Bovis New Home Sales Up 71%

adr0ck

Bovis Homes Group will announce later today that the level of trading for the first 17 weeks of 2009, to 1 May, is 71% up on the same period last year, with private reservations up from 373 to 638.

http://www.building.co.uk/story.asp?sectioncode=284&storycode=3139955&c=1

inspector_monkfish

08:36 07May09 UPDATE: Bovis Reservations Rise; Outlook Remains Cautious<BVS.L>
UPDATE: Bovis Reservations Rise; Outlook Remains Cautious<BVS.L>



LONDON - U.K. house builder Bovis Homes Group PLC (BVS.LN)
Thursday said it remains cautious about the housing market outlook, despite
reporting a year-on-year improvement in private reservations.

The company also warned that the average private sales price and gross profit
margin in 2009 will be lower than last year as a result of pricing policies.

Bovis, which has residential properties and retirement homes throughout
England and Wales, has followed the example of competitors on pricing policy and
begun discounting heavily, resulting in higher sales.

In the first 17 weeks of trading to May 1, Bovis achieved 638 private
reservations, up 71% on last year, which the company called encouraging.

One analyst said that the 71% improvement has nothing to do with the market
but that "the company will sell houses much faster now as it lowered it prices."

Reservations were still 25% lower than in the same period of 2007, however.

Bovis said it remains cautious in its view of the housing market as
visibility remains weak, with a need for increased availability of mortgage
finance, particularly for first-time buyers, seen as critical to recovery of
market activity.

Although the Bank of England announced increased mortgage approvals for homes
purchases, they are still 60% lower than before the housing market downturn.
House prices continue to fall as well, as buyers struggle to secure mortgage
financing.

Bovis said that the final 2009 volume outcome for the group largely will
depend on the strength of the market between now and the end of October, 2009,
but added that the summer sales period is likely to show typical seasonal
slowdown.

Still, shares rose after the statement. At 0715 GMT, they traded up 12 pence,
or 2.7%, at 467 pence in a broadly higher London market.

Analysts saw the statement as upbeat, especially given the company's
financial position as Bovis improved guidance on its debt and cash position. The
company said that net debt at April 30 was GBP47 million and that it expects its
debt position to be much improved by the end of 2009 compared to previous
guidance. Bovis could end the year with no debt on its balance sheet, said one
analyst.

It could generate GBP100 million of net cash flow during the year, having
started with GBP108 million of net debt, if it achieves its aims for legal
completion volumes for 2009.

dervish

Here is the owner of said house company:

Graham_Devon

Is a reservation actually a sale?

Thrugelmir

Graham_Devon wrote: »

Is a reservation actually a sale?

Its only a non-refundable deposit.

Conrad

The gradual bottoming out, and rumbling along.

Graham_Devon

Thrugelmir wrote: »

Its only a non-refundable deposit.

Not one of those silly £99 deposits barrat used to do?!

ad9898_3

Conrad wrote: »

The gradual bottoming out, and rumbling along.

What economic indicators are you basing this on ?

1. Unemployment ? ................................ No
2. Company/personal insolvencies ?.......... No
3. Lower taxes after the next election ?..... No
4. Future cuts in the rate of borrowing ?.... No
5. Yesterday's Halifax index ?.................. No
6. Any other index ? ............................... No
7. Oh hang on.. Daily Express ?............... Yes
8. Media ramping, with no substance ?..... Yes
9. Mortgage approvals up from historical lows, to just very low ?... Yes.

Mmmm, yes I can see now why we are bumping along the bottom.

Graham_Devon

ad9898 wrote: »

What economic indicators are you basing this on ?

Mortgage commision, I would guess

Conrad

ad9898 wrote: »

What economic indicators are you basing this on ?

1. Unemployment ? ................................ No
2. Company/personal insolvencies ?.......... No
3. Lower taxes after the next election ?..... No
4. Future cuts in the rate of borrowing ?.... No
5. Yesterday's Halifax index ?.................. No
6. Any other index ? ............................... No
7. Oh hang on.. Daily Express ?............... Yes
8. Media ramping, with no substance ?..... Yes
9. Mortgage approvals up from historical lows, to just very low ?... Yes.

Mmmm, yes I can see no why we are bumping along the bottom.

It's called using common sense. Rarely are rear view stats worth bothering with, as 99 of economists found out. I used my nounce and intuition to sell my B2Ls (for a small profit) in 06/07, yet all the stats indicated I should do the opposite.

Life pessmists need to uncrank thier necks, strettttttch those brains and use a little foresight and common sense.

Unemployment was 3m in 1997, and life was just fine for most of us.

thriftybabe

Conrad wrote: »

It's called using common sense. Rarely are rear view stats worth bothering with, as 99 of economists found out. I used my nounce and intuition to sell my B2Ls (for a small profit) in 06/07, yet all the stats indicated I should do the opposite.

Life pessmists need to uncrank thier necks, strettttttch those brains and use a little foresight and common sense.

Unemployment was 3m in 1997, and life was just fine for most of us.

From where I am at the moment it is hurting my OH, myself and most of the Construction Industry oh so bad. OH pricing a job yesterday at 1999 prices!