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Last Updated: Thursday, 6 March 2008, 08:43 GMT
Overseas woes hit Taylor Wimpey
Building site
The global housing slowdown has hit housebuilders
A big write-down on assets in Spain and the US has wiped out profits at UK housebuilder Taylor Wimpey.

It reported a pre-tax loss of 19.5m in 2007, against profits of 405.6m a year earlier, after it took a near-300m write-down on land and property.

Taylor Wimpey does not expect the US to improve significantly in 2008, and while UK profits were up in 2007 it expects tough trading this year.

Housing markets are slowing, as the global credit crunch takes its toll.

"Continuing material weakness in the group's US and Spanish markets has resulted in land and work in progress write-downs of 289.7m," the company said.

'Challenging conditions'

Pre-tax profits in the UK were 608.5m, a 14% rise on the previous year.

Pete Redfern, group chief executive said: "We continue to anticipate a more difficult trading environment in the UK during 2008. However we have actively positioned the business for more challenging conditions and are well placed for the future."

The group was formed by the merger of Taylor Woodrow and George Wimpey.

The benefits of the merger were especially clear "in the difficult market conditions that we currently face," chairman Norman Askew said.



SEE ALSO
Homebuilder sees 'subdued' market
31 Jul 07 |  Business
Wimpey and Woodrow agree to merge
26 Mar 07 |  Business
Building firm enjoys housing boom
10 Jan 07 |  West Midlands

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