Taylor Wimpey PLC (LSE:TW.) expects to report top-end operating profits, despite a challenging market, as consumers grapple with high mortgage rates.
The housebuilder reiterated full-year UK volumes guidance in the range of 10,000 to 10,500 homes, but said due to a focus on optimising price and cost discipline, it now predicts operating profit to be at the top end of the guidance range of £440 million to £470 million.
Chief executive Jennie Daly said it was a “resilient performance in what continues to be a challenging market backdrop, reporting a robust sales rate and strong financial position”.
The FTSE 100-listed firm said the market continues to be impacted by weak consumer confidence influenced by high mortgage rates and cost-of-living pressures which are negatively affecting affordability for customers.
In the second half to date, net private sales rate per outlet per week was 0.51, unchanged from a year ago, with a cancellation rate of 21% (2022: 24%).
For the year to date, it achieved a net private sales rate of 0.63, down from 0.74 a year ago, with a cancellation rate of 18% (2022: 18%).
Taylor Wimpey said its current total order book excluding joint ventures stood at c.£1.9 billion at 5 November, representing 7,042 homes.
It said the balance sheet remains strong and the firm continues to expect to end the year with net cash between £500 million to £650 million.