MJ Gleeson has made 65 people redundant and written down the value of its landbank by 拢9.6m after a further deterioration in market conditions.
In a trading update last week, Gleeson announced a 拢5.6m (7%) writedown on land earmarked for regeneration and housing and a 拢4m (22%) writedown on commercial land.
A statement said: 鈥淭he financial markets have remained troubled and there have been further falls in credit volumes. This continuing reduction in liquidity, combined with a growing lack of confidence in the economic outlook for the UK, has reinforced the difficulties to which the group is exposed in the housing and commercial markets.鈥�
It announced a further 65 job cuts in addition to the 335 already made this year. The cost of making the redundancies will take 拢1.6m off the balance sheet this year but future benefits are estimated to be 拢3.7m.
As part of the changes, it also plans to move its head office from Fleet in Hampshire to Sheffield, where it has a regional office.
The company maintained its positive net cash balance during the period and has not drawn down any of its 拢50m bank facility.
It added: 鈥淭he group is prepared selectively to rent rather than sell completed properties, especially flats.鈥�
No comments yet