Taylor Wimpey backs FY guidance as it points to recovery in demand

(Sharecast News) - Housebuilder Taylor Wimpey backed its full-year guidance on Thursday as it pointed to a continued recovery in demand from the low levels experienced towards the end of last year. The company said that its net private sales rate for the year to 23 April was 0.75, versus 0.97 a year earlier, with a cancellation rate of 15% compared to 14%. As at 23 April, Taylor Wimpey's total order book value stood at £2.38bn, down from £30.3bn a year earlier. This represents 8,576 homes, versus 11,119 homes in 2022.

The company also said that while prevailing annualised build cost inflation remains high, it is beginning to moderate from the 9-10% it reported in March and this is a trend the group expects to continue as the year progresses.

The housebuilder continues to expect 2023 completions of between 9,000 and 10,500, broadly equivalent to an annual net sales rate assumption of 0.5 to 0.7, with completions more weighted to the second half.

Chief executive Jennie Daly said: "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.

"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."