Housebuilder Taylor Wimpey enjoyed a jump in pre-tax profits of nearly 20% in 2018, despite having to bear the cost of cladding replacement work.
The company saw revenue increase 2.9% on the year before, rising to £4.1bn. Profit before tax after exceptional items was £810.7m, up 18.9% on the year before.
The company completed 15,275 houses during the year, a rise of 2.9%. Operating profit margin was 21.6%, while the company’s UK order book stood at 8,304 units as of 31 December 2018, up on 7,136 units in 2017.
Taylor Wimpey said customer confidence was “robust” as it entered the spring selling season.
Meanwhile, it revealed that it has completed work to remove and replace aluminium composite material (ACM) cladding on one development at its own expense. Since the year end, it has started work on another development.
The company said: “Whilst each situation is different, and this is an exceptionally complex issue, we have in a number of cases, having regard to all of the relevant facts and circumstances, agreed to support our customers both financially and practically with removal and replacement of ACM, even though the buildings concerned met the requirements of building regulations at the time construction was formally approved. We took this decision for buildings we constructed recently because we believe that it is morally right, not because it is legally required.”
Commenting on the financial results, chief executive Pete Redfern said: “Despite ongoing macroeconomic and political uncertainty, we have made a very positive start to 2019 and are encouraged to see continued strong demand for our homes. We enter the year with a strong order book and a clear strategy in place to deliver long term value for shareholders. We are very pleased with how our business is adapting to our customer-centred strategy.”
