Taylor Wimpey Share Discussion Threads

[hiq] 16/11/2010 13:56

An understandable, low-risk strategy for the next year or so...

[imastu pidgitaswell] 16/11/2010 13:52

smurfy2001 - 16 Nov'10 - 12:50 - 5169 of 5171


spenny,

Yes, noticed that myself, due to land purchases?

What does this mean, that TW will make a £75m debt re-payment? So debt would be down to £645m (720-75)? If my understanding is correct that would not be far off debt of £633.9 @ H1 2010.





Erm, no.

The £75m is a contribution to the pension deficit - it has not yet been made. It is just included in the section about debt reduction - the preceding sentence notes that it is regarding pensions:

"Discussions to agree the triennial valuations with the pension trustees have
progressed well and are expected to be completed by the end of the year. As
part of the refinancing, we anticipate making a one-off deficit reduction
payment of GBP75 million."

The increase in net debt since the Summer is just seasonal - the real comparison is with this time last year.

Not a great statement overall, but good enough. Interesting that they are still not targetting volumes (which is what will really increase profits) but continuing to target margins - playing the long game...


The FD thing is interesting - he has only been there two years, was not party to the deal (Taylor Bryant) that really screwed things up, just charged with sorting out the mess. Now that it has been sorted, he has been turfed out ("to pursue other opportunities"...) Am wondering whether they want somebody with different skills to firefighting?

Or is it just that he has had enough of being pushed around by the banks and the silly deadlines and chosen to go?

From two years ago, his appointment RNS:

[jibba_jabba] 16/11/2010 13:10

Missing all the action today as i'm out and about...

[hiq] 16/11/2010 12:53

NHwe have run over timeNHbut we must have a look at Taylor WipeoutNHa positive trading statement from the company todayTaylor Wimpey Plc (TW.:LSE): Last: 25.67, up 0.72 (+2.89%), High: 26.80, Low: 25.59, Volume: 18.73mNHwhich doesn't really tally with what's happening out thereBEDown a lot yesterday, meek rally.NHbut let's skip that and have a look at the refinancing newsBESure.NHso in order to refinance they need to raise around £350 in the debt marketNHand they want to refinance so they can buy more landNHyipeeBE(@Fatdaz, VP: to be fair, it takes a singular biotech can afford to bring any product through to phase III itself. The business model requires a bid.)NHGood progress has been made on the early refinancing of its debt facilities. The
company has reached full agreement with the banks of the terms of the revised
￡950m facility, which is conditional on obtaining ￡350 million of debt capital
market funding in the public or private debt capital markets. The new covenants
give the group greater operational flexibility, with no restriction on new land
investment. The refinancing is expected to be concluded by the end of Q1 2011.
Currently net debt is ￡720m, which is in line with expectations.
NHthat's from CitiNHIMS confirms that the group is now fully sold for 2010 and PBT is expected to be
towards the upper end of consensus expectations. Consensus PBT is ￡28 million
and we are at the upper end, at ￡55 million. The other news is that the company
has made progress with refinancing and the Group CFO is stepping down.
Trading in the UK has seen stable sales rates and pricing in the second half to
date. The company has seen a slight improvement in sales rates since the CSR
was completed. Sales rates have been 0.47 per site with cancellation rates at 16%
and ASPs have been broadly flat since the half year. Current number of sites is
277 versus 295 for 1H10. It is fully sold for 2010 and the focus is on driving
margin rather than volume – current order book is ￡883m (￡964m last year).
NHas was thatNHso Wipeout haveNHnet debt of £720mNHand they want to add another £350mNHand all without an FDNHChris Rickard, the CFO, is standing down and will be replaced by the Group
Financial Controller, Ryan Mangold.
The UK is expected to be subdued for the remainder of this year with a focus on
margin as the group enters 2011. In the US, the group expects a strong recovery
once confidence returns with Canada remaining strong.
The shares reside on a 2011E discount to NAV of 50%, which continues to price
in a significant house price fall. Clearly 2010 numbers are at the top end of
expectations due to higher margins and its operational flexibility will improve as
the refinancing is concluded. The key test is how the market performs during next
year's Spring selling season
BE(@VP: I can't. But that wasn't my argument.)BEWait wait wait. It suddenly struck me. Taylor Wipeout's running up more debt?BETAYLOR WIPEOUT IS RUNNING UP MORE DEBT?NH(small cap oil is the new biotech. in years to come there will be lots of bitter people like VP lising the ones that failed. GKP, Desire etc)NHyesNHanother £350m plsNHprices fallingNHoutlook unclearNHlet's gear upNHand buy some more landBE(NH: Yes, that's true on oil/biotech: one-in-fifty chance of an actual commercial success on a five year timeline, giving shareholders little chance of investing in a genuine business but lots of volatility so they can hope to time their exits luckilly.)NHand with thatNHI think we are doneNHthanks for joining us todayNHpls come back tomorrowNHsame time, same placeBEYes - quite lively today, so thanks for that.BEAnd have good afternoon, everyone.NHCrowNHAs announced on 3 August, we entered discussions with our banks earlier in the year regarding an early refinancing of the Group's debt facilities. We are pleased to report that we have now reached full agreement with these banks on the terms of a revised £950 million credit facility, which is conditional on obtaining £350 million of debt capital market funding in the public or private debt capital markets.

[smurfy2001] 16/11/2010 12:50

spenny,

Yes, noticed that myself, due to land purchases?

What does this mean, that TW will make a £75m debt re-payment? So debt would be down to £645m (720-75)? If my understanding is correct that would not be far off debt of £633.9 @ H1 2010.

--

As part of the refinancing, we anticipate making a one-off deficit reduction payment of £75 million.

--

spennysimmo - 16 Nov'10 - 07:32 - 5136 of 5168

Very good report although the debt has increased by £87m since the half year results to July.

[spennysimmo] 16/11/2010 11:41

wolt, barf, smurf.

[hiq] 16/11/2010 11:23

markets live chaps

[barf2] 16/11/2010 10:45

Whose on third base?

[gcom2] 16/11/2010 10:37

great HY too , went from 33p to 21p just after it!

[smurfy2001] 16/11/2010 10:36

From LSE re: my question:


just spoke to john drake this will not be a new share issue they have the funding in place through other means . phone number if you want to check is 02073558120

[wolterix] 16/11/2010 10:35

helluva IMS and er they go up 2-3%!

[smurfy2001] 16/11/2010 10:08

Can someone explain the 350m debt raise?

Will they raise this via a bond?

Alternatively they can sell the US/Canadian unit in time.

[newkid] 16/11/2010 09:42

Taylor Wimpey's Gibraltar's Ocean Village has won Best High Rise Development Europe and is now in the running for the World's Best final later this month. Now why did they not put that in the statement? Maybe they don't want to admit they have made a mistake leaving Gib. The only place the price of property has not fallen in Europe.

[gcom2] 16/11/2010 09:36

bought at 14p pea-brainy
already reinvested 26.1p sale from here +3.6% this morning

[hiq] 16/11/2010 09:32

Seller regret will get you nowhere.

More regret & sour grapes @ 30p, 35p, 40p, 44p?

[gcom2] 16/11/2010 09:25

the HY results were also ""good news""

[slytherin] 16/11/2010 09:12

We now have a decent cup and handle supported by some fairly good news. Therefore hoping for quite a decent climb to 30p+ now over next couple of weeks.