Bovis Homes have issued an update for the end of 2017 showing a drop of around 10% in total completions compared to the previous year.
This was the company’s response to a peak of customer complaints and negative headlines at the end of 2016.
CEO, Greg Fitzgerald, was brought in to restore order and has focused the business on reducing stock on older sites and part exchange property and rebuilding Bovis’ reputation amongst buyers.
This has slowed the sales rate to under 0.5 per site per week and created a £10m exceptional items line in the annual accounts. The cost is attributable to restructuring, new operational procedures and investment into customer care.
Greg Fitzgerald, Bovis’ CEO, said
“The group had a very disciplined year-end and delivered against all of its financial and operational targets for 2017. There has been a step change in the quality of our homes delivered on completion and I’m pleased to see this reflected in our level of customer satisfaction which continues to improve.”
This is a good news story for the whole sector, not just Bovis. By taking a hit in both production levels and profit in order to address their build quality and customer care issues Bovis has the opportunity to rebuild their reputation amongst customers.
The kind of headlines that the company generated in early 2017 were every housebuilder’s nightmare and led to the CEO’s swift departure. However, any negativity about new builds making national news tarnishes the whole industry. Let’s hope this news begins to reverse that trend.