Redrow is one of the UK's largest house builders
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House builder Redrow has slumped to a half-year loss after its revenues fell by 58% following the sharp downturn in the housing market.
In the last six months of 2008 the firm made a pre-tax loss of �46.2m, compared with a profit of �35.8m a year earlier.
Redrow's revenues declined to �149.5m from �353m last year.
The firm said it had been hit by both falling sales and reduced prices. It added that it now planned to cut a further 90 positions.
Redrow confirmed that during the 12 months to December 2008 it reduced its workforce by 43% to 740 employees.
It added that it was continuing efforts to reduce annual costs by �40m.
'Unprecedented conditions'
During the second half of 2008, Redrow said its sales reservations were down 49% from the same period a year earlier to just 853 across the UK.
This came despite its average selling price falling to �140,500 in the second half of the year, from �162,700 in the first half of 2008.
Redrow said its cancellation rates during the last six months ran at 27%, "partly driven by increased redundancies and concerns about employment prospects in the last months of 2008".
"Redrow responded early to the unprecedented market conditions, taking swift and decisive action within the business," said chairman Alan Bowkett.
"We have implemented a major cost reduction programme which is delivering significant savings, and we are executing tight control of our cash flows."
Housing slump
Redrow's results come after a number of reports have indicated the extent of the slump in the UK housing market last year.
Last week, the Council of Mortgage Lenders said the number of UK homes repossessed in 2008 rose by 54% to 40,000.
Meanwhile the Land Registry - widely seen as the most authoritative guide to the market - said house prices in England and Wales fell by 13.5% in 2008.
Prices also continued to fall in January according to both the Royal Institution of Chartered Surveyors (Rics), and the Nationwide.
Rics said the proportion of its members reporting a fall rather than a rise in prices went up to 76.3% in January from 73.9% in December, while the Nationwide said its latest survey showed that house prices fell by 1.3% last month.
The Halifax said UK prices rose by 1.9% in January, however it cautioned that one month's figures did not indicate an end to the downward trend in prices.
Redrow said the housing industry needed the banks to restore normal lending levels.
It added that it expects tough conditions to remain for the remainder of 2009, and that it was also "cautious" about its hopes for 2010.
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Redrow responded early to the unprecedented market conditions, taking swift and decisive action within the business
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