Taylor Wimpey has made an exceptional provision of £30 million in its half-year results to cover the cost of replacing Aluminium Composite Material (ACM) cladding on some of its past developments.

The firm said the majority of the cost relates to one development in Scotland, which was built under prior building regulations.

"Following the tragic fire at Grenfell Tower in London in June 2017, the Group undertook a review of its legacy developments to identify those with ACM," Taylor Wimpey said.

"In addition, we have sought expert advice to determine what, if any, further works should be undertaken to make those buildings with ACM safe in the long term. Based on that advice the Group has committed to replacing the ACM cladding on a small number of legacy buildings where we believe it's the right thing to do in the circumstances specific to those buildings.

-- Advertisement --

"The detailed design solutions for the replacement of the ACM have not yet been finalised. However, the Group have engaged with independent advisors and as such the £30.0 million exceptional provision booked in respect of these works is considered by Management to be our best estimate of the final outcome at 1 July 2018.

"We expect the cash outflow to be spread over a number of years, the rate of which will be determined by the timeliness of agreeing final design solutions and therefore being able to start site works."

In its half-year results for the period ended 1 July 2018, the Group reported profit before tax at £301m (H1 2017: £205m) while revenue was stable at £1.72 billion.

(LM/MH)