Taylor Wimpey slips to £40m loss as pandemic hits housing
◆ Taylor Wimpey has swung to a £40m half-year loss as coronavirus closed its sites and suspended the housing market, writes
The FTSE 100 company’s £39.8m loss for the six months ending June 28 compared with a profit of almost £300m for the same period last year.
A 56.4pc decline in revenue was compounded by smaller operating margins – from 18pc to 2.1pc – as fewer sales made it harder to absorb fixed costs.
Taylor Wimpey’s building sites are now running at 80pc capacity with social distancing measures in place, although chief executive Pete Redfern said he expected to reach full capacity later this year.
He accepted it was unlikely the company would make up for lost production during the pandemic, with completions set to be about 40pc lower than last year. It has orders for 11,686 homes, compared to 10,137 at the same time last year, with an order book worth £2.9bn.