U.K. Builder Bovis Slumps Most Since October as Production Fallsby
Bovis Homes Group Plc fell the most in more than two months in London trading after the builder said it will complete fewer properties than expected this year because of a slowdown in production during December.
Bovis will hand over 3,950 to 4,000 homes this year, the Longfield, England-based homebuilder said in a statement on Wednesday. Analysts had expected a sales volume of about 4,170 homes, according to a company spokesman. The shares dropped as much as 5.8 percent, the most since Oct. 7.
“We have experienced slower-than-expected build production across the group’s sites during December,” the company said in the statement. That will result in about 180 largely built and sold private homes being deferred into early 2017.
Bovis expects to report 2016 revenue of 1.04 billion pounds ($1.3 billion) to 1.06 billion pounds, while pretax profit will be 160 million pounds to 170 million pounds, according to its statement. The company had 2015 pretax profit of 160.1 million pounds.
Demand for U.K. housing will ease next year, partly as tax changes and stricter underwriting standards restrict buy-to-let investment, according to Halifax. As a result, prices may only eke out a modest gain in 2017, the mortgage lender said in a statement on Wednesday.