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Taylor Wimpey says outlook for current year buoyed by strong orders

The housebuilder said it ended the year with a total order book valued at £2.68bn or 10,685 homes

Taylor Wimpey -

Taylor Wimpey PLC (LON:TW.) said it has started 2021 with an excellent order book following a strong recovery in sales and production in the second half of 2020.

In a trading update for the year to end December 2020, the FTSE 100 housebuilder noted that for the current year forward private sales were already more than 50% of its target.

Noting that the government had confirmed that the housing market will remain open during the current lockdowns in England, Scotland and Wales, all construction sites will remain open under strict coronavirus (COVID-19)-secure guidelines and sales centres and show homes will remain open for appointments, it added.

Taylor Wimpey said it ended the year with a total order book valued at £2.68bn or 10,685 homes, which was 23% higher than the previous year-end.

Pete Redfern, the group's chief executive, added that Taylor Wimpey had started buying land again in the second half of the year as high-quality land became available at attractive margins. 

“We start the year with an excellent order book and ongoing focus on strengthening the business and improving margins,” he said in the statement.

Total UK home completions (including joint ventures) fell by 39% to 9,609 in 2020 due primarily to the impact of the second quarter shutdown due to COVID-19, the builder said.

Average selling prices on private sales increased by 6% to £323,000 with the overall average selling price increasing by 7%.

Taylor Wimpey said it will also meet consensus operating profit expectation for 2020 of £293mln and had not yet experienced any significant supply chain issues associated with Brexit.

Net cash at the year-end was £719mln and the builder repeated that it will restart dividends with a final 2020 payment and look at a special dividend in 2021.

Quick facts: Taylor Wimpey

Price: 163.6 GBX

LSE:TW.
Market: LSE
Market Cap: £5.96 billion
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