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Bovis

November 2017

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

Housebuilder Bovis announced its interim results, with its well-publicised operational problems leading to a 31% reduction in pretax profit to £42.7m. But our interest is based on its turnaround plan and the large stake acquired by new CEO Greg Fitzgerald and sure enough it has announced a punchy new strategy.First it intends to lower house building volumes to 4,000 units a year from 5-6,000 while targeting more upmarket customers with a higher average purchase price. It’s also aiming to rebuild operating margin to 18.5%. This compares with expectations for this year of around 3,400 units and a margin of under 14%.As well as higher profitability it is targeting return on capital employed (ROCE) to jump from ...

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Bovis Homes (November 2018)

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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Bovis

November 2017

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