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Bruce Banner

Bovis Figures

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BBC (TV) News just did a piece on Bovis figures. From memory they were about 50% down from last year in terms of both profit and volume.

Edit: From BBC website... http://news.bbc.co.uk/2/hi/business/8217505.stm

Housebuilder Bovis Homes has said it is worried about the potential impact of rising UK unemployment on house prices.

Official data shows that the number of jobless has surged to 2.4 million, the highest since 1995.

The firm also said it still expects "relatively low levels of activity" in the housing market as consumers find it difficult to get mortgages.

Bovis said its pre-tax loss for the six months to June was £8.6m, down from a profit of £9.5m a year ago.

'Remains cautious'

"The housing market has shown signs of stabilisation during the first half of 2009," Bovis said.

"Whilst this period of relative improvement has been welcomed, the group remains cautious in its expectations on pricing in the short term, given the continuing challenges seen both in terms of mortgage availability and in terms of the approach taken by surveyors in arriving at mortgage valuations," the housebuilder added.

The company said that it wrote down around 2% of its land value, or £8.9m, based on achievable prices in the market. That brings its total writedowns to 14% of its total land.

"There also remains concern about the possible impact on house prices from rising unemployment and from a potential increase in supply of properties for sale in the second hand market," Bovis added.

The British Chambers of Commerce has warned that unemployment is likely to continue rising at a rapid pace, even if the economy started to recover, and could exceed three million.

Bovis said it built 754 homes in the first half of 2009, compared to 851 homes in the same period last year.

The average net sales price was £160,400 for each home, as compared to £196,700 in 2008.

Edited by Bruce Banner

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>The company said that it wrote down around 2% of its land value, or £8.9m, based on achievable prices in the market. That brings its total writedowns to 14% of its total land.

That seems a bit low to me. House prices down 20% from peak but land prices only down 14%. Hmmm.

VMR.

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>The company said that it wrote down around 2% of its land value, or £8.9m, based on achievable prices in the market. That brings its total writedowns to 14% of its total land.

That seems a bit low to me. House prices down 20% from peak but land prices only down 14%. Hmmm.

VMR.

yep

how close are they to breaching their banking covenants (or does that not matter anymore)

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This should be good for the stock price today. Bad news = buy signal.

http://business.timesonline.co.uk/tol/busi...icle6807485.ece

Bovis Homes plunged to an £8.6 million pre-tax loss in the first six months of the year after the builder was hit by falling house prices and a steep writedown to the value of its land portfolio.

As signalled in July, Bovis also confirmed today that it would not be paying an interim dividend.

Buy! Buy! Buy!

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Guest KingCharles1st
BOVIS HOMES GROUP

( LSE: BVS.L / ISIN GB0001859296 )

Last Trade: 548.80 p

Trade Time: 8:23AM

Change: Up 11.30 (2.10%)

:lol:

So let me get this straight- you wait for something like this- the markets open, you buy faster than greased lightning, then sell an hour later when all the dozy's are waking up?

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yep

how close are they to breaching their banking covenants (or does that not matter anymore)

I shouldn't worry , it's loans like these that the banks are shifting onto the taxpayer in exchange for dosh from the BoE as I understand it.

Oh , perhaps we should worry then.

Dames ;)

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>The company said that it wrote down around 2% of its land value, or £8.9m, based on achievable prices in the market. That brings its total writedowns to 14% of its total land.

That seems a bit low to me. House prices down 20% from peak but land prices only down 14%. Hmmm.

VMR.

They probably got their land very cheap originally in the 90s.

Edit: I would imagine that it is not marked-to-market as accurately as we would value it, but they don't have to take much of a loss on it due to buying it so cheap.

Edited by dapperdave

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Today show R4 interview with somebody from the Board

"house prices down 20% maybe a little more" and "we expect stability in house prices at best"

Sounds like he expects further falls in prices although not at the rate of the last two years.

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They probably got their land very cheap originally in the 90s.

Edit: I would imagine that it is not marked-to-market as accurately as we would value it, but they don't have to take much of a loss on it due to buying it so cheap.

yeah, mark to market on the way up, mark to imagination on the way down.

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They probably got their land very cheap originally in the 90s.

Edit: I would imagine that it is not marked-to-market as accurately as we would value it, but they don't have to take much of a loss on it due to buying it so cheap.

Assuming they didn't buy it cheap, then book the increase as profit when it was 'worth' 100x more?

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Listened to the interview on radio 4 I think it was, followed by the bit by the hedge fund manager who has helped spot loads of really dodgy companies including the overleveraged banks.

Bovis made it sound great they'd had major cash flow through leaving them only 8m in the red

Edited by SarahBell

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