Vistry plans 100 job cuts in post-merger streamlining

Aaron Morby 4 years ago

Housing developer Vistry is targeting an 8% cut in staff numbers following the merger of Bovis Homes and Galliford Try’s housing businesses.

Fitzgerald says enlarged group is making good progress renegotiating supply contracts
Fitzgerald says enlarged group is making good progress renegotiating supply contracts

Already operations have been streamlined from 17 regional business units to 13, with most of the 100 or so planned job cuts expected from central services.

Announcing a 12% rise in pre-tax profit to £188m last year, chief executive Greg Fitzgerald said integration of Bovis, Linden Homes and Galliford Partnerships business was already well advanced.

The rise in profit came against a backdrop of downward pressure on house prices in the second half of 2019.

This was partially mitigated through a combination of the group’s own build cost-saving initiatives and a lack of cost inflation.

During 2019, construction costs decreased by 2% per square foot, driven by reductions in the cost base and changes in specification.

After the £1bn merger, Galliford Try aims to deliver £35m of savings by 2021.

At least £15m is expected from procurement savings and optimising specification across its three housing ranges: The Phoenix Collection, The Linden Collection and Partnerships housing.

Fitzgerald said the enlarged group was also making good progress renegotiating supply contracts.

He added that Galliford Try Partnerships, which is least impacted by the integration process, would grow strongly in 2020 targetting 6,000 homes per year and an operating margin of over 10% from revenues of at least £1bn.

Vistry Partnerships aims to accelerate revenue growth through a step-up in land-led, higher-margin development.

This year, Vistry Partnerships has entered into a £95m development with housing association, Citizen Housing Group, for the delivery of 360 homes at the former hospital site at Lea Castle in Kidderminster.

In London, Vistry Partnerships has contracted with Red Door Ventures, a newly-formed subsidiary of Newham Council to deliver homes for rent in Plaistow.

This £63m scheme will provide 182 homes and associated commercial units and will extend the group’s track record in delivering homes for build to rent and private rented sectors.

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