News

Taylor Wimpey Profit Decline

1 2 3 4 5

4.9

Andrew R. Michaud

• February 28, 2024

In a recent update, Taylor Wimpey disclosed a decrease in pretax profit attributed to a drop in revenue stemming from lower completions. The company indicated that its first-half operating profit margin would reflect this trend, influenced by the slight decrease in pricing within its order book.

Financial Overview

• Pretax profit for the year 2023 amounted to GBP473.8 million, a decline from GBP827.9 million in the previous year and below the consensus estimate of GBP467 million.
• Revenue saw a decrease to GBP3.51 billion from GBP4.42 billion, although it surpassed the company's compiled consensus of GBP3.49 billion.
• Despite challenges, total U.K. average selling prices experienced a 3.5% increase, reaching GBP324,000.

Operational Factors

• Group completions (excluding joint ventures) dropped by 22% to 10,766, reflecting the prevailing market conditions.
• Taylor Wimpey noted that cost inflation and investments aimed at enhancing operational efficiencies contributed to the impact on its operating profit margin.

Future Outlook

The order book, excluding joint ventures, stood at GBP1.95 billion as of Feb. 25, down from GBP2.15 billion in the corresponding period last year. The company's prudent approach was highlighted as it declared a final dividend of 4.79 pence per share, totaling 9.58 pence for the year, compared to 9.40 pence in the previous year.

Stay informed for further developments and insights.