Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Taylor Wimpey profits beat guidance, outlook seen improving

Published 28/02/2024, 08:20
Updated 28/02/2024, 08:20
© Reuters Taylor Wimpey profits beat guidance, outlook seen improving

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”.

Read more on Proactive Investors UK


Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.