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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.
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