* Sets aside 125 mln pounds for fire safety
* UK's No. 3 homebuilder resumes dividend payment
* 2020 pretax profit just below analysts' mean estimate
(Adds shares, analyst comment)
By Aby Jose Koilparambil
March 2 (Reuters) - Britain's third-largest homebuilder
Taylor Wimpey reported a strong start to the year on
Tuesday and forecast a recovery in sales and margins in 2021
after a slump in 2020.
The group also earmarked 125 million pounds ($174 million)
for fire safety work on its developments amid a nationwide drive
to improve building safety following a deadly tower block fire
in London in 2017.
The FTSE 100 firm said it expected to develop fewer
affordable homes than usual this year, with a higher proportion
of more profitable private homes, which would help improve its
operating margin.
Its shares were trading 2.2% higher at 1000 GMT.
"The key news is that they are talking better on the
operating margin for 2021, recent trade has been resilient ...
and all looks in pretty good shape," said Canaccord Genuity
analyst Aynsley Lammin.
Taylor Wimpey said it expected 2021 operating margin to rise
to between 18.5% and 19% after it tumbled to 10.8% in 2020 from
19.6% a year earlier.
Britain is expected to extend a tax break on home purchases
by three months and unveil a mortgage guarantee scheme in
Wednesday's budget, moves that could bolster the housebuilding
sector after Prime Minister Boris Johnson unveiled an exit plan
from coronavirus lockdowns.
Taylor Wimpey, which has operations in Britain and Spain,
joined rivals Barratt and Persimmon in setting
aside funds to meet new fire safety regulations introduced after
a deadly fire at London's Grenfell Tower in 2017.
The group made pretax profit of 264.4 million pounds ($367
million) last year, down 68.4% from a year earlier and just
below analysts' average forecast of 267 million in a
company-provided poll. Revenue fell about 37% to 2.79 billion
pounds.
It resumed dividend payments, with a final payout of 4.14
pence per share.
($1 = 0.7202 pounds)
(Reporting by Aby Jose Koilparambil in Bengaluru. Editing by
Tomasz Janowski and Mark Potter)