[R]Bovis Home Group Plc reported annual revenues in the year ended December 31st fell 7% to £555.7 million from 597.3 million a year ago despite the robust selling price performance.[/R]

Second-Half Earnings Review

Bovis Home Group Plc reported second half revenues in the period ended December 31st fell 15% to £296 million after the number of homes sold during the period slid 10% to 1,674.

For the period, net income declined 17% to £45.8 million from £55.3 million a year ago.

Average selling prices in the second half dropped 2.3% from a year ago to £179,500.

Annual Earnings Review

Bovis reported annual revenues in the year ending December 31st plummeted £555.7 million from £597.3 million a year earlier as legal completions in the period plunged 6% to 2,930 from 3,123.

For the year, net income fell 6% to £86.9 million from £92.6 million a year ago.

Operating profit for the year dropped 10% from £137 million a year earlier to £124.4 million.

Bovis Homes proposed a dividend for the full year of 35 pence per share.

Segment Review

Bovis Home Group reported that the average sales price for the year declined 2% to £179,500 from £183,700 a year earlier as the housing market remained relatively subdued after five successive rate increases and the credit crunch began to take its toll in September.

However, there was robust price performance during the year, with a 3.8% increase in the average sales price to £206,200 from £198,600 in the same period a year ago.

Private gross margin in 2007 was at 31.5% compared to 31.7% in 2006.

In addition, average sales outlets were 80 in 2007, a 10% drop from 89 in 2006.

Bovis also added that the acquisition of Elite will significantly impacting on the outlet number and volumes growth going forward.

Reservations during the year fell 21% to 2,744 from 3,461.

Completions & Average Sales Prices

In the South East Region 703 units were completed compared to 906 units in 2006, while average sales prices slid to £207,600 from £212,100 a year ago.

Similarly, in the South Western Region units tumbled from 836 units in 2006 to 819 units and sales prices declined to £138,200 in 2007 from £148,700 in 2006.