Fitzgerald returns Bovis Homes to record profits

Aaron Morby 1 month ago
Share

Chief executive Greg Fitzgerald has completed the turnaround of Bovis Homes just 18 months after taking the helm.

The southern house builder is expected to report record profits for 2018, with completions 3% ahead of the previous year at 3,759.

In a end of year trading update this morning, Fitzgerald said he had successfully reset the business and restored margins.

He said: “The significant improvement in operational performance across all areas of the business is expected to deliver a record year of profits for the group.

“Customer satisfaction is a key priority and the group’s return to 4-star house builder status along with another controlled and disciplined period end reflect this. “

He added: “We are looking forward to delivering the first homes from our new housing range in 2019 and continuing to make further operational and financial progress.”

Fitzgerald was drafted in 18 months ago after a turbulent few months for Bovis which saw chief executive David Ritchie step down, profits dip and concerns raised about build quality.

He immediately scaled back the firm’s building programme by 10-15% with plans to return to normal levels in 2018.

Fitzgerald said the outlook for Bovis Homes remained bright going forward with customer demand for new homes supported by attractive mortgage finance and government initiatives, in particular Help to Buy.

“Whilst it is too early in the year to comment on 2019 trading, early signs are encouraging.

“As reported in November, we saw Brexit uncertainty driving a slowdown in discretionary buyers of our larger homes.

“Building on our much improved relationships with housing associations, we have increased our level of private sales to housing associations and see further opportunities in this area.  In addition, our stronger operating model and margin initiatives will support the business.”

The group is expected to have a year-end net cash balance of c. £127m (2017: £145m).

Latest news

Laing O’Rourke director killed in car crash on way to work

Tributes to Caroline Blackman who died early on Wednesday morning en route to Hinkley
2 days ago

Kier cutting jobs on Highways England contract

More than 100 workers facing redundancy across Midlands Area 9
2 days ago

Buckingham confirmed for £120m Swansea arena

Six months of pre-construction work to now get underway
1 day ago

Two North West smart motorway projects delayed

Costain and Galliford Try jobs put back by more than a year
2 days ago

Lendlease wins £8bn Thamesmead development

Morgan Sindall beaten in race for 11,500 home site
2 days ago

Government pledges £80m for Dawlish sea wall project

South Devon railway sea wall will be rebuilt and increased in height by 2.5m
2 days ago

30 jobs lost as Yorkshire precast firm collapses

Rippon-based Ebor Concretes placed in administration
2 days ago

Go-ahead for 200-home Cardiff build-to-rent scheme

Work to start on central Cardiff scheme this summer
3 days ago

Balfour renews £220m London Tube track upkeep

Four-year term will start in April with option to extend by six years
3 days ago

Boost your online presence – join the Enquirer Directory

New site for suppliers and buyers showcases products, services and latest stories
10 months ago

Bouygues paid £21m not to build Garden Bridge

Transport for London documents detail £53.5m wasted on doomed crossing
3 days ago

Government signs off £250m for major housing projects

Deal to release £157m for housing infrastructure in Cumbria and Devon
3 days ago

Beetham Tower owner faces £4m reclad bill

Owner will have to foot remedial facade works bill in wake of Carillion collapse
3 days ago

WYG profit warning sees share price crash 40%

Consultant back in talks with lenders over breaching banking covenants
3 days ago

United Living hires former Wates business director

Michael Holling takes role as northern and Midlands operations director after 24 years at Wates
3 days ago

Union demands death benefits for all construction workers

Unite says lack of employer-paid cover should be as unacceptable as not wearing a hard hat on site
3 days ago

Scaffold collapse on school misses kids by metres

Court hears how untied scaffold fell into Welsh school
4 days ago

Galliford Try construction hit by more Aberdeen bypass losses

Another £26m hit on bypass plunges construction into red in first half
4 days ago

Council terminates Lakehouse school contract

Willmott Dixon takes over site hit by "performance and project delays"
4 days ago

Government infrastructure pipeline needs reality check

Call for Treasury to drop project 'wishlist' for certain Pledged Projects List
4 days ago

Council seeks partner for Birmingham Ladywood Estate

Major regeneration plans at Ladywood and Perry Bar to boost city's housing stock
4 days ago

Willmott Dixon wins £21m Wakefield swimming pool

Work to start next month on Pontefract Park leisure centre
4 days ago

Weston and Tesco plan to turn store site into 1,400 homes

Application set to go in for major mixed-use development in east London
4 days ago

Network Rail unveils major operational shake-up

Devolved operating model moves from eight to 13 routes
4 days ago

Subcontractors wanted across Nottingham

Big name contractors and clients looking to boost supply chains: Register now for Meet the Buyer event
4 days ago

Bidding starts for £18m Helensburgh leisure centre

Argyll and Bute Council hopes to start work on seafront leisure centre and swimming pool this year
4 days ago

Interserve ‘fit for growth’ director exits

Dougie Sutherland merged UK and International construction businesses
5 days ago

Rail minister says HS2 doubts are “complete nonsense”

Government says its commitment to construction of the full route is "undiminished"
5 days ago

Go-ahead for Manchester Airport beauty group hub

Three contractors chase £31m deal for The Hut Group studio
5 days ago

Drink driver careers through roadworks

Jailed driver was three times over the limit when he crashed into a construction vehicle
5 days ago

Contractor services