Taylor Wimpey takes £1.54bn writedown

Source: Construction Digital

Date :27/08/2008 11:31:03

The UK’s largest housebuilder today, August 27, said that it was still in talks with its bankers to revise the terms of its debts after two writedowns demolished its first half profits.

However, the company stated that an immediate resolution was unlikely. Instead, it indicated a decision would be made towards the end of the year.

Taylor Wimpey said that it was hit by the lower value of its land in the UK, US and Spain and the cost of downsizing its UK business.

Excluding these reductions in asset values, the company saw a profit of £4.3 million against a figure of £119.8 million the year before.

Commenting on the results, 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,” he continued.

“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.”