Business

Completions rise 5% at Taylor Wimpey

Warren Lewis
|
14th January 2020
construction 665

Taylor Wimpey has announced that its year end results “will be line with expectations”, as it reveals that total completions hit 15,719 after a 5% rise against the previous year.

The volume housebuilder updated the market ahead of its full year results on February 26 and admitted that, against a backdrop of continuing uncertainty during 2019, the housing market had remained stable but with “more challenging” conditions in London and the south east and with higher priced homes.

During its financial year ending December 31 2019, the housebuilder’s private average selling price lifted 1% to £305,000 against FY 2018.

The business said that, as previously guided, its operating profit margin for the year was set to be around 19.6%, a dip on 2018’s 21.6%.

With Taylor Wimpey seeing an ease in cost pressures in recent months, build cost inflation in 2019 was at 4.5%, it said.

The business ended the year with a “record” total order book valued at £2,176 million on December 31 2019 against 2018’s £1,782 million. It traded from an average of 250 outlets, down on the previous year’s 273. It expects outlets in 2020 to be “broadly similar”.

It added that it expected completions in 2020 to be second half weighted.

Pete Redfern, Taylor Wimpey’s CEO, comments on the announcement: “Our results for the year to 31 December 2019 will be in line with our expectations.

“Despite an uncertain political and economic backdrop in 2019, we have continued to experience a good level of demand for our homes and trading in the second half of the year was as anticipated. The group has again delivered a record sales rate and we increased home completions by c.5% in the year.”

He added that in 2020 the business would continue to focus on the sustainability of the business and “further improving our build quality and customer offering”, with a renewed cost focus.

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