Housebuilder reports first-half loss of 拢46.2m and reveals it has shed 50% of its staff in a year

Housebuilder Redrow revealed a pre-tax loss of 拢46.2m in its first-half results and said it had cut staff by 50% since January last year.

The Welsh firm blamed a sharp drop in the availability of mortgage finance for the loss in the six months to December 2008, which came after 拢25m worth of exceptional items, including restructuring costs. The firm made a 拢35.8m profit in the same period last year.

Turnover was 拢149.5m, down 58% from 拢353.1m for the same period in 2007, reflecting a 51% fall in the number of legal completions to 1,042 homes and a 14% drop in the average selling price to 拢140,500.

Mortgage approvals for house purchases averaged around 31,000 per month over the half-year, a 67% fall on the same period in 2007, Redrow said.

The group said its cost reduction plan was in progress, with around 拢40m annualised savings targeted in administration, sales and site related costs.

Redrow chairman Alan Bowkett said: 鈥淩edrow responded early to the unprecedented market conditions, taking swift and decisive action within the business. We have implemented a major cost reduction programme which is delivering significant savings and we are executing tight control of our cash flows. In both these areas, we are ahead of our plan.

鈥淥ur strategy in the medium term remains focused on the strength of our forward land bank and the delivery of a differentiated product to our customers. This will best position the company to be able to deliver value for shareholders once market conditions improve.鈥�

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