Bovis Homes shares down on FTSE 250 after returning to profit

The group said that last year it made a pre-tax profit of £4.8 million, a marked improvement from a loss of £78.7 million reported in 2008.

Bovis’ finances also saw a marked improvement, going from a net debt of £108 million at the end of 2008 to net cash of £112 million one year later.

The group said it had recommenced land acquisitions and had acquired four new sites in 2009 and agreed another 15 in principle.

David Ritchie, Chief Executive of Bovis Homes, 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.”

By 09:54 shares in Bovis Homes were down 0.89 per cent to 377.90 pence per share.