"Looking ahead, it is encouraging to see a reduction in mortgage rates, however, in the short term the market remains uncertain and the planning backdrop extremely challenging"
- Jennie Daly - Taylor Wimpey
Volume housebuilder, Taylor Wimpey has issued a trading statement for the year ending December 31, 2023, revealing that it forecasts its full-year operating profit to be at the top end of its expectations. However, it also warned that the short-term market outlook remained “uncertain”.
The business said it anticipated group operating profit to be at the top end of £440m to £470m, against 2022’s £923.4m.
During its financial year, Taylor Wimpey achieved 10,438 UK home completions, down 24% from the previous year.
Its net private reservation rate was 0.62 homes per outlet per week, slightly down on 2022’s 0.68. But excluding bulk deals, the sales rate was 0.54 compared to last year’s 0.65.
The company’s private average selling price rose 5.1% to £370,000. It traded from an average of 238 outlets in 2023 against last year’s 232, ending the year with a total of 237 outlets (31 December 2022: 259).
It added that while it was too early to judge customer behaviour in the early part of the new year, it had witnessed “good levels of enquiries” and was encouraged by recent reductions in mortgage rates.
The housebuilder noted the challenging planning environment which would continue to affect outlet openings “as material delays in planning and technical determinations persist”.
Chief executive Jennie Daly commented: “We are pleased to have delivered a full-year performance in line with expectations and expect to report full-year operating profit at the top end of our guidance range. Despite the difficult market conditions throughout the year, we maintained a sharp operational focus and delivered a good performance.
“Looking ahead, it is encouraging to see a reduction in mortgage rates, however, in the short term the market remains uncertain and the planning backdrop extremely challenging.
“Taylor Wimpey is a strong and agile business underpinned by a robust balance sheet and an excellent, well-located landbank. These attributes enable us to manage the business in all market conditions, delivering quality homes to our customers and long-term value to our stakeholders. We remain confident in the attractive medium and long-term fundamentals of the sector.”
