BOVIS HOMES PLC

Bovis Homes Plc

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Bovis Homes Plc

Introduction

Overview of the Company

Bovis Homes is a UK based company which engaged in building, designing and selling homes for both public and private sectors. The products which are offered by Bovis homes range from one to two bedroom coach apartment and houses and three storey town houses and larger four and five bedroom family home. Beside this, company also involved in social housing, retirement livening and partnership housing activities. The primary operations of Bovis are in UK with Headquarter in Kent. They work for communities to make better living place. They not only deal with the building the house but also assist people in purchasing property. They have best scheme regarding the purchasing the house in market which include 5% deposit mortgage package a string equity deal due to offer an interesting house for the customer so that they can move and experience new living atmosphere (www.bovishomesgroup.co.uk).

The Bovis pleased with its notoriety and history which extends back something greater than a century from its existence in 1885 by Charles William Bovis. Bovis Homes now work in four districts crosswise over the UK. Bovis Homes' groups in Mid, South West and South East districts are all based in provincial work places, a considerable number of with supporting satellite zone business settings. Bovis Homes is a builder of high quality traditional homes in England and Wales. The Group's business involves the design, build, and sale of new homes for both private customers and Registered Social Landlords. The Group employs over 500 staff directly and around a further 2,500 sub-contractors work on its sites on a daily basis. In 2011, the company legally completed 2,045 homes on a mixture of Greenfield and brown field sites. During 2011, the revenue generated by the company was £364.8 million while it was £298.6million in 2010.

Strategic objectives of Bovis

The strategic objective of Bovis to accomplish 20% of the minimum capital employed and maximizes the operating margin of the company. This is due to the competition that has been increased during last two years. Furthermore, ensuring that they would increases their yearly growth in profit with increase in EPS earning per share. Lastly, the strategic objective of Bovis is to increase and maintain their maximum level of awareness among the customers and implement the health, safety and environmental standards in the society.

However, Bovis has the always focus on the long term investment in land excluding the residential planning consent which has been given a special term Strategic land. The advantage of this long term investment in lands to the Bovis homes is that they can achieve their own planning consent at a discount rate comparing to the residential market value which results in the cost reduction and advantage of maintaining strong revenues (www.bovishomesgroup.co.uk).

Valuation of Bovis Homes

Looking at the UK industry Trend, it is clear that UK property market is cyclical and is strongly regionalized. Bovis has improved their financial performance during last few years ...