UK housebuilder Taylor Wimpey sees persistent high demand despite inflation woes
Reuters
Published Apr 26, 2022 07:46
(Reuters) - Britain's Taylor Wimpey (LON:TW) on Tuesday shrugged off fears of stubborn inflation leading to a slowdown in the housing sector as the country's third-largest homebuilder forecast sustained demand in an under-supplied market.
UK homebuilders have pointed to a resilient housing market, partly on robust demand for larger homes suitable for remote working from buyers who saved up during the pandemic as well as the availability of cheap loans, dispelling slowdown woes amid the growing costs of living.
"We have continued to make good progress against our strategic priorities, including driving growth in operating profit margin and outlet openings," said Chief Executive Officer-designate Jennie Daly, who will take over the top role from Pete Redfern later on Tuesday.
Taylor Wimpey said its focus remained on delivering operating profit margin target of 21% to 22% in the medium term, adding that it stayed on track to deliver against annual financials outlook announced last month.
The FTSE 100 firm said its order book stood at 2.97 billion pounds ($3.79 billion) as of April 17, compared with 2.81 billion pounds in the year-ago period, when the sector was supported by several government measures.
The company, which was aggressively buying land during the pandemic, said strong house price levels are offsetting labour and material cost inflation and the recent rise in interest rates has not dented customer appetite.
($1 = 0.7841 pounds)
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.