Taylor Wimpey is capitalizing on the property boom, building 7.3,000 homes in six months and reaching £ 2.2bn in revenues
One of Britain’s biggest home builders has improved its profit forecast after completing a record number of new homes.
Taylor Wimpey built 7,303 homes in the six months to July 4, reaching revenues of £ 2.2bn, up 26.8% from the same period in 2019.
It posted half-yearly profits of £ 424million, down from losses of £ 16.1million the previous year, although this was driven by a charge of £ 125million for repair work aimed at repairing hazardous coatings in apartment buildings.
One of Britain’s biggest home builders has improved its profit forecast after completing a record number of new homes
He now expects the group’s profits for the full year to reach a whopping £ 820million, beating analysts’ expectations, and completing around 14,000 homes this year. Shares rose 1.9% to 168p, valuing the company at £ 6.4 billion.
The UK property market has been in full swing, thanks to low mortgage rates, the stamp duty holiday and savings accumulated during the pandemic. Many buyers have also made the decision to leave the big cities.
HOME BUILDER SOLD
Keepmoat Homes was taken over by a private equity firm, dashing hopes the homebuilder might have been listed on the London Stock Exchange. Private equity firm Aermont Capital has bought the affordable home builder from Doncaster for £ 700million, according to Sky News. Keepmoat, the UK’s seventh-largest homebuilder, has been tipped for an IPO, but Aermont rejected offers from Apollo Global Management, Patron Capital and Guy Hands’ Terra Firma Capital Partners to close the deal. ‘OK. The company was acquired by Sun Capital and TDR Capital in 2014 from Lloyds.
Managing Director Pete Redfern said: “The pandemic has accelerated people’s decision to move from London to the suburbs. We have seen real growth in markets in the South West and all the way to East Anglia. ‘
Taylor said he has pre-sold almost all of his private homes, up from 97% a year ago and 87% two years ago. Rising materials and construction costs, which impact the entire construction industry, have been offset by “healthy” housing price growth.
The average price of a Taylor Wimpey private home rose 6.5% to £ 327,000, compared to the previous year. The rush to build more houses and the uncertainty caused by the pandemic led Taylor Wimpey to raise £ 500million from investors last year. Since then he has spent £ 1.8bn on sites, about twice as much as a normal year.