Bovis Homes Plc, which demerged from the transport group P&O after its flotation on the stock market in 1997, today reported a FY2009 pre-tax profit of £4.8 million, having swung back from a pre-tax loss of £78.7 million last year, earned from a revenue slightly down at £281.5 million from £282.3 million, reflecting legal completion of 1803 houses, down from 1817.
The big difference between this year and last is the lower level of exceptional charges, which this year were just £2.7 million, whereas last year at £93.1 million they plunged the group into loss.
It also reported a release of previously taken inventory provisions of £11.6 million, due to a recovery of certain sites arising from improved sales prices and reduced construction costs.
During the year Bovis strengthened it's balance sheet with an equity placing which raised £59 million, and it finds itself at the year end ungeared with £115 million cash in hand which more than balance it's debt.
David Ritchie, the Chief Executive of Bovis Homes Group PLC said:
"The Group has successfully delivered on its strategic objectives for 2009: achieving a pre tax profit, increasing private homes reservations in the year by 82%, reducing overheads by 34% and generating £221 million of cash inflow including the £59 million benefit of an equity placing. The Group is also pleased to announce the first release of previously taken inventory provisions, reflecting recovery of site viability in certain locations arising from improved sales prices and reduced construction costs.
The Group has recommenced investment in land and is pleased with the progress made to date, with four consented sites acquired in the last quarter of 2009 and terms agreed in principle at the year end on a further 15 sites, all of which have been progressed during the early part of 2010. With £112 million of net cash in hand at 31 December 2009 the Group is well positioned to increase its output capacity, as markets recover, supporting future profitable growth."
Results from builders so far have been upbeat, despite uncertainty around the general election expected to hit sales in May and June as well as the fragile economic outlook.
House prices fell in February for the first time since June last year according to lender Halifax.
Mortgage approvals also hit a nine-month low in January to 48,198 from 58,223 in December after bad weather and the end of the stamp duty holiday.
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