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«  August 2008  »
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Bovis cuts jobs and prices as sales dive

Bovis Homes has bargain its allotment and cut 400 jobs as it grapples with the deepening housebuilding slump. Added big cuts in the amount of its homes are aswell planned as it tries to allure buyers.

Its arch executive, David Ritchie, said the Government should actively acquisition means to break the accepted mortgage dearth which is preventing bags of humans from affective home.

The company's activity follows agnate cuts and accessible allotment reductions at rivals Redrow, Barratt, Persimmon and Taylor Wimpey.

The amount of homes awash by Bovis fell from 1,256 to just 851 in the aboriginal bisected to June, sending pre-tax profits coast from £58.4m to £9.5m.

The boilerplate amount of a Bovis home fell by 4 per cent to £196,700, but Mr Ritchie said added cuts of amid 3 and 5 per cent were planned as it tries to allure buyers to its sites.

"We will be added aggressive in our pricing," he said. The activity reflects brackish conditions, with sales up to 22 August down 39 per cent on endure year at 1,574.

Bovis has already bankrupt one above appointment and fabricated agents cuts which will save £10m a year. The aggregation has abhorred affairs new acreage and is aswell acid the allotment from 17.5p to 5p. But debts accept appear down to £93m, giving gearing of 13 per cent, a lot bigger than added builders.

"The accumulation has taken absolute activity in acknowledgment to the toughest aeon of trading it has accomplished in its time as a accessible company," said Mr Ritchie. He predicted that the difficult altitude would abide for the "foreseeable approaching with connected poor mortgage clamminess attached apartment bazaar activity".

He alleged on the Government to abutment the apartment bazaar by searching at means to advance mortgage liquidity. He said a mooted brand assignment anniversary would be welcome, but added, if "you can't get a mortgage to abutment your transaction you are not traveling to get off the starting blocks".

The agent Cazenove acclaimed the company's action and said it "appears to be a abeyant survivor of the apartment action ground". The shares bankrupt up 13.25p at 441.25p.

Category: business news Views: 1055 | Added by: moneymaking | Rating: 0.0/0 |

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