Taylor Wimpey in earnings rise but uncertainty stunts prices
Housebuilder Taylor Wimpey has posted a full-year revenue climb with completions rising to a company record.
The company, which has its regional headquarters in Wolverhampton, saw revenue in 2019 come in 6.4 per cent higher at £4.34 billion from £4.08 billion, with pre-tax profit rising 3.1 per cent to £835.9 million from £810.7 million.
Before exceptional items however, pre-tax profit dipped 4.1 per cent to £821.6 million from £856.8 million. In 2019, the company made a £14.3 million gain from such one-off items, swinging from a £46.1 million loss.
The exceptional credit in 2019 was related to the implementation of a pension increase exchange arrangement. In 2018, among its exceptional costs was a £30 million provision related to aluminium composite materials cladding.
The company conducted a review on all legacy and current buildings following the fire at the Grenfell Tower in London in June 2017.
For 2019, the firm reported completions of 16,024, up five per cent from 15,275 the year before.
Taylor Wimpey said: "However, in an environment where the political and economic outlook has been uncertain, average sales prices remained flat, while build cost inflation increased."
The company upped its full-year dividend by 22 per cent to 7.64 pence per share from 6.24p in 2018.
"We have made a positive start to 2020 coming into the spring selling season and, with a clearer political outlook, customer confidence has improved.
"Whilst we recognise the ongoing trade discussions with the EU may create some volatility in sentiment in the housing market in the near term, we see the clearer political outlook as providing a longer period of stability for our customers," the company added.
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