Proactive Investors - Taylor Wimpey PLC (LON:TW.) revealed profits plunged 48% lower last year as sales fell and costs rose, though this was not as bad as expected.
The FTSE 100-listed housebuilder expects this year to see a further decline in completed home sales, with profit margins continuing to be squeezed by lower house pricing and higher costs.
Profits of £473.8 million before tax and exceptional items was the result for the 2023 calendar year, beating the £470 million top end of guidance, but down from £908 million a year earlier.
Revenue fell 20.5% to £3.5 billion, as it had flagged last month, on the back of total UK house completions falling to 10,438 from 13,773.
Chief executive Jennie Daly called it a “good full year performance in line with expectations despite a challenging market”.
For 2024 she said: “it is encouraging to see some signs of improvement in the market, with reduced mortgage rates positively impacting affordability and customer confidence”, although the planning environment “remains challenging”.
The group expects the number of UK completions this year to come in between 9.5k and 10k, with 45% in the first half of the year.
First half operating profit margin will reflect slightly lower pricing in the order book, build cost inflation and investments in technology and timber frame which it said is to drive operational efficiencies.
Build cost inflation is running at around 4% in current work in progress, but is down to around 1% on new tenders.
Net private sales in the first two months of the year is 0.67 per outlet per week, up from 0.62 at this point last year, with the level of down valuations “low”.