REG - Taylor Wimpey PLC - Half year results 2025
Wed 07:02
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RNS Number : 0858T Taylor Wimpey PLC 30 July 2025
30 July 2025
Taylor Wimpey plc
Half year results for the period ended 29 June 2025
Resilient trading performance; well positioned for growth
Jennie Daly, Chief Executive, commented:
"We delivered a good underlying performance in the first half of 2025 in line
with our expectations, notwithstanding softer market conditions in the second
quarter. Our sales teams have continued to work hard to support customers
through their buying journeys, supported by the high quality of our sites and
locations, and it was pleasing to see significant improvements in our longer
term customer satisfaction scores.
While affordability remains constrained, particularly amongst first-time
buyers, lenders remain committed to the UK mortgage market and long term
fundamentals are positive, with significant unmet need for UK housing.
The safety of our customers remains our highest priority - this principle has
consistently guided our approach, and we have increased our cladding fire
safety provision to reflect findings from updated fire risk assessments and
investigations in the first half.
We reiterate our guidance for full year UK completions of between 10,400 to
10,800, with Group operating profit* for 2025 now expected to be c.£424
million, impacted by a one off charge, unchanged on an underlying basis.
Taylor Wimpey is a strong and agile business benefiting from a robust balance
sheet and excellent landbank and is well positioned to deliver growth and
attractive returns for shareholders."
Key
highlights:
· 11% increase in Group completions (including JVs) to 5,264 homes (H1
2024: 4,728 homes)
· Group operating profit of £161.0 million (H1 2024: £182.3 million)
(includes £20.0 million unexpected charge relating to principal contractor
remediation works on historical site)
· Increased cladding fire safety provision by £222.2 million, owing
largely to increased cavity barrier remediation behind brickwork and render
· Loss before tax of £92.1 million (H1 2024: £99.7 million profit),
reflecting exceptional charges in H1 2025 from the cladding fire safety
provision increase and the Competition and Markets Authority (CMA) related
provision of £18.0 million
· 2025 interim dividend of 4.67 pence per share (H1 2024: 4.80 pence
per share)
· Continue to expect full year UK completions, excluding JVs, to be
10,400 to 10,800 with Group operating profit expected to be c.£424 million,
reflecting the £20.0 million additional charge in H1 2025
First half UK operational highlights:
· H1 net private sales rate of 0.79 per outlet per week (H1 2024:
0.75), 0.73 excluding bulk deals (H1 2024: 0.69 excluding bulk deals)
· Total order book representing 7,269 homes, excluding JVs, with a
value of £2,116 million as at 29 June 2025 (30 June 2024: 7,451 homes with a
value of £2,012 million)
· Total UK average selling price (ASP) on completions decreased by 1.3%
to £313k (H1 2024: £317k)
· Operated from an average of 206 outlets during the period (H1 2024:
224) and ended the period with 209 outlets (30 June 2024: 214)
· Improved Construction Quality Review (CQR) score of 4.97 (H1 2024:
4.92)
· Recognised as a five-star builder according to the Home Builders
Federation (HBF)
Group financial highlights:
H1 2025 H1 2024 Change FY 2024
Revenue £m 1,654.6 1,517.7 9.0% 3,401.2
Operating profit £m 161.0(1) 182.3 (11.7)% 416.2
Operating profit margin*(†) 9.7% 12.0% (2.3)ppt 12.2%
Profit before tax and exceptional items £m 148.1 187.7 (21.1)% 418.5
(Loss) / profit before tax £m (92.1) (2) 99.7 - 320.3
Basic (loss) / earnings per share pence (1.7) 2.1 - 6.2
Adjusted basic earnings per share pence(††) 3.2 3.8 (15.8)% 8.4
Tangible net assets per share pence(†) 117.5 124.5 (5.6)% 123.8
Net cash(‡) £m 326.6 584.0 (44.1)% 564.8
(1) Includes unexpected £20.0 million charge booked in H1 2025 associated
with historical defective workmanship by a principal contractor which ceased
work on site, owing to financial difficulties
(2) After exceptional charges, including £222.2 million increase in cladding
fire safety provision and £18.0 million in relation to CMA affordable housing
contribution and cost of fulfilling commitments
UK current trading and outlook
Following robust trading in the first quarter, we experienced softer market
conditions during the second quarter. While lenders remain committed to the UK
mortgage market, affordability remains an issue, particularly for first time
buyers. Against this backdrop, our highly engaged sales teams remain focused
on driving high-quality lead generation and conversion to sales.
In the four weeks to 27 July 2025 our net private sales rate was 0.59 per
outlet per week (2024 equivalent period: 0.64), and this was 0.56 excluding
bulk deals (2024 equivalent period: 0.64). The cancellation rate for the same
period was 19% (2024 equivalent period: 19%).
As at the week ended 27 July 2025, our total order book value was £2,190
million (2024 equivalent period: £2,102 million), excluding joint ventures,
representing 7,452 homes (2024 equivalent period: 7,667 homes), of which 74%
are exchanged (2024 equivalent period: 74%).
Pricing remains broadly flat, and the level of down valuations remains low.
We reiterate our full year UK completions guidance range of 10,400 to 10,800
(excluding JVs). Although the H1 2025 UK ASP on completions was lower than
guided due to mix impacts, we continue to expect UK ASP on full year
completions to be around £340k.
In H2 2025, we expect an underlying improvement in operating profit margin
compared to the first half. This reflects a higher weighting of completions
expected in the second half that will allow a greater recovery of fixed costs,
and higher ASPs on second half completions due to mix. These factors will be
partly offset by build cost inflation which we continue to expect to be low
single digit for 2025. As a result of the £20.0 million unexpected charge
booked in H1 2025, associated with historical defective workmanship by a
principal contractor, the Group now expects to deliver operating profit for
2025 of c.£424 million.
We retain a strong balance sheet with low adjusted gearing and our 2025 year
end net cash balance is anticipated to be c.£350 million, depending on land
spend in the remainder of the year.
While the current market is uncertain, we remain well positioned for growth
and own all of the land required for next year's completions, over 90% of
which has detailed planning.
On 1 October, Taylor Wimpey will host an Investor and Analyst Event in London.
At the event, Jennie Daly and Chris Carney will be joined by representatives
from the senior management team to present on how the business is positioned
to navigate the next stage of the cycle and how the business is set up for
growth beyond 2025.
- Ends -
A presentation to investors and analysts will be hosted by Chief Executive
Jennie Daly and Group Finance Director Chris Carney at 9:00am on Wednesday 30
July 2025. This presentation will be webcast live on our website:
www.taylorwimpey.co.uk/corporate
(https://eur02.safelinks.protection.outlook.com/?url=http%3A%2F%2Fwww.taylorwimpey.co.uk%2Fcorporate&data=01%7C01%7CDebbie.Archibald%40taylorwimpey.com%7C87b6f1e886f8429207e908d6fe054c88%7C111bfc7fa92548b698024c6754c35b6f%7C0&sdata=Ycnad9QSHSMmyY4KhzeaZQbfqxhahY9IYH5htP1TvNY%3D&reserved=0)
An on-demand version of the webcast will be available on our website in the
afternoon of 30 July 2025. For further information please contact:
Taylor Wimpey plc
Tel: +44 (0) 1494 885656
Jennie Daly, Chief Executive
Chris Carney, Group Finance Director
Debbie Archibald, Investor Relations
Andrew McGeary, Investor Relations
FGS
Global
TaylorWimpey-LON@fgsglobal.com
Faeth Birch
Anjali Unnikrishnan
Notes to editors:
Taylor Wimpey plc is a customer-focused homebuilder, operating at a local
level from 22 regional businesses across the UK. We also have operations in
Spain.
For further information please visit the Group's website:
www.taylorwimpey.co.uk
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Follow our company page on LinkedIn, Taylor Wimpey plc
Performance, strategy and operational review
This review is for the UK business only as the majority of metrics do not
apply to our Spanish business. A short summary of the Spanish business follows
in the Group financial review. The financial analysis is presented at Group
level, which includes Spain, unless otherwise indicated.
Joint ventures are excluded from the operational review and Group financial
review, unless stated otherwise.
H1 2025 overview
Group completions (excluding JVs) were at the upper end of our expectations at
5,210 (H1 2024: 4,654), with total Group revenue of £1,654.6 million (H1
2024: £1,517.7 million). Group operating profit was £161.0 million (H1 2024:
£182.3 million). Group operating profit margin was 9.7% (H1 2024: 12.0%).
In H1 we incurred an unexpected £20.0 million charge in relation to one of
our London developments, constructed between 2012 and 2015 under a Joint
Contracts Tribunal (JCT) contract by a principal contractor, which has been
undergoing remediation works due to their defective workmanship. These works
were being carried out by the original principal contractor; however, it has
recently ceased operations on site due to financial difficulties. Whilst we
are actively pursuing recovery of costs from the contractor, we currently
expect to incur additional expenditure. As a result, our H1 2025 results
include a £20.0 million charge to cover the completion of these remediation
works. Excluding the £20.0 million charge, Group operating profit would have
been £181.0 million with a margin of 10.9%, slightly ahead of our guidance.
Loss before tax of £92.1 million (H1 2024: £99.7 million profit), with
exceptional charges in H1 2025 from the cladding fire safety provision
increase and the CMA related provision of £18.0 million.
The cladding fire safety provision has increased by £222.2 million in the
period, reflecting findings from updated fire risk assessments and
investigations. Approximately two thirds of the increase is to remediate
historical building defects, relating to cavity barriers behind brickwork and
render, which were not visible in earlier non-intrusive assessments. Further
detail is provided on page 8.
We ended the period with net cash of £326.6 million (H1 2024: £584.0
million), after returning £165.0 million in cash to investors via the payment
of the 2024 final ordinary dividend.
Well positioned for growth
Four cornerstones of strategy
Our purpose, to build great homes and create thriving communities, drives our
strategy. It remains our approach to manage the business through the cycle
based on our four strategic cornerstones, ensuring an agile response to market
conditions while investing in the long term sustainability of the business:
1. Optimising value from our high-quality owned and controlled landbank
and strategic land pipeline
2. Driving operational excellence through our business to improve
efficiency, protect value and ensure Taylor Wimpey is fit for the future
3. Embedding sustainability across the Group for the benefit of all our
stakeholders
4. Delivering reliable investor returns with a clear and disciplined
framework, balancing investment for future value creation with returning value
to shareholders
Optimising value and driving operational excellence
Our dual focus is on progressing our sites through the planning process,
submitting high-quality applications (including some assertive applications)
and working closely with local authorities to increase our opportunity, whilst
driving operating efficiencies throughout the business to protect value.
Our focus on build quality and customer service have been constant throughout
the cycle. We are pleased that our CQR build quality score of 4.97 (H1 2024:
4.92) remains one of the highest in our peer group, demonstrating our
continued commitment to service and quality. We also delivered a strong
customer satisfaction score consistent with our 5-star builder status, with a
significant improvement in our longer term customer satisfaction.
These improvements are testament to our investment in skills, technology,
supply chain and build efficiency. Our approach, and preparedness for the
future, are particularly important given the increased regulatory backdrop and
the impact on build costs.
We have excellent teams and a strong culture which are key to our future
success in an industry facing a skills shortage. We continue to evolve to
ensure we remain a destination of choice for current and future talent through
our excellent employee value proposition, including consistent training and
development opportunities. We are proud of our Site Managers who, in June,
collected 50 NHBC Pride in the Job Quality Awards (2024: 62).
We continued our focus on health and safety with a rolling 12 month Injury
Incidence Rate(†***) (per 100,000 employees and contractors) of 217 (H1
2024:164).
The National Planning Policy Framework (NPPF) now in place is an encouraging
step to address the blocks on housing delivery. While we have seen some early
progress, the implementation phase remains key to achieving the goal of
successfully delivering more land for much needed UK homes.
We currently have c.28.7k plots currently in planning for first principle
determination (up from c.26.5k in December 2024), a continuation of the
strategy we commenced in 2023 and we have more applications in preparation
targeted for submission during the second half and into 2026.
We continue to operate our business to create and protect long term value from
our strong landbank and to develop the sustainable homes of the future for the
benefit of all our stakeholders.
We have positioned all areas of the business for volume growth from 2025 and
beyond. As we look forward, we have the land in place to support our growth
without requiring net new land investment.
We remain confident in delivering growth given a supportive market, whilst
providing a reliable return to our shareholders through our differentiated
Ordinary Dividend Policy.
Our strong balance sheet and landbank provide sufficient capacity to deliver
growth in volumes. We are focused on increasing balance sheet efficiency and
improving asset turn to enhance our return on capital.
Returns to shareholders
Our capital allocation priorities remain unchanged. The first priority is
always maintaining a strong balance sheet. The next priority is to invest in
the business in work in progress (WIP) and in land to drive growth. After
this, the priority is the ordinary dividend payment before evaluating special
dividends or buybacks of shares with any surplus cash.
Our established differentiated Ordinary Dividend Policy provides investors
with visibility of the income stream they can expect throughout the cycle
including during a downturn, via an ordinary cash dividend. This policy has
meant we have returned £2.7 billion to shareholders since the policy was
initiated in 2018.
Our Ordinary Dividend Policy is to pay out 7.5% of net assets or at least
£250 million annually throughout the cycle. In line with our Ordinary
Dividend Policy, we today announce a 2025 interim dividend of 4.67 pence per
share payable in November 2025.
We have maintained a strong balance sheet and excellent landbank giving us the
capacity to grow whilst continuing to pay this dividend.
Trading performance
We have delivered a good net private sales rate of 0.79 (H1 2024: 0.75) which
continues to reflect our focus on customers, high-quality locations and the
hard work of our teams. Excluding bulk deals, our net private sales rate for
the first half was 0.73 (H1 2024: 0.69). Our strategy on bulk deals remains
consistent; we prioritise a planned approach for larger multi-phase,
multi-year sites where such deals improve the metrics of development schemes.
The first half cancellation rate was marginally higher than H1 2024 at 16% (H1
2024: 14%) reflecting ongoing fragility in some chains.
First time buyers accounted for 40% of total private reservations in the first
half of 2025 (H1 2024: 40%). Investor sales continued to be at a low level at
3% (H1 2024: 3%).
As at 29 June 2025, our total order book represented 7,269 homes (H1 2024:
7,451 homes) with an order book value of £2,116 million (H1 2024: £2,012
million), excluding joint ventures. This includes our affordable order book
which stood at 3,640 homes (H1 2024: 4,038 homes).
First half UK home completions (excluding JVs) were 4,894 (H1 2024: 4,512).
This included 1,059 affordable homes (H1 2024: 1,004), equating to 21.6% of
total completions (H1 2024: 22.3%).
ASP on private completions was £350k (H1 2024: £356k), mainly due to mix.
Our total ASP decreased by 1.3% to £313k (H1 2024: £317k).
Strong landbank
Outlet openings of 32 (H1 2024: 26) were in line with our expectations for the
period. We operated from an average of 206 outlets during the period (H1 2024:
224), ending the period with 209 outlets (H1 2024: 214). As previously stated,
we expect to open more outlets this year than in the prior year with new
openings to be weighted towards the end of the year.
With a strong landbank we have remained selective and opportunistic in our
land approvals. During the first half of 2025, we approved c.3k plots (H1
2024: c.5k plots).
As at 29 June 2025, our short term landbank stood at c.76k plots (31 December
2024: c.79k plots). The average cost of land as a proportion of ASP within the
short term owned landbank remains low at 13.3% (31 December 2024: 12.9%). The
estimated ASP in the short term owned landbank as at 29 June 2025 was £343k
(31 December 2024: £344k).
Our mature strategic land pipeline is a major differentiator that provides
optionality over when we enter the short term land market. This helps our
planning and future land security and offers a margin advantage at different
points in the cycle.
Our strategic pipeline stood at c.135k potential plots as at 29 June 2025 (31
December 2024: c.136k potential plots). During the first six months of 2025 we
converted c.1k plots from the strategic pipeline to the short term landbank
(H1 2024: c.2k plots). In the period, 39% of our completions were sourced from
the strategic pipeline (H1 2024: 41%).
Land cost as a percentage of ASP on approvals was 17.4% in the period (H1
2024: 15.6%).
Cladding fire safety
The safety of our customers remains our highest priority, and this principle
has consistently guided our approach. We have long maintained that
leaseholders should not bear the cost of fire safety remediation, and our
focus has always been on ensuring that residents in Taylor Wimpey buildings
have a clear path to resolution.
Since 2017, following the Grenfell Tower tragedy, we took early and proactive
steps reviewing all legacy and current buildings, prioritising remediation
works on those presenting the greatest risk. As fire safety guidance has
evolved, we have continued to reassess our buildings.
In recent months, as part of our ongoing work to meet the Government's
Remediation Action Plan deadlines, we have continued to carry out intrusive
investigations and Fire Risk Appraisal of External Walls (FRAEW) assessments
across our legacy buildings. These assessments and increased engagement with
chartered fire engineers in the first half has led to a reassessment of our
risk exposure on building remediation, including updated evaluation of
buildings that have not yet undergone intrusive FRAEW assessments.
We have therefore increased our provision for fire safety remediation by
£222.2 million in the first half of the year. This increase reflects:
· £144.9 million for an expanded scope of works to remediate
historical building defects, relating to cavity barriers behind brickwork and
render, which were not visible in earlier non-intrusive assessments. The
increased provision includes a £94.0 million cost allowance, which represents
our best estimate to remediate cavity barrier defects in buildings pending
FRAEW assessments.
· £39.5 million for additional cladding-related remediation
works. We have experienced chartered fire engineers' interpretation of the
PAS9980 standard evolve, becoming more cautious. Some buildings that were
previously considered acceptable and requiring no remediation work under
earlier EWS1 assessments have now been identified as needing remediation
through recent FRAEW assessments.
· £37.8 million for site-specific cost increases, professional
fees, contingencies, and an uplift in Building Safety Fund related buildings,
partially offset by discounting.
We have further strengthened our internal capability and accelerated delivery
of our remediation programme to support progress towards the Government's
assessment and completion targets.
We continue to expect cladding remediation cash outflow in 2025 of around
£100 million, as previously guided. Whilst the change to the provision will
increase the gross cash outflow over a longer duration, there will be lower
tax payments which is likely to more than offset the increase in remediation
spend in 2026, so overall, we anticipate no material change to cash flows in
the period to the end of 2026.
The provision represents our current best estimate to remediate our buildings.
While no recoveries are included in the provision values, we are actively
assessing and, where appropriate, pursuing claims against those responsible
for poor design, workmanship, or material failures.
Our focus remains on doing the right thing for our customers, completing these
works as quickly and efficiently as possible, without compromising on quality
or safety.
CMA investigation
On 9 July 2025, the CMA announced its intention to close its investigation
into seven housebuilders, including Taylor Wimpey, accepting voluntary
commitments from all parties involved in the investigation, and invited
representations from interested third parties until 24 July 2025. The CMA has
not made any infringement finding against Taylor Wimpey or any of the
housebuilders subject to investigation, and the voluntary commitments offered
do not constitute an admission of any wrongdoing.
The voluntary commitments include: (i) agreeing not to share certain
categories of information with housebuilders; (ii) supporting the Home
Builders Federation and Homes for Scotland to develop and publish
industry-wide guidance on information exchange; and (iii) a combined financial
contribution by the seven housebuilders of £100 million to the Government's
Affordable Homes Programme. Taylor Wimpey's share of the combined financial
contribution will be a payment of £15.8 million which has been recognised
within exceptional items in H1 2025.
We welcome the CMA's intention to conclude its investigation by accepting
voluntary commitments. We will continue to work constructively with the CMA as
they conclude the process.
Sustainability
Our purpose is to build great homes and create thriving communities. Achieving
our purpose means more than building homes, it is about designing and
developing places that enhance nature and people's quality of life, foster
local community relationships and help support the local community
infrastructure and connections. The housebuilding sector is a key creator of
jobs and economic activity throughout the country. We make a major
contribution to the regions in which we operate directly through the
employment created on our sites and indirectly through the economic benefit
our activities generate for the wider supply chain such as shops, facilities
for small businesses, and other industries that benefit from our operations.
With 10% Biodiversity Net Gain on sites in England, we are working hard to
find the right local solutions to support nature recovery and enhance local
communities.
Engaging with local communities is prioritised as part of the planning and
construction process. We strive to make a positive impact in the wider
community and in the first half of 2025, we contributed £169 million to the
local communities in which we build (H1 2024: £142 million) via our planning
obligations. This provides vital local infrastructure, affordable homes,
public transport and education facilities. In H1 2025, we donated and
fundraised over £0.6 million for charities and local community causes (H1
2024: £0.6 million), in addition to the time dedicated to volunteering and
outreach projects by our employees.
Over the last few years, the sector has seen a significant step change in
regulation. We continue to drive towards net zero by 2045, five years ahead of
the Government's target. We are rolling out the use of hydrotreated vegetable
oil (HVO) on many of our sites. HVO can reduce carbon emissions by up to c.90%
compared to diesel. We engage extensively with our supply chain, and we are
also focusing on assessing options for lower carbon products for our priority
materials.
We expect the Government to provide an update on its plans for Future Homes
Standard (FHS) regulation in the Autumn. This is a major stage in the journey
to net zero for the housing sector.
We are included in the S&P Sustainability Yearbook 2025 and remain a
constituent of the FTSE4Good Index Series and Dow Jones Sustainability Europe
Index. We have an AAA rating from MSCI. We have signed up to the Future Homes
Hub Homes for Nature commitment.
Our key performance indicators (KPIs)
UK H1 2025 H1 2024 Change FY 2024
Land
Land cost as % of ASP on approvals 17.4% 15.6% 1.8ppt 17.0%
Landbank years c.7.3 c.7.8 (6.4)% c.7.8
% of completions from strategically sourced land 39% 41% (2)ppt 40%
Operational excellence
Construction Quality Review (average score / 6) 4.97 4.92 1.0% 4.93
Average reportable items per inspection 0.17 0.18 (5.6)% 0.18
Health and Safety Injury Incidence Rate (per 100,000 employees and 217 164 32.3% 212
contractors) rolling 12 months
Employee engagement (annual survey) - - - 93%
Sustainability
Customer satisfaction 8-week score 95% 96% (1)ppt 96%
'Would you recommend?'
Customer satisfaction 9-month score 90% 77% 13ppt 80%
'Would you recommend?'
Reduction in operational carbon emissions intensity (measured at end of year) - - - 21%
N.B. The 8-week 'would you recommend' score for H1 2025 relates to customers
who legally completed between October 2024 and March 2025 with the comparator
relating to the same period 12 months prior. The 9-month 'would you recommend'
score for H1 2025 relates to customers who legally completed between October
2023 and March 2024, with the comparator relating to the same period 12 months
prior.
Going forward, our HBF rating will be determined on the basis of 8-week and
9-month customer service scores, equally weighted, instead of the 8-week
'Would you recommend?' score. Our star status will be derived from the
aggregate score relating to two questions on quality and service contained in
the 8-week survey and the same two questions contained in the 9-month survey.
Each question will receive a 1-5 score, with 5 being most favourable. An
aggregate score of 4.15 will be the measure of 5-star builder status as at
March 2026, which is the cut-off date for determining next year's star status.
As at 2 July 2025, our rating was 4.26, well ahead of the threshold to be
considered a 5-star builder.
Group financial review
Income statement
Group revenue was £1,654.6 million in the first half of 2025 (H1 2024:
£1,517.7 million), with Group completions, excluding joint ventures, being
11.9% higher at 5,210 (H1 2024: 4,654). The UK ASP on private completions
decreased by 1.7% to £350k (H1 2024: £356k), due mainly to mix. The UK ASP
on affordable housing increased to £180k (H1 2024: £179k), with a marginally
lower proportion of affordable housing in H1 2025 (21.6%) compared to the
prior period (H1 2024: 22.3%). As a result, the total UK ASP was 1.3% lower at
£313k (H1 2024: £317k).
Group gross profit decreased to £282.5 million (H1 2024: £292.2 million),
the current period including the unexpected £20.0 million charge in relation
to defective workmanship by a principal contractor and the prior period
including a higher profit generated from land sales. These factors contributed
to a decrease in gross margin to 17.1% (H1 2024: 19.3%).
Net operating expenses were £362.9 million (H1 2024: £198.7 million), which
includes £222.2 million of costs relating to the cladding fire safety
provision, as described above, (H1 2024: £88.0 million) and £18.0 million
relating to the CMA information sharing investigation commitments, which
includes associated legal and professional fees (H1 2024: nil). Excluding
exceptional costs, net operating expenses were £122.7 million (H1 2024:
£110.7 million), predominantly made up of administrative costs of £122.2
million (H1 2024: £116.7 million) that increased largely due to annual salary
reviews and the increase in employers' National Insurance rate. This resulted
in a loss on ordinary activities before financing of £80.4 million (H1 2024:
£93.5 million profit), £159.8 million profit (H1 2024: £181.5 million
profit) excluding exceptional items.
Completions from joint ventures in the period were 54 (H1 2024: 74). The
Group's share of joint ventures' results in the period was a £1.2 million
profit (H1 2024: £0.8 million profit). The total order book value of joint
ventures as at 29 June 2025 decreased to £24 million (31 December 2024: £28
million), representing 89 homes (31 December 2024: 104 homes).
When including the share of joint ventures' results in the profit on ordinary
activities before financing and exceptional items, the resulting operating
profit was £161.0 million (H1 2024: £182.3 million), delivering an operating
profit margin of 9.7% (H1 2024: 12.0%).
The net finance expense of £12.9 million (H1 2024: £5.4 million income) is
predominantly made up of imputed interest on land acquired on deferred terms,
bank interest and interest on the pension scheme. In the prior period this was
more than offset by interest earned on the higher cash balances held through
that period. Net finance expense is expected to increase to c.£25 million for
2025 due to the imputed interest from the discounting of the cladding fire
safety provision.
Loss on ordinary activities before tax was £92.1 million (H1 2024: £99.7
million profit). The total tax credit for the period was £30.3 million (H1
2024: £26.7 million charge), a rate of 32.9% (H1 2024: 26.8%); the current
year includes a credit of £63.7 million in respect of the exceptional charges
recognised (H1 2024: £25.0 million). The pre-exceptional tax charge was
£33.4 million (H1 2024: £51.7 million), representing an underlying tax rate
of 22.6% (H1 2024: 27.5%). The tax charged / credited in the period is based
on full year anticipated effective tax rates of c.31% in the UK and c.25% in
Spain. The UK effective tax rate is higher than the statutory rate of 29.0%
(comprising 25.0% Corporation Tax and 4.0% Residential Property Developer Tax)
due to certain elements of the exceptional costs being treated as not tax
deductible. As the higher UK rate is applied to a loss in the period, and the
lower Spanish rate is applied to a profit, this has the effect of increasing
the Group's overall effective tax credit rate for the period to 32.9%. We
expect the full year 2025 effective tax rate to be c.30% and underlying
(pre-exceptional) effective tax rate to be c.28%.
As a result, the loss for the period was £61.8 million (H1 2024: £73.0
million profit).
Basic loss per share was 1.7 pence (H1 2024: 2.1 pence earnings). The adjusted
basic earnings per share was 3.2 pence (H1 2024: 3.8 pence).
Spain
Our Spanish business primarily sells second homes to European and other
international customers, with a small proportion of sales being primary homes
for Spanish occupiers. The business completed 316 homes (H1 2024: 142) with
the ASP decreasing to €420k (H1 2024: €509k), due to regional mix. The
total order book as at 29 June 2025 decreased to 369 homes following the
increase in completions in the period (31 December 2024: 491 homes).
Gross margin was 29.7% (H1 2024: 27.6%), this flowed through to an operating
profit of £30.6 million (H1 2024: £14.4 million) and an operating profit
margin of 27.3% (H1 2024: 23.4%), reflecting the increase in completions in
the period.
The total plots in the landbank stood at 3,122 (31 December 2024: 3,214), with
net operating assets** of £79.6 million (31 December 2024: £89.5 million).
Balance sheet
Net assets at 29 June 2025 decreased to £4,184.3 million (31 December 2024:
£4,405.2 million), with net operating assets decreasing to a lesser extent by
£50.4 million, 1.3%, to £3,766.6 million (31 December 2024: £3,817.0
million). Return on net operating assets*** decreased to 10.4% (30 June 2024:
10.9%) due primarily to the reduction in Group operating profit. Group net
operating asset turn(†*) was 0.93 times (30 June 2024: 0.89), reflecting the
increase in revenue and small decrease in average net operating assets.
Land
Land as at 29 June 2025 decreased by £80.4 million in the period to £3,307.1
million due to recoveries on completions exceeding additions. Land creditors
decreased to £533.4 million as payments on existing creditors exceeded new
commitments arising from the acquisition of land (31 December 2024: £627.9
million). Included within the gross land creditor balance is £44.4 million of
UK land overage commitments (31 December 2024: £39.9 million). £301.7
million of the land creditors is expected to be paid within 12 months and
£231.7 million thereafter (31 December 2024: £355.9 million and £272.0
million).
As at 29 June 2025, the UK short term landbank comprised 75,995 plots (31
December 2024: 78,626), with a net book value of £2.9 billion (31 December
2024: £2.9 billion). Short term owned land had a net book value of £2.8
billion (31 December 2024: £2.9 billion), representing 62,231 plots (31
December 2024: 65,521). The controlled short term landbank represented 13,764
plots (31 December 2024: 13,105).
The value of strategic owned land decreased to £167 million (31 December
2024: £180 million), representing 31,192 plots (31 December 2024: 31,764),
with a further total controlled strategic pipeline of 103,836 plots (31
December 2024: 104,375). Total potential revenue in the owned and controlled
landbank was £60 billion (31 December 2024: £60 billion).
Work in progress (WIP)
Total WIP investment, excluding part exchange and other, increased to
£2,097.4 million (31 December 2024: £1,949.3 million), due to build activity
in preparation for volume growth in the second half of the year, and beyond.
Average WIP per UK outlet also increased as a result to £9.9 million (31
December 2024: £8.9 million).
Provisions and deferred tax
Provisions increased to £549.1 million (31 December 2024: £306.7 million)
due primarily to the increase recognised in the cladding fire safety provision
noted above. There were also increases from costs recognised for remediation
at one of the Group's London developments where the original principal
contractor was carrying out the works, but has recently ceased operations on
site, and the costs associated with the commitments made to the CMA. These
increases were partly offset by utilisation of the cladding fire safety
provision (£19.6 million) as works have been carried out, as well as
utilisation of other provisions.
The net deferred tax asset of £30.2 million (31 December 2024: £20.6
million) relates to the pension deficit and UK and Spanish provisions that are
tax deductible when the expenditure is incurred.
Pensions
During 2023, the Group engaged with the Trustee of the Taylor Wimpey Pension
Scheme (TWPS) on the triennial valuation of the Scheme with a reference date
of 31 December 2022. The valuation was concluded in March 2024 and showed that
the TWPS had a surplus of £55 million on its Technical Provisions funding
basis and a funding level of 103%. As a result, no deficit contributions were
required to be paid to the TWPS or to the escrow account established following
the 2019 valuation. The escrow account will remain in place until 30 June
2028, at which point a funding test will be conducted and funds will either be
paid to TWPS or returned to the Group.
The Group continues to provide a contribution for Scheme expenses (£2.0
million per annum) and also makes contributions via the Pension Funding
Partnership (PFP) (£5.1 million per annum until 2029). The PFP also has seven
annual payments due of up to £12.5 million each from 2029 to 2035, these are
only payable if the TWPS has a deficit on its Technical Provisions funding
basis at the prior 31 December.
Total Scheme contributions and expenses in the period were £6.1 million (H1
2024: £6.1 million). At 29 June 2025, the IAS 19 valuation of the Scheme was
a surplus of £132.1 million (31 December 2024: £90.2 million). Due to the
rules of the TWPS, any surplus cannot be recovered by the Group and therefore
a deficit has been recognised on the balance sheet under IFRIC 14. The deficit
is equal to the present value of the remaining committed payments and any
forecasted distributions from the PFP.
Retirement benefit obligations of £17.4 million at 29 June 2025 (31 December
2024: £22.2 million) comprise a defined benefit pension liability of £17.3
million (31 December 2024: £22.0 million) and a post-retirement healthcare
liability of £0.1 million (31 December 2024: £0.2 million).
The Group continues to work closely with the Trustee in managing pension
risks, including management of interest rate, inflation and longevity risks.
Net cash and financing position
Net cash decreased to £326.6 million at 29 June 2025 from £564.8 million at
31 December 2024, due primarily to the payment of the 2024 final dividend and
the increased investment in WIP. Average net cash for the period was £324.6
million (30 June 2024: £582.4 million, 31 December 2024: £494.5 million).
Cash conversion(‡‡) decreasing to 53.1% of operating profit for the 12
months ended 29 June 2025 (12 months to 30 June 2024: 90.3%) reflects the
increased investment in working capital over the period.
Net cash, combined with land creditors, resulted in an adjusted
gearing(‡‡‡‡) of 4.9% (31 December 2024: 1.4%).
At 29 June 2025, our committed borrowing facilities were £686 million, of
which the £600 million revolving credit facility was undrawn throughout the
period. The weighted average maturity of the committed borrowing facilities at
29 June 2025 was 5.0 years (31 December 2024: 4.6 years). During the period an
extension of one year to 2030 was agreed for the revolving credit facility.
The revolving credit facility includes sustainability-linked performance
measures to be assessed and verified annually, which can have a minor impact
on the margin.
Dividends
On 9 May 2025, we returned £165.0 million to shareholders by way of a 2024
final ordinary dividend of 4.66 pence per share. The Board has declared that a
2025 interim dividend of 4.67 pence per share is to be paid on 14 November
2025 to shareholders on the register at the close of business on 10 October
2025. The dividend will be paid as a cash dividend, and shareholders have the
option to reinvest all of their dividend under the Dividend Re-Investment Plan
(DRIP), details of which are available on our website
www.taylorwimpey.co.uk/corporate (http://www.taylorwimpey.co.uk/corporate) .
Going concern
The Directors remain of the view that the Group's financing arrangements and
balance sheet strength provide both the necessary liquidity and covenant
headroom to enable the Group to conduct its business for at least the next 12
months. Accordingly, the condensed consolidated interim financial statements
are prepared on a going concern basis. See note 1 of the financial statements
for further details of the assessment performed.
Principal risks and uncertainties
As with any business, Taylor Wimpey's operational performance and ability to
achieve its strategic objectives are subject to several potential risks and
uncertainties. The Board takes a proactive approach to the management of these
and regularly reviews both internal and external factors to identify and
assess their impact on the business. These risks and uncertainties are then
managed through effective mitigating controls and the development of action
plans, with the continual monitoring of progress against agreed KPIs as an
integral part of the business process and core activities.
The Board assesses and monitors the Principal Risks of the business regularly.
Set out in the Group's Annual Report and Accounts for the year ended 31
December 2024 are details of the Principal Risks and uncertainties for the
Group and the key mitigating activities used to address them at that time.
Principal Risks
Although we have seen some easing in lending rules by banks, making it easier
for borrowers to qualify and borrow more, and a relaxation of mortgage
affordability tests and lower deposit requirements, the impact on housing
demand, and therefore the housing commitments made by the Government, may take
time to fully materialise. These commitments still have the potential to
create a positive future impact on the sector and on our Principal Risks, but
we continue to see some challenges driven by regulatory change and additional
planning considerations. Since the year end, we have determined that there has
been a small increase in the inherent and residual risk profiles in two of our
Principal Risks. The first being 'Government policies, regulations and
planning', driven by recent Government announcements, for example the
mandatory inclusion of solar panels on new builds, and the ongoing issues
caused by the performance of the Building Safety Regulator, and the second
being 'Natural resources and climate change', driven by increasing wastewater
capacity concerns and increased flooding considerations in respect of
planning. As part of our risk management process, we continually monitor all
relevant factors, to ensure the Principal Risks remain appropriate and to
ensure that we implement any additional mitigations deemed necessary in order
to effectively manage them within our risk tolerance levels.
Except as referenced above, no other changes have been made to the Group's
Principal Risks as reported at 31 December 2024. Further details of the
Principal Risks and the mitigations in place are outlined on pages 85 to 90 of
the 2024 Annual Report and Accounts, published in March 2025.
Emerging Risks
The Group faces a number of emerging risks which have the potential to be
significant to the achievement of our strategy. Due to their nature, their
impact cannot be fully understood but where possible we have put in place or
are planning to put in place mitigations to reduce the level of potential
risk. Emerging risks are considered as part of our established risk management
process and are reviewed and approved by the Board on a regular basis.
Cautionary note concerning forward-looking statements
This announcement includes statements that are, or may be deemed to be,
'forward-looking statements'. These forward-looking statements can be
identified by the use of forward-looking terminology, including the terms
'believes', 'estimates', 'plans', 'projects', 'anticipates' or 'expects'. Such
statements are based on current expectations and assumptions and are subject
to a number of risks and uncertainties that could cause actual events or
results to differ materially from any expected future events or results
expressed or implied in these forward-looking statements.
Accordingly, there are or will be important factors that could cause Taylor
Wimpey plc's actual results to differ materially from those indicated in these
statements. Persons receiving this announcement should not place reliance on
forward-looking statements. Forward-looking statements speak only as of the
date they are made and, except as required by applicable law or regulation,
Taylor Wimpey plc undertakes no obligation to update these forward-looking
statements. Nothing in this statement should be construed as a profit
forecast.
Definitions
* Operating profit is defined as (loss)/profit on ordinary activities before
financing, exceptional items and tax, after share of results of joint
ventures.
*(†) Operating profit margin is defined as operating profit divided by
revenue.
** Net operating assets is defined as basic net assets less net cash,
excluding net taxation balances and accrued dividends. Average net operating
assets is the average of the opening and closing net operating assets of the
12-month period.
*** Return on net operating assets (RONOA) is defined as rolling 12-month
operating profit divided by average net operating assets.
(†) Tangible net assets per share is defined as net assets before any
accrued dividends, excluding intangible assets, divided by the number of
ordinary shares in issue at the end of the period.
(††) Adjusted basic earnings per share represents earnings attributed to
the shareholders of the parent, excluding exceptional items and tax on
exceptional items, divided by the weighted average number of shares in issue
during the period.
(†)* Net operating asset turn is defined as total revenue divided by the
average of opening and closing net operating assets, based on a rolling
12-month period.
(†***) The Injury Incidence Rate (IIR) is defined as the number of incidents
per 100,000 employees and contractors, calculated on a rolling 12-month basis,
where the number of employees and contractors is calculated using a monthly
average over the same period.
(‡) Net cash is defined as total cash less total borrowings.
(‡‡) Cash conversion is defined as cash generated from operations divided
by operating profit, based on a rolling 12-month period.
(‡‡‡‡) Adjusted gearing is defined as adjusted net debt divided by net
assets. Adjusted net debt is defined as net cash less land creditors.
A reconciliation of alternative performance measures to statutory measures is
disclosed in note 16 of the condensed consolidated interim financial
statements.
Taylor Wimpey plc
Condensed consolidated income statement
For the half year ended 29 June 2025
(Reviewed) (Reviewed) (Audited)
Half year ended Half year ended Half year ended Half year ended Half year ended Half year ended Year Year Year
29 June
29 June
29 June
30 June
30 June
30 June
2025
2025
2025
2024
2024
2024 ended 31 December 2024 ended 31 December 2024 ended 31 December 2024
£ million Note Before Exceptional Total Before Exceptional Total Before Exceptional Total
exceptional
exceptional
exceptional
items items
items items
items items
Continuing operations
Revenue 2 1,654.6 - 1,654.6 1,517.7 - 1,517.7 3,401.2 - 3,401.2
Cost of sales (1,372.1) - (1,372.1) (1,225.5) - (1,225.5) (2,752.5) - (2,752.5)
Gross profit 282.5 - 282.5 292.2 - 292.2 648.7 - 648.7
Net operating expenses 4 (122.7) (240.2) (362.9) (110.7) (88.0) (198.7) (232.3) (82.5) (314.8)
Profit/(loss) on ordinary activities before financing 159.8 (240.2) (80.4) 181.5 (88.0) 93.5 416.4 (82.5) 333.9
Finance income 5 7.6 - 7.6 17.7 - 17.7 29.7 - 29.7
Finance costs 5 (20.5) - (20.5) (12.3) - (12.3) (27.4) - (27.4)
Share of results of joint ventures 1.2 - 1.2 0.8 - 0.8 (0.2) (15.7) (15.9)
Profit/(loss) before taxation 148.1 (240.2) (92.1) 187.7 (88.0) 99.7 418.5 (98.2) 320.3
Taxation (charge)/credit 6 (33.4) 63.7 30.3 (51.7) 25.0 (26.7) (120.9) 20.2 (100.7)
Profit/(loss) for the period 114.7 (176.5) (61.8) 136.0 (63.0) 73.0 297.6 (78.0) 219.6
Basic (loss)/earnings per share 7 (1.7)p 2.1p 6.2p
Diluted (loss)/earnings per share 7 (1.7)p 2.1p 6.2p
Adjusted basic earnings 7 3.2p 3.8p 8.4p
per share
Adjusted diluted earnings 7 3.2p 3.8p 8.4p
per share
All of the profit for the period is attributable to the equity holders of the
parent company.
Taylor Wimpey plc
Condensed consolidated statement of comprehensive income
For the half year ended 29 June 2025
Half year ended 29 Half year ended 30 Year ended
June 2025
June 2024
31 December 2024
£ million (Reviewed) (Reviewed) (Audited)
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translation of foreign operations 5.2 (4.2) (8.8)
Movement in fair value of hedging instruments (2.8) 1.8 3.9
Items that will not be reclassified subsequently to profit or loss:
Actuarial gain on defined benefit pension schemes 0.6 0.9 1.4
Tax charge on items taken directly to other comprehensive income (0.2) (0.3) (0.4)
Other comprehensive income/(expense) for the period 2.8 (1.8) (3.9)
(Loss)/profit for the period (61.8) 73.0 219.6
Total comprehensive (expense)/income for the period (59.0) 71.2 215.7
All of the comprehensive (expense)/income for the period is attributable to
the equity holders of the parent company.
Taylor Wimpey plc
Condensed consolidated balance sheet
As at 29 June 2025
£ million Note 29 June 30 June 31 December 2024
(Audited)
2025 (Reviewed) 2024 (Reviewed)
Non-current assets
Intangible assets 3.3 2.0 1.5
Property, plant and equipment 22.3 22.5 21.9
Right-of-use assets 35.0 35.7 35.9
Interests in joint ventures 25.7 72.4 26.9
Trade and other receivables 19.2 19.2 14.9
Other financial assets 9 11.1 10.6 10.8
Deferred tax assets 30.2 28.8 20.6
146.8 191.2 132.5
Current assets
Inventories 5,444.1 5,253.5 5,376.6
Trade and other receivables 178.8 147.9 130.4
Tax receivables 69.7 19.1 4.4
Cash and cash equivalents 8 412.1 668.7 647.4
6,104.7 6,089.2 6,158.8
Total assets 6,251.5 6,280.4 6,291.3
Current liabilities
Trade and other payables (1,088.3) (1,040.1) (1,083.9)
Lease liabilities (11.2) (9.8) (10.4)
Tax payables (8.8) (4.0) (1.6)
Provisions 11 (225.5) (143.9) (161.7)
(1,333.8) (1,197.8) (1,257.6)
Net current assets 4,770.9 4,891.4 4,901.2
Non-current liabilities
Trade and other payables (280.6) (306.9) (350.7)
Lease liabilities (26.3) (28.9) (28.0)
Bank and other loans 8 (85.5) (84.7) (82.6)
Retirement benefit obligations 9 (17.4) (21.8) (22.2)
Provisions 11 (323.6) (209.8) (145.0)
(733.4) (652.1) (628.5)
Total liabilities (2,067.2) (1,849.9) (1,886.1)
Net assets 4,184.3 4,430.5 4,405.2
Equity
Share capital 291.3 291.3 291.3
Share premium 777.9 777.9 777.9
Own shares (21.8) (23.8) (27.6)
Other reserves 541.9 542.0 539.5
Retained earnings 2,595.0 2,843.1 2,824.1
Total equity 4,184.3 4,430.5 4,405.2
Taylor Wimpey plc
Condensed consolidated statement of changes in equity
For the half year ended 29 June 2025
Reviewed half year ended 29 June 2025 Note Share Share premium Own shares Other reserves Retained earnings Total
£ million capital
Balance as at 1 January 2025 291.3 777.9 (27.6) 539.5 2,824.1 4,405.2
Other comprehensive income for the period - - - 2.4 0.4 2.8
Loss for the period - - - - (61.8) (61.8)
Total comprehensive income/(expense) for the period - - - 2.4 (61.4) (59.0)
Utilisation of own shares - - 5.8 - - 5.8
Cash cost of satisfying share options - - - - (7.0) (7.0)
Share-based payment credit 14 - - - - 4.4 4.4
Tax charge on items taken directly to statement of changes in equity - - - - (0.1) (0.1)
Dividends approved and paid 13 - - - - (165.0) (165.0)
Total equity at 29 June 2025 291.3 777.9 (21.8) 541.9 2,595.0 4,184.3
Reviewed half year ended 30 June 2024 Note Share capital Share premium Own shares Other reserves Retained earnings Total
£ million
Balance as at 1 January 2024 291.3 777.9 (29.7) 544.4 2,939.5 4,523.4
Other comprehensive (expense)/income for the period - - - (2.4) 0.6 (1.8)
Profit for the period - - - - 73.0 73.0
Total comprehensive (expense)/income for the period - - - (2.4) 73.6 71.2
Utilisation of own shares - - 5.9 - - 5.9
Cash cost of satisfying share options - - - - (4.7) (4.7)
Share-based payment credit 14 - - - - 4.4 4.4
Tax charge on items taken directly to statement of changes in equity - - - - (0.2) (0.2)
Dividends approved and paid 13 - - - - (169.5) (169.5)
Total equity at 30 June 2024 291.3 777.9 (23.8) 542.0 2,843.1 4,430.5
Audited year ended 31 December 2024 Note Share Share premium Own shares Other reserves Retained earnings Total
£ million capital
Balance as at 1 January 2024 291.3 777.9 (29.7) 544.4 2,939.5 4,523.4
Other comprehensive (expense)/income for the year - - - (4.9) 1.0 (3.9)
Profit for the year - - - - 219.6 219.6
Total comprehensive (expense)/income for the year - - - (4.9) 220.6 215.7
Own shares acquired - - (4.0) - - (4.0)
Utilisation of own shares - - 6.1 - - 6.1
Cash cost of satisfying share options - - - - (5.4) (5.4)
Share-based payment credit 14 - - - - 9.2 9.2
Tax charge on items taken directly to statement of changes in equity - - - - (0.4) (0.4)
Dividends approved and paid 13 - - - - (339.4) (339.4)
Total equity at 31 December 2024 291.3 777.9 (27.6) 539.5 2,824.1 4,405.2
Taylor Wimpey plc
Condensed consolidated cash flow statement
For the half year ended 29 June 2025
Half year ended 29 Half year ended 30 June 2024 Year ended
31 December 2024
June 2025
£ million Note (Reviewed) (Reviewed) (Audited)
Operating activities:
(Loss)/profit on ordinary activities before financing (80.4) 93.5 333.9
Adjustments for:
Depreciation and amortisation 7.6 7.5 14.3
Pension contributions in excess of charge to the income statement (4.6) (4.5) (4.0)
Share-based payment charge 4.4 4.4 9.2
Loss on disposal of assets - - 14.5
Net increase in provisions excluding exceptional payments 258.6 83.3 53.9
Operating cash flows before movements in working capital 185.6 184.2 421.8
Increase in inventories (145.8) (98.6) (86.8)
(Increase)/decrease in receivables (51.4) (16.8) 3.8
Increase/(decrease) in payables 12.4 34.2 (27.1)
Cash generated from operations 0.8 103.0 311.7
Payments relating to exceptional charges (21.4) (16.1) (34.1)
Income taxes paid (37.7) (49.6) (102.5)
Interest paid (4.5) (5.5) (10.2)
Net cash (used in)/generated from operating activities (62.8) 31.8 164.9
Investing activities:
Interest received 8.2 17.2 28.1
Proceeds on disposal of property, plant and equipment - - 0.1
Purchase of property, plant and equipment (1.8) (2.0) (3.4)
Purchase of intangible assets (2.5) - -
Proceeds on disposal of joint venture - - 18.5
Amounts (invested in)/received from joint ventures (6.4) 31.4 30.6
Net cash (used in)/generated from investing activities (2.5) 46.6 73.9
Financing activities:
Lease capital repayments (5.7) (4.4) (9.6)
Cash (paid)/received on exercise of share options (1.1) 1.2 0.7
Purchase of own shares - - (4.0)
Dividends paid (165.0) (169.5) (339.4)
Net cash used in financing activities (171.8) (172.7) (352.3)
Net decrease in cash and cash equivalents (237.1) (94.3) (113.5)
Cash and cash equivalents at beginning of period 647.4 764.9 764.9
Effect of foreign exchange rate changes 1.8 (1.9) (4.0)
Cash and cash equivalents at end of period 8 412.1 668.7 647.4
Taylor Wimpey plc
Notes to the condensed consolidated interim financial statements
For the half year ended 29 June 2025
1. Material accounting policies
Basis of preparation
The condensed set of consolidated interim financial statements has been
prepared in accordance with IAS 34 'Interim Financial Reporting', as adopted
by the United Kingdom, and the Disclosure Guidance and Transparency Rules of
the Financial Conduct Authority. These should be read in conjunction with the
Group's annual financial statements for the year ended 31 December 2024, which
have been prepared in accordance with applicable IFRSs.
The information contained in this report does not constitute statutory
accounts as defined in section 434 of the Companies Act 2006. The condensed
consolidated interim financial statements are unaudited but have been reviewed
by the Group's auditor PricewaterhouseCoopers LLP. A copy of the statutory
accounts for year ended 31 December 2024 has been delivered to the Registrar
of Companies. The auditor reported on those accounts, their report was
unqualified, did not draw attention to any matters by way of emphasis and did
not contain a statement under sections 498 (2) or (3) of the Companies Act
2006.
The accounting policies and method of computations adopted in the preparation
of these condensed consolidated interim financial statements are consistent
with those followed in the preparation of the Group's annual financial
statements for the year ended 31 December 2024.
Going concern
Group forecasts have been prepared that have considered the Group's current
financial position and current market circumstances. The forecasts were
subject to sensitivity analysis including severe but plausible scenarios
together with the likely effectiveness of mitigating actions.
The assessment considered sensitivity analysis based on a number of
realistically possible, but severe and prolonged, changes to principal
assumptions. In determining these, the Group included macro-economic and
industry wide projections, as well as matters specific to the Group. To arrive
at the sensitivity analysis, the Group has also drawn on experience gained
managing the business through previous economic downturns and stress tested
the business against a number of scenarios, which included a scenario that
reflected:
- Volume - a reduction in total volumes of 6% compared to the
preceding 12-month period
- Price - a reduction to current selling prices of 5%
- Costs - a one-off exceptional charge and cash cost of £150 million
for an unanticipated event, change in Government regulations or financial
penalty has been included in 2026
Mitigations to this sensitivity analysis include a reduction in land
investment, a reduction in the level of production and work in progress held
and optimising the overhead base to ensure it is aligned with the scale of the
operations through the cycle. If this scenario were to occur, we also have a
range of additional options to maintain our financial strength, including: a
more severe reduction in land spend and work in progress, the sale of assets,
reducing the dividend, and/or raising debt.
At 29 June 2025, the Group had a cash balance of £412 million and had access
to £600 million from a fully undrawn revolving credit facility, together
totalling £1,012 million. The combination of both of these is sufficient to
absorb the financial impact of each of the risks modelled in the stress and
sensitivity analysis, individually and in aggregate.
Based on these forecasts, it is considered that there are sufficient resources
available for the Group to conduct its business, and meet its liabilities as
they fall due, for at least the next 12 months from the date of these
condensed consolidated interim financial statements. Consequently the
condensed consolidated interim financial statements have been prepared on a
going concern basis.
Taylor Wimpey plc
Notes to the condensed consolidated interim financial statements (continued)
For the half year ended 29 June 2025
1. Material accounting policies (continued)
Estimates and judgements
The preparation of a condensed set of consolidated interim financial
statements requires management to make significant judgements and estimates.
Management have considered whether there are any such sources of estimation or
accounting judgements in preparing the condensed consolidated interim
financial statements. In identifying these areas management have considered
the size of the associated balance and the potential likelihood of changes due
to macro-economic factors.
For each reporting period-end management reassess the basis of the significant
estimates and judgements to take into account new information, developments in
the period or experience gained. Management has not made any individual
critical accounting judgements in preparing these condensed consolidated
interim financial statements. Key sources of estimation uncertainty are those
which may have a significant risk of causing a material difference to the
carrying amounts of assets or liabilities within the next twelve months.
The provision for cladding fire safety works is considered to be a key source
of estimation uncertainty given its size and the estimation inherent in
developing the provision where assessments have yet to be performed and works
are not yet tendered. The Group estimates the provision based on the number of
buildings that may require works and the costs to carry out the identified
works. In determining the total cost of works, management has increasingly
been supported by third party quotations received. However on buildings not
yet tendered, or assessed, estimates are made for the nature of works to be
carried out and the costs of those works based on the experience the Group has
from projects currently ongoing. The provision is therefore complex in nature
and involves judgements and estimates, which can be impacted by changes in the
costs of materials and labour, unanticipated works being required, evolving
industry practices and changes to regulations. If there were a 10% change in
costs for untendered projects, arising from changes to scope or rates, the
provision would increase/decrease by £27 million. During the period the
provision has been increased by £222.2 million, net of discounting, (30 June
2024: £88.0 million), see Note 4. Based on the information currently
available, the provision represents management's best estimate of the
liability for the Group.
2. Revenue
An analysis of the Group's revenue is as follows:
£ million Half year Half year Year ended 31 December 2024
ended 29 ended 30
June 2025
June 2024
Private sales 1,453.3 1,311.8 2,960.7
Partnership housing 190.7 179.6 404.1
Land and other 10.6 26.3 36.4
Total revenue 1,654.6 1,517.7 3,401.2
Taylor Wimpey plc
Notes to the condensed consolidated interim financial statements (continued)
For the half year ended 29 June 2025
3. Operating segments
The Group operates in two countries, the United Kingdom and Spain, and has two
reportable segments of those countries. Revenue in Spain arises entirely on
private sales.
Half year ended 29 June 2025 Half year ended 30 June 2024 Year ended 31 December 2024
£ million UK Spain Total UK Spain Total UK Spain Total
Revenue
External sales 1,542.7 111.9 1,654.6 1,456.2 61.5 1,517.7 3,214.6 186.6 3,401.2
Result
Profit before joint ventures, 129.2 30.6 159.8 167.1 14.4 181.5 369.0 47.4 416.4
finance income/(costs) and exceptional items
Share of results of joint ventures 1.2 - 1.2 0.8 - 0.8 (0.2) - (0.2)
Operating profit (Note 16) 130.4 30.6 161.0 167.9 14.4 182.3 368.8 47.4 416.2
Exceptional items (Note 4) (240.2) - (240.2) (88.0) - (88.0) (98.2) - (98.2)
(Loss)/profit before net finance (costs)/income (109.8) 30.6 (79.2) 79.9 14.4 94.3 270.6 47.4 318.0
Net finance (costs)/income (Note 5) (12.9) 5.4 2.3
(Loss)/profit before taxation (92.1) 99.7 320.3
Taxation credit/(charge) (Note 6) 30.3 (26.7) (100.7)
(Loss)/profit for the period (61.8) 73.0 219.6
29 June 2025 30 June 2024 31 December 2024
£ million UK Spain Total UK Spain Total UK Spain Total
Assets and liabilities
Segment operating assets 5,495.2 218.6 5,713.8 5,207.4 284.0 5,491.4 5,355.4 236.6 5,592.0
Joint ventures 25.7 - 25.7 72.4 - 72.4 26.9 - 26.9
Segment operating liabilities (1,833.9) (139.0) (1,972.9) (1,587.8) (173.4) (1,761.2) (1,654.8) (147.1) (1,801.9)
Net operating assets 3,687.0 79.6 3,766.6 3,692.0 110.6 3,802.6 3,727.5 89.5 3,817.0
Net current taxation 60.9 15.1 2.8
Net deferred taxation 30.2 28.8 20.6
Net cash (Note 8) 326.6 584.0 564.8
Net assets 4,184.3 4,430.5 4,405.2
Taylor Wimpey plc
Notes to the condensed consolidated interim financial statements (continued)
For the half year ended 29 June 2025
4. Net operating expenses and profit/(loss) on ordinary activities before
financing
(Loss)/profit on ordinary activities before financing has been arrived at
after charging/(crediting):
£ million Half year Half year Year ended 31 December 2024
ended 29 ended 30
June 2025
June 2024
Administration expenses 122.2 116.7 242.0
Other expenses 58.0 46.0 101.4
Other income (57.5) (52.0) (111.1)
Exceptional items 240.2 88.0 82.5
Net operating expenses 362.9 198.7 314.8
The majority of the other income and other expenses shown above relates to the
income and associated costs arising on the sale of part exchange properties.
Also included in other income and other expenses are profit/loss on the sale
of property, plant and equipment, the revaluation of certain shared equity
mortgage receivables and abortive land acquisition costs.
Exceptional items: Half year Half year Year ended 31 December 2024
£ million ended 29 ended 30
June 2025
June 2024
Provision in relation to cladding fire safety 222.2 88.0 68.9
Loss on disposal of joint venture - - 13.6
CMA information sharing investigation 18.0 - -
240.2 88.0 82.5
Share of results of joint ventures - - 15.7
Total exceptional items 240.2 88.0 98.2
Tax credit (63.7) (25.0) (20.2)
Net exceptional items charged to the income statement 176.5 63.0 78.0
Cladding fire safety
In 2018 the Group established an exceptional provision for the cost of
replacing ACM on a small number of legacy developments. The provision was
increased subsequently to reflect guidance issued as well as the Group
signing, in 2022, the Government's Building Safety Pledge for Developers which
extended the period covered to all buildings constructed by the Group since
1992. In the first half of 2025, as part of the Group's ongoing work to meet
the Government's Remediation Action Plan deadlines, the Group has continued to
carry out intrusive investigations and updated FRAEW assessments across its
legacy buildings. These assessments and increased engagement with chartered
fire engineers in the first half has led to a reassessment of the Group's risk
exposure on building remediation, including updated evaluation of buildings
that have not yet undergone intrusive FRAEW assessments. As a result, the
provision for fire safety remediation has increased by £222.2 million in the
first half of the year, recognised as an exceptional item. This increase
reflects:
· £144.9 million for an expanded scope of works to remediate
historical building defects. These building defects, relating to cavity
barriers behind brickwork and render, were not visible in earlier
non-intrusive assessments. The increased provision includes a £94.0 million
cost allowance, which represents the Group's best estimate to remediate cavity
barrier defects in buildings pending FRAEW assessments.
· £39.5 million for additional cladding-related remediation works.
The Group has experienced chartered fire engineers' interpretation of the
PAS9980 standard evolve, becoming more cautious. Some buildings that were
previously considered acceptable and requiring no remediation work under
earlier EWS1 assessments have now been identified as needing remediation
through recent FRAEW assessments.
· £37.8 million for site-specific cost increases, professional
fees, contingencies, and an uplift in Building Safety Fund related buildings,
partially offset by discounting.
In the second half of the prior year, one of the Group's joint ventures
recognised a provision for remediation works on the buildings it built and as
a result £19.1 million was released from the provision held by the Group in
relation to those buildings. The net impact was a £68.9 million exceptional
expense recognised in the year to 2024 in relation to cladding fire safety.
CMA information sharing investigation
In February 2024 the CMA announced it was commencing an investigation into a
number of housebuilders, including the Group, relating to concerns that they
may have exchanged competitively sensitive information. In the period, and as
announced on 9 July 2025, the Group has offered certain commitments to the CMA
in respect of those concerns, the costs for which, including associated legal
and professional fees, have been recognised as an exceptional item.
Taylor Wimpey plc
Notes to the condensed consolidated interim financial statements (continued)
For the half year ended 29 June 2025
4. Net operating expenses and profit/(loss) on ordinary activities
before financing (continued)
Loss on disposal of joint venture
During the second half of the prior year, the Group disposed of its interest
in Winstanley and York Road Regeneration LLP and recognised a £13.6 million
loss arising from the difference between proceeds on disposal and the Group's
net investment in the joint venture. This expense, being non-recurring, and
outside of the normal operations of the Group, was recognised as an
exceptional item.
Share of results of joint ventures
As noted above a joint venture of the Group recognised, in the prior year, a
provision for remediation costs on buildings it built. The Group's share of
that cost, net of tax, was recognised as an exceptional item in line with the
recognition of the Group's cladding fire safety provision.
5. Finance income and finance costs
Half year Half year Year ended 31 December 2024
Finance income: ended 29 ended 30
June 2025
June 2024
£ million
Interest receivable 7.6 17.7 29.7
7.6 17.7 29.7
Finance costs: Half year Half year Year ended 31 December 2024
ended 29 ended 30
June 2025
June 2024
£ million
Interest on bank and other loans (3.9) (4.0) (8.0)
Foreign exchange movements (0.5) (0.1) (0.1)
(4.4) (4.1) (8.1)
Unwinding of discount on land creditors and other items (14.8) (6.9) (16.7)
Interest on lease liabilities (0.8) (0.7) (1.5)
Net interest on pension liability (0.5) (0.6) (1.1)
(20.5) (12.3) (27.4)
6. Taxation
Tax (credited)/charged in the income statement is analysed as follows:
£ million Half year Half year Year ended
31 December 2024
ended 29 ended 30
June 2025
June 2024
Current tax:
UK: Current year 29.2 (26.6) (91.9)
Adjustment in respect of prior years - (2.8) 4.1
Overseas: Current year (8.5) (3.5) (11.2)
Adjustment in respect of prior years (0.1) 0.1 -
20.6 (32.8) (99.0)
Deferred tax:
UK: Current year 9.7 3.5 (3.8)
Adjustment in respect of prior years - 2.8 2.7
Overseas: Current year - (0.2) (0.6)
Adjustment in respect of prior years - - -
9.7 6.1 (1.7)
Taxation credit/(charge) 30.3 (26.7) (100.7)
The effective tax rate for the period is 32.9% (30 June 2024: 26.8%).
Closing deferred tax on temporary differences has been calculated at the tax
rates that are expected to apply for the period when the asset is realised or
liability is settled. Accordingly deferred tax on UK temporary differences has
been calculated at 29% (30 June 2024: 29%). Deferred tax on Spanish temporary
differences has been calculated at 25% (30 June 2024: 25%).
The primary components of the deferred tax asset at 29 June 2025 are in
relation to retirement benefit obligations, UK provisions that are tax
deductible when the expenditure is incurred, and the temporary differences of
our Spanish business.
Taylor Wimpey plc
Notes to the condensed consolidated interim financial statements (continued)
For the half year ended 29 June 2025
7. (Loss)/earnings per share
Half year Half year Year ended
31 December 2024
ended 29 ended 30
June 2025
June 2024
Basic (loss)/earnings per share (1.7)p 2.1p 6.2p
Diluted (loss)/earnings per share (1.7)p 2.1p 6.2p
Adjusted basic earnings per share 3.2p 3.8p 8.4p
Adjusted diluted earnings per share 3.2p 3.8p 8.4p
Weighted average number of shares for basic (loss)/earnings per share - 3,539.0 3,537.8 3,538.5
million
Weighted average number of shares for diluted (loss)/earnings per share - 3,546.9 3,548.1 3,551.9
million
Adjusted basic and adjusted diluted earnings per share, which exclude the
impact of exceptional items and the associated net tax charges, are shown to
provide clarity on the underlying performance of the Group.
A reconciliation from (loss)/profit from operations attributable to equity
shareholders used for basic and diluted (loss)/earnings per share to that used
for adjusted earnings per share is shown below:
£ million Half year Half year Year ended
31 December 2024
ended 29 ended 30
June 2025
June 2024
(Loss)/earnings for basic and diluted (loss)/earnings per share (61.8) 73.0 219.6
Adjust for exceptional items 240.2 88.0 98.2
Adjust for tax on exceptional items (63.7) (25.0) (20.2)
Earnings for adjusted basic and adjusted diluted (loss)/earnings per share 114.7 136.0 297.6
8. Notes to the cash flow statement
Cash and cash equivalents comprise cash at bank and other short term highly
liquid investments with an original maturity of three months or less.
Movement in net cash:
£ million Cash and cash equivalents Bank and Total
other loans
net cash
At 1 January 2025 647.4 (82.6) 564.8
Net cash flow (237.1) - (237.1)
Foreign exchange 1.8 (2.9) (1.1)
At 29 June 2025 412.1 (85.5) 326.6
£ million Cash and cash equivalents Bank and Total
other loans
net cash
At 1 January 2024 764.9 (87.0) 677.9
Net cash flow (94.3) - (94.3)
Foreign exchange (1.9) 2.3 0.4
At 30 June 2024 668.7 (84.7) 584.0
£ million Cash and cash equivalents Bank and Total
other loans
net cash
At 1 January 2024 764.9 (87.0) 677.9
Net cash flow (113.5) - (113.5)
Foreign exchange (4.0) 4.4 0.4
At 31 December 2024 647.4 (82.6) 564.8
The committed borrowing facilities at period end were £685.5 million (31
December 2024: £682.6 million) with a weighted average maturity of 5.0 years
(31 December 2024: 4.6 years). During the period an extension of one year to
2030 was agreed for the revolving credit facility. The Group's financing
facilities contain the usual financial covenants of minimum tangible net
worth, minimum interest cover and maximum gearing. The Group met these
requirements throughout the period and up to the date of the approval of these
condensed consolidated interim financial statements.
Taylor Wimpey plc
Notes to the condensed consolidated interim financial statements (continued)
For the half year ended 29 June 2025
9. Pensions
During 2023, the Group engaged with the Trustee of the Taylor Wimpey Pension
Scheme (TWPS) on the triennial valuation of the Scheme with a reference date
of 31 December 2022. The valuation was concluded in March 2024 and showed that
the TWPS had a surplus of £55 million on its Technical Provisions funding
basis and a funding level of 103%. As a result, no deficit contributions were
required to be paid to the TWPS or to the escrow account established following
the 2019 valuation. The escrow account will remain in place until 30 June
2028, at which point a funding test will be conducted and funds will either be
paid to TWPS or returned to the Group.
The Group continues to provide a contribution for Scheme expenses (£2.0
million per annum) and also makes contributions via the Pension Funding
Partnership (PFP) (£5.1 million per annum until 2029). The PFP also has seven
annual payments due of up to £12.5 million each from 2029 to 2035, these are
only payable if the TWPS has a deficit on its Technical Provisions funding
basis at the prior 31 December.
At 29 June 2025 the IAS19 surplus was £132.1 million (31 December 2024:
£90.2 million). An IFRIC 14 deficit has been recognised at 29 June 2025,
which represents the present value of future committed contributions together
with any forecasted distributions from the PFP. This results in an IFRIC 14
deficit recognised on the balance sheet of £17.3 million (31 December 2024:
£22.0 million). In addition, there is as a post-retirement healthcare
liability of £0.1 million (31 December 2024: £0.2 million).
Amounts in other financial assets are held in an escrow account for the
benefit of the TWPS and the Trustee of the TWPS holds a charge over the escrow
account. Transfers out of the escrow account (either to the TWPS or the Group)
are subject to the 2019 triennial funding arrangement entered into between the
Group and the Trustee and as such the funds are restricted from use by the
Group for other purposes and are therefore not classified as cash or cash
equivalents. At 29 June 2025 there was £11.1 million held in the escrow
account (31 December 2024: £10.8 million) with interest earned by the escrow
account being retained within the escrow account.
10. Financial assets and liabilities
Carrying amount
Fair value
£ million 29 June 30 June 31 December 2024 29 June 30 June 31 December 2024
2025 2024 2025 2024
Financial assets
Cash and cash equivalents a 412.1 668.7 647.4 412.1 668.7 647.4
Land receivables a 3.5 1.4 1.8 3.5 1.4 1.8
Other financial assets a 11.1 10.6 10.8 11.1 10.6 10.8
Trade and other receivables a 143.7 107.8 98.3 143.7 107.8 98.3
Mortgage receivables b 4.6 5.8 5.2 4.6 5.8 5.2
Financial liabilities
Bank and other loans c 85.5 84.7 82.6 88.9 83.1 84.8
Land creditors a 533.4 494.4 627.9 533.4 494.4 627.9
Trade and other payables a 681.1 672.1 648.2 681.1 672.1 648.2
Lease liabilities a 37.5 38.7 38.4 37.5 38.7 38.4
(a) The Directors consider the carrying amounts of financial assets and
financial liabilities recorded at amortised cost in the condensed consolidated
interim financial statements approximate their fair values.
(b) Mortgage receivables relate to sales incentives including shared equity
loans and are measured at fair value through profit or loss. The fair value is
established based on a publicly available national house price index, being
significant other observable inputs (level 2).
(c) The fair value of the €100 million fixed rate loan notes has been
determined by reference to external interest rates and the Directors'
assessment of the margin for credit risk (level 2).
Land receivables, mortgage receivables and trade and other receivables are
included in the balance sheet as trade and other receivables for current and
non-current amounts and include £46.2 million (31 December 2024: £40.0
million) of non-financial assets.
Land creditors and trade and other payables are included in the balance sheet
as trade and other payables for current and non-current amounts and include
£154.4 million (31 December 2024: £158.5 million) of non-financial
liabilities.
The Group has designated a financial liability in the sum of €100.0 million
(31 December 2024: €100.0 million) as a net investment hedge, equating to
£85.5 million (31 December 2024: £82.6 million). The Group had no financial
instruments with fair values that are determined by reference to significant
unobservable inputs (level 3), nor have there been any transfers of assets or
liabilities between levels of the fair value hierarchy. There are no
non-recurring fair value measurements.
Taylor Wimpey plc
Notes to the condensed consolidated interim financial statements (continued)
For the half year ended 29 June 2025
11. Provisions
£ million Cladding fire safety Leasehold Other Total
At 1 January 2025 232.3 13.9 60.5 306.7
Additions in the period 222.2 - 43.3 265.5
Utilised (19.6) (1.8) (1.9) (23.3)
Foreign exchange - - 0.2 0.2
At 29 June 2025 434.9 12.1 102.1 549.1
£ million 29 June 30 June 31 December 2024
2025
2024
Current 225.5 143.9 161.7
Non-current 323.6 209.8 145.0
549.1 353.7 306.7
In 2018 the Company established an exceptional provision for the cost of
replacing ACM on a small number of legacy developments, which has been
increased since then to reflect the latest estimates of costs to complete the
planned works as well as the requirements of the Government's Building Safety
Pledge for Developers (see Note 4). It is expected that around a third of the
remaining provision will be utilised over the next 12 months.
In 2017 the Group launched an assistance scheme to help certain customers
restructure their ground rent agreements with their freeholder and established
an associated provision of £130.0 million to fund this. The provision
remaining will be utilised as leaseholders apply to the scheme and have their
leases varied. As the timing of applications by leaseholders is outside of the
control of the Group the provision is recognised as a current liability.
Other provisions consist of a remedial work provision covering various
obligations on a limited number of sites across the Group. Other provisions
also includes amounts for legal claims and other contract-related costs
associated with various matters arising across the Group, the majority of
which are anticipated to be settled within a three year period; however, there
is some uncertainty regarding the timing of these outflows due to the nature
of the claims and the length of time it can take to reach settlement. The
increase in the other provisions in the period is largely due to the costs
recognised for remediation at one of the Group's London developments where the
original principal contractor was carrying out the works, but has recently
ceased operations on site, and the costs associated with the commitments made
to the CMA, as described in Note 4.
12. Related party transactions
Transactions between the Company and its subsidiaries, which are related
parties, have been eliminated on consolidation and are not disclosed within
the condensed consolidated interim financial statements or related notes.
There have been no material changes in the nature of transactions with joint
ventures, which are also related parties, since the last annual financial
statements as at, and for the year ended, 31 December 2024. A cash transfer
that occurred in the prior period from a joint venture, arose due to that
joint venture having a short term excess of cash beyond that required for its
immediate operational purposes, and it is returnable to the joint venture on
demand. No interest is due on the transfer and at the end of the period
amounted to £24.2 million (31 December 2024: £33.0 million), included in
trade and other payables.
13. Dividends
£ million Half year Half year Year ended
31 December 2024
ended 29 ended 30
June 2025
June 2024
Approved and paid 165.0 169.5 339.4
Approved and accrued - - -
Approved 165.4 169.9 -
Proposed - - 165.0
The Directors have assessed the Company's performance in the current period
and approved an interim dividend of 4.67
pence per share in line with the Group's dividend policy. The dividend will be
paid on 14 November 2025 to all shareholders registered at the close of
business on 10 October 2025. This is expected to result in a payment of
c.£165.4 million.
In accordance with IAS 10 'Events after the Reporting Period' the approved
interim dividend has not been accrued in the
29 June 2025 balance sheet.
Taylor Wimpey plc
Notes to the condensed consolidated interim financial statements (continued)
For the half year ended 29 June 2025
14. Share based payments
The Group recognised a share based payment expense of £5.9 million to 29 June
2025 (30 June 2024: £5.9 million), which was composed of £4.4 million in
relation to equity settled schemes and £1.5 million in relation to cash
settled elements (30 June 2024: £4.4 million and £1.5 million).
15. Seasonality
Weekly sales rates in some of the Group's key markets historically experience
significant seasonal variation, with the highest levels of reservations
usually occurring in the spring and autumn in the UK. As such, economic
weakness which affects these peak selling seasons can have a disproportionate
impact on the results for the year.
This pattern of reservations tends to result in higher levels of home
completions towards the end of the financial year. As a result, the Group's
work in progress and debt profile exhibits peaks and troughs over the course
of the financial year.
16. Alternative performance measures
The Group uses a number of Alternative Performance Measures (APMs) which are
not defined within IFRS. The Directors use these measures in order to assess
the underlying operational performance of the Group and, as such, these
measures should be considered alongside the IFRS measures. The following APMs
are referred to throughout the half year results.
Profit before taxation and exceptional items and profit for the period before
exceptional items
The Directors consider the removal of exceptional items from the reported
results provides more clarity on the performance of the Group. They are
reconciled to profit/(loss) before taxation and profit/(loss) for the period
respectively, on the face of the condensed consolidated income statement.
Operating profit and operating profit margin
Throughout this report operating profit is used as one of the main measures of
performance. Operating profit is defined as (loss)/profit on ordinary
activities before financing, exceptional items and tax, after share of results
of joint ventures. The Directors consider this to be an important measure of
underlying performance of the Group. Operating profit margin is calculated as
operating profit divided by total revenue.
Half year Half year Year ended
ended 29
31 December 2024
June 2025 ended 30
June 2024
(Loss)/profit on ordinary activities before financing (£m) (80.4) 93.5 333.9
Adjusted for:
Share of results of joint ventures (£m) 1.2 0.8 (15.9)
Exceptional items (£m) (Note 4) 240.2 88.0 98.2
Operating profit (£m) 161.0 182.3 416.2
Revenue (£m) (Note 2) 1,654.6 1,517.7 3,401.2
Operating profit margin 9.7% 12.0% 12.2%
Rolling 12-month operating profit* (£m) 394.9 416.9 416.2
* Operating profit for the 6-month period ended 31 December 2023: Profit
before interest and tax: £231.9m; Share of results of joint ventures: £2.7m;
Exceptional items: nil.
Taylor Wimpey plc
Notes to the condensed consolidated interim financial statements (continued)
For the half year ended 29 June 2025
16. Alternative performance measures (continued)
Net operating assets
Net operating assets is defined as basic net assets less net cash, excluding
net taxation balances and accrued dividends. Average net operating assets is
the average of the opening and closing net operating assets of the 12-month
period. With return on net operating assets, the Directors consider this to be
an important measure of the underlying operating efficiency and performance of
the Group.
£million 29 June 30 June 31 December 2024 31 December 2023 2 July
2025 2024 2023
Basic net assets (£m) 4,184.3 4,430.5 4,405.2 4,523.4 4,509.2
Adjusted for:
Cash (£m) (412.1) (668.7) (647.4) (764.9) (740.4)
Borrowings (£m) 85.5 84.7 82.6 87.0 85.5
Net taxation (£m) (91.1) (43.9) (23.4) (21.8) (11.6)
Accrued dividends (£m) - - - - -
Net operating assets (£m) 3,766.6 3,802.6 3,817.0 3,823.7 3,842.7
Average net operating assets (£m) 3,784.6 3,822.7 3,820.4
Return on net operating assets
Return on net operating assets is defined as rolling 12-month operating profit
divided by average net operating assets. The Directors consider this to be an
important measure of the underlying operating efficiency and performance of
the Group.
29 June 2025 30 June 2024 31 December 2024
Rolling 12-month operating profit (£m) 394.9 416.9 416.2
Average net operating assets (£m) 3,784.6 3,822.7 3,820.4
Return on net operating assets 10.4% 10.9% 10.9%
Net operating asset turn
This is defined as total revenue divided by the average of opening and closing
net operating assets, based on a rolling 12-month period. The Directors
consider this to be good indicator of how efficiently the Group is utilising
its assets to generate value for the shareholders.
29 June 2025 30 June 2024 31 December 2024
Rolling 12-month revenue* (£m) (Note 2) 3,538.1 3,395.1 3,401.2
Average net operating assets (£m) 3,784.6 3,822.7 3,820.4
Net operating asset turn 0.93 0.89 0.89
* Revenue for the 6-month period ended 31 December 2023: £1,877.4 million
Tangible net assets per share
This is calculated as net assets before any accrued dividends excluding
intangible assets divided by the number of ordinary shares in issue at the end
of the period. The Directors consider this to be a good measure of the value
intrinsic within each ordinary share.
29 June 2025 30 June 2024 31 December 2024
Basic net assets (£m) 4,184.3 4,430.5 4,405.2
Adjusted for:
Intangible assets (£m) (3.3) (2.0) (1.5)
Tangible net assets (£m) 4,181.0 4,428.5 4,403.7
Ordinary shares in issue (millions) 3,557.0 3,557.0 3,557.0
Tangible net assets per share (pence) 117.5 124.5 123.8
Net cash
Net cash is defined as total cash less total borrowings. This is considered by
the Directors to be the best indicator of the financing position of the Group
and is reconciled in Note 8.
Taylor Wimpey plc
Notes to the condensed consolidated interim financial statements (continued)
For the half year ended 29 June 2025
16. Alternative performance measures (continued)
Cash conversion
This is defined as cash generated by operations divided by operating profit,
based on a rolling 12-month period. The Directors consider this measure to be
a good indication of how efficiently the Group is turning profit into cash.
29 June 2025 30 June 2024 31 December 2024
Rolling 12-month cash generated from operations* (£m) 209.5 376.3 311.7
Rolling 12-month operating profit (£m) 394.9 416.9 416.2
Cash conversion 53.1% 90.3% 74.9%
* Cash generated by operations for the 6-month period ended 31 December 2023:
£273.3m.
Adjusted gearing
This is defined as adjusted net debt divided by basic net assets. The
Directors consider this to be a more representative measure of the Group's
gearing levels. Adjusted net debt is defined as net cash less land creditors.
29 June 2025 30 June 2024 31 December 2024
Cash (£m) 412.1 668.7 647.4
Loans (£m) (85.5) (84.7) (82.6)
Net cash (£m) 326.6 584.0 564.8
Land creditors (£m) (533.4) (494.4) (627.9)
Adjusted net debt (£m) (206.8) 89.6 (63.1)
Basic net assets (£m) 4,184.3 4,430.5 4,405.2
Adjusted gearing 4.9% (2.0)% 1.4%
Adjusted basic earnings per share
This is calculated as earnings attributed to the shareholders, excluding
exceptional items and tax on exceptional items, divided by the weighted
average number of shares. The Directors consider this provides an important
measure of the underlying earnings capacity of the Group. Note 7 shows a
reconciliation from basic (loss)/earnings per share to adjusted basic earnings
per share.
17. Post balance sheet events
There were no material subsequent events affecting the Group between 29 June
2025 and the date of this announcement.
Taylor Wimpey plc
Statement of Directors' responsibility
For the half year ended 29 June 2025
The Directors confirm that these condensed consolidated interim financial
statements have been prepared in accordance with UK adopted International
Accounting Standard 34, 'Interim Financial Reporting' and that the half year
results include a fair review of the information required by DTR 4.2.7 and DTR
4.2.8, namely:
· an indication of important events that have occurred during the
first six months and their impact on the condensed set of financial
statements, and a description of the principal risks and uncertainties for the
remaining six months of the financial year; and
· material related-party transactions in the first six months and
any material changes in the related-party transactions described in the last
annual report.
By order of the Board
Robert Noel, Chair
Jennie Daly, Chief Executive
29 July 2025
Independent review report to Taylor Wimpey plc
Report on the Condensed consolidated interim financial statements
Our conclusion
We have reviewed Taylor Wimpey plc's Condensed consolidated interim financial
statements (the "interim financial statements") in the Half Year Results of
Taylor Wimpey plc for the period from 1 January 2025 to 29 June 2025 (the
"period").
Based on our review, nothing has come to our attention that causes us to
believe that the interim financial statements are not prepared, in all
material respects, in accordance with UK adopted International Accounting
Standard 34, 'Interim Financial Reporting' and the Disclosure Guidance and
Transparency Rules sourcebook of the United Kingdom's Financial Conduct
Authority.
The interim financial statements comprise:
· the Condensed consolidated balance sheet as at 29 June 2025;
· the Condensed consolidated income statement and the Condensed
consolidated statement of comprehensive income for the period then ended;
· the Condensed consolidated cash flow statement for the period
then ended;
· the Condensed consolidated statement of changes in equity for the
period then ended; and
· the explanatory notes to the interim financial statements.
The interim financial statements included in the Half Year Results of Taylor
Wimpey plc have been prepared in accordance with UK adopted International
Accounting Standard 34, 'Interim Financial Reporting' and the Disclosure
Guidance and Transparency Rules sourcebook of the United Kingdom's Financial
Conduct Authority.
Basis for conclusion
We conducted our review in accordance with International Standard on Review
Engagements (UK) 2410, 'Review of Interim Financial Information Performed by
the Independent Auditor of the Entity' issued by the Financial Reporting
Council for use in the United Kingdom ("ISRE (UK) 2410"). A review of interim
financial information consists of making enquiries, primarily of persons
responsible for financial and accounting matters, and applying analytical and
other review procedures.
A review is substantially less in scope than an audit conducted in accordance
with International Standards on Auditing (UK) and, consequently, does not
enable us to obtain assurance that we would become aware of all significant
matters that might be identified in an audit. Accordingly, we do not express
an audit opinion.
We have read the other information contained in the Half Year Results and
considered whether it contains any apparent misstatements or material
inconsistencies with the information in the interim financial statements.
Conclusions relating to going concern
Based on our review procedures, which are less extensive than those performed
in an audit as described in the Basis for conclusion section of this report,
nothing has come to our attention to suggest that the Directors have
inappropriately adopted the going concern basis of accounting or that the
Directors have identified material uncertainties relating to going concern
that are not appropriately disclosed. This conclusion is based on the review
procedures performed in accordance with ISRE (UK) 2410. However, future events
or conditions may cause the Group to cease to continue as a going concern.
Independent review report to Taylor Wimpey plc
Report on the Condensed consolidated interim financial statements (continued)
Responsibilities for the interim financial statements and the review
Our responsibilities and those of the Directors
The Half Year Results, including the interim financial statements, is the
responsibility of, and has been approved by the Directors. The Directors are
responsible for preparing the Half Year Results in accordance with the
Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's
Financial Conduct Authority. In preparing the Half Year Results, including the
interim financial statements, the Directors are responsible for assessing the
Group's ability to continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going concern basis of
accounting unless the Directors either intend to liquidate the Group or to
cease operations, or have no realistic alternative but to do so.
Our responsibility is to express a conclusion on the interim financial
statements in the Half Year Results based on our review. Our conclusion,
including our Conclusions relating to going concern, is based on procedures
that are less extensive than audit procedures, as described in the Basis for
conclusion paragraph of this report. This report, including the conclusion,
has been prepared for and only for the Company for the purpose of complying
with the Disclosure Guidance and Transparency Rules sourcebook of the United
Kingdom's Financial Conduct Authority and for no other purpose. We do not, in
giving this conclusion, accept or assume responsibility for any other purpose
or to any other person to whom this report is shown or into whose hands it may
come save where expressly agreed by our prior consent in writing.
PricewaterhouseCoopers LLP
Chartered Accountants
London
29 July 2025
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