REG - Taylor Wimpey PLC - Trading Statement

Taylor WimpeyAnnouncement

09/11/2023 07:15

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20231109:nRSI8659Sa&default-theme=true

RNS Number : 8659S  Taylor Wimpey PLC  09 November 2023

 

9 November 2023

Taylor Wimpey plc

Trading statement

 

Resilient performance, expect to deliver full year profit at top end of
guidance

Jennie Daly, CEO, commented:

"Taylor Wimpey has delivered a resilient performance in what continues to be a
challenging market backdrop, reporting a robust sales rate and strong
financial position, and reiterating our full year 2023 UK volume guidance in
the range of 10,000 to 10,500 homes. Due to our focus on optimising price and
sharp cost discipline, we now expect Group operating profit* to be at the top
end of our guidance range of £440 million to £470 million. This performance
is testament to the hard work of our experienced teams, who have continued to
adapt and support customers through their buying journey while being focused
on delivering efficiencies across the business.

Taylor Wimpey is a strong, sustainable and agile business underpinned by a
robust balance sheet and an excellent well-located landbank. These attributes
ensure we are well positioned to manage the business and optimise performance
in all market conditions, delivering quality homes to our customers and long
term growth and value to our stakeholders.

Looking ahead, while the market backdrop remains uncertain, we are confident
in the medium to long term sector fundamentals, with a meaningful supply and
demand imbalance in UK housing."

 

UK trading

The market continues to be impacted by weak consumer confidence influenced by
high mortgage rates and cost of living pressures which are negatively
affecting affordability for our customers. However, we have attractive and
resilient locations which, combined with our enhanced customer and marketing
tools, has enabled us to deliver a good performance against a challenging
backdrop.

In the second half to date, our net private sales rate per outlet per week was
0.51 (2022: 0.51) with a cancellation rate of 21% (2022: 24%). Excluding the
impact of bulk deals, we achieved a net private sales rate of 0.48 for the
second half to date (2022: 0.50).

For the year to date, we achieved a net private sales rate of 0.63 (2022:
0.74), with a cancellation rate of 18% (2022: 18%). Excluding the impact of
bulk deals, we achieved a net private sales rate of 0.57 for the year to date
(2022: 0.72).

As at 5 November 2023, our current total order book excluding joint ventures
stood at c.£1.9 billion (2022: c.£2.6 billion) representing 7,042 homes
(2022: 9,153).

In the year to date, we have operated on an average of 239 sales outlets
(2022: 229), and we are currently operating from 227 outlets (2022: 234).

As expected, we have continued to see build cost inflation moderate as the
year has progressed.

Optimising performance in a challenging market

Over the last year we have acted decisively and proactively to mitigate risk
through the levers available to us. In light of reduced market demand, we have
closely controlled costs and our investment in work in progress, with our
teams focused on delivering efficiencies across the business.

We continue to be highly selective in our land buying and year to date
approvals are c.3k plots.

As at the end of October 2023, our short term landbank stood at c.82k plots (2
July 2023: c.83k) and our strategic land pipeline stood at c.140k potential
plots (2 July 2023: c.140k). In the year to date we have converted c.6k plots
from our strategic pipeline, a significant number of which were already owned,
further limiting land spend.

We have a strong balance sheet and are highly cash generative. We continue to
expect to end the year with net cash** between £500 million to £650 million
after returning c.£338 million in dividend payments during 2023.

Outlook

We continue to expect to deliver full year 2023 UK volumes in the range of
10,000 to 10,500 homes, and due to our focus on optimising price and sharp
cost discipline, we now expect Group operating profit to be at the top end of
our guidance range of £440 million to £470 million.

Looking ahead, there remains significant market uncertainty and our focus is
on ensuring we remain agile and well positioned to optimise performance in all
market conditions, delivering quality homes to our customers and long term
growth and value to our stakeholders.

Taylor Wimpey is financially strong with a high-quality, well-located landbank
and a highly experienced management team with a focus on protecting value
while driving further operational efficiency. We remain confident in the
medium to long term sector fundamentals with a continued meaningful supply and
demand imbalance in UK housing.

* Operating profit is defined as profit on ordinary activities before
financing, exceptional items and tax, after share of results of joint
ventures.

** Net cash is defined as total cash less total borrowings.

 

Note:

2022 relates to 2022 equivalent trading period, unless stated.

 

-Ends-

CEO Jennie Daly and Group Finance Director Chris Carney will be hosting a
conference call with Q&A for analysts and investors at 8.00am on 9
November 2023. The call will be recorded and streamed live to our website:
https://www.taylorwimpey.co.uk/corporate/investors/results-and-reports
(https://www.taylorwimpey.co.uk/corporate/investors/results-and-reports)

For further information please contact:

Taylor Wimpey plc
 
Tel: +44 (0) 1494 885656

Jennie Daly, CEO

Chris Carney, Group Finance Director

Debbie Archibald, Investor Relations

Andrew McGeary, Investor Relations

 

FGS Global
 
TaylorWimpey@fgsglobal.com

Faeth Birch

Anjali Unnikrishnan

James Gray

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/corporate

Follow us on Twitter @TaylorWimpeyplc

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTFFFIVLFLTIIV