News that Taylor Wimpey failed to secure additional funding of some £500m, coupled with having to shed 900 jobs, sent the share price sharply down today. The shares ended the day down 25p (41%) at 35p, with intra-trading lows bottoming at a 57% loss.

In its latest trading statement about funding the company said “In light of current market conditions we have not been able to conclude a satisfactory transaction.” adding ‘We think that we’ve got the time and options to complete the capital raising in the near future.’

Taylor Wimpey will now focus on reducing sales prices to help generate cash flow. Let’s hope this works as it is not unrealistic for a major player in the house building  sector to go under as a result of such difficult trading conditions. If not with funding, the Banks need to co-operate by offering mortgage deals that will entice purchasers back in to the market.

Tags: taylor wimpey

This entry was posted on Wednesday, July 2nd, 2008 at 2:10 pm and is filed under Mortgages, Stocks and Shares. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.