Taylor Wimpey confident of delivering strong sales despite Brexit vote
Housebuilder Taylor Wimpey said it expects to increase its full-year operating profit margin as demand failed to dampen in light of uncertainty surrounding the Brexit vote.
Trading at the FTSE 100 firm remained “resilient” during the second half of this year with 0.70 homes sold per week over the period, down slightly from 0.74 in the second half of 2015, while cancellation rates rose to 13 per cent from 11 per cent.
The company said customer confidence was high, but parts of the central London had seen prices soften at the upper end of the market.
However, the firm warned that building costs were set to pick up by 3 per cent to 4 per cent this year, as the supply of skilled workers fails to keep pace with the demand for new homes.
Chief executive Pete Redfern said the company had a strong order book throughout the rest of this year and into 2017.
He added: “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.”
The firm said its total order book was ahead of last year at £2.3 billion, compared with £2.1 billion, to the week ending November 1.
It said net cash would come in at around £360 million for 2016, up from £223.3m to the end of December last year.
Analyst Charlie Campbell, at Liberum, said: “Trading has continued to be strong through the second half of the year, in line with peers, although we note that the sales rate is a little down compared to the prior year, whereas others have seen increases.”