Article Abstract:
UK housebuilders have been affected by a drop in house prices which has meant that they cannot ask for up-front payments. This has affected their financial position and Tarmac has had to sell assets to counteract this. Tarmac is seeking to sell its housebuilding activities but is not likely to obtain much over 400 million pounds sterling. The company aims to make acquisitions but this may not compensate for the drop in earnings from housebuilding. The slump in roadbuilding and construction in the UK will affect Tarmac if it expands its UK operations.
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Article Abstract:
Wimpey plans an asset swap with Tarmac valued at 300 million pounds sterling. There had been concern that the deal would be affected by a management buyout, but Wimpey has stated that the swap will go ahead and is backed by the directors of the company. Wimpey will gain the housbuilding operations of Tarmac in exchange for Tarmac gaining Wimpey's contracting and aggregates business, in line with an agreement made in Nov 1995, which is likely to be decided on by shareholders in Feb 1996.
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Article Abstract:
George Wimpey is a UK househbuilder and construction contractor, and is affected by overcapacity in the sector in the UK. The company saw a drop in profit to 0.6 million pounds sterling for 1st half 1995 for its contracting activity. Demand has been affected by a drop in spending on roads by the UK government. The company's housebuilding side saw a drop in profit to 8.1 million pounds sterling from 10.5 million pounds, with demand continuing to fall.
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