Taylor Wimpey profits hit by leasehold scandal

August 2, 2017 / Isla MacFarlane
Taylor Wimpey profits hit by leasehold scandal

Taylor Wimpey’s Group profit before tax dropped to £205.0 million in the first half of 2017 from £268.8 million in the same period last year. The Group is recording a provision of £130 million as an exceptional item in the H1 2017 accounts as a result of the leasehold review.

The Group expects the cash outflow to be spread over a number of years. The process of negotiation with the owners of the freeholds to these leasehold properties is on-going, it said.

Nonetheless, Taylor Wimpey announced a special dividend of £340 million, compared to £301 million in July 2016.

Pete Redfern, Chief Executive, said, “Trading through the first half of 2017 has been very positive, supported by favourable UK housing market fundamentals and good customer confidence. In the central London market in particular, we are pleased to see improved customer confidence following a period of uncertainty.

“Although the wider political backdrop could have an impact on confidence levels and market dynamics, we have seen no material change in trading since the General Election, and our first half performance has been strong. Our business is built to maximise performance in all market conditions, benefiting from a robust balance sheet and high-quality landbank. With a strong forward order book and a disciplined strategy to manage the business through the cycle, we remain on track to meet both our full year objectives and medium term strategic goals.”

Did you like this? Share it: