In a trading statement, the developer said build levels will deliver around 1,500 completions in the first half of the year. It will follow a controlled sales release over the year to focus on customer service before returning to normal industry production levels in 2018.
The drop follows a difficult time for Bovis after it was accused of offering cash incentives to buyers to complete on unfinished properties. In February the company reported a 3% drop in pre-tax profits for the year ending 31 December 2016.
Chief executive Greg Fitzgerald said: “I am confident that Bovis will return to being a leading UK housebuilder. The clear focus for 2017 is on improving our production processes and efficiency thereby ensuring we deliver quality homes to our customers.
“By the end of June I will have visited all our developments and met the majority of our people; we have already identified improvements to streamline the business, provide greater focus and be more agile.”
The company said customer interest is strong, with prospects per active outlet ahead of the prior year level for the past eight weeks. First half profitability will be impacted by increased build costs and “an increased level of investment across the business to address issues faced in 2016”.
The Group will incur one-off advisory fees of around £2.8m related to the merger proposals received from Redrow and Galliford Try and the group’s strategic review announced in February.
Bovis added that it is in a strong position for our 2018 delivery with the vast majority of the land required already owned with planning consent. It said demand for new homes remains robust across all regions with some modest house price inflation.
The company will provide an update on its strategic and structural review with its half-year results announcement in September.