Bovis cuts dividend after H1 profits slump

By Matthew Scuffham

LONDON (Reuters) - Housebuilder Bovis Homes (BVS.L) reported a slump in first-half profit and slashed its interim dividend on Tuesday following "the toughest period of trading it has experienced in its life as a public company".

Bovis reported an adjusted pretax profit of 11.7 million pounds for the six months to June 30, compared with 58.4 million in the same period the previous year, as revenues fell to 149.3 million pounds from 259.9 million.

The country's fifth-biggest housebuilder said the housing market had been badly impacted during 2008 as mortgage availability had reduced, following financial market turmoil in the second half of 2007. It blamed the challenging market for its dividend cut.

Shareholders will receive 5 pence a share, down from 17.5 pence last year. The company had previously indicated that it intended to pay 20 pence per share.

"In light of the current difficult trading conditions, the board considers this reduction to be a prudent action to take," Bovis said in a statement.

British mortgage approvals for house purchases fell 65 percent on a year ago in July to remain near the record low set in June, the British Bankers' Association said on Tuesday.

House prices have fallen by almost 10 percent from their peak last August as the credit crunch has made it harder and more expensive to get finance.

In a telephone interview with Reuters, Bovis Chief Executive David Ritchie called on the government to support the housing market by examining ways to unlock mortgage liquidity.