Author Topic: Bovis profit up just 9%, despite 11% increase in selling prices.  (Read 2426 times)

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Bovis Homes report profits up 9% in first six months of 2015
On Monday Bovis Homes reported a 9% rise in profit in the first six months of this year compared to the same period last year. Whilst this may sound impressive at first it should be noted that this was on the back of a similar 9% increase in revenue to £350.7m. Despite an increase in legal completions and a 10% rise in the average selling price to £264,200, Bovis actually managed to reduce profitability overall.  Selling 2.6% more homes for 10% more money and losing 1% in the process.  Could this be due to the companies growing burgeoning after sales customer care liabilities resulting from reduced quality?

In comparison, Persimmon Homes published their half-year results yesterday,  having built 7% more homes than they did in the same six-month period last year, revenue was up 11% to £1300m and profits up a staggering 31% to £272.8m. This was no doubt helped by the increase in the average selling price to 194,378 just 4% up on 2014 half-year results.

Nevertheless, Persimmon, from purely an investor’s point of view, the half year figures indicate Persimmon is more profitable that Bovis homes.
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