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HR Owen announces ‘significant cost cuts’

HR Owen has announced that it expects to post a first-half loss after falling consumer confidence.

In a statement HR Owen chairman, JP MacArthur, says: “The difficult trading conditions experienced by the group in the latter half of last year have continued during the first four months of 2005.

“The industry has suffered from the adverse effects of rising interest rates, stagnating house prices and falling consumer confidence. These negative factors have been particularly evident in London and the Southeast, where our activities are mainly concentrated.”

In reaction to this announcement, HR Owen will embark upon a ‘significant cost-reduction programme’.

The dealer group said that although first half sales will be below its previous expectations and will result in a loss, the second half will benefit from a reduced cost base and a substantial number of new pre-sold model introductions.

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