Housebuilders Taylor Wimpey reported profits down by 96% for the first half of this year.
Pre-tax profits fell to £4.3m from £119.8m for the same period last year, thanks to the sharply reduced demand for new homes and the cost of having to subsequently downsize the UK business. Restructuring costs in the UK were some £40m.
However, the company have also had to sharply reduce the value of their assets, including land, which means they really made a pre-tax loss of £1.54bn for the six months to June 30.
Taylor Wimpey have written down the value of land they own by £690m and of other assets, including the George Wimpey brand, bought last year, by £816m.
The UK market remains “very challenging”, the company says, with no imminent prospect of recovery.
Profits in the UK fell 39% over the period, although the company’s operations in the US and Spain fared worse, falling by 63% and 85%, respectively.
Shares in Taylor Wimpey were down nearly 11% at 46.5p early this morning.