Shares in housebuilder Taylor Wimpey (LSE: TW) were up 1.8% in early trading on Thursday after the company said it expects to deliver full-year operating profits at the top end of its guidance range. The firm cited “cost discipline” and resilient demand for its homes despite wider economic headwinds.
In a trading update, Taylor Wimpey said it continues to see a “good” sales rate of 0.51 private sales per outlet per week in the second half so far, unchanged from the same period last year. Its cancellation rate has also improved to 21% from 24% a year ago.
However, the company noted that the housing market remains impacted by weak consumer confidence, higher mortgage rates and cost of living pressures which are negatively affecting affordability.
Taylor Wimpey now expects full-year operating profits to come in at the upper end of its previous £440m-£470m guidance range. It also reiterated guidance for home completions of 10,000-10,500 for 2022.
Chief Executive Jennie Daly said: “While the market backdrop remains uncertain, we are confident in the medium to long-term sector fundamentals, with a meaningful supply and demand imbalance in UK housing.”
Year to date, Taylor Wimpey shares are up 12.4%, and year-over-year the stock price is up 20%.
