Bovis builds cash as new CEO leads turnaround plan

Alys Key
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The group is on target to increase its cashflow (Source: Bovis)

New chief executive Greg Fitzgerald's turnaround plan for Bovis Homes bore some fruit today as the company said it was on track to meet targets.

The average sales rate for the full year was nudged up to 0.52, after sitting at 0.48 in the first half of the year.

The home builder is also on track to reduce overheads to a maximum of five per cent of revenue from next year onwards, though there will be an exceptional restructuring charge of £4m this year.

Disposals of the group's shared equity portfolio and some land brought in over £30m cash, as part of a target of £180m cash flow by December next year.

Looking to the future, Bovis said the industry fundamentals are strong given the government's housing policy especially help to buy.

Read more: The UK must get off the help to buy binge

Group CEO Greg Fitzgerald, who was appointed in April, said: "We are making encouraging progress towards all of our medium term performance targets with continued improvement in customer satisfaction and excellent progress in optimising the balance sheet and bringing additional cash into the business.

"We expect to have a net cash position of at least £100 million as at 31 December 2017. Trading is in line with expectations, the market remains strong, and we are on track to deliver another disciplined period end."

Read more: Bovis is spending another £3.5m to fix quality problems in its homes

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