Taylor Wimpey revenue surges by 191.1% to £2.1bn
Taylor Wimpey (LON:TW), the homebuilder, has constructed a record number of homes over the past half-year, boosting the company’s revenue levels in the process.
Over the last six months the FTSE 100 company completed 7,303 homes, a substantial increase from 2,771 during the same period a year ago.
The additional 4,500 properties saw its revenue surge by 191.1% to £2.1bn.
Taylor Wimpey also confirmed it raised its full-year profit guidance as the average selling price rose by 7%.
The firm’s new expectation is that its operating profit for 2021 will exceed £820m, which exceeds the top end of its previous estimates.
The FTSE 100 company is expecting between 13,200 and 14,000 new house completions.
Taylor Wimpey’s construction levels were impacted last year by pandemic-induced restrictions causing supply chain issues across the world.
Laura Hoy, Equity Analyst at Hargreaves Lansdown. commented on Taylor Wimpey’s results and the wider housing market:
“Another set of strong results from the UK’s housebuilders adds to mounting evidence that the pandemic has been a tailwind for the housing market. Turns out being locked inside for months on end has caused many people to re-evaluate their current living situation. Add to that the rising popularity of working from home, and you have the perfect excuse to move house.”
“Over the past few months, there’ve been mutterings of a potential slowdown in the UK’s red-hot housing market—Halifax reported a small decline in house prices in June—but from Taylor Wimpey’s perspective things are still ticking over nicely. The group reported a double-digit rise in house prices, a strong forward order book, and cancelation rates in line with 2019 levels.”
“If things carry on like this, Taylor Wimpey could be one of the pandemic’s biggest winners. The group was bolder than some of its peers with an aggressive land buying strategy that will pay off if the market remains buoyant. Of course, the group will suffer if the economy stumbles in the wake of the pandemic, but so far the group is building from a strong base.”
The Taylor Wimpey share price is up by 3.87% during the morning session on Wednesday.
