London-based house builder Taylor Wimpey announced its pretax profit for the first half of 2023, which ended on June 30. The company reported a profit of £237.7 million, compared to £334.5 million in the same period last year. While the decrease was mainly attributed to lower completions and build cost inflation, Taylor Wimpey remains optimistic about full-year completions.
Profit and Revenue
Taylor Wimpey’s pretax profit saw a decline owing to decreased completions and inflation. The operating profit margin dropped from 20.4% to 14.4%. The revenue also declined by 21%, falling from £2.08 billion to £1.64 billion.
Home Sales
During the first half of 2023, Taylor Wimpey sold 5,120 homes at an average selling price of £366,000. In the same period in 2022, the company sold 6,922 homes at an average price of £337,000. The net private sales rate dropped from 0.90 to 0.71 compared to the previous year.
Order Book and Dividend
As of July 2, Taylor Wimpey’s order book stood at £2.15 billion, down from £2.80 billion in the previous year. Despite the decline, the company declared an interim dividend of 4.79 pence per share, up from 4.62 pence in H1 2022.
Outlook
Taylor Wimpey expects full-year completions, excluding joint ventures, to be between 10,000 and 10,500—a range that aligns with its prior guidance but leans towards the higher end. Additionally, the company anticipates an operating profit of approximately £440 million to £470 million for the full year.