July 5, 2018 / 7:22 AM / 9 months ago

Bovis sees higher first-half profit on cost cuts

(Reuters) - British homebuilder Bovis Homes Group Plc (BVS.L) said on Thursday its first-half profit is expected to have risen as its cost-cutting measures pay off.

Bovis said its sales volume rose at a better-than-expected pace in the six months ended June 30 and it was on track to meet full-year expectations.

The company, which had been the target of two unsuccessful takeover bids, is undergoing a turnaround effort after it warned on profit last year.

Bovis’s chief executive quit last year prompting rivals Galliford Try (GFRD.L) and Redrow (RDW.L) to make acquisition offers. The company said in September it planned to rein in expansion, reduce its land bank and cut staff.

The company said its six-month sales volume rose 4 percent to 1,580 homes, slightly ahead of its expectations.

However, its average selling price fell about 6 percent to 261,000 pounds, as Bovis sold more affordable homes.

The company said it would meet its medium-term targets of 23.5 percent gross margin and 25 percent return on capital employed.

Reporting by Arathy S Nair in Bengaluru; Editing by Amrutha Gayathri

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