Housebuilder Taylor Wimpey (LSE: TW) reported a 43% drop in pre-tax profit for 2023 due to rising costs and mortgage rates but anticipates future growth due to improved affordability and a strong landbank.
The company’s profit dropped to £473.8 million from £827.9 million a year earlier, while revenue fell 21% to £3.51 billion. Despite the decline, Taylor Wimpey raised its final dividend by a penny to 4.79 pence per share.
The housebuilder highlighted the impact of higher mortgage rates, which initially rose above market expectations, but started to fall towards the end of the year. Taylor Wimpey also acknowledged the ongoing Competition & Markets Authority (CMA) investigation into the potential under-delivery of homes by construction companies.
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While expressing optimism about future growth from 2025, the company cited concerns over the constraining impact of the planning system on new site openings in the UK. Despite facing a challenging planning environment and an ongoing CMA investigation, Taylor Wimpey remains confident in its ability to deliver long-term shareholder value.
The company’s shares, however, dropped 3.5% in early trading on Wednesday morning.
