Builder in land value slump

Apr 8 2009 by Iain Laing, The Journal

HOUSEBUILDER Taylor Wimpey has posted annual losses of £1.97bn but said a revamp of its huge debts to weather the market downturn was substantially complete.

The lion’s share of the losses came after £1.9bn in writedowns on land values and goodwill from the merger of Taylor Woodrow and George Wimpey in 2007.

But the group has also overhauled its banking terms – giving it total facilities of £2.47bn – although the cost of servicing its £1.57bn debt will rise.

Taylor Wimpey, which has cut more than 3,500 staff since the merger, has also seen stronger UK trading than expected so far this year.

Chief executive Pete Redfern said: “Although we remain cautious about market conditions, current trading and the cash generation of the business are both encouraging.”

Discounting the heavy exceptional costs, Taylor Wimpey made pre-tax losses of £74.7m, more than double 2007’s £33.6m slide into the red.