Yesterday, Taylor Wimpey shared that its profits dropped by nearly half in the last year due to a decline in sales and rising expenses. However, the situation was not as dire as predicted.
The company is bracing for a further decrease in the number of homes sold this year, and expects continued pressure on profits due to falling home prices and escalating costs.
It has also acknowledged its intention to fully engage with the Competition & Markets Authority (CMA) in their recent investigation into suspected collusion among top housing developers.
Taylor Wimpey reported a pre-tax profit of £473.8 million, which is slightly higher than the anticipated £470 million, but this figure is a sharp drop from the £908 million reported the previous year.
The firm saw a 20.5% decline in revenue to £3.5 billion, as it mentioned last month, following a decrease in the total number of homes completed in the UK from 13,773 to 10,438.
Jennie Daly, the company’s CEO, described the year’s outcome as a “good performance that met expectations despite a difficult market.”
Moving forward, she noted, “The market is showing some positive changes, with lower mortgage rates benefiting affordability and consumer confidence.” She did, however, mention that there are still hurdles in the planning process.
The business is aiming to complete between 9,000 and 10,000 homes in the UK this year, planning for 45% of these to be finished in the first half of the year.
