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In an attempt to avoid last years customer service scandal, Bovis Homes (LON:BVS) said this morning that they are planning to cut production by at least ten percent.
“We have made clear progress in addressing the issues faced during 2016 and in particular have re-established a ‘customer first’ culture across the business. The group is confident it will deliver on its expectations for 2017.” the group said.
Bovis Homes suffered after news had emerged that it was paying customers to move into unfinished houses to boost sales.
The group has already set aside £7 million in compensation for affected customers and remedial work. New measures to address their customer service include an improved quality assurance process and more staff to deal with complaints.
Chief executive Greg Fitzgerald said: “I am confident that Bovis will return to being a leading UK housebuilder and excited by the challenge ahead.”
“The clear focus for 2017 is on improving our production processes and efficiency thereby ensuring we deliver quality homes to our customers. By the end of June I will have visited all our developments and met the majority of our people; we have already identified improvements to streamline the business, provide greater focus and be more agile.”
According to the group, the first quarter of 2017 has been “in line with our expectations”. They had opened eight new sites during this period.
“Bovis is doing all the things it said it would at the time of its full-year results, slowing production and sales rates to focus on customer service.” said Anthony Codling, an analyst at Jefferies International.
“The group is catching its breath after a period of high growth and will not move on until it has addressed the production issues which let its customers down.”
Shares increased in morning trading by 0.2 percent.