Taylor Wimpey revenue nearly triples from previous year to over £2.2bn

In the six months to 4 July, Housebuilder Taylor Wimpey reported revenue of £2.2bn, nearly triple 2020’s revenue and 26.8% beyond 2019. This reflected a record number of completions, due in part to delays in the fourth quarter of 2020.

The group will pay an interim dividend of 4.14p per share.

Full year completions are expected to come in near the top end of guidance for between 13,200 and 14,000 homes. Operating profit is forecast to be around £820m, exceeding previous expectations.

The shares were up 4.4% following the announcement

Laura Hoy, Equity Analyst at Hargreaves Lansdown analyses the figures: “Another set of strong results from the UK’s housebuilders adds to mounting evidence that the pandemic has been a tailwind for the housing market. Turns out being locked inside for months on end has caused many people to re-evaluate their current living situation. Add to that the rising popularity of working from home, and you have the perfect excuse to move house.

“Over the past few months, there’ve been mutterings of a potential slowdown in the UK’s red-hot housing market—Halifax reported a small decline in house prices in June—but from Taylor Wimpey’s perspective things are still ticking over nicely. The group reported a double-digit rise in house prices, a strong forward order book, and cancelation rates in line with 2019 levels.

“If things carry on like this, Taylor Wimpey could be one of the pandemic’s biggest winners. The group was bolder than some of its peers with an aggressive land buying strategy that will pay off if the market remains buoyant. Of course, the group will suffer if the economy stumbles in the wake of the pandemic, but so far the group is building from a strong base.”