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Commercial Property News
Taylor Wimpey reveals a £1542 million loss and confirmed talks with lenders agree new loan terms
Taylor Wimpey, the UK's largest housebuilder, today announced it's interim results for H1 2008, showing a loss of £1542million. The business made a small operating profit if £4million which was swallowed up by losses on it's land bank values in UK, USA & Spain of £690 million, a writedown of goodwill and intangibles of £816million, and a £40 million restructuring cost in the UK.
Norman Askew, Chairman, said:
“The first half of 2008 has been characterised by the very challenging trading conditions in the UK, US and Spain. The Board remains convinced of the fundamental value of the business over the medium and long term and our primary focus is to amend certain of the existing borrowing agreements. To this end, the Group is engaged in constructive dialogue and is not aware of any issues which would prevent these amendments being finalised by the end of this year.”
Taylor Woodrow merged with George Wimpey last year to form the new group, and the enlarged group says it will deliver merger savings at the rate of £70million a year by the end of next year, as distinct from the restructuring savings from the recently announced office closure programme.
The business suspended land buying last year when it had a peak of 91,059 pots on hand, and is now running them down, the land bank stood at 77,415 at the end of June 08. However the value of that land has plummeted.
Norman Askew, Chairman, said:
“The first half of 2008 has been characterised by the very challenging trading conditions in the UK, US and Spain. The Board remains convinced of the fundamental value of the business over the medium and long term and our primary focus is to amend certain of the existing borrowing agreements. To this end, the Group is engaged in constructive dialogue and is not aware of any issues which would prevent these amendments being finalised by the end of this year.”
Taylor Woodrow merged with George Wimpey last year to form the new group, and the enlarged group says it will deliver merger savings at the rate of £70million a year by the end of next year, as distinct from the restructuring savings from the recently announced office closure programme.
The business suspended land buying last year when it had a peak of 91,059 pots on hand, and is now running them down, the land bank stood at 77,415 at the end of June 08. However the value of that land has plummeted.
Wed, 27th Aug 2008