advertisement
Jennett’s Park house builder looks to future
By Paul RobinsSeptember 11, 2009
Worst Results: £140m loss but ‘moving forward’ says chairman
Developers in Bracknell are remaining upbeat despite suffering the worst financial losses in their history.
Housebuilder Redrow, which is building the Jennett’s Park development on the site of the old RAF college, has announced pre-tax losses of £140.8 million.
The construction giant said house sales had fallen by a massive 54 per cent to £301 million in the past year.
It sold 2,113 homes in the 12 months to the end of June – less than half the number sold the previous year. The average selling price fell 12 per cent to £137,400.
Redrow said potential buyers of homes have been struggling to find mortgage deals and those properties that were bought had fetched much lower prices than expected.
But Redrow said the loss – which was £44.32 million before write-downs and other deductions – was not as bad as had been forecast.
Chairman Steve Morgan said: “It is intensely disappointing to me to have to report the worst set of trading results in the company’s history.
“I am determined to ensure that this will not be repeated and, along with the rest of the management team, am clearly focused on steering the business back to delivering the sort of robust performance that it has delivered in the past.
“We are now in a position to move forward and assuming we experience stability in the market, we do not foresee further net write-downs being required.”
The news comes less than a year since Redrow announced plans to cut its workforce by 40 per cent to combat the property market slump.
Redrow is working with fellow developer Persimmon to build 1,500 private homes at Jennett’s Park, and overseeing the development of nearly 500 homes on the old Farnborough Airfield site.
Most recent user comments 1 of 1
11/09/2009 at 11:12 Offensive or Inappropriate?
Please let us know the reason you find the above comment inappropriate.