Taylor Wimpey PLC’s full-year figures on Thursday, February 27 are set to be under the microscope for any commentary around recovering prospects in the housing sector.
Having already flagged a 4% drop in volumes to 9,972 units for the year and 2% drop in average selling prices to £319,000, UBS noted the update would be all about the outlook.
Volume growth of 4% to 10,370 units over the coming year was expected, alongside a drop in pre-tax earnings margin by 100 basis points to 11.2%.
According to UBS, margins were expected to trough over the coming year though, before climbing to around 18% come 2030 as completions also picked up.
Taylor Wimpey’s “medium-term recovery potential” remained “attractive” as a result, analysts said.
Pre-exceptional profit before tax was projected at £396 million in the meantime, against the £416 million in 2024 guided by Taylor Wimpey.
“We see downside risk to consensus,” UBS warned, “but think this is somewhat priced-in given cheap valuation”.
Commentary around sales outlets was also set to draw attention, after falling from 237 to 213 between 2023 and 2024 and comparing to a pre-pandemic average of 270.