Taylor Wimpey’s profit drops despite strong demand for new homes By Copilot

Taylor Wimpey’s profit drops despite strong demand for new homes By Copilot

Taylor Wimpey, one of the U.K.’s largest home builders, reported a lower profit for 2020, as the coronavirus pandemic disrupted its construction activity and sales completions. However, the company said it saw strong demand for new homes, especially in the second half of the year, and ended the year with a record order book.

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The company said its pretax profit for the year was £217.4 million ($302.9 million), down 68% from £674.8 million in 2019. Its revenue fell 36% to £2.79 billion, as its home completions declined 39% to 9,799. The company said it was impacted by the first national lockdown in the U.K., which forced it to suspend its operations for eight weeks in the spring.

However, Taylor Wimpey said it experienced a strong recovery in the second half of the year, as the housing market reopened and benefited from government support measures, such as the stamp duty holiday and the Help to Buy scheme. The company said its average selling price increased 6% to £288,000, and its customer satisfaction score improved to 93%.

The company said it ended the year with an order book of £2.68 billion, representing 10,685 homes, up 23% from 2019. It also said it had a strong balance sheet, with net cash of £719.4 million, and resumed dividend payments in October.

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Taylor Wimpey’s chief executive, Pete Redfern, said the company was confident in its outlook for 2021, and expected to deliver a significant step up in operating profit margin and return on net operating assets. He also said the company was committed to its environmental and social goals, and planned to invest £125 million in its environmental strategy over the next five years.

 

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Source : The Wall Street Journal

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