Taylor Wimpey upbeat about 2017 market outlook

In a trading statement issued, the firm said cancellations for the year to date were 13%, compared to 11% for the equivalent period last year. It reported that sales rates per outlet were 0.75, a fraction off the 0.76 chalked up in the same timeframe during 2015.

Despite the uncertainty created by the UK’s vote to leave the European Union, Taylor Wimpey was buoyed by the resilient performance of the housing market and Pete Redfern, chief executive at the company, said: “Trading during the second half of 2016 and into the autumn selling season has been strong, with good levels of customer confidence and demand underpinned by a wide range of mortgage products. While there remains some uncertainty following the UK’s vote to leave the European Union, we are encouraged to see that the housing market has remained robust and trading has remained resilient. We have a strong order book position for 2016 and going into 2017, and we will maintain our focus on delivering our medium-term targets.”

Redferm said the company was fully sold for its targeted 2016 completions and as at 6 November 2016 was around 23% forward sold for its expected 2017 completions. He said the current total order book, excluding joint ventures, was ahead of last year and in total represented 8,981 homes (week ended 1 November 2015: 8,529), standing at £2.3bn (week ended 1 November 2015: £2.1 bn).
Outlining the firm’s financial performance he added: “We expect to deliver an improvement in operating profit margin in 2016 (FY 2015: 20.3%), as previously guided, and a return on net operating assets of around 30%. We remain committed to the announced £450m total dividend payment to shareholders in 2017.”