REG - Taylor Wimpey PLC - Trading Statement

Taylor WimpeyAnnouncement

16/01/2025 07:00

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RNS Number : 5057T  Taylor Wimpey PLC  16 January 2025

 

 

16 January 2025

Taylor Wimpey plc

Trading statement for the year ended 31 December 2024

Taylor Wimpey is issuing the following update on trading ahead of its full
year results for the year ended 31 December 2024, which will be announced on
27 February 2025.

 

 

Delivering in line with guidance

 

Jennie Daly, CEO, commented:

"We have delivered a good performance during 2024 with full year UK
completions towards the upper end of our guidance range, as previously
indicated, and operating profit expected to be in line with our previous
guidance(1). These results have been achieved while maintaining our
high-quality build and customer service standards - with our customer service
scores the highest they have ever been - testament to the hard work and
commitment of our teams on the ground.

Taylor Wimpey is a strong and agile business with a clear strategy focused on
operational excellence. While market conditions are uncertain, and we continue
to monitor the impact of mortgage costs on affordability, we enter 2025 with a
strong order book and land position, underpinned by a robust balance sheet and
highly experienced teams, which positions us well to deliver volume growth in
2025.

We remain confident in the attractive medium and long term fundamentals of the
sector and are well placed to play our part in addressing the significant
undersupply of UK housing."

 

2024 performance

Total Group completions including joint ventures were 10,593 (2023: 10,848).
UK home completions excluding joint ventures were 9,972 (2023: 10,356). We
provided 2,178 affordable homes excluding joint ventures(2) (2023: 2,351)
equating to 22% of total UK completions

(2023: 23%). Our UK net private reservation rate for 2024 was 0.75 homes per
outlet per week (2023: 0.62). Excluding the impact of bulk deals, the net
private sales rate was 0.67 (2023: 0.54). The cancellation rate for the full
year was 15% (2023: 18%).

UK average selling price on private completions was £356k (2023: £370k) with
the overall average selling price £319k (2023: £324k). We ended the year
with a strong order book valued at £1,995 million (31 December 2023: £1,772
million), excluding joint ventures, which represents 7,312 homes (31 December
2023: 6,999 homes), of which 3,208 are private (2023: 2,565) and 4,104 are
affordable (2023: 4,434). In the second half of the year, we experienced
weaker pricing in the South of England where affordability has been most
stretched, compared to the North where we have captured some price growth. As
a result, underlying pricing in the order book is around 0.5% lower year on
year.

In the UK, we traded from an average of 216 outlets in 2024 (2023: 238) and
ended the year with a total of 213 outlets (31 December 2023: 237), slightly
ahead of expectations due to a small number of delayed outlet closings.

We expect to deliver a c.19% gross margin for 2024, which includes a c.50
basis point benefit from previously reported land sales. We continue to expect
full year Group operating profit* to be in line with previous guidance(1).

Land and planning

As at 31 December 2024, our short term landbank stood at c.79k plots (2023:
c.80k). Our strategic land pipeline was c.136k potential plots (2023: c.142k
potential plots).

We approved c.12k plots (2023: c.3k) in 2024 which, as previously reported,
partly reflects increased opportunities in the land market in the run up to
the Budget.

A well-functioning planning system is key to achieving the Government's aims
for growth in housebuilding. In December 2024, the Government revised the
National Planning Policy Framework (NPPF) which we see as a positive step for
the industry.

We have a high-quality, well-located landbank and our experienced teams
continue to work hard to progress this land through planning. Whilst changes
to the planning system are encouraging, we expect these to take time to impact
land supply.

Spain current trading

Our Spanish business performed well, completing 504 homes in the year (2023:
410) at an average selling price of €440k (2023: €400k). The total order
book as at 31 December 2024 stood at 491 homes (31 December 2023: 490 homes).

Group cash position

We ended the year with a net cash(‡) position of £565 million (31 December
2023: £678 million net cash), ahead of our guidance as a result of the timing
of land purchases.

Outlook

We begin the year with an increased order book compared to the start of 2024,
thanks to stronger sales in the latter half of last year. We have seen an
encouraging level of enquiries at the start of the year, however it is too
early to gauge customer behaviour for 2025. Given our order book and current
land position, we remain well placed to grow volumes in 2025, dependent on the
evolution of mortgage rates and their impact on affordability.

Whilst price negotiations for 2025 are ongoing, we anticipate increased build
cost pressure as a result of the changed economic backdrop, including as
suppliers seek to factor in the impacts of the recent UK Budget.

Looking forward, we maintain a strong balance sheet, have highly experienced
teams and are well positioned to optimise our strong landbank and strategic
pipeline for growth. We remain confident in the attractive medium and long
term fundamentals of the sector and are well placed to play our part in
addressing the significant undersupply of UK housing.

(1) Previous guidance reflected Company compiled consensus published on 5
November 2024 with full year 2024 Group operating profit including joint
ventures and excluding exceptional items of £416 million.

(2) Full year 2024 affordable home completions including joint ventures were
2,199 (2023: 2,388).

* 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.

 

 

-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 16
January 2025. The call will be recorded and streamed live to our website:
www.taylorwimpey.co.uk/corporate/investors/results-and-reports
(http://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

 

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

Follow our company page on LinkedIn, Taylor Wimpey plc

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