in the second quarter of 2005
compared with the first quarter of 2005. Further, survey information from the
Royal Institute of Chartered Surveyors has suggested modest upturns in both the
number of completed property sales and enquiries from potential homebuyers.

The Group will benefit from a larger availability in the second half of 2005 of
smaller, more affordable properties which are more readily saleable in a quieter
housing market. Whilst this will support the Group's aims in terms of volumes,
it will continue to have a reducing effect on average sales price and average
profit per unit. The Group anticipates that the average sales price for the full
year 2005 will be lower than in 2004. This is largely due to the average size of
unit which, dependent on mix, may fall by circa 10% year on year.

The Group believes that the medium to long term prospects are good, founded upon
the Group's strategic land bank and ability to deliver mid-market homes into a
supply constrained housing market. The Group is making good progress towards its
aim of gaining planning consent on 9,000 plots of strategic land between 1
January 2004 and 31 December 2006. Up to 30 June 2005, the Group had gained
planning consent on approximately 3,750 strategic plots and progress is being
made on various other strategic investments. The Group will continue to strive
to replenish the land being used to deliver homes through strategic land
investment where land is procured at a discount to market value.

The conversion of a number of large strategic sites will provide the Group with
the opportunity to expand its regional structure and facilitate the planned
expansion of the Group. Based on the good progress being made, the Group has
launched two new regions with effect from 1 July 2005. These new regions, Wessex
and South Midlands, currently have only a limited number of staff and much of
the service provision required is delivered from existing staff, systems and
assets in the more established South West and Central regions.

Land is the key supply chain input for any housebuilder and the land market,
through significant undersupply, has witnessed price increases far in excess of
the well publicised increases in house prices. The Group will continue to focus
on procuring land through strategic means which will provide for delivery of
sustainable shareholder returns in the medium to long term. The short term is
likely to be affected by volatility in the housing market in terms of
transaction levels and prices.

Pursuant to the Group's trading update on 14 July 2005, external market
expectations for the Group's profit performance for 2005 have moderated,
reflecting the Group's comments particularly in respect of volumes and changing
product mix. The Group continues to target an increase in the volume of legal
completions in 2005 compared with the prior year, whilst maintaining the Group's
consistent objective to deliver strong margins that provides for sustainable
growth. To this end, the remaining selling period of 2005 is vital to achieving
this target.

Sir Nigel Mobbs

Following the recent announcements regarding his ill health, Sir Nigel Mobbs has
advised the Board of his intention to retire from the Board with effect from 9
September 2005. The Board expresses its gratitude for his enormous contribution
to the development of the Group since before flotation in 1997 and extends its
best wishes to him. An announcement regarding his successor will be made in due
course. In the meantime, I will continue as Acting Chairman.

                                                               Tim Melville-Ross
                                                                 Acting Chairman
                                                                9 September 2005

Bovis Homes Group PLC
Group income statement (unaudited)

For the six months ended   Six months         Six months        
30 June 2005                    ended              ended        Year ended
                         30 June 2005       30 June 2004       31 Dec 2004
                                              (restated)        (restated)
                                 £000               £000              £000
___________________________________________________________________________

Revenue -
continuing
operations                    214,492            271,672           559,464
Cost of sales                (143,165)          (177,504)         (362,316)
___________________________________________________________________________

Gross profit                   71,327             94,168           197,148
Administrative
expenses                      (21,925)           (23,702)          (45,625)
___________________________________________________________________________

Operating profit
before financing
costs                          49,402             70,466           151,523
Financial income                  488                137             1,228
Financial expenses             (4,808)            (3,780)           (7,938)
___________________________________________________________________________

Net financing
costs                          (4,320)            (3,643)           (6,710)
___________________________________________________________________________

Profit before tax              45,082             66,823           144,813
Income tax expense            (13,600)           (20,091)          (43,089)
___________________________________________________________________________

Profit for the
period
attributable to
equity holders of
the parent                     31,482             46,732           101,724
___________________________________________________________________________

Basic earnings per
ordinary share                   26.7p              39.9p             86.8p
___________________________________________________________________________

Diluted earnings
per ordinary share               26.5p              39.0p             86.1p
___________________________________________________________________________

In both the current and preceding financial periods there was no material
difference between the historical cost profits and losses and those reported in
the income statement.

Bovis Homes Group PLC
Group balance sheet (unaudited)

At 30 June 2005          30 June 2005       30 June 2004       31 Dec 2004
                                              (restated)        (restated)
                                 £000               £000              £000
___________________________________________________________________________
    

Assets
Property, plant and
equipment                      13,033             13,129            12,910
Investments                        23                 23                23
Deferred tax assets            10,719              9,996            10,193
Trade and other
receivables                     5,924              6,593             5,870
___________________________________________________________________________

Total non-current assets       29,699             29,741            28,996
___________________________________________________________________________


Inventories                   752,837            626,792           699,917
Trade and other
receivables                    37,837             17,614            36,032
Cash and cash                  
equivalents                    23,650             69,510            59,486
___________________________________________________________________________

Total current assets          814,324            713,916           795,435
___________________________________________________________________________
    
Total assets                  844,023            743,657           824,431
___________________________________________________________________________


Equity
Issued capital                 59,545             59,070            59,146
Share premium                 145,202            142,151           142,577
Hedge reserve                    (909)              (626)             (889)
Retained earnings             351,470            290,226           337,381
___________________________________________________________________________

Total equity                  555,308            490,821           538,215
___________________________________________________________________________

Liabilities
Bank loans                     41,106             75,895            40,894
Trade and other payables       15,328             24,269            21,465
Retirement benefit
obligations                    20,950             20,770            20,510
Long-term provisions            1,273              1,469             1,586
___________________________________________________________________________

Total non-current
liabilities                    78,657            122,403            84,455
___________________________________________________________________________

Bank loans                     35,193                  -            35,376
Trade and other payables      161,582            110,309           145,298
Tax liabilities                13,283             20,124            21,087
___________________________________________________________________________

Total current                 
liabilities                   210,058            130,433           201,761
___________________________________________________________________________
    
Total liabilities             288,715            252,836           286,216
___________________________________________________________________________

Total equity and
liabilities                   844,023            743,657           824,431
___________________________________________________________________________

These interim accounts were approved by the Board of directors on 9 September
2005.

Bovis Homes Group PLC
Group statement of cash flows (unaudited)

For the six months ended   Six months         Six months      
30 June 2005                    ended              ended        Year ended
                         30 June 2005       30 June 2004       31 Dec 2004
                                              (restated)        (restated)
                                 £000               £000              £000
___________________________________________________________________________

Cash flows from
operating activities
Profit for the
period                         31,482             46,732           101,724
Depreciation                      750                698             1,465
Investment income                (488)              (137)           (1,228)
Interest expense                4,808              3,780             7,938
(Profit)/loss on
sale of property,
plant and
equipment                         (15)                37                27
Equity-settled
share-based
payment expenses                 (129)               303               799
Income tax expense             13,600             20,091            43,089
___________________________________________________________________________

Operating profit
before changes in
working capital
and provisions                 50,008             71,504           153,814
___________________________________________________________________________

Increase in trade
and other
receivables                    (1,746)            (4,447)          (21,952)
(Increase)/decrease
 in inventories               (52,920)             5,252           (67,874)
Increase in trade
and other payables              9,583              7,865            38,662
Increase/(decrease)
in provisions
and employee
benefits                       (1,433)               257            (1,010)
___________________________________________________________________________

Cash generated
from operations                 3,492             80,431           101,640
___________________________________________________________________________

Interest paid                  (4,365)            (3,300)           (6,289)
Income taxes paid             (21,450)           (19,000)          (40,750)
___________________________________________________________________________

Net cash from
operating
activities                    (22,323)            58,131            54,601
___________________________________________________________________________

Cash flows from
investing activities
Interest received                 582                135             1,155
Acquisition of
property, plant
and equipment                    (887)            (5,654)           (6,232)
Proceeds from the
sale of plant and
equipment                          29                 29                68
Purchase of own
shares                           (352)            (1,351)           (1,351)
Sale of own shares                127                180               216
___________________________________________________________________________

Net cash from
investing
activities                       (501)            (6,661)           (6,144)
___________________________________________________________________________

Cash flows from
financing activities
Dividends paid                (16,036)           (13,004)          (20,517)
Proceeds from
issue of share
capital                         3,024              1,318             1,820
___________________________________________________________________________

Net cash from
financing
activities                    (13,012)           (11,686)          (18,697)
___________________________________________________________________________

Net
(decrease)/increase
 in cash and cash
equivalents                   (35,836)            39,784            29,760
Cash and cash
equivalents at the
start of period                59,486             29,726            29,726
___________________________________________________________________________

Cash and cash
equivalents at the
end of period                  23,650             69,510            59,486
___________________________________________________________________________

Bovis Homes Group PLC
Group statement of recognised income and expense (unaudited)

For the six months ended   Six months         Six months      
30 June 2005                    ended              ended        Year ended
                         30 June 2005       30 June 2004       31 Dec 2004
                                              (restated)        (restated)
                                 £000               £000              £000
___________________________________________________________________________

Effective portion
of changes in fair
value of interest
rate cash flow
hedges                            (29)             1,277               902
Deferred tax on
changes in fair
value of interest
rate cash flow
hedges                              9               (383)             (271)
Actuarial losses
on defined
benefits pension
scheme                         (1,560)              (650)           (1,880)
Deferred tax on
actuarial losses
on defined
benefits pension
scheme                            468                195               564
___________________________________________________________________________

Net
income/(expense)
recognised
directly in equity             (1,112)               439              (685)
Profit for the
period                         31,482             46,732           101,724
___________________________________________________________________________

Total recognised
income and expense
for the period
attributable to
equity holders of
the parent                     30,370             47,171           101,039
___________________________________________________________________________

Notes to the accounts

1 Basis of preparation

Bovis Homes Group PLC ('the Company') is a company domiciled in the United
Kingdom. The consolidated interim accounts of the Company for the six months
ended 30 June 2005 comprise the Company and its subsidiaries (together referred
to as 'the Group') and the Group's interest in associates.

The consolidated interim accounts were authorised for issue by the directors on
9 September 2005. The accounts are unaudited but have been reviewed by KPMG
Audit Plc.

EU law (IAS Regulation EC 1606/2002) requires that the next annual consolidated
financial statements of the Group, for the year ending 31 December 2005, be
prepared in accordance with International Financial Reporting Standards ('IFRS')
adopted for use in the EU ('adopted IFRS').

The interim accounts have been prepared on the basis of the recognition and
measurement requirements of IFRS in issue that either are endorsed by the EU and
effective (or available for early adoption) at 31 December 2005 or are expected
to be endorsed and effective (or available for early adoption) at 31 December
2005, the Group's first annual reporting date at which it is required to use
adopted IFRS. Based on these adopted and unadopted IFRS, the directors have made
assumptions about the accounting policies expected to be applied when the first
annual IFRS financial statements are prepared for the year ending 31 December
2005.

The directors have assumed IAS 19 'Employee benefits (revised)' issued by the
International Accounting Standards Board will be adopted by the EU in sufficient
time that it will be available for use in the annual IFRS financial statements
for the year ending 31 December 2005.

The adopted IFRS that will be effective (or available for early adoption) in the
annual financial statements for the year ending 31 December 2005 are still
subject to change and to additional interpretations and therefore cannot be
determined with certainty. Accordingly, the accounting policies for the annual
period will be determined finally only when the first annual financial
statements are prepared for the year ending 31 December 2005.

The interim accounts do not constitute statutory accounts within the meaning of
Section 240 of the Companies Act 1985. The figures for the half years ended 30
June 2005 and 30 June 2004 are unaudited. The figures for the year ended 31
December 2004 are also unaudited but have been derived from the Company's
statutory accounts for the year ended 31 December 2004 as adjusted to comply
with IFRS expected to be effective (or available for early adoption) at 31
December 2005. The Company's statutory accounts for the year ended 31 December
2004, which were prepared in accordance with UK Generally Accepted Accounting
Practices ('UK GAAP'), have been reported on by the Company's auditors and
delivered to the registrar of companies. The report of the auditors was
unqualified and did not contain statements under Section 237(2) or (3) of the
Companies Act 1985. The Group issued a restatement of its accounts for 2004
under IFRS on 16 June 2005, including reconciliations of comparative figures to
the latest published accounts.

The preparation of financial statements in conformity with IFRS requires
management to make judgements, estimates and assumptions that affect the
application of policies and reported amounts of assets and liabilities, income
and expenses. The estimates and associated assumptions are based on historical
experience and various other factors that are believed to be reasonable under
the circumstances, the results of which form the basis of making judgements
about carrying values of assets and liabilities that are not readily apparent
from other sources. Actual results may differ from these estimates.

The accounting policies have been applied consistently for all periods presented
in these consolidated interim accounts and in preparing an opening IFRS balance
sheet at 1 January 2004 for the purpose of the transition to IFRS.

Notes to the accounts continued

2 Basis of consolidation

The consolidated interim accounts incorporate the accounts of the Company and
entities controlled by the Company (its subsidiaries) made up to 30 June.
Control is achieved where the Company has the power to govern the financial and
operating policies of an entity so as to obtain benefits from its activities.
The existence and effect of potential voting rights that are currently
exercisable or convertible are considered when assessing whether the Group
controls another entity.

Associates are those entities in which the Group has significant influence, but
not control, over the financial and operating policies. The consolidated interim
accounts include the Group's share of the total recognised gains and losses of
associates on an equity accounted basis, from the date that significant
influence commences until the date that significant influence ceases.

3 Accounting policies

Full details of the Company's IFRS accounting policies are contained within a
document entitled 'Preliminary information on the implementation of
International Financial Reporting Standards for the year ended 31 December 2004'
which was published by the Group on its website on 16 June 2005.

4 Reconciliation of net cash flow to net debt

                           Six months         Six months      
                                ended              ended        Year ended
                         30 June 2005       30 June 2004       31 Dec 2004
                                 £000               £000              £000
___________________________________________________________________________

Net
(decrease)/increase
in net cash and
cash equivalents              (35,836)            39,784            29,760
Fair value
adjustments to
interest rate
swaps                             (29)             1,277               902
Net debt at start
of period                     (16,784)           (47,446)          (47,446)
___________________________________________________________________________

Net debt at end of
period                        (52,649)            (6,385)          (16,784)
___________________________________________________________________________

Analysis of net debt:
Cash and cash
equivalents                    23,650             69,510            59,486
Bank loans                    (75,000)           (75,000)          (75,000)
Fair value of
interest rate
swaps                          (1,299)              (895)           (1,270)
___________________________________________________________________________

Net debt                      (52,649)            (6,385)          (16,784)
___________________________________________________________________________

5 Income taxes

Current tax

Current tax expense for the interim periods presented is the expected tax payble
on the taxable income for the period, calculated using a corporation tax rate of
30% applied to the pre-tax income of the interim period, adjusted to take
account of deferred taxation movements.

Current tax for current and prior periods is classified as a current liability
to the extent that it is unpaid. Amounts paid in excess of amounts owed are
classified as a current asset.

Notes to the accounts continued

6 Dividends

The following dividends were paid by the Group.

                               Six months         Six months      
                                    ended              ended        Year ended
                             30 June 2005       30 June 2004       31 Dec 2004
___________________________________________________________________________       

Dividend cost (£000)               16,036             13,004            20,517
Dividend per share (pence)           13.6               11.1          6.4/11.1
___________________________________________________________________________

An interim dividend in respect of 2005 of 8.3 pence per share, amounting to a
total dividend of £9,820,000 based on the shares in issue as at 9 September
2005, was declared by the Board on 9 September 2005. This interim dividend will
be paid on 25 November 2005 to shareholders on the register at the close of
business on 30 September 2005, with an ex-dividend date of 28 September 2005.
This dividend has not been recognised as a liability at the balance sheet date.

7 Earnings per share

Basic earnings per ordinary share for the six months ended 30 June 2005 is
calculated on profit after tax of £31,482,000 (six months ended 30 June 2004:
£46,732,000; year ended 31 December 2004: £101,724,000) over the weighted
average of 117,840,652 (six months ended 30 June 2004: 117,048,745; year ended
31 December 2004: 117,196,751) ordinary shares in issue during the period.

Diluted earnings per ordinary share is calculated on profit after tax of
£31,482,000 (six months ended 30 June 2004: £46,732,000; year ended 31 December
2004: £101,724,000) over the diluted weighted average of 118,791,437 (six months
ended 30 June 2004: 119,990,423; year ended 31 December 2004: 118,125,595)
ordinary shares potentially in issue during the period. The diluted average
number of shares is calculated in accordance with IAS 33 'Earnings Per Share'.
The dilutive effect relates to the average number of potential ordinary shares
held under option during the period. This dilutive effect amounts to the number
of ordinary shares which would be purchased using the aggregate difference in
value between the market value of shares and the share option exercise price.
The market value of shares has been calculated using the average ordinary share
price during the period. Only share options which have met their cumulative
performance criteria have been included in the dilution calculation. There is no
material dilutive effect on the profit after tax used in the diluted earnings
per share calculation.

8 Explanation of transition to IFRS

An explanation of how the transition from UK GAAP to IFRS has affected the
Group's financial position, financial performance and cash flows was published
by the Group on its website on 16 June 2005, contained within a document
entitled 'Preliminary information on the implementation of International
Financial Reporting Standards for the year ended 31 December 2004'. This
document included a reconciliation of equity reported under UK GAAP and IFRS at
1 January 2004, the date of transition to IFRS.

9 Circulation to shareholders

The interim report will be sent to shareholders. Further copies will be
available on request from the Company Secretary, Bovis Homes Group PLC, The
Manor House, North Ash Road, New Ash Green, Longfield, Kent DA3 8HQ.



                      This information is provided by RNS
            The company news service from the London Stock Exchange
            NQBKDQCK