Taylor Wimpey cuts home delivery outlook after slow autumn sales
British housebuilder Taylor Wimpey reduced its annual completion outlook to about 10,500 UK homes excluding joint ventures. Management expects adjusted operating profit near the bottom of its analyst range after a difficult autumn selling season. Sales rates and the order book declined, while mortgage rates and living costs continued to constrain affordability.
Economics & Markets··Midday
Autumn slowdown reduces completion forecast
British housebuilder Taylor Wimpey lowered its annual home completion outlook after a difficult autumn selling season.[1], [2]
The company now expects about 10,500 UK completions excluding joint ventures. Management guided adjusted group operating profit towards the bottom of its company-compiled analyst range of 262–299 million pounds. It said higher mortgage rates and living costs had weighed on affordability. Prices softened marginally further and customer incentives remained elevated, according to the company.[1]
Sales rates and order book decline
From 29 June to 8 November, net private sales per outlet per week fell from 0.63 to 0.60. Excluding bulk transactions, the rate fell from 0.61 to 0.54. Cancellations stayed at 17 per cent. On 8 November the order book excluding joint ventures held 6,839 homes worth approximately 1,984 million pounds. A year earlier it held 7,253 homes worth 2,116 million pounds. Active sales outlets increased from 206 to 225, while expected annual build-cost inflation remained 3–4 per cent.[1]
Net cash target holds as land purchases continue
Management retained a year-end net cash forecast of about 250 million pounds, after approximately 240 million pounds of dividends and buybacks. The forecast remains dependent on the timing of remaining land purchases. The short-term land bank fell from about 75,000 plots at the end of June to 73,000 at the end of October. During the year management approved land purchases for about 5,000 plots, focusing on smaller sites and capital efficiency.[1]
