Builder cuts its 2020 homes plan
HOUSE-BUILDER Taylor Wimpey has said it expects to complete 40 per cent fewer homes in 2020, after plunging to a £40million loss for the first half of the year.
Shares in the company slid yesterday morning after the company told investors the pandemic has had a “significant impact” on construction work and completions.
It slid to a £39.8million pre-tax loss for the six months to
June 28, from a £299.8million profit in the same period last year.
Taylor Wimpey closed its construction sites and sales offices amid the coronavirus pandemic in March. It said the site closures weighed on home completions, which fell by 57.6 per cent to 2,771 properties for the half-year.
In the nine weeks since its sales centres reopened in England, it said its sales rate has significantly improved while appointment bookings have jumped 206 per cent. But it expects completions to be 40 per cent lower in 2020 as some expected for the end of the year will now be finished in the first quarter of 2021, which could also have an impact on completions in 2021. The company said demand has “remained robust” in recent months and mortgage finance has continued to be available, despite wider uncertainty.
Chief executive Pete Redfern said: “I am pleased with Taylor Wimpey’s performance during a very challenging time and am proud of the resilience, principled approach and agility that our teams have shown.
“Our performance for the first half of 2020 has been impacted by the closing of our sites and sales centres but we have now reopened all sites successfully and safely and have returned to a sustainable level of sales and build.
“Looking ahead, balance sheet strength, a long order book and our highquality and growing landbank gives us confidence in our ability to navigate the challenges and emerge stronger from the pandemic. While uncertainties remain, we are confident in the underlying fundamentals of the housing market.”
Shares in Taylor Wimpey fell 10.75p to 122.2p last night.
‘While uncertainties remain, we are confident’