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Taylor Wimpey hit by massive loss
neverdespairgirl
Posts: 16,501 Forumite
They actually made a small operating profit, but had to write down their assests by the tune of serious money.
Housebuilder Taylor Wimpey has reported a huge loss for the past six months after having to sharply reduce the value of its assets including land.
The firm slumped to a loss of £1.54bn in the six months to 30 June, saying it faced "very challenging" conditions.
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, Taylor Wimpey made a profit of £4.3m, down from £119.8m last year.
Shares in Taylor Wimpey were down nearly 11% at 46.5p in early morning trade.
http://news.bbc.co.uk/1/hi/business/7583557.stm
Housebuilder Taylor Wimpey has reported a huge loss for the past six months after having to sharply reduce the value of its assets including land.
The firm slumped to a loss of £1.54bn in the six months to 30 June, saying it faced "very challenging" conditions.
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, Taylor Wimpey made a profit of £4.3m, down from £119.8m last year.
Shares in Taylor Wimpey were down nearly 11% at 46.5p in early morning trade.
http://news.bbc.co.uk/1/hi/business/7583557.stm
...much enquiry having been made concerning a gentleman, who had quitted a company where Johnson was, and no information being obtained; at last Johnson observed, that 'he did not care to speak ill of any man behind his back, but he believed the gentleman was an attorney'.
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Comments
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seems that they have managed to renegotiate their loans with the banks0
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neverdespairgirl wrote: »They actually made a small operating profit, but had to write down their assests by the tune of serious money.
Housebuilder Taylor Wimpey has reported a huge loss for the past six months after having to sharply reduce the value of its assets including land.
The firm slumped to a loss of £1.54bn in the six months to 30 June, saying it faced "very challenging" conditions.
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, Taylor Wimpey made a profit of £4.3m, down from £119.8m last year.
Shares in Taylor Wimpey were down nearly 11% at 46.5p in early morning trade.
http://news.bbc.co.uk/1/hi/business/7583557.stm
Thus taking the hit on land cost now to create future profits. they anounced the writedown months ago is this a surprise?0 -
TW listed debt is trading at 56p in the £1. Could a bunch of enterprising FTBs buy up a chunk of debt and agree to swap it with TW for houses at face value? (i.e. both sides knowing both the houses and the debt is worth less than face value)0
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I wonder how much they banked in the good times? serves them right..It is nice to see the value of your house going up'' Why ?
Unless you are planning to sell up and not live anywhere, I can;t see the advantage.
If you are planning to upsize the new house will cost more.
If you are planning to downsize your new house will cost more than it should
If you are trying to buy your first house its almost impossible.0 -
Serves them right for what ? Running a succesfull business ?0
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Serves them right for what ? Running a succesfull business ?
Don't do it treadmill, houses should be £80K everyone should own there own, (even though they all love renting and cant see the point of owning a house) and making money means you are in cahoots with satan!:eek: .
Apparently the whole country should colapse and we should stalk rabits and decide on a wife by hitting her (actualy being PC or husband) on the head with a club.0 -
Serves them right for what ? Running a succesfull business ?
I don't know how you judge a 'successful business' but my definition would probably exclude one that had just lost about one and a half billion pounds in the space of six months.--
Every pound less borrowed (to buy a house) is more than two pounds less to repay and more than three pounds less to earn, over the course of a typical mortgage.0 -
I don't know how you judge a 'successful business' but my definition would probably exclude one that had just lost about one and a half billion pounds in the space of six months.
They did not have to re-value there land but it would have been mad not to, fairly honest of them to accept the current climate "might as well accept the drop now and carry on!"0 -
Lets see you put a gloss on this then...
"Taylor Woodrow and George Wimpey merged last year to create a £5 billion housebuilding giant.
Today, it was worth just £475 million. "
"It was forced to write down the value of its land bank in the UK, North America and Spain by £690 million, with £585.9 million coming in the UK"
Link - any paper - try Google "wimpey land bank"0 -
Lets see you put a gloss on this then...
"Taylor Woodrow and George Wimpey merged last year to create a £5 billion housebuilding giant.
Today, it was worth just £475 million. "
"It was forced to write down the value of its land bank in the UK, North America and Spain by £690 million, with £585.9 million coming in the UK"
Link - any paper - try Google "wimpey land bank"
No one made them do it, but the land is overvalued so to bring the land to current values and to make future proffits they had to lower the value of the land thus taking the big hit now.
If they did not lower the value there business model would not stand up.
Like so many of you say you need to lower the price to sell that is what they have done. do you think they will be writting the value of the land down every year by this much?0
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