Taylor Wimpey reiterates outlook on robust demand

(Sharecast News) - Taylor Wimpey said on Wednesday its spring selling season was progressing well, leaving it on track to meet full-year forecasts. Updating on trading, the blue chip house builder said it was seeing good levels of customer interest, despite recent macroeconomic volatility and ongoing affordability issues.

Net private sales for the year to 27 April were 0.77 per outlet per week, compared to 0.74 a year previously. The cancellation rate rose to 16% from 13%, however.

The total order book value as at 27 April was £2.36bn, representing 8,153 homes.

Taylor Wimpey said: "We have delivered a resilient sales rate in the year to date, which is consistent with our full-year UK completions guidance range of 10,400 to 10,800, excluding joint ventures."

Jennie Daly, chief executive, said: "The spring selling season has progressed in line with expectations, with good levels of customer demand reflected in our sales rate.

"As a result, we are today reiterating our guidance for full-year UK completions and UK group operating profit.

"Notwithstanding the wider macroeconomic backdrop, affordability is improving with lenders remaining committed to the housing market, albeit first-time buyers continue to experience some challenges."

Full-year profits are forecast to come in at around £444m.

Taylor Wimpey warned at its full-year results in February that the interim operating margin would likely be lower year-on-year, due to the impact of underlying pricing in the order book flowing through to completions in the period, as well as rising building cost inflation.