House builder Redrow hit by big sales slump

Posted under General by Michael

The housing downturn has hit house builder Redrow very hard, as its sales tumbled down by 50% and revenues fell sharply.

According to company report, number of completed home sales was 1,042, as against 2,111 sold in the same period in 2007.

The company reported 49% fall in its sales reservations across the UK during latter half of 2008, compared with 2007 to just 853. This was despite drop in average selling price to £140,500 in latter half from £162,700 in the first half of 2008.

This drop in sales impacted revenues which declined by 58% to £149.5 million over 6 months to end December 2008, amounting to loss of £46.2 million as against £35.8 million profit registered in 2007.

The house builder in its attempts to tide over the crisis is planning elimination of further 90 jobs amid market downturn and declining sales. During 2008 it had effected very big reduction in employee strength, removing 43% of staff to 740.

The news has come at a time when British Banker’s Association reported slight increase in mortgage approvals from 22,416 in December 2008 to 23,376 in January 2009, although the number of loan approvals was 43% lower than in January 2008.

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