REG - Taylor Wimpey PLC - Trading Statement

Taylor WimpeyAnnouncement

07/11/2024 07:00

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RNS Number : 2655L  Taylor Wimpey PLC  07 November 2024

 

7 November 2024

Taylor Wimpey plc

Trading statement

 

Good performance, trading in line with expectations

Jennie Daly, CEO, commented:

"We're pleased with the progress and performance of our business in the second
half to date. Our teams have continued to work extremely hard on the ground,
supporting customers through their buying journey and delivering an improved
sales rate - thanks to the quality of our sites and locations, and our focus
on operational excellence.

Delivering high-quality homes is essential to achieving sustainable economic
growth and a thriving society and we welcome the steps the Government is
taking to unlock the planning system and deliver more homes.

Looking ahead, we continue to expect to deliver full year 2024 UK volumes
towards the upper end of our guidance range of 9,500 to 10,000 homes.
Underpinned by a strong balance sheet, well-located landbank and highly
experienced teams, we are well positioned for growth from 2025, assuming
supportive market conditions."

UK trading

In the second half to date, we saw steady signs of improvement in customer
demand as mortgage rates reduced and affordability improved. Whilst there was
some uncertainty ahead of the Budget, we remain on track to deliver UK volumes
in line with previous guidance and Group operating profit* in line with
current market expectations(1).

In the second half to date, our net private sales rate per outlet per week was
0.70 (2023: 0.51) with a cancellation rate of 17% (2023: 21%). Excluding the
impact of bulk deals, we have achieved a net private sales rate of 0.68 (2023:
0.48).

For the year to date, we have achieved a net private sales rate of 0.73 (2023:
0.63), with a cancellation rate of 15% (2023: 18%). Excluding the impact of
bulk deals, our net private sales rate was 0.68 (2023: 0.57).

As at 4 November 2024, our current total order book excluding joint ventures
stood at c.£2.2 billion (2023: c.£1.9 billion), representing 7,716 homes
(2023: 7,042).

In the second half to date, we operated from an average of 209 sales outlets
(2023: 231). At the year end, taking into consideration prevailing sales rates
and planned outlet openings, we expect to be operating from just over 200
outlets.

 

Driving operational performance

Our performance in the period reflects our high-quality locations and
excellent teams. We have continued to support our customers through the
homebuying process and, consistent with our strategy, are focused on
delivering value across the business. Whilst it is still early in their
tenure, we look forward to working constructively with the Government to
deliver much needed new homes across the UK.

During the year we have been active and opportunistic in reviewing land
opportunities and in the weeks leading up to the recent Budget we saw a number
of attractive opportunities. As a result, our year to date approvals are c.11k
plots (2023: c.3k plots). We now expect to end the year with net cash** of
c.£500 million, subject to the timing of land purchases in the remainder of
the year.

As at the end of October 2024, our short term landbank stood at c.79k plots
(30 June 2024: c.79k plots) and our strategic land pipeline stood at c.136k
potential plots (30 June 2024: c.140k potential plots). In the year to date,
we have converted c.4k plots from our strategic pipeline (2023: c.6k plots).

Outlook

We continue to expect to deliver full year 2024 UK volumes excluding JVs
towards the upper end of our guidance range of 9,500 to 10,000 homes, and to
deliver Group operating profit in line with current market expectations(1).

As we move towards the year end, our focus is on building our order book to
optimise value and position us for 2025. Looking ahead, we welcome the
Government's focus on addressing the UK's housing supply and unlocking the
planning system which we expect to have positive implications for the supply
of land over the medium term. We have excellent visibility of our land
pipeline to deliver growth from 2025, assuming a supportive market. As
previously reported, we own and control all land for 2025 completions, almost
all of it with detailed planning. We continue to leverage our strategic land
position with proactive applications in the system and additional applications
prepared if we see the proposed National Planning Policy Framework changes
adopted in the coming months.

We remain confident in the fundamentals of the market with strong underlying
demand for the homes we sell. We have positioned our business to operate
through the cycle, leaving us well placed to create value for all our
stakeholders.

(1) As published on 5 November 2024, the Company compiled consensus
expectation for full year 2024 Group operating profit including joint ventures
and excluding exceptional items is £416 million.

* 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:

2023 relates to 2023 equivalent trading period, unless stated otherwise.

 

-Ends-

CEO Jennie Daly and Group Finance Director Chris Carney will be hosting a
conference call with Q&A for analysts and investors at 9.00am on 7
November 2024. 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 our company page on LinkedIn, Taylor Wimpey plc

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