Good trading for TW despite weather setback

Taylor Wimpey has reported that trading through the spring selling season has been good with strong customer demand although the wintry weather in March had a noticeable impact on the firm’s sales and build rates.

Average private sales for the year to date were 0.85 per outlet per week (2017: 0.93). Cancellation rates "remained low" at 13%. As at April 22 TW’s total order book value stood at approximately £2,155 million (2017: £2,210 million). This represents 9,050 homes (2017: 9,219 homes), excluding legal completions to date.

The firm said that the short term land market remains stable with opportunities to acquire land at investment operating profit margins similar to those achieved in recent years. At the end of March 2018, TW’s short term landbank stood at around 77,000 plots and the strategic land pipeline stood at around 118,000 potential plots.

Despite the weather setback, TW said that activity has recovered and the firm is on track to meet its expectations for the year, but expects completions for 2018 to be more second half weighted than 2017.

The firm says build cost inflation is anticipated to be at similar levels …