Taylor Wimpey PLC (LON:TW.) the FTSE100-listed housebuilder, has reported an interim loss as the impact of the coronavirus (COVID-19) pandemic lockdown hit home sales in the half-year to end-June 2020.
The number of houses sold fell to 2,771 (H1 2019: 6,541) as sites were closed due to the coronavirus restrictions, though Taylor Wimpey said it now has 252 sites open, slightly more than this time a year ago.
Orders as at June 28, 2020, were also higher at 11,686 homes (June 30, 2019: 10,137 homes), up 15%, with a value of £2.9bn (June 30, 2019: £2,366 million) or up 23%, excluding joint ventures.
Pete Redfern, Taylor Wimpey’s chief executive, said he was pleased with performance over a very challenging time, adding all employees had now returned to work and the company had repaid all furlough subsidies.
“We are now operating safely at c.80% production capacity and expect to deliver around 40% less completions in 2020, compared to 2019,” Redfern said In the results statement.
“This will have a significant impact on revenues and margins in 2020 and will have some knock-on impact on 2021 delivery. We expect to end 2020 in a net cash position in the range of £550 million to £750 million, dependent on the timing of land purchases.”
Revenues in the six months to June 28, 2020, fell 56% to £754mln, while there was a loss of £39.8mln against a profit of £299.8mln a year ago.
Taylor Wimpey cancelled its last dividend earlier in the year due to COVID-19 and said it expects to resume the payment of an ordinary dividend in 2021 (2020 final) and will review the special dividend in 2021 for payment in 2022.
Published at Wed, 29 Jul 2020 07:10:00 +0000-Taylor Wimpey slides into losses as house sales dry up