Housebuilding giant says profit will be at bottom end of expected range
Taylor Wimpey has cut its completions forecast for the year and warned its profit will be at the lower end of expectations after slow sales in the autumn.
The £3.8bn-turnover housebuilder in a trading update today said its sales in the autumn have been impacted by reduced demand from customers.
It said it now expects its full-year completions excluding joint ventures to be around 10,500, down on the 10,600 to 10,800 range stated in July. It said its adjusted operating profit will be at the “bottom end” of the £262m to £299m consensus range.
Jennie Daly, chief executive of Taylor Wimpey, said: “The autumn selling season has been more subdued, as higher mortgage rates and living costs continue to reduce customer affordability.”
The housebuilder said its net private sales rate per outlet per week for the year to date, excluding bulk sales, is 0.62, down from 0.68 in the same period last year.
The group’s order book as of last week was 6,839 homes with a value of £1.98bn, down from 7,253 and £2.1bn year-on-year respectively.
The firm said it is being “highly selective” in its landbuying, focusing on smaller sites. Its short term landbank reduced from around 75,000 plots in June to 73,000 at the end of October.
Taylor Wimpey increased the number of outlets from which it is operating from 206 to 225 year-on-year. It said it expects to end the year with a £250m net cash position.
The housebuilder said it welcomes the introduction of the government’s Your First Home equity loan scheme for first time buyers, due to launch in April.
It said: “We look forward to further detail from government, including on funding allocation and scheme implementation. With our strong first time buyer proposition and growing outlet base, we are well positioned to participate as the scheme develops.”
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