Bovis pays out £10.5 m to repair sub-standard homes

“Profits at Bovis slumped last year after the housebuilder was forced to spend millions of pounds repairing poorly-built homes and fending off takeover attempts by rivals Galliford Try and Redrow.

The company was criticised after rushing the construction of some properties and offering customers cash to move into unfinished houses, some of which had plumbing and electrical problems.

The scandal has so far forced it to spend £10.5m on repairs, including £3.5m in 2017. Other one-off costs last year included £4m for restructuring and £2.8m on advisory fees as it tried to see off the takeover bids.

The charges dragged down Bovis’s annual pre-tax profits, which fell 26pc to £114m. Revenues dipped 3pc to around £1bn, despite a 7pc hike in its average selling price to £272,000.

The housebuilder’s previous chief executive David Ritchie resigned last January, just days before the quality scandal came to light, after Bovis was forced to issue a profit warning because it had struggled to build as many homes as expected in 2016. …”

https://www.telegraph.co.uk/business/2018/03/01/bovis-profits-slump-35m-payout-botched-homes/