Vistry plans 100 job cuts in post-merger streamlining

Aaron Morby 3 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.

Latest news

ISG wins £600m Hertfordshire Hollywood film studio job

Holywood studio Sunset awards pre-construction contract for 90-acre studio complex in Broxbourne
2 days ago

NAO calls for road programme cuts as costs soar

Public spending watchdog calls for roads programme review amid project delays and cost overruns
2 days ago

Kier hires Laing O’Rourke veteran for London office push

Gus Wright takes up new London regional director role in January
2 days ago

VolkerFitzpatrick lands starring role on £174m film studios

Contractor to start main works on Eastbrook Studios in Dagenham
2 days ago

Wates poaches Balfour director to lead North West operation

Sarah Cooke to lead Wates Construction in the North West
2 days ago

£3.4bn Sellafield infrastructure race delayed to New Year

Contest to start in January for four partners in infrastructure delivery shake-up
2 days ago

Rebuilt TBM launches into second HS2 tunnel drive

Balfour Beatty Vinci TBM Dorothy starts second Long Itchingwood HS2 drive
3 days ago

Materials lead times back to pre-pandemic levels

Pinch points around gas boilers to persist until mid-2023 because of shortages of semiconductors
3 days ago

Bond strength helps TClarke towards £500m turnover target

Building services giant predicting a record year in 2023
3 days ago

All-clear for £125m Guildford Debenhams redevelopment

Native Land's St. Mary’s Wharf will comprise 185 homes
3 days ago

Thompsons brings down historic Redcar blast furnace – video

Redcar demolition clears the way for new net zero future
3 days ago

Wolverhampton picks McLaughlin & Harvey for £50m learning campus

Main construction to start next spring on City Learning Quarter
3 days ago

Michelmersh buys offsite brick cladding and chimney maker

Pre-built brick products producer Fabspeed sold for over £6m
3 days ago

Pagabo acquires mental health monitoring business

Framework giant makes move after Moodbeam goes into liquidation
3 days ago

Green light for London timber office block

Construction to start next year on six-storey cross-laminated timber block
4 days ago

Government pushes ahead with £3bn building safety levy plan

Affordable homes projects and small schemes developed by SMEs will be exempted
4 days ago

Rejigged £340m Museum of London plan approved

McAlpine tipped to take £340m job for new museum at Smithfield market
4 days ago

Ex-construction minister joins cladding repair firm

Intelligent FS appoints Lord Richard Harrington after government contracts send turnover surging
4 days ago

Willmott Dixon limbers up for £18m Rainham sports centre

Work to start in April on New Splashes Sports Centre in Rainham
4 days ago

Plans in for BBC’s new home in Birmingham

Project will be one of the first net zero carbon in construction office buildings
4 days ago

McLaughlin & Harvey wins Lowestoft harbour design

Lowestoft Eastern Energy Facility is expected to cost around £25m to build
4 days ago

Van Elle first-half revenue hits record £81m

Piling specialist upgrades full-year profit forecast after strong first-half trading
5 days ago

Forterra plans fourth brick price hike in 12 months

New Year increase follows 16.5% jump in October
5 days ago

640-home plan lodged for £250m Trafford scheme

Developer Glenbrook aims to start work by next summer on Lumina Village
5 days ago

Kier construction boss Liam Cummins to leave next month

Stuart Togwell to take over at Kier in New Year
5 days ago

Severfield profits jump as steel price hikes tempered

First-half pre-tax profit rises 29% to £10.2m as steel price rises successfully passed-on
5 days ago

Land deal reboots stalled Earls Court 4,500-home scheme

40-acre West London site could be redeveloped with 4,500 homes
5 days ago

Firms readied for £46m Norfolk bypass job

Work timetabled to start in 2024 on Long Stratton Bypass
5 days ago

2023 to be ‘Year of Catch-up’ for London office projects

Twenty-six schemes in demolition raising hopes of major project starts ramping up again
6 days ago

Galliford Try buys green water specialist

Latest deal boosts contractor's offering to the water sector
6 days ago

Contractor services