chief executive Malcolm Harris announces results for a "challenging year", blaming several interest rate rises
Bovis Homes has said sales in 2008 will be 鈥渨ell below鈥� last year unless interest rates are cut now.
Announcing the company鈥檚 results for the year to 31 December 2007, chief executive Malcolm Harris said: 鈥淐umulative sales reservations for 2008 to 7 March are 1,262 as compared to 1,582 at the same point in the previous year.鈥�
In 2007, pre-tax profit at Bovis was down 9% from 拢135.5m to 拢123.6m and turnover fell 7% from 拢597.3m to 拢555.7m.
During the year Bovis completed 2,930 homes compared to 3,123 in 2006.
Harris said: 鈥�2007 was a challenging year for the industry following several interest rate increases, allied with a reduction in availability of funding, particularly for first-time buyers. Against that background the group delivered a good performance.鈥�
It held its sector-high operating margin of 22.8%.
Citigroup called the performace 鈥渙k鈥� and Kaupthing said the results were 鈥渂roadly as expected although a touch light鈥�.
Harris also announced that he was stepping up from chief executive to non-executive chairman on 2 July. Current managing director David Ritchie will replace Harris and current chairman Tim Melville-Ross will leave the group.
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