British builder Bovis said today it was on track to deliver a significant increase in profitability in 2018 as it seeks to turn its business around after seeing off two takeover bids last year following a profit warning.
Some buyers have also complained about the quality of its homes, citing problems ranging from a lack of sealant in bathrooms to the heads of nails poking through walls.
The group said its pre-tax profit would fall around 25% to roughly £115m after one-off charges linked to restructuring, extra work it is undertaking to improve its homes and merger talks.
The number of homes it built in 2017 fell by 8% to 3,645 units as it focuses on improving quality.
Bovis chief executive Greg Fitzgerald, appointed only last April, told Reuters 2018 full-year profit should meet consensus expectations of around £155m.
"Our forward order position is strong, and with robust industry fundamentals, we expect the Group to deliver a significant improvement in profitability in 2018," he said.
Barratt, Britain's biggest housebuilder, this week reported a flat sales rate in the last six months of 2017, adding that prices rose and it expects to build even more homes this year.
Bovis, whose previous chief executive quit last year prompting rivals Galliford Try and Redrow to make unsuccessful takeover bids, announced a plan in September to rein in growth plans, reduce its land bank and cut staff.
