Wimpey should make 14 pct margins in 2007; merger with Taylor Woodrow going well |
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Thu, 26 Apr 2007 11:46
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LONDON (Thomson Financial) - The proposed merger of George Wimpey PLC and Taylor Woodrow PLC is progressing 'extremely well' and should complete at the start of July, Wimpey said today.Wimpey said in its AGM statement today that UK market conditions remained healthy, with strong sales rates ahead of this time last year. It also claims to be making progress to improve operating margins and says they will exceed 14 pct in 2007 as long as market conditions remain constant.The margin improvement is before an extra 23 mln stg compensation in the first half relating to land options no longer deemed suitable for residential development.There will be no impact on the size or value of Wimpey's long-term landbank reported at the end of 2006.In the US, where Wimpey made extensive land write-downs last year, the company says it has achieved better sales rates and has had fewer cancellations than the second half of 2006, but there were still difficulties.'Pricing pressure is significant due to the high levels of stock still available in the market, and the indirect impact on confidence of the credit pressures at the more affordable end of the market,' Wimpey said.It is also confident of achieving the 25 mln stg and 20 mln usd targeted cost reductions in the UK and US respectively and sees the year progressing in line with expectations.tf.TFN-Europe_newsdesk@thomson.comgh/nesCOPYRIGHTCopyright AFX News Limited 2007. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.
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Taylor Woodrow and George Wimpey boards agree terms on 5 bln stg merger 