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| Bovis Homes plans to cut 40% of staff British housebuilder Bovis Homes Group Plc said it has legally completed the sale of 851 homes for the six months ended 30 June 2008, as compared to 1,256 homes legally completed in the comparable period, a reduction of 32%. Within these totals, around 27% of homes legally completed were social and partnership homes as compared to the first six months of 2007 in which 13% were social and partnership homes. For private homes, Bovis Homes has achieved an average net sales price of £196,500, as compared to £204,500 in the first six months of 2007, principally due to a shift in the private selling mix towards smaller properties in the first half of 2008. As at 30 June 2008, the group had net debt of £94 million, with gearing anticipated to be approximately 13% at the half year end. Average net debt for the first half of 2008 was approximately £81 million, and Bovis Homes now anticipates that average net debt for the year as a whole will be in the range £110 million to £120 million. The group has bilateral committed loan facilities of £220 million which do not mature until 2010. Bovis Homes expects total staff numbers, both office and site-based, to be reduced by around 40% compared to those employed at the start of the year and anticipates the annualised saving from these actions plus other cost saving initiatives to be around 20% of its general overhead cost base. The group will be charging a one-off restructuring charge of around £2 million in its first half year results as a result of these actions. write your comments about the article :: © 2008 Construction News :: home page |