Upmarket faith at Taylor Woodrow
Updated: 19:00 EST, 4 September 2000
Taylor Woodrow, the construction group turning itself into a specialist housebuilder, has admitted the UK housing market is 'softening' but insisted its presence in the US and Canada gives it some protection.
Chief executive Keith Egerton said the group's concentration on upmarket, urban apartments - such as the Millennium Village at Greenwich, meant it was more resilient to a downturn. 'That end of the market is less affected. People in the middle or lower end of the market are having to deal to make a sale,' he said.
Egerton has sold the low-margin distribution business Greenham Trading and the Greenham Construction Materials arm and 500 staff from its Southall-based construction side in London have been axed at a cost of £5m.
The construction arm will now support property development and housebuilding activity in high-margin projects such as the shops and apartments to be built inside the former Lots Road power station at Chelsea.
In the first half to 30 June, operating profits from continuing operations grew 34% to £76.5m and pre-tax profits rose to £89.4m after interest payments. The interim dividend is up from 1.65p to 1.82p.