Loss-making division sold for œ10m

Bovis Homes has acquired Britannia's loss-making housebuilding division at a cost of œ10 million.

Bovis will pay half of the balance on completion of the deal on 31 July and the balance six months later. Britannia will retain two housing estates nearing completion and worth œ600,000.

The division made a loss before tax of œ230,000 in the year to 31 December 1995 and losses have continued in the first six months of this year, to be reported in the company's half-yearly results in September.

A spokesman for Britannia said: "We restructured last November to increase efficiency but we have now decided that conditions are too difficult for a housebuilder of our size because we don't have the capital to put into the operation that a larger player has. Everything suggests that the industry is becoming more for the major players rather than middle-sized housebuilders such as ourselves."

The spokesman said that Britannia would be concentrating on its construction core including its air and heating ventilation interests.

Malcolm Harris, chief executive of Bovis said: "This purchase is a positive move as part of our planned expansion of the south west operation offering useful economies of scale."