Bovis Homes Share Discussion Threads

[minerve] 15/11/2018 18:43

Thanks wad. Hope you haven't been hit too badly in the markets today. :)

[wad collector] 15/11/2018 17:36

Thanks for those.Shows why analysts earn so much.
Funny old day in the market today.

[minerve] 15/11/2018 15:30

Numis via FT Markets Live:

The sales rate for the year is in line with last year at 0.51x, and pricing is reportedly in line with expectations. Bovis states that it has seen some caution adopted by discretionary buyers, although we think this is only affecting a small number of sites that have higher price points. To maintain sales momentum, it has increased the use of partexchange, which is running at 15% of reservations – although the group is maintaining a disciplined approach with regard to balance sheet exposure and turning stock levels.
As previously alluded to, the group has increased land investment in order to maintain a 3.5-4.0 year landbank and in the period has acquired 1,988 plots, many of which have been secured from the strategic landbank. These investments are expected to generate a gross margin of at least 26% (EBIT margin c.21%) and ROCE of 25%. The Wellingborough JV is reportedly progressing and management remains confident of delivering £180m of cash release by end 2018.
● In our view, this update highlights how quickly the business has been turned around under the new management team. Operationally, the group is more controlled and this is partly evidenced by the improvement in margins and customer satisfaction. We think that Bovis can continue to show further margin growth (which underpins strong earnings growth) and will generate strong cash flow, supporting the dividend payment.
The shares are trading on 1.3x P/NTAV, 9x PE and a yield of 10%, which, in our view, fails to reflect the group’s improving profile and dividend yield.

[minerve] 15/11/2018 15:30

Peel Hunt via FT Markets Live:

As expected the group has continued to make good progress in terms of operational and customer satisfaction improvements and is now fully sold for FY18. As such we see no need to change forecasts although the step up in part exchange usage since the half year end points to a tougher market. This means it may be more difficult to achieve the margin progression the market is expecting in FY19. While the shares are trading on a P/NAV of 1.3x, a c. 10% discount to the sector average, the operational returns lag the sector average by 25%. We see better value elsewhere in the sector. Hold.

[minerve] 15/11/2018 11:04

Anyone on here able to explain how the part exchange process works in the detail. What is the average discount to market offered and how long does the part-exchange stay on the books on average?

Thanks.

[armourer] 15/11/2018 10:14

It's down to Dominic Rab just resigning & Brexit looking shaky yet again.

[welsheagle] 15/11/2018 10:00

Probably due to Xd today - see message above

[wad collector] 01/11/2018 09:56

£10 recrossed , is this the end of the recent share price weakness or just a blip before more trouble ahead?
Fundamentals still look strong.

[wad collector] 25/9/2018 08:52

Goes Xd 64p on thursday. (inc special).

[wad collector] 06/9/2018 09:37

"85% of new homebuyers were happy with the quality of
their new home, up 1%"
that was the industry average figure for the 16/17 report

"We are pleased to report that our HBF Customer Satisfaction score (1 October 2017 to date) has continued to trend at well above 80%."
that is today's BVS statement

[shaker44] 06/9/2018 09:04

customer satisfaction? 20% dissatisfied and they are proud of that? amazing

[wad collector] 06/9/2018 08:52

6 September 2018

BOVIS HOMES GROUP PLC

Half Year Results for the six months ended 30 June 2018

H1 Highlights

-- Strong H1 performance with a 41% increase in profit before tax, ahead of our expectations
-- Controlled volume growth resulting in another disciplined and orderly period end
-- HBF Customer Satisfaction score continues to trend at well above 80% (1 Oct 2017 to date) as Group consistently delivers high levels of customer service

-- Launch of market leading Phoenix housing range giving customers greater value and driving profitability

-- Progress with balance sheet initiatives including contracts exchanged for the formation of 50:50 joint venture at Sherford, Plymouth with Clarion Housing Group

-- Further strengthened balance sheet with a move to an average net cash position in the period of GBP6m (2017: average net debt GBP96m) and a period end net cash position of GBP42.8m (2017: net debt GBP32.4m)

-- Interim dividend increased by 27% to 19 pence per share and first special dividend of 45 pence per share to be paid with the interim in November



There are some strong figures in the results ; will we see £13 breached again soon?

[wad collector] 11/7/2018 08:28

Just noticed that update ; seems pretty positive to me , though does slightly skate over the quality issues.
Surprised by share price weakness , good timing Shaker. I am happy to hold.

[shaker44] 05/7/2018 08:39

modest increases. rate rise next month. happy to have offloaded @ £13 last month.
going nowhere imo

[dr_smith] 05/7/2018 08:00

Hello, anyone in???
Trading update today..looks good despite current negative sentiment to sector.

-------------------------------------
Outlook
The housing market fundamentals remain robust, with good demand for new homes across all our regions and underlying pricing remaining firm. We are very pleased with the Group's first half performance and are in a strong position to deliver upon our expectations for the full year.

We are making clear progress towards our medium term targets including a 23.5% gross margin and 25% return on capital employed and believe our margin initiatives represent further potential for the Group in the medium term.
-------------------
I like it most for what isn't said..
No caveat such as say:
.represent further potential for the Group in the medium term despite rising material costs and post brexit labour shortages.

Probably means other builders can relax (BKG outlook that cast some doom was London centric so perhaps now proven to be a poor read scross for sector.)

[wad collector] 21/6/2018 16:42

That's an impressively steady fall today ; share price going through a bit of a weak patch this month.

[davemac3] 26/5/2018 08:49

I think BVS may have a bit further to go and there is a special divi of 45p to be paid before end of year and for next 2 years after that.

[shaker44] 25/5/2018 15:04

Yep, iweb credited Divi today. Very juicy.sold all my bvs today too. Both they and markets look toppy to me.
We shall see....

[goldmachine] 25/5/2018 14:40

Just had asecure message alert from Selftrade expect that's the divi

[davemac3] 25/5/2018 08:05

anybody had their divi yet?

[wad collector] 17/5/2018 11:25

Hard to know how prevalent that sort of alleged behaviour is in the industry .
Meantime the share price is knocking on £13. Fundamentals still look reasonable at £13 to me.

[bones30] 08/5/2018 14:47

Probably this £10,000 millenial thing.