Bovis to take £2.8m hit from failed merger talks, review

Housebuilder Bovis said it would take a one-off £2.8m hit from the failed merger efforts with Redrow and Galliford Try earlier this year and a post-profits warning review.

In a trading statement ahead of its annual meeting, Bovis said the demand for new homes remained robust across all regions and it had seen “modest” house price inflation since January 1.

“We have made clear progress in addressing the issues faced during 2016 and in particular have re-established a 'customer first' culture across the business. The group is confident it will deliver on its expectations for 2017,” Bovis said.

“As announced in February we have slowed our rate of production for 2017 and for the full year expect to deliver completion volumes around 10% - 15% below the 2016 level before returning to normal industry production levels. Our build programme for the year to date is expected to deliver about 1,500 completions in the first six months of 2017.”