chief executive Malcolm Harris announces results for a "challenging year", blaming several interest rate rises

Bovis Homes has said sales in 2008 will be “well below” last year unless interest rates are cut now.

Malcolm Harris
Credit: Bovis Homes

Announcing the company’s results for the year to 31 December 2007, chief executive Malcolm Harris said: “Cumulative sales reservations for 2008 to 7 March are 1,262 as compared to 1,582 at the same point in the previous year.”

In 2007, pre-tax profit at Bovis was down 9% from £135.5m to £123.6m and turnover fell 7% from £597.3m to £555.7m.

During the year Bovis completed 2,930 homes compared to 3,123 in 2006.

Harris said: “2007 was a challenging year for the industry following several interest rate increases, allied with a reduction in availability of funding, particularly for first-time buyers. Against that background the group delivered a good performance.”

It held its sector-high operating margin of 22.8%.

Citigroup called the performace “ok” and Kaupthing said the results were “broadly as expected although a touch light”.

Harris also announced that he was stepping up from chief executive to non-executive chairman on 2 July. Current managing director David Ritchie will replace Harris and current chairman Tim Melville-Ross will leave the group.