Paul Wallwork, chief executive of MJ Gleeson, has warned that hundreds more housebuilding jobs will be lost if the market fails to improve, writes Tom Bill.

Speaking after the regeneration and housing group described conditions in the sector as the 鈥渨orst in living memory鈥�, Wallwork (pictured) said further job cuts were inevitable, both at Gleeson and in the wider sector.

He said: 鈥淎s projects come to an end, you鈥檒l see more cost reductions. Sites go through their own cycle and once they finish there will be cuts in commercial, technical and financial staff because developments are not starting up elsewhere.鈥�

As a result of job cuts so far, the company employs fewer than half the average number of staff it did in 2007 鈥� 324 compared with 669. Wallwork said if there were no signs of stability in the run-up to the 2009 spring selling season, there would be more cuts.

In the year to 30 June 2008, the group made a pre-tax loss of 拢20.8m as a result of land writedowns of 拢10.6m and 拢5.2m in restructuring costs.

The board does not anticipate any material improvement before 2010

Dermot Gleeson, Chairman

Before exceptional items, profit was 拢700,000. The exceptionals also included a 拢4.1m out-of-court settlement with developer Devonshire Green Holdings over the West One scheme in Sheffield.

Turnover was down 51% to 拢94.6m as the number of units sold fell 32% from 639 to 436. The average selling price dropped by nearly a quarter from 拢193,000 to 拢149,000 and the percentage sold to registered social landlords rose from 15% to 39%.

Dermot Gleeson, chairman, said: 鈥淭he board believes the housing market will not improve until mortgage finance becomes more freely available and confidence returns to the wider economy. The timing of these events is not possible to predict with any accuracy but the board does not anticipate any material improvement before 2010.鈥�

Wallwork said the company would refinance next year before a 拢50m debt facility ran out in June 2010. It ended the year with net cash of 拢21.9m, but he said: 鈥淚t鈥檚 not the greatest amount of money if you鈥檙e not selling a great deal.鈥� He said the 拢50m figure would probably fall, given the state of the credit market.