City File: Housing land could hold back P&O
Sunday 06 September 1992
However, optimists should beware of the potential for shocks in Bovis, its construction business. The biggest worry is the value of its housing land, much of it bought when prices were up to three times as high as now. At the beginning of the year, Bovis had 7,900 plots valued at pounds 260m. That works out at almost pounds 33,000 a plot, or about 30 per cent of the pounds 109,000 average selling price, well above the industry average of 20 per cent. To get down to that level, P&O could have to write off as much as pounds 80m, making a dent in forecasts of pre-tax profits of about pounds 260m, up from pounds 217.4m, for the full year.
P&O traditionally revalues its land and property at the full year, so analysts are not expecting write-downs on Wednesday, when pre-tax profits are expected to be about pounds 70m, down from pounds 73.1m last time.
- 2 Tower Bridge glass walkway 'smashed' by night-time visitor dropping bottle of beer
- 4 Woman opens professional cuddling shop – gets 10,000 customers in first week
- 5 Grayson Perry: London needs affordable housing because 'rich people don't create culture'
Anti-gay hate preacher accidentally tweets 4,000 followers cartoon clip of him 'confessing' to be a 'homosexual sodomite'
Woman opens professional cuddling shop – gets 10,000 customers in first week
Grayson Perry: London needs affordable housing because 'rich people don't create culture'
Kenya bus attack: Al-Shabaab militants slaughter 28 non-Muslims who failed to recite Koran
That Sugar Film director Damon Gameua receives shocking diagnosis after going on healthy sugar diet for just 60 days
Rochester by-election: Ukip gains second MP as Tory defector Mark Reckless holds seat
'Beast of Bolsover' Dennis Skinner takes Ukip MP Mark Reckless to task moments after he is sworn in
Rochester by-election: Labour MP Emily Thornberry resigns after posting white van and England flags tweet
France 'blocks' Russian sailors from boarding a warship
Revealed: How the world gets rich – from privatising British public services
Myleene Klass: Ed Miliband 'strikes back' by comparing UK's need for Labour's mansion tax to Hear'Say track
iJobs Money & Business
Voluntary Only - Expenses Reimbursed: Reach Volunteering: Age Concern Slough a...
Voluntary Only - Expenses Reimbursed: Reach Volunteering: Crossroads Care is s...
£20000 - £25000 per annum + OTE £35,000: SThree: We consistently strive to be ...
£50000 - £90000 per annum + benefits: Ampersand Consulting LLP: Markit EDM (CA...