REG - Taylor Wimpey PLC - TAYLOR WIMPEY PLC FULL YEAR RESULTS
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RNS Number : 4006V Taylor Wimpey PLC 05 March 2026
5 March 2026
Taylor Wimpey plc
Full year results for the year ended 31 December 2025
Robust 2025 performance; progressing well against outlet-led growth strategy
Jennie Daly, Chief Executive, commented:
"We delivered a robust performance in 2025, with completions up 6% and results
in line with guidance - testament to the hard work and commitment of our teams
in delivering the Group's strategy against a challenging market backdrop.
The Spring selling season is progressing well, with encouraging levels of
customer interest reflecting the quality of our sites and locations. We are
also driving growth in outlets through improved planning outcomes and the
consistent and proactive approach of our teams, which will support our growth
ambitions.
Taylor Wimpey is a strong and agile business with highly experienced teams,
and we are well positioned to generate value from our high-quality, well
located landbank. Against a backdrop of continuing market uncertainty and more
recent geopolitical events, we remain focussed on delivering our strategy set
out at our recent Investor and Analyst event in October. This is progressing
well and the actions we are taking give us confidence in our ability to
deliver profitable growth and maximise shareholder returns over the medium
term."
Group financial highlights:
2025 2024 Change
Revenue £m 3,844.6 3,401.2 13.0%
Adjusted operating profit* £m 420.6 416.2 1.1%
Adjusted operating profit margin(*†) % 10.9% 12.2% (1.3)ppt
Profit before tax and exceptional items £m 394.2 418.5 (5.8)%
Profit before tax £m 146.5 320.3 (54.3)%
Profit for the year £m 100.4 219.6 (54.3)%
Basic earnings per share pence 2.8 6.2 (54.8)%
Adjusted basic earnings per share(††) pence 8.0 8.4 (4.8)%
Ordinary dividend per share pence 7.62 9.46 (19.5)%
Tangible net assets value per share(†) pence 117.6 123.8 (5.0)%
Net cash(‡) £m 342.6 564.8 (39.3)%
Return on net operating assets*** 11.0% 10.9% 0.1ppt
N.B. Definitions can be found at the end of the Group financial review
Exceptional costs in the year, before tax and interest, totalled
£243.8 million: net cladding fire safety provision increase in the year
(£225.8 million), and costs related to the voluntary agreement with the
CMA (£18.0 million).
Operational highlights:
· Group completions (including JVs) of 11,229 (2024: 10,593)
· UK home completions excluding joint ventures of 10,614 (2024: 9,972)
including 2,220 affordable homes (2024: 2,178)
· UK net private sales rate of 0.75 homes per outlet per week (2024:
0.75). Excluding bulk deals, the net private sales rate was 0.65 (2024: 0.67)
· UK average selling price on private completions of £374k (2024:
£356k) with overall average selling price of £335k (2024: £319k)
· 71 UK outlets opened in the year (2024: 55), up 29%. Operated from an
average of 208 outlets (2024: 216), ending the year with a total of 219
outlets (31 December 2024: 213)
· Updated Distribution Policy: overall distribution maintained at 7.5%
of net assets per annum or at least £250 million, with 5.0% of net assets
returned via ordinary dividend and 2.5% of net assets returned either by way
of ordinary dividend or a share buyback
· Today, we announce a 2025 final dividend of 2.95 pence per share
(totalling c.£105 million) subject to shareholder approval and share buyback
of £52 million intended to be completed by the end of June 2026
Responsible and sustainable business:
· The cladding fire safety provision is broadly unchanged from the half
year, with the full year increase of £225.8 million (of which £222.2 million
was in the first half) mainly driven by cavity barrier remediation behind
brickwork and render
· Rated five-star for customer service in the Home Builders Federation
(HBF) survey with a customer service score of 4.24 under the new scoring
system (current benchmark for five-star is 4.15)
· Continue to lead the volume sector in quality with a Construction
Quality Review (CQR) score of 4.96 (2024: 4.93)
Current trading and outlook
The Spring selling season has started well, with encouraging levels of
customer interest, reflecting our excellent locations, and focus on targeted
marketing and high-quality lead generation. There continues to be good
mortgage availability at competitive rates as lenders remain committed to the
UK mortgage market. However, while affordability is improving, it remains
difficult for first time buyers to access the market, particularly in the
South of England.
We entered 2026 with a slightly lower order book compared to the previous year
following a period of uncertainty for house buyers ahead of the Autumn Budget
in the second half of 2025. As at 1 March 2026, our total order book excluding
joint ventures was £2,182 million (2025 equivalent period: £2,283 million),
comprising 7,678 homes (2025 equivalent period: 8,097 homes).
The year to date net private sales rate (w/e 1 March 2026) is 0.74 per outlet
per week, (2025 equivalent period: 0.76). Excluding bulk deals the sales rate
for the period is 0.73 (2025: 0.76). The cancellation rate is 14% (2025
equivalent period: 16%).
We set out our strategy for medium term growth with our Investor and Analyst
Update in October, focused on delivering growth from our excellent landbank
without the need for net land investment, cycling capital into smaller sites
and freeing up working capital from larger sites to accelerate outlet-led
growth. We are making good progress on outlet openings and are on site on all
the outlets required to deliver our 2026 UK completions which we expect to be
in the range of 10,600 to 11,000 excluding JVs. Reflecting the softer market
conditions in the final quarter of 2025, we expect 2026 performance to be more
second half weighted with around 40% of completions in the first half. As
previously guided, Group adjusted operating profit margin for 2026 is
expected to be lower than 2025, reflecting softer pricing in the order book
coming into the year together with continued low single digit build cost
inflation. Therefore, we expect 2026 adjusted operating profit to be around
£400 million(1).
As we look to our medium term targets, we continue to drive the pipeline of
new planning applications, benefiting from our quality strategic pipeline and
the improving planning system. We are on track to open more outlets in 2026
than in 2025 and continue to expect average outlets to increase year on year
in 2026 and into the medium term. Newer land will help drive margin progress
from 2027 onwards and we will continue to unlock value through operational
excellence, protecting and maximising returns.
(1) All 2026 guidance provided in this document is collated in a table
following the 'Commitment to sustainability' section
-Ends-
A presentation to analysts will be hosted by Chief Executive Jennie Daly and
Group Finance Director Chris Carney, at 9am on Thursday 5 March 2026. This
presentation will be webcast live on our website:
www.taylorwimpey.co.uk/corporate (http://www.taylorwimpey.co.uk/corporate)
An on-demand version of the webcast will be available on our website in the
afternoon of 5 March 2026.
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.
Our purpose is to build great homes and create thriving communities.
For further information please visit the Group's website:
www.taylorwimpey.co.uk/corporate (https://www.taylorwimpey.co.uk/corporate)
Follow our company page on LinkedIn, Taylor Wimpey plc
2025 overview
Total Group completions including joint ventures were 11,229 (2024: 10,593).
UK home completions excluding joint ventures were in the middle of our
guidance range at 10,614 (2024: 9,972). We delivered 2,220 affordable homes
excluding joint ventures (2024: 2,178), equating to 21% of total UK
completions (2024: 22%). Our UK net private reservation rate for 2025 was 0.75
homes per outlet per week (2024: 0.75). Excluding the impact of bulk deals,
the net private sales rate was 0.65 (2024: 0.67). The full year cancellation
rate was 15% (2024: 15%).
Revenue for the year increased to £3,844.6 million (2024: £3,401.2 million),
driven by higher volumes, average selling prices and land sales. Adjusted
operating profit was £420.6 million (2024: £416.2 million), with an adjusted
operating profit margin of 10.9% (2024: 12.2%). Net finance expense before
exceptional items was £26.4 million (2024: £2.3 million net finance income),
total net finance expense was £30.3 million (2024: £2.3 million net finance
income).
Exceptional costs in the year, before tax and interest, totalled £243.8
million consisting of the net cladding fire safety provision increase of
£225.8 million and costs related to the voluntary agreement with the
Competition and Markets Authority (CMA) of £18.0 million.
Profit for the year was £100.4 million (2024: £219.6 million) and we ended
the year with a net cash position of £342.6 million (31 December 2024:
£564.8 million).
Distribution Policy
We recognise the importance of cash returns to shareholders and have
demonstrated our commitment to making significant distributions, returning
over £2.8 billion since the introduction of our Dividend Policy in 2018.
Today we are announcing an updated 'Distribution Policy' whilst maintaining
our returns at 7.5% of net assets per annum, or at least £250 million, in two
equal instalments. It is the Board's intention to return a minimum of 5.0% of
net assets as an annual ordinary dividend, with a further 2.5% of net assets
returned annually either by way of ordinary cash dividend or a share buyback
as considered appropriate by the Board. The Board believes that the greater
flexibility provided by this approach is in the best interests of all
shareholders.
In line with this updated Distribution Policy, and subject to shareholder
approval, the Board today announces a 2025 final dividend of 2.95 pence per
share (totalling c.£105 million). We are today also announcing a share
buyback of £52 million to be commenced shortly and intended to be completed
by the end of June 2026. This results in a total 2025 distribution, including
the interim dividend of £165 million, of c.£322 million.
Going forward, in line with our established capital allocation framework, we
remain committed to returning excess cash to shareholders as the cycle
evolves. The method of return of any excess cash (share buyback or special
dividend) will be considered at the appropriate time.
Strategy and medium term targets
In October 2025, we updated the market on our medium term (3-5 years) targets
to drive growth and returns:
- UK completions (excl. JVs): 14,000
- UK landbank years: 4.5-5
- Group adjusted operating profit margin: 16-18%
- Group return on net operating assets: >20%
Our strategy remains centred on four strategic cornerstones: land, operational
excellence, sustainability and capital allocation.
We enter the next stage of the housing cycle with ongoing customer
affordability constraints, but with positive planning reform to drive greater
supply of much needed new homes. Against this backdrop, building on the
proactive approach to planning we have taken, we will drive growth from higher
outlet numbers, without the need for net land investment. We have a clear
strategy to unlock the value of our strong, existing landbank of c.77k plots
and strategic pipeline of over c.133k potential plots and reinvest in smaller
sites.
We are highly focused on optimising our capital efficiency helping us to
deliver materially improved returns on net operating assets. Reducing our
landbank years, improving our work in progress (WIP) efficiency and delivering
higher volumes will significantly improve asset turn. For example, we will
recycle WIP investment in nine greater London apartment schemes and other
infrastructure heavy sites over the medium term to drive improved efficiency
from smaller sites that require lower WIP per outlet.
Over the medium term, adjusted operating profit margins will benefit from
operating leverage as volumes grow and from the evolution of the landbank as
we cycle into newly purchased land with improved embedded margin.
Performance and operational review
Our performance and operational review focuses on the UK (unless stated
otherwise) as the majority of metrics are not comparable in our Spanish
business. There is a short summary of the Spanish business in the Group
financial review. The financial review is presented at Group level, which
includes Spain, unless otherwise indicated. Joint ventures are excluded from
the operational review and are separated out in the Group financial review,
unless stated otherwise.
2025 was another challenging year for the sector. The first quarter of the
year was strong reflecting interest rate reductions and wage growth. However,
uncertainty ahead of the late Autumn Budget impacted sales through the second
half of 2025 and our order book coming into 2026. While overall affordability
is slowly improving, demand continues to be muted, particularly in the South
and among the important first time buyer category, which is constraining
overall sector output.
Against that backdrop, UK home completions excluding joint ventures were in
the middle of our guidance range at 10,614 (2024: 9,972).
UK average selling price on private completions was £374k (2024: £356k), and
the overall average selling price was £335k (2024: £319k). We ended the year
with an order book valued at £1,864 million (31 December 2024: £1,995
million), excluding joint ventures, which represents 6,832 homes (31 December
2024: 7,312 homes), of which 2,902 are private (2024: 3,208) and 3,930 are
affordable (2024: 4,104).
Incentives remained an important element in driving customer commitment
throughout 2025. We continued to experience 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, overall underlying
pricing remained resilient. Pricing on bulk deals entered into in the second
half of the year was softer, reflecting decisive action taken on certain
London schemes, resulting in pricing in the year end order book being around
0.5% lower year on year.
In 2025, we made good progress recycling capital into smaller sites, reducing
the scale of the landbank, increasing outlet numbers and improving the
distribution of our investments across the country. We reduced WIP investment
in nine greater London apartment schemes from £270 million to £200 million
in the period and are on track to release the remainder of this investment
over the medium term in addition to a further £100 million of investment
released from other infrastructure heavy sites.
Our regional businesses continue to work hard to drive value improvement and
embed the efficiency savings we have made over the past few years. Low single
digit build cost inflation continued to negatively impact in 2025, but our
supply chain self-help initiatives and increased usage of our new house type
range are driving efficiencies, resulting in the net build cost inflation of
c.1% in the year (2024: c.1.5%).
Land and planning
In October 2025, we outlined our approach to land investment with our target
to reduce landbank years to between 4.5 and 5 years. Our medium term plan will
allow us to target increased volumes with a slightly smaller landbank of
between 63k and 70k plots which will increase asset efficiency.
As at 31 December 2025, our short term landbank stood at c.77k plots (31
December 2024: c.79k plots). Our strategic land pipeline was c.133k potential
plots (31 December 2024: c.136k potential plots).
The average cost of land as a proportion of average selling price within the
short term owned landbank remains low at 12.7% (2024: 12.9%).
The average selling price in the short term owned landbank in 2025 increased
by 0.9% to £347k (2024: £344k).
As at 31 December 2025, we were building on, or due to start in the first
quarter of 2026, on 98.7% of sites with implementable planning (2024: 98.4%).
In 2025, we opened 71 outlets in the year (2024: 55) and traded from an
average of 208 outlets (2024: 216), ending the year with a total of 219
outlets (31 December 2024: 213). We continue to expect growth in average
outlets year on year, including in 2026 and beyond.
Early action delivering improved planning outcomes
Our early action has resulted in an increase in the pace of planning
successes. We have seen improved sentiment towards our planning applications
and have driven a significant increase in applications and enjoyed a strong
final quarter with a marked increase in planning successes.
In terms of our overall applications, sentiment has visibly improved with
positive planning progress or planning achieved on 71% of applications in 2025
compared to 58% in the prior year.
As outlined in our October 2025 Investor and Analyst Update, alongside our
plan to drive outlet-led volume growth and increase our margins, we are
executing several actions to improve capital efficiency. We have pursued a
proactive planning strategy since 2023, well ahead of any changes to planning
with increased engagement with planning authorities and the submission of a
greater number of targeted, high-quality planning applications. We currently
have c.32k plots (2024: c.27k plots) in the planning system for first
principle determination.
Since 2023, our focus has evolved to smaller sites where we see the most
opportunity and is aligned with the emerging planning backdrop, which requires
Local Authorities to establish a five-year housing land supply. We are also
rebalancing our landbank slightly with a greater number of approvals in the
North where affordability is stronger.
This enables us to open outlets more quickly, using less capital for a shorter
time period, compared to larger sites. In 2025 we approved c.8k plots, at an
average site size of 211 plots, compared to c.12k plots at an average site
size of 224 plots in 2024.
Strategic land
Our success in developing our strategic pipeline is a key strength and remains
an important component of our strategy. In total, 59% of our short term
landbank has originated from this source (2024: 56%). In the year, 39% of our
completions were sourced from the strategic pipeline (2024: 40%). During 2025,
we converted a further c.5k plots from the strategic pipeline to the short
term landbank (2024: c.6k plots).
Customers
We have continued to invest in our customer offering. As previously reported,
the means by which the industry's customer service ratings are calculated has
changed and now involves four questions relating to quality and service from
the 8-week survey and four questions on quality and service from the 9-month
survey. The current basis for a five-star rating is 4.15. We are pleased to
have comfortably exceeded this and are delivering a five-star performance with
our score of 4.24.
Build quality
We continue to see improvements in our build quality as measured by the NHBC
CQR score, which measures build quality at key build stages. In 2025, we
scored an average of 4.96 (2024: 4.93) from a possible score of six. This
compares with an industry benchmark group average score of 4.75.
We aim to maintain high standards by ensuring our quality assurance processes
are embedded at every stage of the build. We clearly communicate our quality
standards to subcontractors and invest in training, process improvements and
regular inspections throughout the build process to ensure consistently high
standards and to prevent quality issues from occurring.
Placemaking
We aim to put people at the heart of our developments, with a placemaking
approach that creates sustainable, connected neighbourhoods that provide great
places to live for our customers and integrate well into surrounding
communities.
Our Placemaking Charter is a new framework to further embed strong placemaking
standards across our business based around five key principles: Connected
communities; Places where life happens; Attractive and welcoming places; Safe
places; and Places designed with nature. During 2025, we focused on training
and upskilling for our teams to enable them to implement our Charter and
conduct initial design assessments effectively.
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.
During 2025, 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 of the year led to a reassessment of our risk
exposure on building remediation, including updated evaluation of buildings
that have not yet undergone intrusive FRAEW assessments. As previously
announced, in the first half we increased our provision for cladding fire
safety remediation by £222.2 million to reflect findings from updated fire
risk assessments and investigations. Approximately two thirds of the increase
was to remediate historical building defects, relating to cavity barriers
behind brickwork and render, which were not visible in earlier non-intrusive
assessments.
In the second half of the year, we have continued to make good progress with
assessments, tenders and works. Since June 2025, the provision has increased
by £3.6 million as a result of inflation, legal fees and other minor
differences taking the total increase for 2025 to £225.8 million. In
addition, in the period there was £3.9 million of unwind of the provision
discounting.
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.
Employees
Health and safety
Health and safety remains our number one priority and is covered in every
Board, Group Management Team (GMT) and regional management team meeting across
the business.
Our Annual Injury Incidence Rate(†***) (AIIR) for reportable injuries per
100,000 employees and contractors was 200 in 2025 (2024: 212). While we are
pleased with this small reduction, we continue to focus on efforts to reduce
the number of injuries.
Our AIIR for major injuries per 100,000 employees and contractors was 50 in
2025 (2024: 59).
Culture and people
We have a strong culture at Taylor Wimpey of which we and our employees are
proud. This is demonstrated in our latest employee survey with an overall
employee engagement score of 92% (2024: 93%), with a 72% response rate (2024:
73%).
We seek feedback from, and engagement with, all employees. We have a
comprehensive programme of employee communication including regular updates
and forums with the Chief Executive and a wide variety of senior management
and supported by a National Employee Forum, Young Person's Forum and Local
Employee Forums in our regional businesses. Employees are encouraged to
provide feedback to, and ask questions of, members of the Board and other
senior management directly.
During 2025, our voluntary employee turnover rate reduced to 11.9% (2024:
12.1%).
Taylor Wimpey was once again recognised in the NHBC Pride in the Job Awards,
with 50 Quality Awards (2024: 62), 12 Seal of Excellence Awards (2024: 16),
three Regional Awards (2024: two) and the Supreme Award in the Large Builder
category for the second consecutive year.
We are proud that in January 2026, Senior Site Manager, Lee Dewing from our
North Yorkshire business was awarded the NHBC Pride in the Job Supreme Award,
in the Large Builder Category for his work at our Oaklands development in
Kirklevington. This is the highest recognition granted in the national awards
programme, with only one award granted per builder category.
Skills
During 2025, we directly employed, on average, 4,393 people across the UK
(2024: 4,354) and provided opportunities for, on average, a further c.9.6k
operatives (2024: c.9.4k) on our sites.
Supported by our central functions and shared Group culture, our local
management teams understand their responsibilities in driving our people
agenda and maintaining our high retention rates. This includes quarterly
reviews and development programmes for each of our employees. They also focus
on talent identification and succession planning.
A key priority for our teams is identifying and strengthening future skills
gaps to drive sustainable delivery.
We have invested in technology to aid our training and development with our
online learning management system allowing us to rapidly update and deploy
training modules when change is required.
We recognise that building the skills of our current and future workforce is
essential to address current and potential future skills gaps in our industry
and subcontractor base. We work closely with our partners on our skills
programmes to identify and address gaps.
In recognition of this challenge our Chief Executive, Jennie Daly, has joined
other construction industry leaders on the Government's Construction Skills
Mission Board.
The Government announced the launch of the Construction Skills Mission Board
in early 2025 and it first met in June 2025. The Board is aiming to recruit
100k additional construction workers by the end of this parliament. Comprised
of key Government ministers and industry leaders, the Construction Skills
Mission Board will focus on five areas: providing confidence for employers to
invest, creating new entry pathways, improving training access, simplifying
funding and ensuring career reliability.
Equality, diversity and inclusion (ED&I)
We remain committed to creating a more diverse workforce and will publish our
fifth Diversity and Inclusion Report in 2026. Our aim remains to create a
workplace where colleagues feel championed and supported regardless of their
background and identity.
As at 31 December 2025, we employed c.4.4k people of which c.2.9k (65.1%) were
male and c.1.5k (34.9%) were female (2024: c.4.3k employed, 65.3% male / 34.7%
female). Our Board was comprised of 5 males (55.6%) and 4 females (44.4%), no
change from 2024. Our most senior executive committee the GMT was comprised of
8 people, 6 males (75.0%) and 2 females (25.0%) (2024: 6 males and 3 females,
66.7% males / 33.3% females). GMT and direct reports included 71 people, 52
males (73.2%) and 19 females (26.8%). This compares to 72 people, 53 males
(73.6%) and 19 females (26.4%) in 2024.
Our UK employee base is not yet reflective of the UK's ethnic diversity and
addressing this remains a focus for the business. However, proportional ethnic
representation in our workforce increased to 6.7% as at 31 December 2025
(2024: 5.5%). At the same date, ethnic minority representation in the GMT and
direct reports was 5.6% (2024: 6.9%) and was 3.6% in regional business
leadership roles (2024: 2.5%). Ethnic diversity for graduates was 24.0% (2024:
28.6%) and for management trainees and apprentices it was 14.3% (2024: 14.4%).
In line with the Gender Pay Gap regulations, we calculated our 2025 gender pay
gap based on pay and bonus data at the 'snapshot date' of 5 April 2025 (paid
over the preceding 12 months). The calculations cover all staff employed by
Taylor Wimpey UK Limited as at 5 April 2025. This data shows that our mean
gender pay gap was 3% in favour of men (2024: 8% in favour of men) and median
pay gap was 0% (2024: 6% in favour of men). Further details will be available
in our Diversity Report on our website.
Charity partnerships
We prioritise causes linked to aspiration, education and wellbeing, as well as
projects that tackle homelessness and support vulnerable groups. Our national
charity partners reflect these priorities and include CRASH, Crisis, St
Mungo's, Every Youth, Magic Breakfast, and the Youth Adventure Trust. We
provide structured support to these organisations alongside local donations
where our funding, time and expertise can create a meaningful impact. In 2025,
Taylor Wimpey contributed c.£1 million to national and local charities,
community organisations and resident led initiatives (2024: c.£1 million), in
addition to time from employee volunteering supported through our volunteering
policy.
Closure of Competition and Markets Authority (CMA) investigation
We welcomed the announcement from the CMA on 30 October 2025 that it closed
its investigation into the conduct of seven housebuilders including Taylor
Wimpey announced in February 2024, accepting voluntary commitments from all
parties involved.
Taylor Wimpey engaged constructively with the CMA throughout its investigation
and as previously noted, the CMA did not make any infringement finding against
Taylor Wimpey or any of the housebuilders subject to the investigation.
The voluntary commitments, which do not constitute any admission of wrongdoing
include: (i) agreeing not to share certain categories of information with
other 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 was a payment of
£15.8 million, which together with associated legal and professional fees of
the commitments resulted in £18.0 million being recognised within exceptional
items in 2025.
Our purpose and contribution to the UK economy
Our purpose is to build great homes and create thriving communities. This is a
shared purpose across our business and value chain.
New housing is a cornerstone of economic activity and has far reaching
positive societal impacts on local communities and the country as a whole
driving employment, productivity and regional growth. New housing unlocks
infrastructure investment for roads, schools and utilities which unlocks
further economic benefits for local communities. Housing is fundamental to
social mobility. A secure, affordable home underpins health, education, and
wellbeing.
In England and Wales, the new housebuilding industry generates around £53
billion of economic output and supports over 830,000 jobs.
In 2025, Taylor Wimpey contributed £359 million to local communities across
the UK via planning obligations (2024: £345 million). This funded affordable
housing, green spaces, community facilities, commercial and leisure
facilities, transport infrastructure, heritage buildings and public art, and
helped to deliver on our purpose.
The new build sector will play a major role in the UK's net zero agenda.
Research by the HBF shows new homes are significantly more energy efficient
than older homes, leading to yearly energy cost savings for residents of, on
average, £618. The report suggests that, on average, most new homes emit 74%
less CO(2) than older properties. Looking ahead, we have tested cost
effective, all-electric zero carbon ready homes in preparation for Future
Homes Standard regulations (expected to be announced in the first half of
2026).
Commitment to sustainability
We recognise the importance of sustainability which is integrated throughout
our business and has been incorporated as one of our four strategic
cornerstones. Our approach encompasses environmental, social, economic and
governance aspects.
In 2025, we developed our sustainability framework to guide our approach to
further embedding and integrating sustainability practices across the
business. The framework identifies five priority areas, with each supported by
clear objectives, targets and metrics to guide and drive improvement of our
performance:
· Homes and places - We plan, design, and build our homes and
developments to enable our customers to enjoy a good quality of life, adopt
sustainable living habits, and feel part of a community. We invest in
improving our customer service and work with partners to deliver quality homes
and quality places that enhance nature.
· Our people - To be recognised as an employer of choice within our
sector and beyond, by fostering inclusive workplaces, empowering and enabling
our people to be the best they can be.
· Supply chain partners - To engage our suppliers and subcontractors to
contribute towards growth, innovation, cost-efficiency, and sustainability, to
support our delivery of quality homes and places.
· Environmental impact - We support a more sustainable future for our
customers, colleagues, and communities by reducing and mitigating
environmental impacts from our business operations, our homes, and our supply
chain.
· Responsible and resilient business - We are a responsible business,
guided by our values. We put in place robust policies and governance processes
and engage with our stakeholders to help us deliver quality homes and places
in a safe and responsible way.
Environmental Social and Governance performance measures
We continue to support the UK's transition to net zero through delivery of
energy efficient, low carbon homes and delivery of our Net Zero Transition
Plan. As we move forward, we are ensuring that biodiversity and nature are
still prioritised as changes to the planning system are rolled out.
We disclose our performance on ESG issues through our reporting and by
participating in many investor and industry disclosure initiatives. This
includes CDP Climate A rating (2024: A-), achieving a place on the CDP Climate
A List for the first time, CDP Water B (2024: C), and CDP Forests B (2024:
B-). We are a constituent of the Dow Jones Sustainability Europe Index
(Standard & Poor's Corporate Sustainability Assessment) and included in
the S&P Sustainability Yearbook 2026 and are a constituent of FTSE4Good.
We are a member of Next Generation, the sustainability benchmark for UK
housebuilders, and ranked fifth with a silver rating in 2024, the latest score
available. We were included on the Financial Times Europe's Climate Leaders
list 2025.
Environment Strategy
Our Environment Strategy, 'Building a Better World', was launched in 2021 with
ambitious targets for reducing our environmental impact. Since then, we have
made strong progress in many areas including reducing our carbon footprint and
waste and embedding nature initiatives into our developments to create space
and homes for wildlife.
In 2025, we took the opportunity to update our targets as part of the
development of our sustainability framework and to reflect business
development, regulatory shifts and movement in market conditions since 2021,
as well as improved data, and sector-wide developments like the Future Homes
Delivery Plan. Our updated targets will drive our teams to further reduce our
impacts relating to climate, waste, water and nature across our operations,
homes, developments and supply chain.
To further strengthen oversight and accountability we've also updated our
environmental governance. Details are included in our Annual Report and
Accounts 2025 and our Sustainability Summary.
Net zero by 2045
We published our Net Zero Transition Plan in early 2023, with our target to
reach net zero emissions across our value chain by 2045 (scope 1, 2 and 3)
(comprising at least a 90% absolute reduction and neutralising residual
emissions). This is five years ahead of the UK Government's target.
Our net zero target was developed with the Carbon Trust in line with the
requirements of the SBTi Corporate Net Zero Standard and has been validated by
the SBTi confirming that it is aligned with their 1.5°C mitigation pathways
for reaching net zero by 2050 or sooner.
We have also set targets to reduce both scope 1 and 2, and scope 3 absolute
emissions by 46.2% by 2030.
In 2025, we reduced absolute operational emissions (scope 1 and 2) by 60%
against our 2019 baseline, with operational emissions intensity falling by 44%
over the same period. A scope 1 and 2 carbon reduction measure was included in
the incentive plans for senior leadership and regional management in 2025 to
support progress on our near term carbon reduction targets.
Preparing for regulatory changes and opportunities in green building
The Future Homes Standard
We have been preparing for Future Homes Standard regulations, the final
details of which are expected in the first half of 2026. This regulation will
see our homes become all-electric and zero carbon ready and we are well
advanced on this journey with many of our new sites designed to be fully
electric.
The Building Safety Levy
The Building Safety Levy aims to raise around £3.4 billion over at least 10
years to contribute towards remediation of fire safety issues. In 2025, the
Building Safety Levy regulations were finalised and the guidance published.
Implementation of the Levy was postponed from Autumn 2025 to October 2026.
Sites with building regulation initial notice applications registered before
that date will have three years' exemption from the Levy, meaning the cash
flow impact will mostly occur after 2029. We continue to mitigate and manage
risk, insofar as is possible, in our landbank and strategic pipeline and in
our approach to landbuying.
Research and Development
We invest in research and product trials to help us keep improving the homes
and places we build for customers, to align with changing regulation and to
benefit from technological development. Our Director of Research and Technical
Innovation oversees our research strategy and chairs our Innovation Group for
New Ideas, Transformation and Excellence (IGNITE), and Road to Net Zero Carbon
Working Group.
During 2025, we refreshed our research strategy, incorporating learnings from
recent large-scale research projects such as our Future Homes Trial at
Sudbury. Our updated strategy includes a focus on regulatory compliance,
skills, supply chain resilience, product innovation, efficiency and risk
mitigation. In 2025, we conducted a number of research projects in particular,
working closely with our industry partners and supply chain to identify and
develop solutions and specifications which may support us to meet the
requirements of the Future Homes Standard which is expected in 2026.
In 2026, we will be running projects focusing on home water efficiency and
water management on our developments; advancing training and resources in
relation to installation of low carbon technologies; and a review of processes
for introducing new products, among other topics.
Our Key Performance Indicators (KPIs)
Our key performance indicators align to our strategic cornerstones.
UK 2025 2024 Change
Land
Land cost as % of average selling price on approvals 16.9% 17.0% (0.1) ppt
Landbank years c.7.2 c.7.8 (7.7)%
% of completions from strategically sourced land 39% 40% (1.0) ppt
Operational excellence
Construction Quality Review (average score / 6) 4.96 4.93 0.6%
Average reportable items per inspection 0.17 0.18 (0.01)
Annual Injury Incidence Rate (per 100,000 employees and contractors) 200 212 (5.7)%
Employee engagement (annual survey) 92% 93% (1.0) ppt
Sustainability
Customer satisfaction score(1) 4.24 - -
Reduction in operational carbon emissions intensity against our 2019 baseline 44% 21% 23.0 ppt
(1.)No prior year data as this is the first year we are reporting our customer
satisfaction score under the revised methodology. The score for 2025 includes
customers who legally completed between 1 October 2024 and 30 September 2025
for the 8-week survey and customers who legally completed between 1 February
2024 and 31 January 2025 for the 9-month survey. An aggregate score of 4.15
will be the measure of five-star builder status as at March 2026, which is the
cut-off date for determining the star status for the following 12 months.
2026 guidance summary
Metric 2026 guidance
UK completions excluding JVs 10,600 to 11,000 range, weighted 40% in H1
Blended average UK selling price c.2% increase
Build cost inflation Low single digit
Adjusted operating profit c.£400 million
JV share of profits c.£4 million
Spain completions 350 to 400 range
Net finance charges(1) c.£30 million
Cladding fire safety spend c.£150 million
Net cash (half year 2026) c.£0-50 million
(1) Excluding unwind of provision discounting (in exceptionals)
Group financial review
Income statement
Group revenue was £3,844.6 million in 2025 (2024: £3,401.2 million), with
Group completions, excluding joint ventures, 6.0% higher at 11,108 (2024:
10,476). The UK ASP for private completions increased by 5.1% to £374k (2024:
£356k), due mainly to regional mix. The UK ASP for affordable housing
increased modestly to £187k (2024: £186k). Affordable housing accounted for
20.9% of total completions, slightly lower than the prior year (2024: 21.8%).
The total UK ASP was 5.0% higher at £335k (2024: £319k).
Group gross profit increased to £658.4 million (2024: £648.7 million), the
current year including an unexpected £20.0 million charge in relation to
historical defective workmanship by a principal contractor at one of our
London developments and the combined impact of ongoing low single digit build
cost inflation alongside softer pricing in the opening orderbook. These
factors contributed to a decrease in gross margin to 17.1% (2024: 19.1%).
Net operating expenses were £483.7 million (2024: £314.8 million), which
includes £225.8 million (net of discounting) of costs relating to the
cladding fire safety provision, as described above, (2024: £68.9 million) and
£18.0 million relating to the CMA information sharing investigation
commitments, including associated legal and professional fees (2024: nil).
Excluding exceptional costs, net operating expenses were £239.9 million
(2024: £232.3 million), mainly made up of administrative costs of £247.4
million (2024: £242.0 million), which increased due to annual salary reviews
and the higher employers' National Insurance rate. This resulted in a profit
on ordinary activities before financing of £174.7 million (2024: £333.9
million), £418.5 million (2024: £416.4 million) excluding exceptional items.
Completions from joint ventures in the year were 121 (2024: 117). The Group's
share of joint ventures' results in the year was a £2.1 million profit (2024:
£15.9 million loss, £0.2 million loss before exceptional items). The total
order book value of joint ventures as at 31 December 2025 decreased to £10
million (31 December 2024: £28 million), representing 38 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 adjusted
operating profit was £420.6 million (2024: £416.2 million), delivering an
adjusted operating profit margin of 10.9% (2024: 12.2%).
The net finance expense before exceptional items was £26.4 million (2024:
£2.3 million income) and is predominantly made up of imputed interest on land
acquired on deferred terms, bank interest and interest on the pension scheme.
In the prior year, this was more than offset by interest earned on the higher
cash balances held through that year. The unwinding of the discounting of the
cladding fire safety provision in the year was £3.9 million (2024: nil),
recognised as an exceptional item. The total net finance expense for the year
was £30.3 million (2024: £2.3 million income).
Profit on ordinary activities before tax was £146.5 million (2024: £320.3
million). The total tax charge for the year was £46.1 million (2024: £100.7
million), an effective rate of 31.5% (2024: 31.4%); the current year includes
a credit of £65.5 million in respect of the exceptional charges recognised
(2024: £20.2 million). The pre-exceptional tax charge was £111.6 million
(2024: £120.9 million), representing an underlying tax rate of 28.3% (2024:
28.9%).
As a result, the profit for the year was £100.4 million (2024: £219.6
million).
Basic earnings per share was 2.8 pence (2024: 6.2 pence). The adjusted basic
earnings per share was 8.0 pence (2024: 8.4 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 494 homes (2024: 504 homes) with
the ASP increasing to €455k (2024: €440k), due to regional and product
mix. The order book as at 31 December 2025 decreased to 361 homes due to the
timing of site openings (31 December 2024: 491 homes).
Gross margin was 29.6% (2024: 28.2%), which flowed through to an adjusted
operating profit of £51.7 million (2024: £47.4 million) and an adjusted
operating profit margin of 26.8% (2024: 25.4%).
The total plots in the landbank stood at 3,157 (31 December 2024: 3,214), with
net operating assets** of £89.3 million (31 December 2024: £89.5 million).
Balance sheet
Net assets at 31 December 2025 decreased to £4,186.8 million (31 December
2024: £4,405.2 million), with net operating assets decreasing marginally by
£3.9 million to £3,813.1 million (31 December 2024: £3,817.0 million).
Return on net operating assets increased to 11.0% (31 December 2024: 10.9%).
Group net operating asset turn(†*) was 1.01 times (31 December 2024: 0.89),
reflecting the increase in revenue in the year.
Land
Land reduced by £187.1 million to £3,200.4 million at 31 December 2025,
primarily reflecting strong recoveries on completions, which exceeded
investment in new land in the year. In addition, routine land disposals
contributed to the reduction, with proceeds reinvested into smaller, higher
returning sites in line with our disciplined capital allocation strategy. Land
creditors decreased to £522.5 million as payment of 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
£40.4 million of UK land overage commitments (31 December 2024: £39.9
million). £296.4 million of the land creditors is expected to be paid within
12 months and £226.1 million thereafter (31 December 2024: £355.9 million
and £272.0 million).
As at 31 December 2025, the UK short term landbank comprised 76,772 plots (31
December 2024: 78,626), with a net book value of £2.8 billion (31 December
2024: £2.9 billion). Short term owned land had a net book value of £2.7
billion (31 December 2024: £2.9 billion), representing 62,402 plots (31
December 2024: 65,521). The controlled short term landbank represented 14,370
plots (31 December 2024: 13,105).
The value of strategic owned land decreased to £157 million (31 December
2024: £180 million), representing 29,401 plots (31 December 2024: 31,764),
with a further total controlled strategic pipeline of 103,610 plots (31
December 2024: 104,375). Total potential revenue in the owned and controlled
landbank was £61 billion (31 December 2024: £60 billion).
Work in progress (WIP)
Total WIP investment, excluding part exchange and other, increased to
£2,019.7 million (31 December 2024: £1,949.3 million), due to an increase in
the number of open outlets and build cost inflation. Average WIP per UK outlet
increased marginally to £9.1 million (31 December 2024: £8.9 million).
Provisions and deferred tax
Provisions increased to £492.1 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 for remediation at one of
the Group's historical London developments where the original principal
contractor was carrying out the works, but 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 (£49.4
million) as works have been carried out, as well as utilisation of other
provisions.
The net deferred tax asset of £25.6 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 the 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 year were £7.1 million (2024:
£7.1 million). At 31 December 2025, the IAS 19 valuation of the Scheme was a
surplus of £107.0 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 £18.1 million at 31 December 2025 (31
December 2024: £22.2 million) comprise a defined benefit pension liability of
£17.8 million (31 December 2024: £22.0 million) and a post-retirement
healthcare liability of £0.3 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 £342.6 million at 31 December 2025 (31 December 2024:
£564.8 million), reflecting the reduction in land creditors and other
payables, the payment of dividends and cash outflows related to exceptional
charges. Average net cash for the year was £220.5 million (31 December 2024:
£494.5 million).
Cash conversion(‡‡) decreasing to 63.7% of adjusted operating profit for
the year ended 31 December 2025 (2024: 74.9%) reflects a lower cash generated
from operations due to the decrease in land creditors, as payments have been
made, and the increase in receivables arising from land sales and bulk deals.
Net cash, combined with land creditors, resulted in an adjusted
gearing(‡‡‡‡) of 4.3% (31 December 2024: 1.4%).
At 31 December 2025, our committed borrowing facilities were £687 million, of
which the £600 million revolving credit facility was undrawn at the end of
the year. The weighted average maturity of the committed borrowing facilities
at 31 December 2025 was 4.5 years (31 December 2024: 4.6 years). During the
year an extension of one year to 2030 was agreed for the revolving credit
facility.
Distributions
Subject to shareholder approval at the AGM scheduled for 28 April 2026, the
2025 final ordinary dividend of 2.95 pence per share will be paid on 15 May
2026 to shareholders on the register at the close of business on 7 April 2026
(2024 final dividend: 4.66 pence per share). In combination with the 2025
interim dividend of 4.67 pence per share, this gives total ordinary dividends
for the year of 7.62 pence per share (2024 ordinary dividend: 9.46 pence per
share).
In addition, the Group has announced the intention to commence a buyback of
£52 million, to be commenced shortly and intended to be completed by the end
of June 2026. Combined with the 2025 final ordinary dividend, this forms part
of the Group's policy to annually return 7.5% of the Group's net assets.
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 from the date of signature of the 2025 financial statements.
Accordingly, the financial statements are prepared on a going concern basis.
See Note 1 of the Condensed Consolidated Financial Statements for further
details of the assessment performed.
Viability disclosure
In accordance with the 2024 UK Corporate Governance Code, the Directors and
the senior management team have assessed the prospects and financial viability
of the Group for a period longer than the 12 months required for the purpose
of the 'going concern' assessment.
Time period
The Directors have assessed the viability of the Group over a five-year
period, taking account of the Group's current financial position, current
market circumstances and the potential impact of the Principal and emerging
risks facing the Group. The Directors have determined this as an appropriate
period over which to assess the viability based on the following:
· It is aligned with the Group's bottom-up five-year budgeting and
forecasting cycle
· Five years represents a reasonable estimate of the typical time
between purchasing land, its progression through the planning cycle, building
out the development and selling homes to customers from it
Five years is also a reasonable period for consideration given the following
broader external trends:
· The cyclical nature of the market in which the Group operates, which
tends to follow the economic cycle
· Consideration of the impact of government policy, planning
regulations and the mortgage market
· Long term supply of land, which is supported by our strategic land
pipeline
· Changes in technology and customer expectations
Assessment of prospects
We consider the long term prospects of the Group in light of our business
model. Our strategy to deliver sustainable value is achieved through
delivering high-quality homes for our customers, in the locations where people
want to live, while carefully managing our cost base and the Group's balance
sheet.
In assessing the Group's prospects and long term viability, due consideration
is given to:
· The Group's current performance and the Group's financing
arrangements
· The wider economic environment and mortgage market, as well as
changes to government policies and regulations, including those influenced by
sustainability, climate change and the environment, that could impact the
Group's business model
· Strategy and business model flexibility, including customer dynamics
and approach to land investment
· Principal Risks associated with the Group's strategy and business
model, including those which have the most impact on our ability to remain in
operation and meet our liabilities as they fall due
Principal Risks
The Principal Risks, to which the Group is subject, have undergone a
comprehensive review by the GMT and Board in the current year. Consideration
is given to the risk likelihood based on the probability of occurrence and
potential impact on our business, together with the effectiveness of
mitigations.
The Directors identified the Principal Risks that have the most impact on the
longer term prospects and viability of the Group, and as such these have been
used in the modelling of a severe but plausible downside scenario, as:
· Government policies, regulations and planning (A)
· Mortgage availability and housing demand (B)
· Availability and costs of materials and subcontractors (C)
· Quality and reputation (F)
· IT environment and security (I)
A range of sensitivity analyses for these risks, together with likely
mitigating actions that would be adopted in response to these circumstances,
were modelled, including a severe but plausible downside scenario in which the
impacts were aggregated together.
The impact from 'Natural resources and climate change' (H) is not deemed to be
material within the five-year forecast period, as costs associated with the
regulatory changes have been included in the modelling.
Assessment of viability
The Group adopts a disciplined annual business planning process involving the
management teams of the UK regional businesses and Spain, and the Group's
senior management, and is built on a bottom-up basis. This planning process
covers a five-year period comprising a detailed budget for the next financial
year, together with a forecast for the following four financial years.
The financial planning process considers the Group's profitability and Income
Statement, Balance Sheet including landbank, gearing and debt covenants, cash
flows and other key financial metrics over the forecast period. These
financial forecasts are based on a number of key assumptions, the most
important of which include:
· Timing and volume of legal completions of new homes sold, which
includes annual production volumes and sales rates over the life of the
individual developments
· Average selling prices achieved
· Build costs and cost of land acquisitions
· Working capital requirements
· Capital repayment plan, where we have assumed the payment of the
ordinary distribution in line with the current policy, which is a minimum of
£250 million or 7.5% of the Group's net assets per annum, throughout the
period
Stress testing our risk resilience
The assessment considers sensitivity analysis on a series of realistically
possible, but severe and prolonged, changes to principal assumptions. In
determining these, we have included macroeconomic and industry-wide
projections as well as matters specific to the Group.
The severe but plausible downside scenario reflects the aggregated impact of
sensitivities, taking account of a further decline in customer confidence,
disposable incomes and mortgage availability. To arrive at our stress test we
have drawn on experience gained from managing the business through previous
economic downturns.
We have applied the market dynamics encountered at those times, as well as the
mitigations adopted, in order to test the resilience of our business. As a
result, we have stress tested our business against the following severe but
plausible downside scenario, which can be attributed back to the Group's
Principal Risks that have been identified as having the most impact on the
longer term prospects and viability of the Group.
Volume (Principal Risk: A, B, C, F) - a decline in total volumes of 10% in
2026 from 2025 levels, before recovering back to 2025 levels by 2028.
Price (Principal Risk: B) - a reduction to current selling prices of 10%,
remaining at these levels across 2026 and 2027 before recovering to current
levels by 2028.
One-off costs (Principal Risk: A, F, I) - 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.
The mitigating actions considered in the model include a reduction in land
investment, a reduction in the level of production and work in progress held
and reducing our overhead base to reflect the lower volumes.
If this scenario were to occur, the Directors also have a range of additional
options to maintain financial strength, including a more severe reduction in
land spend and work in progress, the sale of assets, reducing the
distributions and / or raising debt.
At 31 December 2025, the Group had a cash balance of £430 million and access
to £600 million from a fully undrawn revolving credit facility, together
totalling £1,030 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.
Confirmation of viability
Based on the results of this analysis, the Directors have a reasonable
expectation that the Group will be able to continue in operation and meet its
liabilities as they fall due over the five-year period of their assessment.
Definitions
In preparation for the adoption of IFRS 18 'Presentation and Disclosure in
Financial Statements' in 2027, which for the first time defines an operating
profit subtotal, the Group has renamed the measures of operating profit and
operating profit margin to adjusted operating profit and adjusted operating
profit margin respectively. The calculation methodologies for the measures
are unchanged.
* Adjusted operating profit is defined as profit on ordinary activities before
financing, exceptional items and tax, after share of results of joint
ventures.
*(†) Adjusted operating profit margin is defined as adjusted 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
adjusted 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 Annual Injury Incidence Rate (AIIR) 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 adjusted 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.
The Group uses Alternative Performance Measures (APMs) as important financial
performance indicators to assess underlying performance of the Group. The
Group's two main financial targets are adjusted operating profit margin and
return on net operating assets. Definitions and reconciliations to the
equivalent statutory measures are included in Note 13 of the Condensed
Consolidated Financial Statements.
Shareholder information
The Company's 2026 Annual General Meeting (AGM) will be held at 10:30am on 28
April 2026 in the Garden Suite at the Crowne Plaza Gerrards Cross, Oxford
Road, Beaconsfield, HP9 2XE.
Copies of the Annual Report and Accounts 2025 will be available from 20 March
2026 on the Company's website www.taylorwimpey.co.uk/corporate. Hard copy
documents will be posted to shareholders who have elected to receive them and
will also be available from our registered office at Gate House, Turnpike
Road, High Wycombe, Buckinghamshire, HP12 3NR from 23 March 2026.
A copy of the Annual Report and Accounts 2025 will be submitted to the
National Storage Mechanism and will be available for inspection at:
https://data.fca.org.uk/#/nsm/nationalstoragemechanism
(https://data.fca.org.uk/#/nsm/nationalstoragemechanism)
Directors' responsibilities
The responsibility statement below has been prepared in connection with the
full Annual Report and Accounts for the year ended 31 December 2025. Certain
parts thereof are not included within this announcement.
We confirm to the best of our knowledge that:
· the Group financial statements, which have been prepared in
accordance with UK-adopted international accounting standards, give a true and
fair view of the assets, liabilities, financial position and profit of the
Group; and
· the Strategic report includes a fair review of the development and
performance of the business and the position of the Group and Company,
together with a description of the Principal Risks and uncertainties that it
faces.
This responsibility statement was approved by the Board of Directors on 4
March 2026 and is signed on its behalf by:
Robert Noel, Chair
Jennie Daly, Chief Executive
Principal Risks and uncertainties
The Board has overall responsibility for risk oversight, for maintaining a
robust risk management and internal control system and for determining the
Group's appetite and tolerance for exposure to the Principal Risks to the
achievement of its strategy. Our Annual Report and Accounts 2025 details the
full governance procedures and processes for identification and subsequent
monitoring of the risks undertaken by the Group.
The Audit Committee supports the Board in the management of risk and is
responsible for reviewing the effectiveness of the risk management and
internal control processes during the year.
The Chief Executive is primarily responsible for the management of the risks,
with the support of the GMT and other senior managers located in the business.
In line with the 2024 UK Corporate Governance Code, the Board holds formal
risk reviews, at least half yearly, and routinely considers risk at each Board
meeting as appropriate.
The formal assessment includes a robust consideration of the Principal Risks,
to ensure they remain appropriate, a review of the key risks identified by
the business, their risk profiles and mitigating factors, and an annual review
of the established risk appetite and tolerance levels. At the Board meeting in
March 2026, the Board completed its annual assessment of risks. This followed
the Audit Committee's formal assessment of risks in December 2025, which was
supported by a detailed risk assessment by the GMT and its review of the
effectiveness of internal controls in mitigating the risks. During the year,
two of our Principal Risks saw increases in their inherent and residual
profiles. The increase in the 'Government policies, regulations and planning'
Principal Risk was driven by a combination of further Future Homes Standards
announcements and the impact of the Building Safety regulator. The increase in
the 'Natural resources and climate change' Principal Risk was driven by
matters arising within the environmental space, for example increasing
wastewater capacity issues.
The Board also considers emerging risks which could impact on the Group's
ability to deliver its strategy. The emerging risks are those where the extent
and implications are not yet fully understood but consideration has been given
to the potential timeframe of occurrence and velocity of impact that these
could have on the Group. As part of our risk management process, these are
monitored and reviewed on an ongoing basis and discussed and agreed by the
Board.
Our emerging risks are grouped into the categories listed in the table below,
which also contains some narrative description against each category
indicating example focus areas into which the identified emerging risks fall.
Category Example focus area
Environmental / climate Unpredictable weather patterns
Operational / build Adaption of building methodologies
Political / economic Geopolitical uncertainty
Social Customer demographics and preferences
Governmental Changing Government policies
The Group considers other specific risk areas recognising the increasing
complexity of the industry in which it operates and which are in addition to
its identified Principal Risks. We continue to monitor and mitigate the
impacts on our supply chain and labour force and the overall economic market
impacting mortgage availability and demand.
Our Sustainability and Climate Change Risk and Opportunity Register highlights
the material risks and opportunities facing the Group in relation to
sustainability and climate change. In addition, our climate change-related
risks and opportunities are available as part of our 2025 CDP submission. More
information is available at www.taylorwimpey.co.uk/corporate
(http://www.taylorwimpey.co.uk/corporate) .
The Principal Risks, their mitigations and risk indicators are detailed below:
Description Residual risk rating Risk appetite Example risk indicators, mitigations and opportunities
A. Government policies, regulations and planning Moderate Low Example risk indicators
The industry in which we operate is becoming increasingly regulated. Failure - New Government regulations (e.g. around planning and climate)
to adhere to Government regulations could impact our operational performance
and our ability to meet our strategic objectives. - Delays in planning
- Sentiment towards the industry (e.g. cladding fire safety remediation)
Changes to the planning system or planning delays could result in missed
opportunities to optimise our landbank, affecting profitability and delivery
of new homes. Key mitigations
- Research conducted to update technical specification of our standard house
type range, in preparation for the Future Homes Standard (FHS), including a
Accountability trial of five FHS-compliant plots
- Group Technical Director - Consultation with Government agencies
- Director of Planning - Cladding fire safety remediation and signing of the Developer Remediation
Contracts in England
- Regional Managing Directors
and Wales
- Group Cladding Director
- Engagement with national and local Government
- Working with the Home Builders Federation (HBF), the Building Safety
Regulator and other stakeholders
- Member of the Future Homes Hub
Opportunities
- To build enhanced collaborative networks with stakeholders and peers, to
monitor the implications of regulatory change
- Lead the business in addressing pressing environmental issues, including
reducing our carbon footprint and targeting biodiversity
Description Residual risk rating Risk appetite Example risk indicators, mitigations and opportunities
B. Mortgage availability and housing demand Moderate Low Example risk indicators
A decline in the economic environment, driven by sustained growth in interest - Interest rate increases
rates, increased cost of living, low wage inflation or increasing levels of
unemployment, could result in tightened mortgage availability and challenge - Levels of unemployment
mortgage affordability for our customers, resulting in a direct impact on our
volume targets. - Volume of enquiries/people visiting our developments
- UK household spending/levels of disposable income
Accountability - Loan-to-value metrics
- UK Sales and Marketing Director - Number and value of bids from affordable housing providers
- Regional Sales and Marketing Directors
Key mitigations
- Increase outlets to provide greater customer choice and flexibility to
respond quickly to changing market conditions
- Review of pricing and incentives offered
- Monitor external market data (e.g. HBF and mortgage lenders)
- Strong relationships with mainstream lenders
- Work with financial services industry to ensure customers receive
appropriate advice on mortgage products
Opportunities
- To continue to develop strong working relationships with established
mainstream lenders and those wishing to increase volume in the new build
market
Description Residual risk rating Risk appetite Example risk indicators, mitigations and opportunities
C. Availability and costs of materials and subcontractors Moderate Low-moderate Example risk indicators
Increase in housing demand and production or a breakdown within the supply - Material and trade shortages
chain may further strain the availability of skilled subcontractors and
materials and put pressure on utility firms to keep up with the pace of - Material and trade price increases
installation, resulting in increased costs and construction delays.
- Level of build quality and waste produced from sites
- Longer build times
Accountability
- Number of skilled trades
- Supply Chain Director
- Procurement Director
Key mitigations
- Group Commercial Director
- Central procurement and key supplier agreements
- Supplier and subcontractor relationships
- Disaster recovery and business continuity plans with all key suppliers
- Buffer stock with key suppliers
- Contingency plans for critical path products
- Direct trade and apprenticeship programmes
- Key commodity risk assessment matrix
- Regular checks on all key suppliers
- Continual monitoring of the supply chain
- Multi-source strategies
Opportunities
- To develop and implement different build methods as alternatives to
conventional brick and block
Description Residual risk rating Risk appetite Example risk indicators, mitigations and opportunities
D. Attract and retain high-calibre employees Low Moderate Example risk indicators
An inability to attract, develop, motivate and retain high-calibre employees, - Employee engagement score
together with a failure to consider the retention and succession of key
management, could result in a failure to deliver our strategic objectives, a - Number of, and time to fill, vacancies
loss of corporate knowledge and a loss of competitive advantage.
- Employee turnover levels
Accountability
Key mitigations
- Group HR Director
- Production Academy and Production Manager succession development programme
- Every employee managing people
- Schools outreach strategy
- Collaboration with major organisations on a sector skills plan
- Graduate and apprenticeship programmes
- Management training
- Enhanced remote working procedures
- Educational masterclasses
- Salary benchmarking
- Long term manpower planning
Opportunities
- To further develop in-house capability, expertise and knowledge
Description Residual risk rating Risk appetite Example risk indicators, mitigations and opportunities
E. Land availability Low Moderate Example risk indicators
An inability to secure land at an appropriate cost, the purchase of land of - Movement in landbank years
poor quality or in the wrong location, or the incorrect timing of land
purchases in relation to the economic cycle could impact future profitability. - Number of land approvals
- Timing of conversions from strategically sourced land
Accountability
- Divisional Chairs Key mitigations
- Group Land Director - Critically assess opportunities
- Regional Managing Directors - Land quality framework
- Regional Land and Planning Directors - Engagement with national and local Government
- Managing Director Group Strategic Land - Review of land portfolio
- Obtaining specialist environmental and legal advice
Opportunities
- A strong balance sheet allows us to invest when land market conditions are
attractive
Description Residual risk rating Risk appetite Example risk indicators, mitigations and opportunities
F. Quality and reputation Moderate Low Example risk indicators
The quality of our products is key to a strategic objective of being a - Customer satisfaction scores
customer-focused business and in ensuring that we do things right first time.
- Number of National House Building Council (NHBC) claims
If the Group fails to deliver against these standards and its wider
development obligations, it could be exposed to reputational damage, as well - Construction Quality Review (CQR) scores
as reduced sales and increased costs.
- Average reportable items per inspection found during NHBC inspections at key
stages of the build
Accountability
- Group Customer Experience Director Key mitigations
- Customer Director - Customer-ready Home Quality Inspection
- UK Head of Production - Consistent Quality Approach
- Director of Design - Quality Managers in the business
- Customer-driven strategy
- Enhanced data analytics
- Ombudsman readiness
Opportunities
- To better understand the needs of our customers, enabling increased
transparency of our build profile
- To lead the industry in quality standards (our CQR score) and reduce the
number of reportable items identified through monitoring defects at every
stage of build
Description Residual risk rating Risk appetite Example risk indicators, mitigations and opportunities
G. Health, safety and environment Low Low Example risk indicators
The health and safety of all our employees, subcontractors, visitors and - Increase in near misses and fatalities
customers is of paramount importance. Failure to implement and monitor our
stringent health, safety and environment (HSE) procedures and policies across - Health and safety audit outcomes
all parts of the business could lead to accidents or site-related incidents,
resulting in serious injury or loss of life. - Number of reportable health and safety incidents
Accountability Key mitigations
- Head of Health, Safety and Environment - Embedded HSE system
- Regional Managing Directors - HSE training and inductions
- Mental health training and support for all employees
- Robust monitoring and reporting procedures
- Utilisation of certified operatives
- Identification, review and evaluation of the impact of new construction
methods and materials
Opportunities
- To lead the industry in health and safety and to reduce the amount and level
of incidents
Description Residual risk rating Risk appetite Example risk indicators, mitigations and opportunities
H. Natural resources and climate change Moderate Low Example risk indicators
An inability to reduce our environmental footprint, the challenges of a - Energy use and greenhouse gas emissions
degraded environment, including the impacts of climate change, nature loss and
water scarcity on our business, supply chain scarcity due to environmental - Biodiversity net gain %
change, and the increasing desire of our customers to live more sustainably
could impact our reputation, our ability to attract investment and obtain - Construction waste generation and waste to landfill
planning permission, and the delivery of our strategic targets.
Key mitigations
Accountability
- Net Zero Transition Plan
- Group Communities Director
- Published Environment Strategy
- Regional Managing Directors
- Adopted and validated net zero science-based targets
- Climate change governance, including Environmental Governance Group and
Sustainability Champions
- HBF and investor liaison
- Training and development in-house and in our supply chain
- External benchmarking
- Collection and interpretation of data to drive relevant actions
Opportunities
- Sustainable homes and developments attractive to customers
- A sustainable business of choice for investors
- Advantageous planning positions
Description Residual risk rating Risk appetite Example risk indicators, mitigations and opportunities
I. IT environment and security Moderate Low-moderate Example risk indicators
The Group places increasing reliance on IT to conduct its operations and the - Number of devices with critical and high open vulnerabilities
requirement to maintain the accuracy and confidentiality of its information
systems and the data contained therein. A cyber attack leading to the - Number of devices without latest patching in place
corruption, loss or theft of data could result in reputational and operational
damage. - Phishing test results
- Cyber training completion statistics
Accountability - Number of users with administrative privileges to critical systems
- IT Director
Key mitigations
- Complex passwords policy and multi-factor authentication for remote access
- Regular security patching and penetration testing
- Risky logins check
- Intrusion detection and prevention systems
- Suspected phishing emails process
- Mandated cyber training for all staff
- Cyber insurance
- Dedicated Head of Cyber Security
- Cyber security KPIs
- Enhanced end-point protection software implemented across the IT estate
- Blocked traffic originating from countries deemed a threat to the UK
- Disaster recovery process
Opportunities
- Together with our service partners, provide a level of security to reinforce
our reputation as a trusted partner
Cautionary note concerning forward-looking statements
This report contains certain forward-looking statements. These statements are
made by the Directors and include statements regarding their current
intentions, beliefs and expectations, based on the information available to
them up to the time of their approval of this report and unless otherwise
required by applicable law, the Company and its Directors undertake no
obligation to update or revise these forward-looking statements, nor do they
accept any liability should the future results actually achieved fail to
correspond to the forward-looking statements included in this report.
By their nature these forward-looking statements involve uncertainty
(including both economic and business risk factors) and are subject to a
number of risks since future events and circumstances can cause actual results
and developments to differ materially to those anticipated. As such, these
forward-looking statements should be treated with caution.
Nothing in this report should be construed as a profit forecast and does not
constitute or form part of, any offer, invitation or the solicitation of an
offer to purchase, otherwise acquire, subscribe for, sell or otherwise dispose
of, any securities in Taylor Wimpey plc or any other invitation or inducement
to engage in investment activities and does not constitute a recommendation to
sell or buy any such securities.
Consolidated Income Statement
for the year to 31 December 2025
£ million Note Before Exceptional items Total Before Exceptional Total
exceptional
2025
exceptional
items
2024
items 2025
items
2025
2024 2024
Continuing operations
Revenue 2 3,844.6 - 3,844.6 3,401.2 - 3,401.2
Cost of sales (3,186.2) - (3,186.2) (2,752.5) - (2,752.5)
Gross profit 658.4 - 658.4 648.7 - 648.7
Net operating expenses 4 (239.9) (243.8) (483.7) (232.3) (82.5) (314.8)
Profit on ordinary activities 418.5 (243.8) 174.7 416.4 (82.5) 333.9
before financing
Finance income 5 12.1 - 12.1 29.7 - 29.7
Finance costs 5 (38.5) (3.9) (42.4) (27.4) - (27.4)
Share of results of joint ventures 2.1 - 2.1 (0.2) (15.7) (15.9)
Profit before taxation 394.2 (247.7) 146.5 418.5 (98.2) 320.3
Taxation (charge)/credit 6 (111.6) 65.5 (46.1) (120.9) 20.2 (100.7)
Profit for the year 282.6 (182.2) 100.4 297.6 (78.0) 219.6
2025 2024
Basic earnings per share 7 2.8p 6.2p
Diluted earnings per share 7 2.8p 6.2p
Adjusted basic earnings per share 7 8.0p 8.4p
Adjusted diluted earnings per share 7 8.0p 8.4p
All of the profit for both years is attributable to the equity holders of the
Parent Company.
Consolidated Statement of Comprehensive Income
for the year to 31 December 2025
£ million Note 2025 2024
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translation of foreign operations 8.2 (8.8)
Movement in fair value of hedging instruments (4.3) 3.9
Items that will not be reclassified subsequently to profit or loss:
Actuarial gain on defined benefit pension schemes 10 1.0 1.4
Tax charge on items taken directly to other comprehensive income 8 (0.3) (0.4)
Other comprehensive income/(expense) for the year 4.6 (3.9)
Profit for the year 100.4 219.6
Total comprehensive income for the year 105.0 215.7
All of the comprehensive income for both years is attributable to the equity
holders of the Parent Company.
Consolidated Balance Sheet
at 31 December 2025
£ million Note 2025 2024
Non-current assets
Intangible assets 2.7 1.5
Property, plant and equipment 23.1 21.9
Right-of-use assets 34.6 35.9
Interests in joint ventures 26.6 26.9
Trade and other receivables 26.7 14.9
Other financial assets 10 11.3 10.8
Deferred tax assets 8 25.6 20.6
150.6 132.5
Current assets
Inventories 9 5,271.4 5,376.6
Trade and other receivables 205.6 130.4
Tax receivables 8.9 4.4
Cash and cash equivalents 429.6 647.4
5,915.5 6,158.8
Total assets 6,066.1 6,291.3
Current liabilities
Trade and other payables (966.7) (1,083.9)
Lease liabilities (11.7) (10.4)
Tax payables (3.4) (1.6)
Provisions (211.1) (161.7)
(1,192.9) (1,257.6)
Net current assets 4,722.6 4,901.2
Non-current liabilities
Trade and other payables (275.0) (350.7)
Lease liabilities (25.3) (28.0)
Bank and other loans (87.0) (82.6)
Retirement benefit obligations 10 (18.1) (22.2)
Provisions (281.0) (145.0)
(686.4) (628.5)
Total liabilities (1,879.3) (1,886.1)
Net assets 4,186.8 4,405.2
Equity
Share capital 291.3 291.3
Share premium 777.9 777.9
Own shares (20.2) (27.6)
Other reserves 543.4 539.5
Retained earnings 2,594.4 2,824.1
Total equity 4,186.8 4,405.2
Consolidated Statement of Changes in Equity
for the year to 31 December 2025
£ million Note Share Share Own Other Retained earnings Total
capital
premium
shares
reserves
Total equity 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 - - - - 9.2 9.2
Tax charge on items taken directly to statement of changes in equity 8 (0.4)
- - - - (0.4)
Dividends approved and paid 12 - - - - (339.4) (339.4)
Total equity at 31 December 2024 291.3 777.9 (27.6) 539.5 2,824.1 4,405.2
Other comprehensive income for the year - - - 3.9 0.7 4.6
Profit for the year - - - - 100.4 100.4
Total comprehensive income for the year - - - 3.9 101.1 105.0
Own shares acquired - - (3.3) - - (3.3)
Utilisation of own shares - - 10.7 - - 10.7
Cash cost of satisfying share options - - - - (9.0) (9.0)
Share-based payment credit - - - - 8.9 8.9
Tax charge on items taken directly to statement of changes in equity 8 (0.3)
- - - - (0.3)
Dividends approved and paid 12 - - - - (330.4) (330.4)
Total equity at 31 December 2025 291.3 777.9 (20.2) 543.4 2,594.4 4,186.8
Consolidated Cash Flow Statement
for the year to 31 December 2025
£ million Note 2025 2024
Profit on ordinary activities before financing 174.7 333.9
Adjustments for:
Depreciation and amortisation 15.7 14.3
Pension contributions in excess of charge to the income statement (4.3) (4.0)
Share-based payment charge 8.9 9.2
Loss on disposal of assets - 14.5
Increase in provisions excluding exceptional payments 249.8 53.9
Operating cash flows before movements in working capital 444.8 421.8
Increase in inventories (14.8) (86.8)
(Increase)/decrease in receivables (53.6) 3.8
Decrease in payables (108.4) (27.1)
Cash generated from operations 268.0 311.7
Payments related to exceptional charges (68.5) (34.1)
Income taxes paid (50.0) (102.5)
Interest paid (16.3) (10.2)
Net cash generated from operating activities 133.2 164.9
Investing activities:
Interest received 12.0 28.1
Proceeds on disposal of property, plant and equipment - 0.1
Purchase of property, plant and equipment (4.2) (3.4)
Purchase of intangible assets (2.5) -
Proceeds on disposal of joint venture - 18.5
Amounts (invested in)/received from joint ventures (15.8) 30.6
Net cash (used in)/generated from investing activities (10.5) 73.9
Financing activities:
Lease capital repayments (11.6) (9.6)
Cash received on exercise of share options 1.7 0.7
Purchase of own shares (3.3) (4.0)
Repayment of borrowings (175.0) -
Proceeds from borrowings 175.0 -
Dividends paid (330.4) (339.4)
Net cash used in financing activities (343.6) (352.3)
Net decrease in cash and cash equivalents (220.9) (113.5)
Cash and cash equivalents at beginning of year 647.4 764.9
Effect of foreign exchange rate changes 3.1 (4.0)
Cash and cash equivalents at end of year 11 429.6 647.4
Notes to the Condensed Consolidated Financial Statements
1. Basis of preparation
These results do not constitute the Group's statutory accounts for the year
ended 31 December 2025 but are derived from those accounts. Statutory accounts
for 2024 have been delivered to the Registrar of Companies and those for 2025
will be delivered following the Company's Annual General Meeting. The external
auditors have reported on those accounts; its report was unqualified, did not
contain an emphasis of matter paragraph and did not contain any statements
under section 498 of the Companies Act 2006.
The consolidated financial statements are prepared in accordance with
UK-adopted international accounting standards. The statutory accounts have
been prepared based on the accounting policies and method of computations
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 a severe but plausible scenario
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 decline in total volumes of 10% in 2026 from 2025 levels,
before recovering back to 2025 levels by 2028
- Price - a reduction to current selling prices of 10%, remaining at
these levels across 2026 and 2027 before recovering to current levels by 2028
- 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, the Directors
also have a range of additional options to maintain financial strength,
including a more severe reduction in land spend and work in progress, the sale
of assets, reducing the distributions, and / or raising debt.
At 31 December 2025, the Group had a cash balance of £430 million and had
access to £600 million from a fully undrawn revolving credit facility,
together totalling £1,030 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
consolidated financial statements. Consequently, the consolidated financial
statements have been prepared on a going concern basis.
Notes to the Condensed Consolidated Financial Statements (continued)
1. Basis of preparation (continued)
Estimates and judgements
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 £24
million. During the year the provision has been increased by £225.8 million,
net of discounting, (2024: £68.9 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 continuing revenue is as follows:
£ million 2025 2024
Private sales 3,329.3 2,960.7
Partnership housing 414.1 404.1
Land and other 101.2 36.4
3,844.6 3,401.2
3. Operating segments
The Group operates in two countries, the United Kingdom and Spain. Revenue in
Spain arises entirely on private sales.
2025 2024
£ million UK Spain Total UK Spain Total
Revenue
External sales 3,652.0 192.6 3,844.6 3,214.6 186.6 3,401.2
Result
Profit before joint ventures, finance income/(costs) and exceptional items 366.8 51.7 418.5 369.0 47.4 416.4
Share of results of joint ventures before exceptional items 2.1 - 2.1 (0.2) - (0.2)
Adjusted operating profit (Note 13) 368.9 51.7 420.6 368.8 47.4 416.2
Exceptional items (Note 4) (243.8) - (243.8) (98.2) - (98.2)
Profit before net finance (costs)/income 125.1 51.7 176.8 270.6 47.4 318.0
Net finance (costs)/income (30.3) 2.3
Profit before taxation 146.5 320.3
Taxation charge (46.1) (100.7)
Profit for the year 100.4 219.6
2025 2024
£ million UK Spain Total UK Spain Total
Segment operating assets 5,342.1 233.3 5,575.4 5,355.4 236.6 5,592.0
Joint ventures 26.6 - 26.6 26.9 - 26.9
Segment operating liabilities (1,644.9) (144.0) (1,788.9) (1,654.8) (147.1) (1,801.9)
Net operating assets 3,723.8 89.3 3,813.1 3,727.5 89.5 3,817.0
Net current taxation 5.5 2.8
Net deferred taxation 25.6 20.6
Net cash 342.6 564.8
Net assets 4,186.8 4,405.2
Notes to the Condensed Consolidated Financial Statements (continued)
3. Operating segments (continued)
2025 2024
£ million UK Spain Total UK Spain Total
Property, plant and equipment additions 4.0 0.2 4.2 3.3 0.1 3.4
Right-of-use asset additions 10.0 0.7 10.7 9.2 0.2 9.4
Intangible asset additions 2.5 - 2.5 - - -
Property, plant and equipment depreciation (2.8) (0.2) (3.0) (2.4) (0.1) (2.5)
Right-of-use asset depreciation (11.0) (0.4) (11.4) (10.4) (0.3) (10.7)
Amortisation of intangible assets (1.3) - (1.3) (1.1) - (1.1)
4. Net operating expenses and profit on ordinary activities before financing
Profit on ordinary activities before financing for continuing operations has
been arrived at after charging/(crediting):
£ million 2025 2024
Administration expenses 247.4 242.0
Other expenses 115.3 101.4
Other income (122.8) (111.1)
Exceptional items 243.8 82.5
Net operating expenses 483.7 314.8
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
£ million 2025 2024
Provision in relation to cladding fire safety 225.8 68.9
Loss on disposal of joint venture - 13.6
CMA information sharing investigation 18.0 -
243.8 82.5
Share of results of joint ventures - 15.7
Unwinding of discount on cladding fire safety provision 3.9 -
Total exceptional items 247.7 98.2
Cladding fire safety
In 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 of the year led to a reassessment of the Group's
risk exposure on building remediation, including updated evaluation of
buildings that had not yet undergone intrusive FRAEW assessments. As a result,
in the first half of the year, the provision for cladding fire safety
remediation increased by £222.2 million, which was recognised as an
exceptional item. In the second half of the year the Group has made good
progress with assessments, tenders and works. Since June 2025 the provision
has increased by a further £3.6 million due to inflation, legal fees and
other minor differences, resulting in the provision increasing by £225.8
million (net of discounting) in the year, recognised as an exceptional item.
This overall increase in the provision in the year is as a result of:
· The scope of works has been expanded 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 an allowance, which represents the Group's
best estimate, to remediate cavity barrier defects in buildings where an FRAEW
assessment has not yet been received. As more FRAEW assessments are received
this risk element reduces over time.
· The Group has experienced chartered fire engineers'
interpretation of the PAS9980 standard evolve, becoming more cautious. Some
buildings that were previously considered acceptable requiring no remediation
work under earlier EWS1 assessments have now been identified as needing
remediation through recent FRAEW assessments, thereby increasing the level of
remediation required and costs involved.
Notes to the Condensed Consolidated Financial Statements (continued)
4. Net operating expenses and profit on ordinary activities before financing
(continued)
· Wider associated project costs have increased as a result of the
above, including site-specific cost increases, professional fees,
contingencies and an uplift in Building Safety Fund related buildings,
partially offset by discounting.
In 2024, the Group recognised an increase in the provision of £88.0 million
due to an escalation of costs on tenders received in that year, a small number
of new buildings being added and increased project delivery administration
costs, including the funding of Building Safety Fund pre-tender costs. In
addition, 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. This resulted in the net expense recognised by the Group in 2024
being £68.9 million.
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 2025 the Group
agreed certain commitments with the CMA in respect of those concerns, the
costs of which, including associated legal and professional fees, have been
recognised as an exceptional item.
Loss on disposal of joint venture
During 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, in the prior year, a joint venture of the Group recognised 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.
Profit on ordinary activities before financing has been arrived at after
charging:
£ million 2025 2024
Cost of inventories recognised as an expense in cost of sales 3,030.4 2,635.0
Property, plant and equipment depreciation 3.0 2.5
Right-of-use asset depreciation 11.4 10.7
Amortisation of intangible assets 1.3 1.1
5. Finance income and finance costs
Finance income:
£ million 2025 2024
Interest receivable 12.1 29.7
12.1 29.7
Finance costs:
£ million 2025 2024
Interest on bank and other loans (8.9) (8.0)
Foreign exchange loss (0.8) (0.1)
(9.7) (8.1)
Unwinding of discount on land creditors and other items (26.1) (16.7)
Unwinding of discount on provisions (3.9) -
Interest on lease liabilities (1.6) (1.5)
Net interest on pension liability (Note 10) (1.1) (1.1)
(42.4) (27.4)
Notes to the Condensed Consolidated Financial Statements (continued)
6. Taxation charge
Tax (charged)/credited in the income statement is analysed as follows:
£ million 2025 2024
Current tax:
UK: Current year (39.1) (91.9)
Adjustment in respect of prior years 2.9 4.1
Overseas: Current year (15.3) (11.2)
Adjustment in respect of prior years - -
(51.5) (99.0)
Deferred tax:
UK: Current year 5.2 (3.8)
Adjustment in respect of prior years (0.8) 2.7
Overseas: Current year 1.0 (0.6)
Adjustment in respect of prior years - -
5.4 (1.7)
Taxation charge (46.1) (100.7)
Corporation tax is calculated at 29.0% (2024: 29.0%) of the estimated
assessable profit for the year in the UK. This includes corporation tax at the
rate of 25.0% (2024: 25.0%) for the year and residential property developer
tax at the rate of 4.0% (2024: 4.0%) on profits arising from residential
property development activities. Taxation outside the UK is calculated at the
rates prevailing in the respective jurisdictions. The tax charge for the year
includes an exceptional credit of £65.5 million relating to the cladding fire
safety provision and other exceptional items (2024: £20.2 million).
The charge for the year can be reconciled to the profit per the income
statement as follows:
£ million 2025 2024
Profit before taxation 146.5 320.3
Tax at the UK corporation tax rate of 29.0% (2024: 29.0%) (42.5) (92.9)
Net over provision in respect of prior years 2.1 6.8
Net impact of items that are not taxable or deductible (7.8) (13.7)
Derecognition of deferred tax assets - (2.8)
Other rate impacting adjustments 2.1 1.9
Taxation charge (46.1) (100.7)
Notes to the Condensed Consolidated Financial Statements (continued)
7. Earnings per share
2025 2024
Basic earnings per share 2.8p 6.2p
Diluted earnings per share 2.8p 6.2p
Adjusted basic earnings per share 8.0p 8.4p
Adjusted diluted earnings per share 8.0p 8.4p
Weighted average number of shares for basic earnings per share - million 3,539.4 3,538.5
Weighted average number of shares for diluted earnings per share - million 3,548.6 3,551.9
Adjusted basic and adjusted diluted earnings per share, which exclude the
impact of exceptional items and any associated net tax amounts, are presented
to provide a measure of the underlying performance of the Group. A
reconciliation of earnings attributable to equity shareholders used for basic
and diluted earnings per share to that used for adjusted earnings per share is
shown below.
£ million 2025 2024
Earnings for basic and diluted earnings per share 100.4 219.6
Adjust for exceptional items (Note 4) 247.7 98.2
Adjust for tax on exceptional items (Note 6) (65.5) (20.2)
Earnings for adjusted basic and adjusted diluted earnings per share 282.6 297.6
8. Deferred tax
£ million Share- based payments Capital allowances Temporary differences on overseas provisions Retirement benefit obligations Losses and other Total
temporary
differences
At 31 December 2023 1.9 2.0 5.3 7.7 6.5 23.4
(Charge)/credit to income (0.2) (2.3) (0.6) (0.9) 2.3 (1.7)
Charge to other comprehensive income - - - (0.4) - (0.4)
Charge to statement of changes in equity (0.4) - - - - (0.4)
Foreign exchange - - (0.3) - - (0.3)
At 31 December 2024 1.3 (0.3) 4.4 6.4 8.8 20.6
(Charge)/credit to income (0.4) (0.8) 1.0 (0.9) 6.5 5.4
Charge to other comprehensive income - - - (0.3) - (0.3)
Charge to statement of changes in equity (0.3) - - - - (0.3)
Foreign exchange - - 0.2 - - 0.2
At 31 December 2025 0.6 (1.1) 5.6 5.2 15.3 25.6
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% (31 December 2024: 29%). Deferred tax on Spanish
temporary differences has been calculated at 25% (31 December 2024: 25%).
Notes to the Condensed Consolidated Financial Statements (continued)
8. Deferred tax (continued)
The net deferred tax balance is analysed into assets and liabilities as
follows:
£ million 2025 2024
Deferred tax assets 26.2 21.6
Deferred tax liabilities (0.6) (1.0)
25.6 20.6
The Group has not recognised temporary differences relating to tax losses
carried forward and other temporary differences amounting to £14.1 million
(2024: £15.9 million) in the UK and £19.4 million (2024: £18.4 million) in
Spain. The UK and Spanish temporary differences have not been recognised as
insufficient certainty exists as to their future utilisation.
At the balance sheet date, the Group has unused UK capital losses of £269.7
million (2024: £269.7 million). No deferred tax asset has been recognised in
respect of the capital losses at 31 December 2025 (2024: £nil) because the
Group does not believe that it is probable that these capital losses will be
utilised in the foreseeable future.
9. Inventories
£ million 2025 2024
Land 3,200.4 3,387.5
Development and construction costs 2,019.7 1,949.3
Part exchange and other 51.3 39.8
5,271.4 5,376.6
The markets in our core geographies, which are the primary drivers of our
business, continue to trade positively. At 31 December 2025, the Group
completed a net realisable value assessment of inventory, considering each
site individually and based on estimates of sales price, costs to complete and
costs to sell. At 31 December 2025, the provision held in the United Kingdom
was £12.6 million (2024: £25.1 million) and £27.6 million in Spain (2024:
£28.0 million).
The table below details the movements on the inventory provision recorded in
the year.
£ million 2025 2024
At 1 January 53.1 58.9
Net utilised (14.3) (4.2)
Foreign exchange 1.4 (1.6)
At 31 December 40.2 53.1
Notes to the Condensed Consolidated Financial Statements (continued)
10. Retirement benefit obligations
Total retirement benefit obligations of £18.1 million (2024: £22.2 million)
comprise a defined benefit pension liability of £17.8 million (2024: £22.0
million) and a post-retirement healthcare liability of £0.3 million (2024:
£0.2 million).
Defined benefit pension scheme
The Group's defined benefit pension scheme in the UK is the Taylor Wimpey
Pension Scheme (TWPS). The TWPS is a funded defined benefit pension scheme
which provides benefits to beneficiaries in the form of a guaranteed level of
pension payable for life. The level of benefits provided depends on an
individual member's length of service and their salary in the final years
leading up to retirement or date of ceasing active accrual if earlier. Pension
payments are generally increased in line with inflation subject to caps
specified in the TWPS rules. The TWPS is closed to new members and future
accrual.
The Group operates the TWPS under the UK regulatory framework. Benefits are
paid to members from a Trustee-administered fund and the Trustee is
responsible for ensuring that the TWPS is well managed and that members'
benefits are secure. Scheme assets are held in trust.
The TWPS Trustee's other duties include managing the investment of scheme
assets, administration of scheme benefits and exercising of discretionary
powers. The Group works closely with the Trustee to manage the TWPS. The
Trustee of the TWPS owes fiduciary duties to the TWPS' beneficiaries. The
appointment of the Directors to the Trustee Board is determined by the TWPS
trust documentation.
The most recent triennial valuation of the TWPS was undertaken with a
reference date of 31 December 2022. The result of this valuation was a
Technical Provisions surplus at 31 December 2022 of £55 million. As a result,
no deficit contributions were required to be paid to the TWPS or to the escrow
account established following the 2019 valuation. On an IAS 19 accounting
basis the underlying surplus in the TWPS at 31 December 2025 was £107.0
million (2024: £90.2 million). The terms of the TWPS are such that the Group
does not have an unconditional right to a refund of surplus. As a result, the
Group recognised an adjustment to the underlying surplus in the TWPS on an IAS
19 accounting basis of £124.8 million (31 December 2024: £112.2 million),
resulting in an IFRIC 14 deficit of £17.8 million (31 December 2024: £22.0
million), which represented the present value of future contributions under
the funding plan.
The TWPS Trustee holds a fixed charge over the escrow account, established
following the 2019 valuation, that is recognised in other financial assets. At
31 December 2025 the escrow account held £11.3 million (31 December 2024:
£10.8 million), with interest earned by the escrow account being retained
within 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. The escrow account will be in place
until 30 June 2028, at which point a funding test will be conducted and funds
will either be paid to the TWPS or returned to the Group.
Notes to the Condensed Consolidated Financial Statements (continued)
10. Retirement benefit obligations (continued)
In 2013, the Group introduced a £100.0 million Pension Funding Partnership
(PFP) that utilises the Group's show homes, as well as six offices, in a sale
and leaseback structure. This provides £5.1 million of annual funding for the
TWPS. In March 2024, the Group reached agreement with the Trustee to
restructure the PFP. The restructure retained the existing contributions
payable until 2029 but replaced the payment of up to £100 million that may
have been due in 2029, with seven annual payments 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. The assets held
within the PFP do not affect the IAS 19 figures (before IFRIC 14) as they
remain assets of the Group, and are not assets of the TWPS. At 31 December
2025, there was £94.1 million of property and £18.8 million of cash held
within the structure (31 December 2024: £75.1 million of property and £37.6
million of cash).
The Group continues to work closely with the Trustee in managing pension
risks, including management of interest rate, inflation and longevity risks.
The TWPS assets are approximately 102% (2024: 102%) hedged against changes in
both interest rates and inflation expectations on the scheme's long term
funding basis that is currently used for investment strategy purposes. The
TWPS also benefits from a bulk annuity contract which covers some of the
largest liabilities in the scheme, providing protection against interest rate,
inflation and longevity risk.
Accounting assumptions:
The assumptions used in calculating the accounting costs and obligations of
the TWPS, as detailed below, are set by the Directors after consultation with
independent actuaries. The basis for these assumptions is prescribed by IAS 19
and they do not reflect the assumptions that may be used in future funding
valuations of the TWPS.
2025 2024
At 31 December
Discount rate for scheme liabilities 5.40% 5.35%
General pay inflation n/a n/a
Deferred pension increases 2.00% 2.30%
Pension increases 1.85%-3.60% 1.95%-3.70%
The table below shows the impact to the present value of scheme liabilities of
movements in key assumptions.
Assumption Change in assumption Impact on Impact on scheme liabilities (%)
scheme liabilities
Discount rate Decrease by 0.5% p.a. Increase by £71m 4.6
Rate of inflation* Increase by 0.5% p.a. Increase by £37m 2.4
Life expectancy Members live 1 year longer Increase by £62m 4.0
* Assumed to affect deferred revaluation and pensioner increases in payment.
Notes to the Condensed Consolidated Financial Statements (continued)
10. Retirement benefit obligations (continued)
The table below details the movements in the TWPS pension liability and assets
recorded through the income statement and other comprehensive income.
£ million Present Fair value Asset/(liability) recognised on balance sheet
value of
of scheme assets
obligation
At 1 January 2025 (1,544.3) 1,522.3 (22.0)
Administration expenses - (2.8) (2.8)
Interest (expense)/income (79.8) 78.7 (1.1)
Total amount recognised in income statement (79.8) 75.9 (3.9)
Remeasurement gain on scheme assets - 15.7 15.7
Change in demographic assumptions (18.2) - (18.2)
Change in financial assumptions 30.5 - 30.5
Experience loss (20.4) - (20.4)
Adjustment to liabilities for IFRIC 14 (6.6) - (6.6)
Total remeasurements in other comprehensive income (14.7) 15.7 1.0
Employer contributions - 7.1 7.1
Employee contributions - - -
Benefit payments 107.2 (107.2) -
At 31 December 2025 (1,531.6) 1,513.8 (17.8)
£ million Present value of obligation Fair value Asset/(liability) recognised on balance sheet
of scheme assets
At 1 January 2024 (1,679.8) 1,653.5 (26.3)
Administration expenses - (3.1) (3.1)
Interest (expense)/income (74.7) 73.6 (1.1)
Total amount recognised in income statement (74.7) 70.5 (4.2)
Remeasurement loss on scheme assets - (98.5) (98.5)
Change in demographic assumptions (1.0) - (1.0)
Change in financial assumptions 104.1 - 104.1
Experience gain 1.3 - 1.3
Adjustment to liabilities for IFRIC 14 (4.5) - (4.5)
Total remeasurements in other comprehensive income 99.9 (98.5) 1.4
Employer contributions - 7.1 7.1
Employee contributions - - -
Benefit payments 110.3 (110.3) -
At 31 December 2024 (1,544.3) 1,522.3 (22.0)
11. 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 Bank and Total net
equivalents
other loans
cash
At 31 December 2023 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
Net cash flow (220.9) - (220.9)
Foreign exchange 3.1 (4.4) (1.3)
At 31 December 2025 429.6 (87.0) 342.6
Notes to the Condensed Consolidated Financial Statements (continued)
12. Dividends
£ million 2025 2024
Proposed
Interim dividend 2025: 4.67p (2024: 4.80p) per ordinary share of 1p each 165.4 169.9
Final dividend 2025: 2.95p (2024: 4.66p) per ordinary share of 1p each 104.6 165.0
270.0 334.9
Amounts recognised as distributions to equity holders
Paid
Final dividend 2024: 4.66p (2023: 4.79p) per ordinary share of 1p each 165.0 169.5
Interim dividend 2025: 4.67p (2024: 4.80p) per ordinary share of 1p each 165.4 169.9
330.4 339.4
The Directors recommend a final dividend for the year ended 31 December 2025
of 2.95 pence per share (2024: 4.66 pence per share) subject to shareholder
approval at the Annual General Meeting, with an equivalent final dividend
charge of c.£105 million based on the number of shares in issue at the end of
the year (2024: £165.0 million). The final dividend will be paid on 15 May
2026 to all shareholders registered at the close of business on 7 April 2026.
In accordance with IAS 10 'Events after the Reporting Period', the proposed
final dividend has not been accrued as a liability at 31 December 2025.
13. Alternative performance measures
The Group uses a number of alternative performance measures (APMs) which are
not defined within UK-adopted international accounting standards. 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 statutory measures. The following APMs are referred to
throughout the year end results.
Profit before taxation and exceptional items and profit for the period before
exceptional items
The Directors consider that the removal of exceptional items from the reported
results provides more clarity on the performance of the Group. They are
reconciled to profit before tax and profit for the period on the face of the
Consolidated Income Statement.
Adjusted operating profit and adjusted operating profit margin
Throughout the statement, adjusted operating profit is used as one of the main
measures of performance. Adjusted operating profit is defined as 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 the underlying performance of the Group. Adjusted operating profit
margin is calculated as adjusted operating profit divided by total revenue.
In preparation for the adoption of IFRS 18 'Presentation and Disclosure in
Financial Statements' in 2027, which for the first time defines an operating
profit subtotal, the Group has renamed the measures of operating profit and
operating profit margin to adjusted operating profit and adjusted operating
profit margin respectively. The calculation methodologies for the measures are
unchanged.
2025 2024
Profit on ordinary activities before financing (£m) 174.7 333.9
Adjusted for:
Share of results of joint ventures (£m) 2.1 (15.9)
Exceptional items (£m) 243.8 98.2
Adjusted operating profit (£m) 420.6 416.2
Revenue (£m) 3,844.6 3,401.2
Adjusted operating profit margin 10.9% 12.2%
Notes to the Condensed Consolidated Financial Statements (continued)
13. 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.
2025 2024 2023
Basic net assets (£m) 4,186.8 4,405.2 4,523.4
Adjusted for:
Cash (£m) (429.6) (647.4) (764.9)
Borrowings (£m) 87.0 82.6 87.0
Net taxation (£m) (31.1) (23.4) (21.8)
Accrued dividends (£m) - - -
Net operating assets (£m) 3,813.1 3,817.0 3,823.7
Average basic net assets (£m) 4,296.0 4,464.3
Average net operating assets (£m) 3,815.1 3,820.4
Return on net operating assets
Return on net operating assets is defined as rolling 12-month adjusted
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.
2025 2024
Adjusted operating profit (£m) 420.6 416.2
Average net operating assets (£m) 3,815.1 3,820.4
Return on net operating assets 11.0% 10.9%
Net operating asset turn
This is defined as total revenue divided by average net operating assets,
based on a rolling 12-month period. The Directors consider this to be a good
indicator of how efficiently the Group is utilising its assets to generate
value for shareholders.
2025 2024
Revenue (£m) 3,844.6 3,401.2
Average net operating assets (£m) 3,815.1 3,820.4
Net operating asset turn 1.01 0.89
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.
2025 2024
Basic net assets (£m) 4,186.8 4,405.2
Adjusted for:
Intangible assets (£m) (2.7) (1.5)
Tangible net assets (£m) 4,184.1 4,403.7
Ordinary shares in issue (millions) 3,557.0 3,557.0
Tangible net assets per share (pence) 117.6 123.8
Net cash
Net cash is defined as cash and cash equivalents 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 11.
Notes to the Condensed Consolidated Financial Statements (continued)
13. Alternative performance measures (continued)
Cash conversion
This is defined as cash generated from operations, which excludes payments
relating to exceptional charges, divided by adjusted operating profit on a
rolling 12 month basis. The Directors consider this measure to be a good
indication of how efficiently the Group is turning profit into cash.
2025 2024
Cash generated from operations (£m) 268.0 311.7
Adjusted operating profit (£m) 420.6 416.2
Cash conversion 63.7% 74.9%
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.
2025 2024
Cash (£m) 429.6 647.4
Loans (£m) (87.0) (82.6)
Net cash (£m) 342.6 564.8
Land creditors (£m) (522.5) (627.9)
Adjusted net debt (£m) (179.9) (63.1)
Basic net assets (£m) 4,186.8 4,405.2
Adjusted gearing 4.3% 1.4%
Adjusted basic and diluted 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 in issue during the period. The Directors consider
this provides an important measure of the underlying earnings capacity of the
Group. Note 7 shows a reconciliation from basic and diluted earnings per share
to adjusted basic and diluted earnings per share.
14. Post balance sheet events
There were no material subsequent events affecting the Group after 31 December
2025.
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