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Realistbear

Redrow & Bovis Cut 40-50% Of Their Workforce

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http://uk.biz.yahoo.com/080709/214/i2y6a.html

Wednesday July 9, 08:22 AM
Redrow on track, cuts 40% of workforce
| | |
LONDON (ShareCast) - Housebuilder Redrow (LSE: RDW.L - news) says it expects to meet expectations for the full year despite a sharp increase in cancellations and as it slashes 40% of its workforce.
"The UK housing market continues to be severely affected by the credit squeeze," said Redrow in a company statement.
It added, "Confidence is now also being influenced by
concerns about the future for house prices
and interest rates."
The group said it sold 3,925 homes in the year to 30 June, a decline of 19% from the same period the year before. The average selling price dropped 2% to £157,000.
Second half
reservations fell as much as 55%
while
cancellations increased
significantly
, the group said, as mortgage availability dropped.
"We have experienced an
unprecedented decline in the fortunes of the UK housing
market in a very short period of time," the group added.
"Cancellations have increased significantly in the last quarter and in particular in recent weeks as customers have not been able to secure mortgage offers to proceed to exchange of contracts and legal completion," it said.
Group forward sales at 30 June were
45% lower than the year before
at 1,189 while net debt stands at £225m.

Sadly*, I have to agree with the gentlefolk at Redrow--this time it is "unprecedented."

_________________________

* :D

Edited by Realistbear

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Sadly*, Bovis too, sniff sniff:

http://uk.news.yahoo.com/pressass/20080709...ed-6323e80.html

Hundreds of housebuilding jobs axed
Press Assoc. - 38 minutes agoHundreds more housebuilding job cuts have been announced as
Bovis Homes
and Redrow become the latest to outline efforts to combat the property slump.
(Advertisement)
The builders are axing 40% of their workforces and closing offices to cope with plunging house sales.
Bovis said it expects around 400 of its staff will have lost their jobs since the start of the year. It is also closing its eastern regional office.
On Tuesday fellow housebuilder Persimmon announced that 1,100 full-time staff had been cut since January, while last week Taylor Wimpey and Barratt Developments together revealed around 2,000 job losses.
Redrow said it will be left with a total headcount of 850 following the job cuts.
The group is also shutting two of its 10 offices, in Warrington and Basingstoke.
Bovis said it was shutting its eastern regional office, while merging key functions of its northern and central regions.

http://uk.news.yahoo.com/skynews/20080709/...ce-45dbed5.html

Bovis Sheds Nearly
Half Workforce
:o:o
By Sky News SkyNews - 1 hour 43 minutes ago(Advertisement)
Construction firm Bovis is to cut 40% of its workforce compared to the start of the year, it has announced.More follows...

We have a Bovis development near us asking 300k for 4 bed detached. Will keep an eye on them as I might be interested at around 175k.

The directors are doing well out of it though--shares flying up today.

_____________

* :lol:

Edited by Realistbear

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I know they've paid well over the odds for land (which is their problem, not the homebuyers), but what kind of business won't give their customers what they want (here, affordable housing), and are then surprised when they go to the wall. :blink::blink:

If people can't borrow the asking price, the asking price is too high - so simple but these loons can't see it. :blink::blink:

Like selling a Ford Fiesta for 80k (bank won't loan this to a regular guy) - Ford go out of business.

:rolleyes:

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REDROW 105.00 8.75 [b +9.09% [/b]

Nothing like a dose of good old fashioned negative fundamentals to boost the stock price eh? Just think what calling in the Receivers might do for their stockl! :lol:

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The markets seem to like the builders now.

I think they are playing it like NR--wild gyrations on each piece of news before the end comes. Remember Little Britain sketch dying skit?

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I think all these builders layoff numbers are on the optimistic side.

When the current developments are finished they will lay off the remaining staff.

All they will need is a few sales staff to sit in the show homes.

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I think all these builders layoff numbers are on the optimistic side.

When the current developments are finished they will lay off the remaining staff.

All they will need is a few sales staff to sit in the show homes.

This is great news for Matt Henson and Cartmandau, as they will now tell us all (again) that because of these massive loss of jobs....rents will now go through the roof

:lol:

My LL has greed to pay council tax for HIS property.

Have you asked yours?

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A lot of building work is casual employment of Eastern Europeans. A know a couple of Romanians who work on a day to day basis and it's always open to the boss to say, "Sorry, we don't need you tomorrow." That doesn't count as redundancy since they were only ever on fixed term contracts (if there was any paperwork at all.)

So the true scale of the retrenchment is likely to be much higher. And of course there will be unreported knock-on effects with the sub-contractors.

:(

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All they will need is a few sales staff to sit in the show homes.

I doubt they'll even be staff, just temps from www.rentabimbo.com (which is registered but contains no bimbos sadly)

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heard a report about perismmon on the raio and -I may be mistaken - they said sales were down 30% on last year.

I just don't believe these new build figures.even 45% down does not represent on the action on two smallish developments near me-both about twenty hosues.

after a year and out of 40 they've sold 6/7..........!!!!!!!

Quite - near me they've got a plot for 450, built about 4, given up and sold none ! :lol:

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I take it that Gordon's target of "3 million new homes" now lies in ruins?

In the BBC report it says

Of the homes that were completed, 27% was social housing, rather than private homes, more than double the amount in the same period last year.

I dont see why the government can't still go ahead and build the 3 million new homes.

It would keep the builders head above water and provide some work for there remaining staff.

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http://uk.biz.yahoo.com/080709/214/i2y6a.html
Wednesday July 9, 08:22 AM
Redrow on track, cuts 40% of workforce
| | |
LONDON (ShareCast) - Housebuilder Redrow (LSE: RDW.L - news) says it expects to meet expectations for the full year despite a sharp increase in cancellations and as it slashes 40% of its workforce.
A week of building firms and estate agents winging. It was very different when they were squeezing houses into every bit of land, ripping people off with shoddy cardboard homes and making a mint. They made their own graves, greed and dishonesty, love it.
_________________________
*
:D

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Any other bears on here beginning to waver? I'm starting to feel snorty and sort of scratching at the ground with what is beginning to look like a hoof!

(Only for today, mind!) ----Barratts up 16% last time I looked!

Edited by blankster

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There was a thread somewhere here about businesses raising prices as orders fall. They have to do this to meet fixed costs.

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In the latest sign that the UK housing market is in sharp decline, Bovis Homes and fellow housebuilder Redrow both said this morning that they plan to make 40pc of their staff redundant as the British public continues to put off buying new homes.

UK housebuilders have been badly hit by the economic downturn

Bovis is cutting 400 jobs and this morning described the current market as "the worst backdrop the group has seen for many years", while 500 jobs will go at Redrow, which said that the pace of the downturn in the UK market was "unprecedented".

http://www.telegraph.co.uk/money/main.jhtm...bcnbovis209.xml

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Barratts shares are now up 24% so far today - other builders are up strongly too. Is this phase of the crash fizzling out as quickly as it arrived?

Edited by blankster

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Barratts shares are now up 24% so far today - other builders are up strongly too. Is this phase of the crash fizzling out as quickly as it arrived?

No it just means that people think they've been oversold. Also remember that a 25% rise doesn't cancel out a 25% drop.

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Guest Bart of Darkness
I dont see why the government can't still go ahead and build the 3 million new homes.

Could they afford it though?

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Barratts shares are now up 24% so far today - other builders are up strongly too. Is this phase of the crash fizzling out as quickly as it arrived?

no they are letting workers go, creates problems for other industrys, and as the othe poster suggested, 25% drop is greater than a 25% recovery.

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Second half reservations fell as much as 55% while cancellations increased significantly, the group said, as mortgage availability dropped.

"Cancellations have increased significantly in the last quarter and in particular in recent weeks as customers have not been able to secure mortgage offers to proceed to exchange of contracts and legal completion," it said.

Group forward sales at 30 June were 45% lower than the year before at 1,189 while net debt stands at £225m.

http://uk.biz.yahoo.com/080709/214/i2y6a.html

What is the cancellation rate now then ?

Are the forward sales subject to that cancellation rate?

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  • 396 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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