UPDATE: Taylor Wimpey fails in funding bid

Source: Construction Digital

Date :02/07/2008 09:14:02

Things just get worse for Britain’s largest housebuilder as it says that after failing to raise £500million from investors, it will lay off 900 staff and close 13 of its 39 regional offices.

This announcement comes just two days after Taylor Wimpey's board said it was reviewing the value of its property, anticipating that the UK has lost £550million, with a further £110million lost by its US and Spanish operations.

The company, which is £1.7billion in debt, also said that finance director Peter Johnson has stepped down after five years in the role.

It is thought that Alliance Bernstein, Toscafund Asset Management, Standard Life, Barclays, Legal & General and M&G - Taylor Wimpey’s largest investors, who between them account for around 25 percent of the company - had been approached to provide up to £500 million in capital.

The news that this plan had been unsuccessful sent shares in the firm down 55 percent at the start of trading to 27 pence.

"Our major markets are experiencing a significant downturn,” said Taylor Wimpey in a statement, “characterised by significantly lower weekly sales rates and lower average selling prices than in recent years. We expect that the UK housing market will remain weak at least through 2008 and we do not anticipate any recovery in the short-term."

The company also announced that it would not be paying a dividend this year.