"We delivered a good full-year performance in line with expectations despite a challenging market, benefiting from our sharp operational focus, the quality of our homes and locations and a continued proactive sales effort"
- Jennie Daly - Taylor Wimpey
Taylor Wimpey has said that its full-year group operating profit was £470.2m in 2023 against 2022’s £923.4m. It previously provided a range of £440m to £470m. Pre-tax profit dropped 42.8% to £473.8m. Revenue decreased 20.5% to £3,514.5m.
The volume housebuilder’s operating profit margin slid from the previous year’s 20.9% to 13.4% - reflecting rising build costs.
UK home completions were 10,438 compared to 2022’s 13,773. Private average selling prices lifted 5.1% to £370,000.
TW opened 47 new outlets in the year, ending the period with 237 UK outlets (December 31 2022: 259).
It said current trading was showing “encouraging signs of improvement with reduced mortgage rates positively impacting affordability and confidence in our customer base”.
TW’s 2024 year-to-date net private sales rate was 0.67 per outlet per week against 0.62 during the equivalent period last year. In 2022 its net private sales rate was 0.68.
The firm also said that appointments and overall customer interest remained at “good levels”. However, conversions from enquiry to reservation were continuing to take longer compared to pre-Q2 2023.
Due to a lower order book into 2024 “against a strong comparator” and noting market conditions, TW said its UK completions for this year were likely to be in the range of 9,500 to 10,000 homes - potentially lower than in 2023.
CEO Jennie Daly, said: “We delivered a good full-year performance in line with expectations despite a challenging market, benefiting from our sharp operational focus, the quality of our homes and locations and a continued proactive sales effort.
“While the planning environment remains challenging, we have a high-quality, well-invested landbank and a strong financial position which underpins our ability to provide investors with a reliable income stream via our differentiated Ordinary Dividend Policy.
“Looking ahead, we are well-positioned in an attractive market, with significant underlying demand for our quality homes and are poised for growth from 2025, assuming supportive market conditions.”
