Taylor Wimpey upbeat for current year despite profit slide

(Sharecast News) - Taylor Wimpey posted a fall in annual revenues and profits on Thursday, but said it had seen a "robust" start to the new year as demand picked up. The blue chip housebuilder completed 10,593 homes in 2024, down on the previous year's 10,848, while the average selling price fell to £356,000 from £370,000.

As a result, revenues eased 3.2% to £3.4bn, while operating profits fell 11.5% to £416.2m. Pre-tax profits were down 32.4% at £320.3m.

The housing market has been hit by a number of factors in recent years, including soaring inflation, the cost of living crisis and high interest rates, which stretched affordability for buyers.

However, with interest rates now falling back and the current government committed to planning reform, housebuilders are becoming more optimistic.

Looking to the current year, Taylor Wimpey said the start of the spring selling season had been "robust", with good levels of demand.

In the year to the week ending 23 February, the net private sales rate was 0.75 per outlet per week, up 12% year-on-year, while pricing was flat.

Jennie Daly, chief executive, said: "Affordability, while remaining a challenge for many, especially first-time buyers, is moving in the right direction.

"As a result, our total order book is up on last year, putting us in a strong position to grow housing volumes this year. We expect to deliver full-year 2025 UK completions in the range of 10,400 to 10,800 (excluding joint ventures) and for group performance to be in line with market expectations.

"We welcome the government's recent planning reforms, which are capable of delivering a real step change in planning outcomes."