Bovis demand down but picture brighter

Housebuilder Bovis today admitted reservations on its homes were down 25% on 2007.

However, prospects seem to be improving modestly, with 638 private reservations since the turn of the year - up hugely from the 373 at this stage last year.

Although it is trying to sell as many homes as it can, the company's priority this year is to generate cash flows by reducing the amount of building work in progress and shifting homes that have been built, even if that means lowering prices.

In a trading statement today, Bovis said: "The group remains cautious in its view of the housing market Increased availability of mortgage finance, particularly for first time buyers, [is] critical to the market's recovery."

Thanks to its strategy of conserving cash, which has delivered ahead of budget, net debt currently stands at £47 million. Unsold finished stock levels are down 40%.

■Barratt Developments today appointed David Thomas as finance director to replace departing Mark Pain. Thomas, 46, will join from video games retailer Game, where he has been finance director since 2004. Before that he was finance director at Millennium & Copthorne Hotels.