Covid impact plunges Taylor Wimpey to £40m loss

Aaron Morby 2 weeks ago
Share

House builder Taylor Wimpey suffered a £40m loss in the first half of this year mainly due to the impact of the coronavirus lockdown.

Taylor Wimpey chief Pete Redfern says there are now great opportunities to buy land
Taylor Wimpey chief Pete Redfern says there are now great opportunities to buy land

Part of the loss was also accounted for by an extra £10m to cover ongoing works to replace aluminium composite cladding on a small number of legacy buildings.

During the same period the year before Taylor Wimpey recorded a £300m pre-tax profit indicating the scale of the impact on the volume house builder’s performance.

Revenue more than halved to £754m in the period to June as completions slumped 58% to 2,771 homes, compared to 6,541 during the first half in 2019.

Pete Redfern, chief executive, 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.

“I would like to thank all of our employees, subcontractors and suppliers for their exceptional response to the crisis.

“Their tremendous effort has enabled us to continue to support customers and protect the value of our business, at a time of great uncertainty.”

Redfern said that Taylor Wimpey had now reopened all sites successfully and safely and returned to a sustainable level of sales and build.

“We are now operating safely at 80% production capacity and expect to deliver around 40% less completions in 2020, compared to 2019.

“This will have a significant impact on revenues and margins in 2020 and will have some knock on impact on 2021 delivery.”

The house builder ended the challenging first half with £497m net cash, having raised £510m through an equity raise in June for investment in land opportunities over the next 12 months.

Redfern said: “Through the second quarter we saw an increased level of deals returning to market, with other buyers unable or unwilling to continue to complete on their previously agreed terms.

“We intend to use the proceeds of our recently completed equity raise to take advantage of these short term opportunities, in addition to our planned land expenditure, over the next 6-12 months.”

Latest news

Taylor Woodrow lands £100m power plant deal

First major building award at £1.2bn North London Heat and Power Project
16 mins ago

Giant HS2 tunnelling machines unveiled

Two TBMs will take three years to bore the ten mile long Chiltern tunnel
2 hours ago

Bellway commercial managers in cost cutting drive

House builder to focus on reducing build costs as Covid cuts sales by 31%
4 hours ago

Galliford Try bags £105m Leeds Highline scheme

Five build to rent blocks of flats will be built at Monk Bridge
5 hours ago

Laing O’Rourke starts redundancy talks with 150 staff

Covid cuts to focus on back office staff
1 day ago

Derwent sees future in long-life, loose-fit offices

Next-generation offices to feature higher ceilings, better ventilation and green space
4 hours ago

Plan for first 349 homes at Kirkstall Forge

Developer CEG consults over first of 1,450 homes at Leeds scheme
5 hours ago

McGee signs-up former Multiplex Commercial Director

Paul Maguire joins specialist as contractor still predicting profits this year despite Covid impact
1 day ago

Plans approved for 5,000-home Thameside West scheme

Work will start on the first 400-home block before the end of the year
1 day ago

Laing O’Rourke completes first HS2 bridge in two days

65-metre structure built off-site and installed ahead of schedule
1 day ago

A66 TransPennine upgrade to be split into four jobs

Design and build projects to total £770m along 50-mile route
1 day ago

Welsh Water civils and M&E frameworks up for renewal

Water company seeks to refresh partners for AMP7 investment plan
1 day ago

Crane drivers face heat risk in “greenhouse” cabs

Union demands maximum three-hour shifts for drivers, free water and mini fridges in cabs
4 days ago

Willmott Dixon wins £54m Manchester creative complex

Major boost to city's media, creative and digital industries
1 day ago

£100m Leeds student tower approved

Planning go-ahead for 32-storey Merrion Street skyscraper
4 days ago

Redrow pulls out of 1,100 home Wandsworth estate scheme

Construction started in February on first phase of Alton Estate regeneration
5 days ago

Supply chain event for £4.5bn Smart motorways plan

Subcontractor engagement launch event to set out new working arrangements
4 days ago

Construction Manager of the Year finalists revealed

Sixty of the country's best construction managers make the cut: Full list
5 days ago

McAlpine to kickstart £650m Nottingham Island Quarter

Construction to start on £9m first phase of giant scheme in October
5 days ago

Four injured during roof collapse in Windsor

Firefighters rescue workers from rubble after collapse
5 days ago

Groundworks boss banned for false tax returns

Insolvency Service investigates after contractor goes into liquidation
5 days ago

Buyers report robust construction recovery in July

Strongest rise in output for nearly five years
5 days ago

Planning revolution to open housing market to smaller builders

Planning to be revamped in bid to end dominance of major housebuilders
5 days ago

Nmcn still in profit despite Covid-19 crisis

Pandemic to cut margins to 0.5% this year but contractor confident in long term prospects
5 days ago

Shed builder Winvic hails £29m rail freight terminal win

Vast concrete pour to start in weeks on 30,000m3 terminal storage slab
6 days ago

Ibstock to shut three brick factories and axe 375 jobs

Brickmaker on cost-cutting push after £52m first-half loss
5 days ago

Hackitt slams industry’s ‘wait and see’ stance on building safety

Mace, Vistry and Construction Leadership Council praised for rising to safety challenge
5 days ago

Kier wins £160m Area 4 highways upkeep deal

Maintenance work to start in November on Kent and Sussex roads
6 days ago

25 demolition firms win places on Scottish framework

Demolition framework for Scottish council and housing associations
6 days ago

Amey clinches £240m deal to upkeep three major bridges

South west major structures inspection and maintenance worth £16m a year
6 days ago

Contractor services