Enter multiple symbols separated by commas

U.K. Housebuilder Bovis Cautious on Outlook, Shares Down

British housebuilder Bovis Homes said on Monday its first-half profit met its expectations but struck a cautious note on prospects and reported a slowdown in visitors and reservations. Bovis shares fell 7.9% on the news.

"While the group is in a good position to expand ... the extent of the planned increase in volume for 2007 over that achieved in 2006 will depend on consumer confidence over the key summer and autumn selling period," it said in a statement.

The group said its first-half reservations of 2,282, versus 2,273 a year ago, reflected a recent slowdown in both visitor rates and in reservation rates, echoing cautious tones sounded by some of its rivals in recent weeks.

"The trading update is slightly disappointing suggesting first-half results are broadly flat on last year ... which does not bode well for the 10% growth in pretax profit forecast for both 2007 and 2008," Bridgewell Securities said in a note.

"On the back of the announcement, we anticipate downgrading 2007 and 2008 estimates in the region of 7-10%."

Bovis said its first-half average sales price was in line with the previous half year at around 189,000 pounds ($380,300), with legal completions and operating margins also broadly in line with the previous year's level.

Britain's red-hot housing market, which has been mainly led by buoyant London and southeast England areas, is seen slowing down, as rising interest rates are taking the steam out of the market's double-digit percentage price growth.

Last week Britain raised interest rates for the fifth time in less than year to a six-year high of 5.75% and analysts expect the Bank of England to raise them again to 6.0% before the year end.

Contact U.S. News


    Get the best of CNBC in your inbox

    Please choose a subscription

    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.

Don't Miss

  • Learning your value

    How to make sure you get what you¿re worth at your job, why you should stop apologizing, and how to manage work-life balance. Anchor Mika Brzeznski, author of the new book "Grow Your Value," shares her strategies for juggling busy lives.

  • Why women cheat?

    Is cheating bad? Why do women cheat? The founder and CEO of affair website Ashley Madison tells all, including why he has his eye on China.

  • Judge's gavel

    The Financial Industry Regulatory Authority disciplined several financial services firms and individuals in May 2015.

U.S. Video

  • Cramer: Here's a sign the market could rally

    Wall Street's been soaking in red, but "Mad Money" host Jim Cramer has one signal to watch for that could point to another run.

  • Burger war maneuvers

    Cramer looks at the number of company's selling burgers and tries to determine the quality names, as well as those to avoid.

  • Cramer: What's driving defense?

    Cramer says that even though President Obama has made it clear the US can no longer be the world's policeman, the country can become the world's arms dealer. Profiting from defense spending.