- Full year group operating profit in line at £444 million
- UK completions guidance range of 10,400 to 10,800
- Year-to-date shares are down 5%
Shares in Taylor Wimpey (TW.) were more than 2% lower in morning trading as the UK house builder said its first half group operating profit margin for 2025 would be lower due to low level build cost inflation and underlying pricing in its order book.
However, the company expects 2025 group operating profit to be in line with previous guidance published on 24 February at £444 million.
The company said it had delivered a resilient sales rate year-to-date consistent with its full year UK completions guidance range of 10,400 to 10,800 as set out in February.
WHAT DID THE CEO SAY?
Jennie Daly CEO said: ‘The Spring selling season has progressed in line with expectations, with good levels of customer demand reflected in our sales rate.
‘As a result, we are today reiterating our guidance for full year UK completions excluding JVs (joint ventures) and group operating profit.
‘Notwithstanding the wider macroeconomic backdrop, affordability is improving with lenders remaining committed to the housing market, albeit first time buyers continue to experience some challenges.’
MARGINS UNDER PRESSURE
Russ Mould investment director at AJ Bell: ‘While there were some positive elements of Taylor Wimpey’s trading update, the market will likely focus on the warning of continued margin pressures.
‘It suffered from lower priced sales at the start of the year, and it also shows the impact on the business of a lacklustre UK housing market and continued increases in build costs.
‘What will be causing a bit of disquiet is some of Taylor Wimpey’s peers have signalled an improvement in profitability.
‘Taylor Wimpey has been held back by having fewer outlets in operation than in 2024 – though this is expected to be addressed in the remainder of 2025.
‘These headwinds are overshadowing some reassuring noises from the company about sales rates and demand – with limited evidence the global economic uncertainty is having an impact on buyers.
‘Figures from Nationwide offer some evidence that house price growth has softened as stamp duty discounts became less generous.’
LEARN MORE ABOUT TAYLOR WIMPEY
DISCLAIMER: Financial services company AJ Bell referenced in this article owns Shares magazine. The author of this article (Sabuhi Gard) and the editor (Tom Sieber) own shares in AJ Bell.
