Wednesday, July 11, 2007

UK Builder Are Slumping

The party is over!

Bovis shares slide 6% as home reservations slow
Completions, selling price, margin all flat from a year earlier
In a trading statement, the group said pretax profit growth in the first half of the year was in line with its expectations, but completions, average selling price and margin were all broadly flat compared to a year earlier
The home builder's planned increase in volumes for 2007 could now be at risk if the slowdown in visitors continues into the key autumn selling season, said analysts at Citigroup.
Bovis said completions in the first half dipped to 1,256 from 1,262, with the average price holding steady at 189,000 pounds ($380,000) after a 4% rise in the price per square foot was balanced by a drop in the average size of the properties it built.

Land sales, however, roughly doubled to 20 million pounds due to a strong land market.
Chris Millington, an analyst at Bridgewell Securities, said the result "does not bode well" for the home builder's forecast 10% growth in pretax profit in 2007 and 2008.
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