27th Apr 2023 10:51
(Alliance News) - Taylor Wimpey PLC on Thursday backed its full-year outlook, with house completions expected to pick up in the second half of the year.
The Buckinghamshire, England-based home builder said it has seen an increase in overall year-to-date sales rate.
Taylor Wimpey's net private sales rate per site per week for the year so far was 0.75, compared to 0.97 in 2022, with a cancellation rate of 15% compared to 14% in 2022. As of this past Sunday, the company's total order book value stood at GBP2.38 billion, down from GBP3.03 billion.
In March, Taylor Wimpey's net private sales rate for the year-to-date stood at 0.62, meaning that it has improved in the past month. At the time, the cancellation rate stood at 17%.
The company said that in the year-to-date pricing has remained resilient. However, challenges remain for its customers, particularly first time buyers.
It added that annualised build-cost inflation remains high but is beginning to moderate from the 9% to 10% it reported in March, a trend the company expects to continue as the year progresses.
Further, Taylor Wimpey said that at the end of March its short-term landbank totalled about 86,000 plots and its strategic land pipeline had around 140,000 potential plots.
"We remain highly selective in our land additions. As a result, in the year to date we have approved fewer than 500 new plots, but we remain agile and active in reviewing opportunities," the company noted.
Looking ahead, Taylor Wimpey said that it is well placed with a clear strategy. However, it remains mindful of winder macroeconomic uncertainties.
Although industry sales rates remain at lower levels than in recent years, it said, customer interest has continued to recover from the weak conditions experienced in the final quarter of 2022. Taylor Wimpey expects 2023 completions to be in the range of 9,000 to 10,500, with completions more weighted to the second half.
"We have seen continued recovery in demand from the low levels experienced towards the end of 2022, supported by good mortgage availability, and have seen an incremental improvement in sales rate as the Spring selling season has progressed," said Chief Executive Jennie Daly.
"While we remain cautious of continued macroeconomic uncertainty, Taylor Wimpey is a strong and agile business differentiated by our high-quality landbank and experienced teams who have a sharp focus on operational discipline."
Shares in Taylor Wimpey were down 0.2% to 125.40 pence each in London on Thursday morning.
By Sophie Rose, Alliance News reporter
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