A brief trading statement from Bovis confirms that the group remains on course to deliver higher profits and record revenues this year. Current trading is in line with normal trends after the disruption of the EU referendum. The shares moved 1.4% higher on the news in a strong wider market.
George Salmon, Equity Analyst at Hargreaves Lansdown:
"The housing market remains something of an enigma for investors. The housebuilders say it’s business as usual, while national surveys show transaction numbers and prices are both slowing.
That contradiction is in evidence again today, after Bovis reported that demand continues to outstrip supply, and building is ramping up. So what is going on? One possible explanation is that the housing market is less uniform than one might think.
The government’s many initiatives to support the housing market are particularly geared to new builds and first time buyers - helping builders buck the trend of a wider slowdown. However, those policies are from the George Osborne playbook, and the new Chancellor has already hinted at a change of tack. This month’s Autumn statement could shed some light on how his plans to tackle the UK’s chronic housing problems."
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