In its latest trading update, the group said operating profits were expected to be at the top end of its guidance range of £440m to £470m and it expects to deliver between 10,000 to 10,500 homes in 2023.
It expects to end the year with net cash between £500m to £650m after returning c.£338m in dividend payments during 2023.
Chief executive Jennie Daly said the performance was “testament to the hard work of our experienced teams,”.
Taylor Wimpey’s current total order book, excluding joint ventures, stood at around £1.9bn on 5 November representing 7,042 homes. The figures are down on the same period last year when the order book was worth £2.6bn, equal to 9,153 homes.
Excluding bulk deals, the group achieved a net private sales rate of 0.57 for the year to date compared to 0.72 last year. Cancellations have remained flat at 18 per cent.
The housebuilder says it expects build cost inflation to be moderate as the year progresses.
Taylor Wimpey: ‘Market backdrop remains uncertain’
Daly says that, despite weak consumer confidence and negative impacts on households’ affordability, the group has “attractive and resilient locations” and “marketing tools” that will it help it deliver a good performance. The group said it has closely controlled costs and investment in work in progress.
Around 82,000 plots are held in the short-term land bank, just down on last year’s figure of 83,000 while the strategic land pipeline remains flat at 140,000 potential plots.
Daly added: “Taylor Wimpey is a strong, sustainable and agile business underpinned by a robust balance sheet and an excellent well-located landbank. These attributes ensure we are well positioned to manage the business and optimise performance in all market conditions, delivering quality homes to our customers and long-term growth and value to our stakeholders.
“Looking ahead, while the market backdrop remains uncertain, we are confident in the medium- to long-term sector fundamentals, with a meaningful supply and demand imbalance in UK housing.”
