Possible closure of business outside the south-east … hhhm. Might be a good time for EDDC to do due diligence …
“… Schroders fund manager Andrew Brough is said to have urged Berkeley Homes to put Bovis out of its misery with a bid earlier this year, but sources close to Bovis stressed the review was likely to focus on land sales rather than a sale of the overall business.
Clyde Lewis of Peel Hunt said: “In our view, the likelihood of the company being bought by any other industry players looks remote given the liquidity in the land market.
“Therefore, the key to the shares performing better will be the group’s ability to turn itself around operationally. Without knowing who the chief executive will be to lead this charge, we see no need to get involved.”
Shore Capital’s Robin Hardy added that a review of the firm’s structure could also mean a “closure of operations outside the South-East and a retrenchment to a smaller and more regional business”.
Bovis held the dividend payout unchanged today in a bid to assuage shareholders but Hardy added that the problems could “have deeper roots” and take more than a year to resolve.”