Shares declined 6.1% as investors reacted negatively to margin compression and a cautious outlook amid a prolonged housing market downturn and affordability pressures, which prompted the company to lower its shareholder payout.
- Group gross profit fell 10% year-on-year to GBP 254 million, with a 200 basis point decline in gross margin to 15.1%.
- Adjusted operating profit dropped to GBP 130 million from GBP 161 million, reflecting ongoing pressure on pricing and rising build costs.
- Net private sales rate was down about 5% year-on-year, signaling deceleration amid subdued customer confidence and external geopolitical uncertainty.
- Average selling prices increased due primarily to mix and home size changes, but underlying pricing trends remained weak.
- The Board reduced the total shareholder payout to 4% of net asset value, citing a more prolonged downturn and lower profitability expectations, signaling a cautious outlook.
Community Discussion