16th Jan 2025 09:33
(Alliance News) - Taylor Wimpey PLC on Thursday said it is too early to gauge consumer behaviour for the coming year as it reported 2024 completions towards the top-end of guidance.
The High Wycombe, England-based housebuilder said total completions including joint ventures were 10,593 in 2024, down 2.4% from 10,848 in 2023.
UK completions, excluding joint ventures, were 9,972 down 3.7% from 10,356. This was towards the top of the 9,500 to 10,000 range provided by the firm in November.
Chief Executive Jennie Daly called said it was "good" performance, adding operating profit is expected to be in line with previous guidance.
A company compiled consensus puts full year 2024 group operating profit including joint ventures and excluding exceptional items at GBP416 million. This would represent a 12% drop from GBP470.2 million in 2023.
In response, shares in the housebuilder were 3.7% lower at 110.15 pence each in London on Thursday. The wider FTSE 100 was up 0.7%.
Taylor Wimpey said the UK net private reservation rate for 2024 was 0.75 homes per outlet per week, improving from 0.62 in 2023.
UK average selling price on private completions was GBP356,000 down 3.8% from GBP370,000 a year prior.
In the second half of the year, the firm saw weaker pricing in the South of England where affordability has been most stretched, compared to the North.
Taylor Wimpey flagged a strong closing order book valued at GBP2.00 billion, up from GBP1.77 billion in 2023, excluding joint ventures.
The company also praised the government's National Planning Policy Framework which it sees "as a positive step for the industry".
Looking ahead to 2025, the company said it has seen an "encouraging level" of enquiries at the start of the year, "however it is too early to gauge customer behaviour for 2025".
"Given our order book and current land position, we remain well placed to grow volumes in 2025, dependent on the evolution of mortgage rates and their impact on affordability."
The firm said while price negotiations for 2025 are ongoing, it anticipates increased build cost pressure as a result of the changed economic backdrop, including as suppliers seek to factor in the impacts of the recent UK budget.
Taylor Wimpey will announce results for the year ended December, on February 27.
By Jeremy Cutler, Alliance News reporter
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