Taylor Wimpey says its pre-tax profit tanked 68% in 2020

By: Wajeeh Khan
Wajeeh Khan
Wajeeh is an active follower of world affairs, technology, an avid reader, and loves to play table tennis in… read more.
on Mar 2, 2021
  • Taylor Wimpey says its pre-tax profit tanked 68% in 2020.
  • The British firm declares 4.14 pence per share of final dividend.
  • Taylor Wimpey plc values its order book at £2.79 billion.

Taylor Wimpey plc (LON: TW) said on Tuesday that its profit before tax in 2020 posted a 68% annualised decline, matching the market expectations. The company blamed the ongoing Coronavirus pandemic that weighed on sales in the recently concluded year, but reinstated its dividend payments on Tuesday.

Taylor Wimpey shares jumped more than 1% in premarket trading on Tuesday and gained another 2% in the next hour. It, however, lost almost the entire intraday gain later on. The stock is now trading at £1.66 per share after recovering from a low of £1.0 per share in late September 2020.

Taylor Wimpey declares 4.14 pence per share of final dividend

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Taylor Wimpey reported £264.4 million of full-year pre-tax profit. In 2019, its pre-tax profit stood at a significantly higher £835.9 million. The housebuilding company said that it generated £2.79 billion of revenue in 2020 that represents a 36% year over year decline.

On an adjusted basis, the High Wycombe-based firm reported £274.4 million of pre-tax profit in the recently concluded year versus the year-ago figure of £821.6 million. Last year in June, Taylor Wimpey raised £522 million via a share sale.

Taylor Wimpey declared 4.14 pence per share of final dividend for 2020 on Tuesday. The British company had resorted to cancelling its final dividend for 2019 in a bid to shore up finances amidst the COVID-19 crisis that has so far infected more than 4.1 million people in the UK and caused over 122 thousand deaths.

Taylor Wimpey values its order book at £2.79 billion

In the second half of 2020, the housebuilder added, signs of recovery were evident. It also expressed confidence on Tuesday that performance showed resilience since the start of 2021 and that it was well-positioned to sustain momentum in the upcoming months. As of 21st February, Taylor Wimpey valued its order book at £2.79 billion – an 8% increase from the previous year.  

In separate news from Europe, the ultra-low-cost airline, Wizz Air, said on Tuesday that passenger numbers plunged 87% in February on a year over year basis, due to the ongoing health emergency that has curbed travel and tourism.

Taylor Wimpey performed fairly downbeat in the stock market last year with an annual decline of more than 15%. At the time of writing, the British housebuilding company has a market capitalisation of £6.09 billion and a price to earnings ratio of 13.65.

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