Persimmon confirms job cuts

Related Companies

Related Indices

Related Sectors

News for Spread Betters

PreviousPrevious
NextNext

There's a new Investor Edition of CMC Markets' spread betting platform... and it's exclusive to DigitalLook.com users...

Get full details about Marketmaker:Investor Edition here. Advertisement

Date: Tuesday 08 Jul 2008

LONDON (ShareCast) - Housebuilder Persimmon confirmed that it is to cut around 1,100 staff as it weathers the UK's slowing housing market.

The group joins fellow housebuilders Barratt Developments and Taylor Wimpey who announced job cuts last week.

In Tuesday's market update, Persimmon said poorer market conditions have continued as banks reduce the number of mortgages available and a decline in consumer confidence stifles the number of house sales in the UK.

While housing market conditions deteriorate, the group does not expect to announce any significant write-down of its land values in its first half results due August.

Persimmon said it completed 5,501 houses sales in the six months to end-June, 31% lower year-on-year.

"Our strategy is to maintain a presence in all markets across the UK whilst reducing costs, overheads and debt in line with current demand and market conditions," it said in a company statement.

Total net borrowings at the half year were around £900m and it expects to reduce debt levels as it continues with its strategy of reducing overhead, land spend and careful management of work in progress, it added.

Digital Look have been voted
"Best Research and Information Provider"

4th Floor, Bankside House, 107 Leadenhall Street, London EC3A 4AF.
Registered in England and Wales (registered no. 3678570).