The boss of house builder Bovis Homes Group PLC (LON:BVS) has quit his role with immediate effect just over a week after the group warned it will miss home sales targets
The FTSE 250-listed firm said David Ritchie has stepped down as its chief executive officer with immediate effect but will remain with the firm until the end of February to help with the transition process.
Bovis added that Earl Sibley, the firm's finance director, will be interim CEO as the group searches for a permanent successor to Ritchie, a process which it said will start immediately and which is expected to take several months.
READ: Bovis cautions on home sales ...
No reason was given for Ritchie’s abrupt departure but it comes after the group cautioned on December 28 that new house sales this year will be lower than expected due to completions in December falling short.
The group said in an unscheduled trading update then that total sales for the year will now be between 3,950 to 4,000, with slower than predicted building times pushing 180 homes due to complete into the next trading year.
In a note to clients, analysts at Liberum said: “Management change could be positive for the Group in due course if the building of homes can be improved, so that the Group can exploit a decent landbank more effectively.
They added: “Shares cheap on only 1x book (2017E).”
In early morning trade, Bovis shares were 2.5% higher, up 20.5p at 831.5p.
-- Updates with broker comment, share price --