Bovis to build fewer homes as it focuses on high quality following complaints

HOUSEBUILDER BOVIS Homes said profits have fallen by almost a third and it will rein in growth plans.

The decision follows customer complaints over the quality of its homes.

The firm appointed a new chief executive, Greg Fitzgerald, earlier this year to turn around the business, which expects volumes and profits to fall this year as it focuses on quality.

Bovis said it now aims to build 4,000 homes a year, significantly lower than a previous management target of 5,000 to 6,000 homes, and it will focus much more on delivering affordable housing.

Pre-tax profits for the six months to June 30 fell 31 per cent to £42.7m, with the firm also booking exceptional advisory costs linked to defending itself from two aborted takeover attempts from rivals Galliford Try and Redrow.

The group has so far set aside £10.5m to cover remedial work and compensation for customers after the firm was dogged by complaints over homes that were sold unfinished and had electrical and plumbing faults.

Revenue for the period rose 4 per cent to £427.8m, with the average price of the firm’s homes rising 9 per cent to £277,400.

But completions fell 6 per cent to 1,512 following a pledge to slow the rate at which it builds homes in 2017 as part of a “re-set”.

The chief executive described the first half as a “period of stabilisation and strategic reorganisation” as he looks to get the business back on track.

As part of Mr Fitzgerald’s shake-up, he will reduce headcount at the business, with 120 jobs already axed.

Bovis said that it has seen “a good pick-up in sales” in the traditionally quieter months of July and August.