Full Year Results 

Taylor Wimpey battles to maintain margins

Taylor Wimpey battles to maintain margins

Flat sales prices and the rising cost of building homes offset an increase in volumes last year for Taylor Wimpey (TW.), eroding the operating margin by two percentage points to 19.6 per cent. Build cost inflation has begun to ease and management expects it to come in at 3 per cent this year, compared with 4.5 per cent in 2019. However, the housebuilder is still attempting to cut costs, which will result in lower sales volumes this year, which management hopes will hold the margin steady. Over the medium term it has set an operating margin target of between 21 and 22 per cent. 

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