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| Version 0 | Version 1 |
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| Housing slump hits Bovis profits | Housing slump hits Bovis profits |
| (about 2 hours later) | |
| Profits at house builder Bovis Homes have plunged 84% in the first six months of the year, as the squeeze on mortgages hurt the property market. | Profits at house builder Bovis Homes have plunged 84% in the first six months of the year, as the squeeze on mortgages hurt the property market. |
| Bovis, which is cutting 400 jobs, said it had experienced its toughest trading since it became a public company and it expected the conditions to continue. | Bovis, which is cutting 400 jobs, said it had experienced its toughest trading since it became a public company and it expected the conditions to continue. |
| Pre-tax profits fell to £9.5m, from £58.4m in the first six months of 2007. | Pre-tax profits fell to £9.5m, from £58.4m in the first six months of 2007. |
| Bovis said its sold private homes for an average of £196,700 in the period, down 4% than in the first half of 2007. | Bovis said its sold private homes for an average of £196,700 in the period, down 4% than in the first half of 2007. |
| "The UK housing market has been badly impacted during 2008 as mortgage availability has reduced, following financial market turmoil in the second half of 2007," the firm said. | "The UK housing market has been badly impacted during 2008 as mortgage availability has reduced, following financial market turmoil in the second half of 2007," the firm said. |
| "As the vast majority of potential customers in the market require mortgage finance, this has had a negative impact on the group's levels of reservations and legal completions." | "As the vast majority of potential customers in the market require mortgage finance, this has had a negative impact on the group's levels of reservations and legal completions." |
| Cost cutting | |
| Persimmon, Redrow and Barratt have also announced job cuts as they seek to reduce costs and survive the market downturn. | |
| Bovis also said it would cut its dividend to shareholders to five pence per share from 17.5p paid in the first half of 2007. | |
| To cut costs, the company has already reduced production levels and is largely avoiding buying any new land. | |
| Bovis shares fell 3.8%, or 16.25p, to 411.75p in morning trading. |