Construction industry: Housebuilder Bovis cuts its dividend after profits dive 80%Bovis, Britain's fifth-largest housebuilder, yesterday added to the gloom gloom n. 1. a. Partial or total darkness; dimness: switched on a table lamp to banish the gloom of a winter afternoon. b. A partially or totally dark place, area, or location. in the sector after it slashed slash v. slashed, slash·ing, slash·es v.tr. 1. To cut or form by cutting with forceful sweeping strokes: slash a path through the underbrush. 2. its dividend and warned that there is no end in sight to the slump Slump A temporary fall in performance, often describing consistently falling security prices for several weeks or months. . In the circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or a dive in profits by four-fifths in the first half of 2008 to £11.7m was a good result, said chief executive David Ritchie
David Ritchie (August 19, 1812–January 24, 1867) was a Whig, Opposition Party and Republican member of the U.S. House of Representatives from Pennsylvania. . He also said there was no need to write down the value of the company's landbank of 14,000 plots with planning consent, which analysts predict could come under price pressure. Investors, who have largely set aside fears of a corporate collapse in the property sector, agreed with the more positive outlook for the firm, if not the housing market, and pushed shares up by 4% to 446p by the close of trading. Investors also accepted a cut in the dividend from 20p to 5p as a reasonable response to the ensuing en·sue intr.v. en·sued, en·su·ing, en·sues 1. To follow as a consequence or result. See Synonyms at follow. 2. To take place subsequently. downturn Downturn The transition point between a rising, expanding economy to a falling, contracting one. downturn A decline in security prices or economic activity following a period of rising or stable prices or activity. . Clyde Lewis, Citigroup analyst, said the dividend cut was understandable given the weak market, though he was concerned the company had not given any reassurances about whether it expected to pay a final dividend. The drop in interim profits was "hardly surprising, but just more confirmation of the very difficult times faced by the housebuilders", Lewis added. Bovis said: "In the light of difficult trading conditions, the board considers this reduction to be a prudent action to take." The dividend cut will save £18m. Ritchie said the housing market was now the most challenging since the firm floated on the stock market in 1997. Much of the company's activity in recent months has focused on building affordable homes for housing associations and other social landlords. Ritchie said the company was trying to conserve cash as it tries to ride out the downturn. It is also cutting prices to a "realistic level" in an attempt to hit its sales volume targets. He said prices were down 4% this year so far. Between January and June this year Bovis sold 851 homes, down from 1,256 in the same period a year ago. This sent pre-tax profits tumbling to £11.7m, down from £58.4m a year ago. Social housing now makes up 40% of the firm's completed buildings compared to 22% last year. "It is good for cashflow, but they offer much lower profit margins," the company said. 
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