Business

Taylor Wimpey reveals revenue slashed by over half due to Covid-19

Property Reporter
|
29th July 2020
construction 998

Volume housebuilder, Taylor Wimpey, has revealed the impact the coronavirus crisis has had on business by posting details of completions in the first half of the year.

According to the fim, it completed 2,771 homes in this period, down from 6,541 in the same period last year and announcing that revenue was down 56% to £754.6m, making a £39.8m loss before tax.

TW incurred almost £40m of costs directly relating to the Covid-19 pandemic including £29.9m of site overhead costs incurred during the period that sites and sales centres were closed.

However, the company reports positive sales momentum and customer interest and a “strong” total order book representing 11,686 homes (30 June 2019: 10,137 homes), up 15%, with a value of £2,904m (30 June 2019: £2,366m), up 23%, excluding joint ventures.

First-half net private sales rate stood at 0.70 (H1 2019: 1.00) – this was 0.97 prior to shutdown, and reduced to 0.30 during the shutdown. Sales prices during shutdown stayed consistent with those achieved in the first quarter of the year, the firm said.

Pete Redfern, Taylor Wimpey CEO, comments: "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. We are delighted that our NHS and care workers discount scheme has been taken up by over 1,200 households to date.

“Looking ahead, balance sheet strength, a long order book and our high quality 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.”

TW said that all its employees have returned to work from furlough and the firm has returned all furlough subsidies to the government.

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