Housebuilder Bovis Homes is planning to cut 120 jobs as part of a recovery plan, according to the its latest results.
The beleaguered company revealed this morning in its latest trading update that pretax profits were down almost a third to £42.7m, for the six months to June 2017 compared to the same period last year.
The company has been forced to up its spending on customer service and building as it battles to regain its reputation following issues over the quality of its homes.
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In an update on an ongoing strategic review of the business, chief executive Greg Fitzgerald said the company would merge operating regions to form seven geographical areas of focus, and that the business overall would aim to deliver 4,000 homes a year.
He said the streamlined firm would focus on disciplined volume growth, allied with a renewed focus on customer satisfaction and build quality.
As part of this process, measures will be taken to restructure the company’s balance sheet, including the disposal of developments outside core geographic areas, a reduction of stock and a lowered infrastructure spend.
There would also be a reduction in the number of company employees, said Fitzgerald, which would incur an estimated restructuring cost of £4m in the second half of this year.
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Elsewhere in the results group revenue in the first six month of 2017 edged up 4%, helped by revenue of £6.9m from one land sale. Completions in the first half of the year totalled 1,512 units with the average selling price up 9%.
Labour and material cost inflation was around 4% in the first half, while total construction costs increased by 8% to £137 per square foot.
Fitzgerald said: “The first half of 2017 has been a period of stabilisation and strategic reorganisation for Bovis Homes Group.
“Since joining the business in April 2017 I have visited all our offices and the vast majority of our developments, and have been hugely impressed by the desire of our dedicated staff to address and rectify the challenges faced by the business. As a result, I am confident that our new strategy will set the group on the path to sustainable, profitable growth.
“The new strategy of disciplined volume growth, allied with a renewed focus on customer satisfaction and build quality, will deliver the homes that are required in the locations where people want to live.
“The group’s strong balance sheet and valuable land bank mean we are well set to provide the stable returns to shareholders that their patience and support have deserved.”
