UK home builder Redrow posts 6-month loss
Homebuilder Redrow PLC said Tuesday it lost 33.3 million pounds ($48.3 million) in the six months ending Dec. 31 as sales fell by half amid Britain's housing market slump.
The loss compared to a profit of 25.2 million pounds in the same period of 2007. Revenue was down 58 percent to 149.5 million pounds in the period, which is the first half of Redrow's financial year.
Sales reservations were down 49 percent to 853, and the number of homes completed fell 51 percent to 1,042. The average selling price was down 14 percent, the company said.
During all of 2008, the company reduced its payroll by 43 percent to 740 employees, including 350 people laid off when Redrow closed two operating companies.
"We have implemented a major cost reduction program 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," said Alan Bowkett, the company chairman.
The immediate outlook was muted at best.
"We have been mildly encouraged by the improvement in sales reservation rates we have seen in the first eight weeks of 2009, which essentially reflects the normal seasonal uplift in the market," the company said.
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