MJ Gleeson has made 65 people redundant and written down the value of its landbank by £9.6m after a further deterioration in market conditions.
In a trading update last week, Gleeson announced a £5.6m (7%) writedown on land earmarked for regeneration and housing and a £4m (22%) writedown on commercial land.
A statement said: “The 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.”
It announced a further 65 job cuts in addition to the 335 already made this year. The cost of making the redundancies will take £1.6m off the balance sheet this year but future benefits are estimated to be £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 £50m bank facility.
It added: “The group is prepared selectively to rent rather than sell completed properties, especially flats.”