The new chief executive, Greg Fitzgerald, an industry veteran who was previously boss at Galliford Try, said: “The trading performance in the first half of our financial year is in line with management expectations. In the past 11 weeks I have spent a good amount of time with each of our operating regions, visited 85 sites and met the vast majority of our people. "We continue to identify and implement operational improvements and I am very confident we can deliver a successful turnaround, returning Bovis Homes to being a leading UK housebuilder.” George Salmon, an analyst at Hargreaves Lansdown, said: “The name of the game at the moment is prioritising quality over quantity. Although fewer completions and an increased investment in customer service means profitability will take a hit in the short term, it feels like the right thing to do. “However, with uncertainty hanging over the UK economy, wage growth looking stagnant and interest rates potentially on the rise, there are those who feel the housing market’s boom days are numbered. If this is the case, Mr Fitzgerald will need to work swiftly to get Bovis’ house in order.”
Bovis Homes has put aside £3.5m ($4.5m) to rectify substandard homes that were built last year. Last December, Bovis was found to be cutting corners to hastily complete properties and advancing incentives for customers to move into unprepared homes. The company took a significant hit on the FTSE. "I am very confident we can deliver a successful turnaround, returning Bovis Homes to being a leading UK housebuilder,” said Greg Fitzgerald, the new Bovis CEO.