Proactiveinvestors United Kingdom Bovis Homes https://www.proactiveinvestors.co.uk Proactiveinvestors United Kingdom Bovis Homes RSS feed en Fri, 19 Jul 2019 19:45:35 +0100 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/3523/LSE20190718170001_14155231/ Thu, 18 Jul 2019 17:00:01 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3523/LSE20190718170001_14155231/ <![CDATA[RNS press release - Director/PDMR Shareholding ]]> https://www.proactiveinvestors.co.uk/companies/rns/3523/LSE20190716170002_14151779/ Tue, 16 Jul 2019 17:00:02 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3523/LSE20190716170002_14151779/ <![CDATA[News - Affordable sales keep Bovis Homes on track as private market flattens ]]> https://www.proactiveinvestors.co.uk/companies/news/223571/affordable-sales-keep-bovis-homes-on-track-as-private-market-flattens-223571.html Increased sales by its affordable housing arm kept Bovis Homes PLC (LON:BVS) moving forward in its latest half-year.

Completed sales rose by 4% to 1,647 units, though the private side was flat at 1,031.

All the improvement came in affordable homes, where completions rose to 616 from 550, although Bovis expects the mix to balance out over the full year.

Private sale prices rose 2% to £342,000 with prices overall 3% higher on average at £270,000.

Greg Fitzgerald, Bovis chief executive, described the result as excellent and said the housebuilder had seen a significant improvement in profitability and a step up in the sales rate compared to a year ago.

Cost pressures had also started to ease, he said, having been running at between 3%-4% at the start of the year.

The housing market was stable while forward sales in the second half so far put it on track to meet this year’s completions target. Net cash at the half-year rose to £103mln.

Not an entirely pretty picture

George Salmon, Equity Analyst at Hargreaves Lansdown: “Greg Fitzgerald’s turnaround is delivering impressive results. Revenue and reservation rates are improving and the cost base is being tightly controlled, helping to offset niggling build cost inflation. As a result, profits are expected to rise again this year.

“Perhaps the most impressive achievement is the rise in build quality and customer satisfaction. Bovis is on course to hit top marks in the annual HBF surveys, just three short years after getting the unwanted distinction of being the only builder in the 2016/17 report to be awarded 2 out of 5 stars.”

“However,” the analysts added, “the uncertainty around the UK’s impending exit from the EU means it’s not an entirely pretty picture, and probably explains why the shares offer a 10% dividend yield. 

“Heightened operating efficiency, a stronger balance sheet and quality improvements will help insulate the group against the challenges a disorderly Brexit could bring, but only to a degree. So until we know more about the terms of the UK’s departure, the uncertainty will likely continue to hold the shares back.”

In afternoon trading, however found gains earlier, Bovis shares drifted back to be 0.3% lower at 1,011p.

 -- Adds analyst comment, share price --

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Tue, 09 Jul 2019 07:54:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/223571/affordable-sales-keep-bovis-homes-on-track-as-private-market-flattens-223571.html
<![CDATA[RNS press release - Trading Statement ]]> https://www.proactiveinvestors.co.uk/companies/rns/3523/LSE20190709070003_14140851/ Tue, 09 Jul 2019 07:00:03 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3523/LSE20190709070003_14140851/ <![CDATA[RNS press release - Director/PDMR Shareholding ]]> https://www.proactiveinvestors.co.uk/companies/rns/3523/LSE20190701170001_14132115/ Mon, 01 Jul 2019 17:00:01 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3523/LSE20190701170001_14132115/ <![CDATA[RNS press release - Total Voting Rights ]]> https://www.proactiveinvestors.co.uk/companies/rns/3523/LSE20190628160001_14129818/ Fri, 28 Jun 2019 16:00:01 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3523/LSE20190628160001_14129818/ <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/3523/LSE20190627170001_14127821/ Thu, 27 Jun 2019 17:00:01 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3523/LSE20190627170001_14127821/ <![CDATA[RNS press release - Director/PDMR Shareholding ]]> https://www.proactiveinvestors.co.uk/companies/rns/3523/LSE20190618163001_14115579/ Tue, 18 Jun 2019 16:30:01 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3523/LSE20190618163001_14115579/ <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/3523/LSE20190607173002_14103839/ Fri, 07 Jun 2019 17:30:02 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3523/LSE20190607173002_14103839/ <![CDATA[RNS press release - Director/PDMR Shareholding ]]> https://www.proactiveinvestors.co.uk/companies/rns/3523/LSE20190530160004_14092962/ Thu, 30 May 2019 16:00:04 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3523/LSE20190530160004_14092962/ <![CDATA[RNS press release - Additional Listing ]]> https://www.proactiveinvestors.co.uk/companies/rns/3523/LSE20190530090003_14092167/ Thu, 30 May 2019 09:00:03 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3523/LSE20190530090003_14092167/ <![CDATA[RNS press release - Statement regarding Galliford Try ]]> https://www.proactiveinvestors.co.uk/companies/rns/3523/LSE20190528070011_14088106/ Tue, 28 May 2019 07:00:11 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3523/LSE20190528070011_14088106/ <![CDATA[RNS press release - Result of AGM ]]> https://www.proactiveinvestors.co.uk/companies/rns/3523/LSE20190522163002_14084058/ Wed, 22 May 2019 16:30:02 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3523/LSE20190522163002_14084058/ <![CDATA[News - Bovis Homes says forward sales position strong but house price rises 'limited' ]]> https://www.proactiveinvestors.co.uk/companies/news/220757/bovis-homes-says-forward-sales-position-strong-but-house-price-rises--limited--220757.html Bovis Homes Group PLC (LON:BVS) said on Wednesday that it has a strong forward sales position and is confident of delivering home completions in line with expectations for the year.

In a trading update ahead of its annual general meeting, the housebuilder said it continued to see strong demand for new homes in the year to date with an average private sales rate per site per week of 0.61, up 17% on a year ago.

READ: Bovis Homes sees good demand in 2019

Bovis Homes has opened seven developments in the year to date and expects to open a further 16 new sites this year. It is currently operating from an average of 87 active sites.

Tight cost control has offset the impact of “limited” sales price rises and build cost inflation running at around 3% to 4%, the group said.

The company added that it was making progress with its 2020 targets to become a leading UK housebuilder and significantly improve shareholder returns.

"We have seen a strong period of trading including a step up in our sales rate,” said chief executive Greg Fitzgerald.

 He added: “We are on track to deliver another controlled and disciplined period end and make further operational and financial progress in this financial year."

The company will pay a 38p per share final dividend for the 2018 financial year on Friday. Including a special dividend of 45p per share paid in November 2018, dividends paid in the 12 months totalled 102p per share.

Peel Hunt maintained a ‘hold’ rating and target price of 1,025p.  

“The shares have bounced  nicely in 2019, modestly ahead  of the sector,” the broker said.

“The 9%-plus dividend yield retains obvious attractions for investors but we continue to see better value elsewhere in the sector.”

Shares dropped 1% to 1,034p in morning trading.

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Wed, 22 May 2019 08:33:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/220757/bovis-homes-says-forward-sales-position-strong-but-house-price-rises--limited--220757.html
<![CDATA[RNS press release - Trading Statement ]]> https://www.proactiveinvestors.co.uk/companies/rns/3523/LSE20190522070002_14082627/ Wed, 22 May 2019 07:00:02 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3523/LSE20190522070002_14082627/ <![CDATA[RNS press release - Director/PDMR Shareholding ]]> https://www.proactiveinvestors.co.uk/companies/rns/3523/LSE20190516173001_14077468/ Thu, 16 May 2019 17:30:01 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3523/LSE20190516173001_14077468/ <![CDATA[RNS press release - Director/PDMR Shareholding ]]> https://www.proactiveinvestors.co.uk/companies/rns/3523/LSE20190417173001_14045316/ Wed, 17 Apr 2019 17:30:01 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3523/LSE20190417173001_14045316/ <![CDATA[RNS press release - Annual Financial Report ]]> https://www.proactiveinvestors.co.uk/companies/rns/3523/LSE20190408170005_14033141/ Mon, 08 Apr 2019 17:00:05 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3523/LSE20190408170005_14033141/ <![CDATA[RNS press release - Director/PDMR Shareholding ]]> https://www.proactiveinvestors.co.uk/companies/rns/3523/LSE20190404160001_14029664/ Thu, 04 Apr 2019 16:00:01 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3523/LSE20190404160001_14029664/ <![CDATA[RNS press release - Completion of Stanton Cross Joint Venture ]]> https://www.proactiveinvestors.co.uk/companies/rns/3523/LSE20190403070005_14026396/ Wed, 03 Apr 2019 07:00:05 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3523/LSE20190403070005_14026396/ <![CDATA[RNS press release - Total Voting Rights ]]> https://www.proactiveinvestors.co.uk/companies/rns/3523/LSE20190329160004_14022041/ Fri, 29 Mar 2019 16:00:04 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3523/LSE20190329160004_14022041/ <![CDATA[RNS press release - Director/PDMR Shareholding ]]> https://www.proactiveinvestors.co.uk/companies/rns/3523/LSE20190320160003_14009677/ Wed, 20 Mar 2019 16:00:03 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3523/LSE20190320160003_14009677/ <![CDATA[RNS press release - Director/PDMR Shareholding ]]> https://www.proactiveinvestors.co.uk/companies/rns/3523/LSE20190304160003_13989554/ Mon, 04 Mar 2019 16:00:03 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3523/LSE20190304160003_13989554/ <![CDATA[RNS press release - Director/PDMR Shareholding ]]> https://www.proactiveinvestors.co.uk/companies/rns/3523/LSE20190301160001_13987874/ Fri, 01 Mar 2019 16:00:01 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3523/LSE20190301160001_13987874/ <![CDATA[RNS press release - Block listing Interim Review ]]> https://www.proactiveinvestors.co.uk/companies/rns/3523/LSE20190228163004_13986007/ Thu, 28 Feb 2019 16:30:04 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3523/LSE20190228163004_13986007/ <![CDATA[RNS press release - Total Voting Rights ]]> https://www.proactiveinvestors.co.uk/companies/rns/3523/LSE20190228160004_13985923/ Thu, 28 Feb 2019 16:00:04 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3523/LSE20190228160004_13985923/ <![CDATA[News - Bovis Homes sees good demand in 2019 ]]> https://www.proactiveinvestors.co.uk/companies/news/215499/bovis-homes-sees-good-demand-in-2019-215499.html Bovis Homes PLC (LON:BVS) smashed up its dividend by 20% as it declared its quality control issues were well behind it.

The housebuilder boasted in its full-year results statement of significant operational improvements that have delivered a step change in its business and financial performance.

READ: Bovis Homes expects 2018 profits to be slightly ahead of market consensus

The group said it has seen strong sales in the first eight weeks of 2018, with a rate of 0.58 sales per site per week, up 15.7% year-on-year.

Forward sales in the bag already represent 48% of consensus forecast revenues for 2019.

Total home completions in 2018 rose 3.1% to 3,759 from 3,645 the year before, with the average selling price edging up 0.3% to £273,200 from £272,400 in 2017.

Group revenue rose 3.2% to £1.06bn from £1.03bn while the operating margin improved by almost four percentage points to 16.4% from 12.5% the year before.

Profit before tax improved 47.4% to £168.1mln from £114mln, paving the way for the full-year dividend to be hiked to 57.0p from 47.5p in 2017. The company also paid a special dividend of 45p in November last year and plans to pay around 90p a share in special divis over the next two years.

“Customer satisfaction has been at the core of all we have done during 2018 and we expect to achieve our target of a 4-star HBF customer satisfaction rating for 2018, a significant improvement from our 2-star HBF customer satisfaction rating in 2017. This shift in quality is reflected across all of our housing delivery and in the feedback we receive from our private customers and housing association partners,” said Bovis chief executive, Greg Fitzgerald.

Liberum Capital pointed out that Bovis’s results were ahead of its expectations, and believe that consensus forecasts for the housebuilder are likely to be upgraded.

The City broker repeated a ‘hold’ rating and 950p per share price target on Bovis, with its shares up 0.1% to 1,066p in afternoon trading.

In a note to clients, Liberum’s analysts pointed out: “The shares trade on 9.9x PER, yield 9.9% and a 1.3x P/TNAV for CY19E. Bellway is preferred among smaller companies as track record is stronger and shares cheaper (on 1.2x book).”

 -- Adds analyst comment, share price --

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Thu, 28 Feb 2019 08:40:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/215499/bovis-homes-sees-good-demand-in-2019-215499.html
<![CDATA[RNS press release - Final Results ]]> https://www.proactiveinvestors.co.uk/companies/rns/3523/LSE20190228070009_13984423/ Thu, 28 Feb 2019 07:00:09 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3523/LSE20190228070009_13984423/ <![CDATA[RNS press release - Change of Adviser ]]> https://www.proactiveinvestors.co.uk/companies/rns/3523/LSE20190220070005_13974910/ Wed, 20 Feb 2019 07:00:05 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3523/LSE20190220070005_13974910/ <![CDATA[RNS press release - Director/PDMR Shareholding ]]> https://www.proactiveinvestors.co.uk/companies/rns/3523/LSE20190219174001_13974742/ Tue, 19 Feb 2019 17:40:01 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3523/LSE20190219174001_13974742/ <![CDATA[RNS press release - Total Voting Rights ]]> https://www.proactiveinvestors.co.uk/companies/rns/3523/LSE20190131160001_13954154/ Thu, 31 Jan 2019 16:00:01 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3523/LSE20190131160001_13954154/ <![CDATA[RNS press release - Director/PDMR Shareholding ]]> https://www.proactiveinvestors.co.uk/companies/rns/3523/LSE20190117170004_13938718/ Thu, 17 Jan 2019 17:00:04 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3523/LSE20190117170004_13938718/ <![CDATA[News - Bovis Homes expects 2018 profits to be slightly ahead of market consensus, early signs on 2019 trading encouraging ]]> https://www.proactiveinvestors.co.uk/companies/news/212669/bovis-homes-expects-2018-profits-to-be-slightly-ahead-of-market-consensus-early-signs-on-2019-trading-encouraging-212669.html Bovis Homes PLC (LON:BVS) saw its shares rise on Wednesday after the housebuilder said it expects its full-year 2018 profits to be slightly ahead of market consensus and that the early signs on 2019 trading are encouraging, although it noted that a Brexit uncertainty is driving a slowdown in buyers of larger homes. 

In a trading update for the year ended 31 December 2018, the FTSE 250-listed housebuilder said it delivered a total of 3,759 new homes in the year, an increase of 3% on the prior year’s 3,645 figure and in-line with expectations.

READ: Bovis Homes is seeing more part-exchange deals as Brexit uncertainty bites

It added that private homes delivered totalled 2,567 units, up from 2,573 units in 2017, with 1,192 affordable housing units, up from 1,072 a year earlier.

The company said its total average selling price on completions in the year was around £273,000 versus £272,400 a year earlier, with a private average selling price of circa £338,00 versus £334.5,000.  It noted that underlying pricing remains robust and in-line with its expectations.

The group said it expects to deliver “a significant step-up in operating margin for 2018, with profits for the year expected to be slightly ahead of market consensus.”

Industry fundamentals remain strong

Bovis said it started the new year with a strong forward sales position totalling 2,681 units, versus 2,656 in 2017, with a value of £521mln against £518mln.

The firm added: “The industry fundamentals remain strong with customer demand for new homes supported by attractive mortgage finance and government initiatives, in particular, Help to Buy. Whilst it is too early in the year to comment on 2019 trading, early signs are encouraging.” 

Greg Fitzgerald, Bovis Homes’ chief executive commented: "The significant improvement in operational performance across all areas of the business is expected to deliver a record year of profits for the Group.”

He added: “We are looking forward to delivering the first homes from our new housing range in 2019 and continuing to make further operational and financial progress."

The group said it expects to have a year-end net cash balance of around £127mln versus £145mln at the same stage of 2017, reflecting its ongoing capital management.

It added that it intends to recommend payment of a final ordinary dividend of 38.0p per share, up from 32.5p in 2017, giving a total for the 2018 financial year of 57.0p per share, up from 47.5p, or 102p per share, including the special dividend of 45.0p paid in November 2018.

In late morning trading, Bovis Homes shares were 4.8% higher at 970.80p, topping the FTSE 250 leader board, pulling other housebuilders higher in their wake.

Brexit cloud still looms large

Sophie Lund-Yates, equity analyst at Hargreaves Lansdown commented: “Bovis has been putting some serious work in, and it’s encouraging to see sales, and more importantly, margins moving in the right direction.”

She added: “It needs to be careful about how far it pushes cost savings however - saving money makes business sense, but the group had trouble in the past when the quality of its homes came under very public fire.

“Bovis is being careful not to scrimp on standards again – but it will need to keep it that way if it’s to avoid another expensive mistake.”

The analysts concluded: “Conditions are about as good as they can be for housebuilders, with government schemes like Help to Buy boosting demand among first-time buyers, and low-interest rates making mortgages easier to come by.

“That said, the Brexit cloud still looms large, and a sharp downturn in house prices or demand could blow a hole in Bovis’ otherwise steady ship.”

 -- Adds share price, analyst comment --

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Wed, 16 Jan 2019 08:00:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/212669/bovis-homes-expects-2018-profits-to-be-slightly-ahead-of-market-consensus-early-signs-on-2019-trading-encouraging-212669.html
<![CDATA[RNS press release - Trading Statement ]]> https://www.proactiveinvestors.co.uk/companies/rns/3523/LSE20190116070002_13935865/ Wed, 16 Jan 2019 07:00:02 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3523/LSE20190116070002_13935865/ <![CDATA[RNS press release - Total Voting Rights ]]> https://www.proactiveinvestors.co.uk/companies/rns/3523/LSE20181231130001_13919733/ Mon, 31 Dec 2018 13:00:01 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3523/LSE20181231130001_13919733/ <![CDATA[RNS press release - Director/PDMR Shareholding ]]> https://www.proactiveinvestors.co.uk/companies/rns/3523/LSE20181217160002_13906692/ Mon, 17 Dec 2018 16:00:02 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3523/LSE20181217160002_13906692/ <![CDATA[News - Analysts can’t make their mind up about housebuilders ]]> https://www.proactiveinvestors.co.uk/companies/news/211154/analysts-cant-make-their-mind-up-about-housebuilders-211154.html The RICS residential property market survey for November did not make good reading for UK housebuilders.

Nor did the mixed messages in two big research notes from UBS and Shore Capital, the latter previously well-known for its rose-tinted view of the sector.

RICS – the Royal Institution of Chartered Surveyors – said its monthly indicators for housing demand, supply and prices hit multi-year lows in November.

READ: Liberum upgrades three housebuilders

One of the key takeaways from the report was that average house prices are expected to fall further over the next few months before stabilising.

That’s obviously not great news for housebuilders, whose profits are determined by how much they can build homes for and how much they can sell them for.

With input costs – labour, raw materials etc – on the rise, margins are likely to soon come under pressure and fall back from their current highs.

The average housebuilder margin is about 22% right now, while return on capital employed – a measure of profitability – is also close to all-time highs at 27%.

Margins have peaked

UBS thinks that margins and ROCE have both peaked and expect both to “normalise”, with ROCE easing back towards 19% when Help to Buy ends in 2023.

“However, we think the market is now pricing in a substantial decline in earnings/returns which we think offers good risk/reward across most of the sector,” read a note to clients.

“The dividend yield of 10% is also attractive in our view, and underpinned by robust balance sheets which are mostly ungeared / lowly geared.”

That didn’t stop the analysts slashing their price targets though as they conceded that housebuilder stocks are likely to remain volatile until there is any real breakthrough with Brexit.

They lopped 21% off the Bovis Homes PLC (LON:BVS) target which now stands at 860p (from 1,090p), while Taylor Wimpey PLC’s (LON:TW.) price target was knocked 11% lower to 190p (from 213p).

Out of the whole sector, only Berkeley Group Holdings PLC (LON:BKG) (4,600p) and McCarthy & Stone PLC (LON:MCS) avoided any downward revisions.

‘Profits could fall by 25%’

Well-known housebuilder bull Robin Hardy, an analyst at Shore Capital, took a surprisingly downbeat tone with his latest note and is now just “cautiously positive” on the industry.

“We have been forecasting a slow fade on profits after 2018 for some time on the back of weaker pricing and falling margins, but we now believe that the impact will be greater than we previously modelled,” he wrote.

“While we had modelled that margins might step back by around 100-150bps by the end of 2020, which would see profits lowered by 5-8%, we now believe that actual and effective prices could easily fall by 5% - this would mean that profits could fall by more than 25%.”

Like his peers over at UBS, though, Hardy thinks housebuilders’ shares have been knocked down too far, which leaves space for some upside.

Looking into early 2019 we believe that the sector is likely to experience a bounce both from more realistic forecasting and a less nervous view of Brexit,” he added as he moved every company in the sector, apart from Berkeley (‘hold’), up to a ‘buy’.

Bovis shares were down 2% to 859p in early afternoon trading, Taylor Wimpey edged 0.2% lower to 136.1p, while McCarthy & Stone dipped 0.4% to 138.5p.

Berkeley was one of the sector’s only risers, up 0.5% to 3,518p.

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Thu, 13 Dec 2018 13:15:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/211154/analysts-cant-make-their-mind-up-about-housebuilders-211154.html
<![CDATA[RNS press release - Total Voting Rights ]]> https://www.proactiveinvestors.co.uk/companies/rns/3523/LSE20181130160004_13887631/ Fri, 30 Nov 2018 16:00:04 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3523/LSE20181130160004_13887631/ <![CDATA[RNS press release - Director/PDMR Shareholding ]]> https://www.proactiveinvestors.co.uk/companies/rns/3523/LSE20181130070004_13886131/ Fri, 30 Nov 2018 07:00:04 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3523/LSE20181130070004_13886131/ <![CDATA[RNS press release - Director/PDMR Shareholding ]]> https://www.proactiveinvestors.co.uk/companies/rns/3523/LSE20181126163004_13880774/ Mon, 26 Nov 2018 16:30:04 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3523/LSE20181126163004_13880774/ <![CDATA[RNS press release - Director/PDMR Shareholding ]]> https://www.proactiveinvestors.co.uk/companies/rns/3523/LSE20181121104246_13875534/ Wed, 21 Nov 2018 10:42:46 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3523/LSE20181121104246_13875534/ <![CDATA[News - Bovis Homes is seeing more part-exchange deals as Brexit uncertainty bites ]]> https://www.proactiveinvestors.co.uk/companies/news/209269/bovis-homes-is-seeing-more-part-exchange-deals-as-brexit-uncertainty-bites-209269.html Houses builder Bovis Homes Group PLC (LON:BVS) said it is fully sold for this year and on target to achieve record profits in 2018.

The sales rate per outlet per week so far in 2018 is on a par with 2017 at 0.51, with pricing in line with the group’s expectations.

The group said uncertainties over the effects of Brexit has had an effect on discretionary buyers, with the group seeing an increase in the number of buyers going for the part-exchange option. The number of reservations received from buyers opting for part-exchange is currently running at around 15%, up from 8% in the first half of the year.

Bovis Homes - FY results to be in line; seeing Brexit effects on customer demand - https://t.co/dpok0QIdLK

— Davy Research (@DavyResearch) November 15, 2018

Having dropped the ball a few years back in terms of the quality of its homes, Bovis has been keen in recent years to emphasise in its stock market announcements the improvements it is making to build quality; today’s trading update, which covered the period since the beginning of July, was no different with the group highlighting its HBF Customer Satisfaction score for the year from October 1, 2017, was trending well above 80%.

Bovis said it is confident of achieving its target of an HBF 4-star customer satisfaction rating for 2018.

Help-to-Buy boost

The government’s ‘Help to Buy’ scheme has been like manna from heaven for the housebuilding sector and not surprisingly the company said it was pleased with the government’s decision to extend the market-distorting scheme for a further two years and keep the gravy train on the rails.

In conclusion, the group said it is on track to achieve a number of its medium-term targets as early as this December.

It expects full-year completions to be in line with expectations, with continued progress on margin initiatives and improved operating performance.

Peel Hunt said the one data point that suggests a softening market was the one relating to an increase in the number of part-exchange customers.

“Given the group's southern focus this is not a huge surprise,” the broker said, as it disclosed it would be leaving its estimates unchanged while admitting estimates for 2019 “may start to look a bit of a stretch if market conditions are unchanged”.

“The shares have slipped 11% YTD [year-to-date], marginally better than the sector decline of 16%. The shares have underperformed the sector in the last three months with a decline of 6% vs a 1% fall for the sector. In valuation terms the shares are trading on a P/NAV [price/net asset value] of 1.33x for CY19 ( the calendar year 2019) vs a sector average of 1.5x,” Peel Hunt noted. 

“Given the RoE [return on equity] is forecast to be 14.6% vs a sector average of 19.6% this rating looks full enough on a relative basis. We continue to see better value in Countryside and Redrow,” the broker added.

Liberum, which rates the shares a ‘hold’, expressed a similar view, saying the shares look a little expensive compared to peers as the market is “pricing in further success in improving the business”.

Liberum’s target price is 1,100p; the shares were down 5p at 1,035.5p in early deals.

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Thu, 15 Nov 2018 08:57:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/209269/bovis-homes-is-seeing-more-part-exchange-deals-as-brexit-uncertainty-bites-209269.html
<![CDATA[RNS press release - Trading Statement ]]> https://www.proactiveinvestors.co.uk/companies/rns/3523/LSE20181115070010_13867592/ Thu, 15 Nov 2018 07:00:10 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3523/LSE20181115070010_13867592/ <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/3523/LSE20181031170150_13850184/ Wed, 31 Oct 2018 17:01:50 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3523/LSE20181031170150_13850184/ <![CDATA[RNS press release - Total Voting Rights ]]> https://www.proactiveinvestors.co.uk/companies/rns/3523/LSE20181031160002_13850066/ Wed, 31 Oct 2018 16:00:02 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3523/LSE20181031160002_13850066/ <![CDATA[RNS press release - Director/PDMR Shareholding ]]> https://www.proactiveinvestors.co.uk/companies/rns/3523/LSE20181017160000_13832869/ Wed, 17 Oct 2018 16:00:00 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3523/LSE20181017160000_13832869/ <![CDATA[RNS press release - Directorate Change ]]> https://www.proactiveinvestors.co.uk/companies/rns/3523/LSE20181009070009_13820906/ Tue, 09 Oct 2018 07:00:09 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3523/LSE20181009070009_13820906/ <![CDATA[RNS press release - Total Voting Rights ]]> https://www.proactiveinvestors.co.uk/companies/rns/3523/LSE20180928160003_13809649/ Fri, 28 Sep 2018 16:00:03 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3523/LSE20180928160003_13809649/ <![CDATA[RNS press release - Director/PDMR Shareholding ]]> https://www.proactiveinvestors.co.uk/companies/rns/3523/LSE20180917160005_13793674/ Mon, 17 Sep 2018 16:00:05 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3523/LSE20180917160005_13793674/ <![CDATA[News - Bovis Homes posts strong first-half performance leading to hefty increases in dividends ]]> https://www.proactiveinvestors.co.uk/companies/news/204310/bovis-homes-posts-strong-first-half-performance-leading-to-hefty-increases-in-dividends-204310.html Bovis Homes PLC (LON:BVS) has continued the housebuilders’ latest batch of updates with a strong first-half performance leading to hefty increases in dividends.

For the six months to 30 June, the FTSE 250-listed firm saw its pre-tax profit jump by 41% to £60.2mln, up from £42.7mln a year earlier, reflecting a 280 basis point increase in gross margin while group revenue rose by 1% to £432.2mln.

READ: Bovis Homes sees 'significant step up' in first half profits

The housebuilder saw its total completions increase by 4% to 1,580 homes, up from 1,512 a year earlier, with the private average selling price holding steady at £334,700.

The firm further strengthened its balance sheet with a move to an average net cash position in the period of £6mln, a turnaround from an average net debt of £96m a year earlier.

Its net cash position as at June 30 was £42.8mln, against net debt of £32.4mln a year earlier.

Greg Fitzgerald, Bovis’ chief executive commented: “This reflects the excellent progress made across all business areas over the past 18 months and a step change in the quality of the homes we are building and level of service we are providing our customers. 

“We are confident in the outlook for the business and are targeting a record year of profits in 2018, at the top end of the Board's expectations."

Bovis raised its interim dividend by 27% to 19p per share, up from 15p last year, and will pay a first special dividend of 45p pence per share with the interim in November.

Focus on margins 

Nicholas Hyett, equity analyst at Hargreaves Lansdown commented: “A focus on margins has seen profits leap this year, and he (Fitzgerald) intends to deliver a similar margin boost before the end of 2020.

“That’s particularly impressive given the problems with build cost inflation that have plagued Bovis in the past. Streamlining the group’s land bank should also boost returns on capital.”

In late morning trading, Bovis Homes shares were 3.6% higher at 1,172p.

 -- Adds analyst comment, share price --

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Thu, 06 Sep 2018 08:11:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/204310/bovis-homes-posts-strong-first-half-performance-leading-to-hefty-increases-in-dividends-204310.html