Taylor Wimpey is the latest UK housebuilder to reveal marginally higher revenue for 2022, but warned of challenging conditions in the year ahead.
Taylor Wimpey revenue rose 3.2% to £4,419m in 2022 but investor focus is on the year ahead, and falling reservations levels.
Taylor Wimpey’s results echoed Persimmon’s update this week in as far as they both experienced a poor Q4 but had experienced some improvement in sales rates in the early weeks of 2023.
“Taylor Wimpey’s posted strong results in a tough environment for housebuilders. Higher average house prices helped drive group revenues forward last year, but the picture’s not so pretty for this year,” said Aarin Chiekrie, equity analyst at Hargreaves Lansdown.
“If current sales rates persist for the rest of 2023, full-year completions are expected to fall by around 30%, which would likely cause a big hit to profits. And while operating profits rose this year, tighter cost controls can only move the dial so far.”
Taylor Wimpey shares had given up just 0.4% of their value at the time of writing on Thursday having been dragged lower by Persimmons results yesterday.
Taylor Wimpey shares are up 15% higher year-to-date.