The car crash in slow motion continues unabated.
TW's interim results presentation is very detailed, but the best bits are in the BBC article:
1. TW have written down the value of their land bank by £690m.
Sorry chaps, that's not good enough. TW are now valuing UK plots with planning permission at £41,000 (page 74), which is still two-and-a-half times as much as Barratts. The FT reported this on 1 July 2008 so it's not even news.
2. TW have written off the book cost of "the George Wimpey brand that it bought last year, to the tune of £816m".
Not actually quite correct, but yes, they paid £816 million more than GW is now worth, so they have to write off the difference, which is what I said they'd have to do in my earlier post.
Wednesday, 27 August 2008
"Taylor Wimpey hit by massive loss"
Subscribe to:
Post Comments (Atom)
5 comments:
I see that nearly 80 Labour MPs have signed a motion to award Taylor Wimpey a windfall tax rebate. To make this revenue neutral all those deemed "property-rich" (ie home-owners) will be subject to a £1,000 tax charge.
You are joking I hope. I can't find anything when I Google that.
MW
Sorry to panic you - I am joking but only just. It's just a mirror-image application of the self-serving and economically illiterate "reasoning" underlying the demands for a windfall tax on energy companies (which is backed by 70-80 Labout MPs and is, of course, given an overdose of oxygen by the BBC at every opportunity).
so when should I buy their shares?
CU, buy their shares once implied value of land bank hits £NIL.
Post a Comment