(Alliance News) - Taylor Wimpey PLC on Thursday said that "sharp operational focus" had allowed them to survive the year's challenging market conditions, but said that the near-term outlook remains uncertain.
The Buckinghamshire, England-based housebuilder recorded 10,848 total group completions for the year ended December 31, down from 14,154 in 2022.
The cancellation rate remained flat at 18%, while average selling prices increased by 5.1% in the UK to GBP370,000 from GBP352,000 in 2022.
Taylor Wimpey finished the year with an order book value of GBP1.77 billion, down from GBP1.94 billion, and GBP678 million in cash, down from GBP864 million year-on-year.
The group's "strong land position", with a strategic pipeline of around 142,000 potential plots, allowed them to be "highly selective" in their land purchases throughout the year. The group credits this with a reduction in approvals to roughly 3,000 plots from 7,000 a year before.
While the group expects its operating profit for the year at the "top end" of its guidance range of GBP440 million to GBP470million, this would amount to around half of the GBP923.4 million it earned in 2022.
Taylor Wimpey said that, with the moderation of build cost inflation and an anticipated reduction in mortgage rates, it is confident in the market's medium- and long-term fundamentals, which will allow the group to capitalise on its strategic pipeline and "strong landbank".
Chief Executive Officer Jennie Daly said: "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."
She warned that "the short term the market remains uncertain and the planning backdrop extremely challenging", but said that Taylor Wimpey's "robust balance sheet" and "excellent, well-located landbank" will allow them to endure challenging market conditions.
Full year results for the group will be announced on February 28.
Shares in Taylor Wimpey were down 0.2% at 148.10 pence each in London on Thursday morning.
By Hugh Cameron, Alliance News reporter
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