Writedowns of 拢604m drive loss but housebuilder says market has improved 'significantly'

Housebuilder Taylor Wimpey has made a pre-tax loss of 拢682m in the first six months of 2009 after writedowns of 拢604m.

Despite the loss, the company said the housing market had improved 鈥渟ignificantly鈥� since the start of the year.

Turnover was down 28% from 拢1.56bn to 拢1.1bn and net debt stood at 拢1bn on 30 June, down from 拢1.7bn last year after a 拢510m rights issue in May.

Pete Redfern
Redfern: "our primary objective has now returned to creating value from existing and future sites"

Chief executive Pete Redfern said: 鈥淭he last two years have been incredibly challenging for all housebuilders. However, with significant underlying improvements in our business and encouraging signs of stability in the UK and North America, the group is well positioned for the future.

鈥淎lthough we will continue to focus on cash generation, our primary objective has now returned to creating value from existing and future sites.鈥�

In the UK the company completed 4,702 units at an average selling price of 拢153,000, which compares with 6,317 units at an average price of 拢177,000 in 2008.

In April the company completed a protracted refinancing deal on its then 拢1.9bn debt-pile. It expects debt to fall to below 拢900m by the end of this year and says it is operating with 鈥渟ignificant headroom鈥� against the covenants agreed as part of the deal.

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