7
November 2024
Taylor Wimpey plc
Trading statement
Good performance, trading in
line with expectations
Jennie Daly, CEO,
commented:
"We're pleased with the progress and
performance of our business in the second half to date. Our teams
have continued to work extremely hard on the ground, supporting
customers through their buying journey and delivering an improved
sales rate - thanks to the quality of our sites and locations, and
our focus on operational excellence.
Delivering high-quality homes is
essential to achieving sustainable economic growth and a thriving
society and we welcome the steps the Government is taking to unlock
the planning system and deliver more homes.
Looking ahead, we continue to expect
to deliver full year 2024 UK volumes towards the upper end of our
guidance range of 9,500 to 10,000 homes. Underpinned by a strong
balance sheet, well-located landbank and highly experienced teams,
we are well positioned for growth from 2025, assuming supportive
market conditions."
UK
trading
In the second half to date, we saw
steady signs of improvement in customer demand as mortgage rates
reduced and affordability improved. Whilst there was some
uncertainty ahead of the Budget, we remain on track to deliver UK
volumes in line with previous guidance and Group operating profit*
in line with current market expectations1.
In the second half to date, our net
private sales rate per outlet per week was 0.70 (2023: 0.51) with a
cancellation rate of 17% (2023: 21%). Excluding the impact of bulk
deals, we have achieved a net private sales rate of 0.68 (2023:
0.48).
For the year to date, we have
achieved a net private sales rate of 0.73 (2023: 0.63), with a
cancellation rate of 15% (2023: 18%). Excluding the impact of bulk
deals, our net private sales rate was 0.68 (2023: 0.57).
As at 4 November 2024, our current
total order book excluding joint ventures stood at c.£2.2 billion
(2023: c.£1.9 billion), representing 7,716 homes (2023:
7,042).
In the second half to date, we
operated from an average of 209 sales outlets (2023: 231). At the
year end, taking into consideration prevailing sales rates and
planned outlet openings, we expect to be operating from just over
200 outlets.
Driving operational performance
Our performance in the period
reflects our high-quality locations and excellent teams. We have
continued to support our customers through the homebuying process
and, consistent with our strategy, are focused on delivering value
across the business. Whilst it is still early in their tenure, we
look forward to working constructively with the Government to
deliver much needed new homes across the UK.
During the year we have been active
and opportunistic in reviewing land opportunities and in the weeks
leading up to the recent Budget we saw a number of attractive
opportunities. As a result, our year to date approvals are c.11k plots (2023: c.3k plots). We now expect to
end the year with net cash** of c.£500 million, subject to the
timing of land purchases in the remainder of the year.
As at the end of October 2024, our
short term landbank stood at c.79k plots (30 June 2024: c.79k
plots) and our strategic land pipeline stood at c.136k potential
plots (30 June 2024: c.140k potential plots). In the year to date,
we have converted c.4k plots from our strategic pipeline (2023:
c.6k plots).
Outlook
We continue to expect to deliver
full year 2024 UK volumes excluding JVs towards the upper end of
our guidance range of 9,500 to 10,000 homes, and to deliver Group
operating profit in line with current market
expectations1.
As we move towards the year end, our
focus is on building our order book to optimise value and position
us for 2025. Looking ahead, we welcome the Government's focus on
addressing the UK's housing supply and unlocking the planning
system which we expect to have positive implications for the supply
of land over the medium term. We have
excellent visibility of our land pipeline to deliver growth from
2025, assuming a supportive market. As
previously reported, we own and control all land for 2025
completions, almost all of it with detailed planning. We continue
to leverage our strategic land position with proactive applications
in the system and additional applications prepared if we see the
proposed National Planning Policy Framework changes adopted in the
coming months.
We remain confident in the
fundamentals of the market with strong underlying demand for the
homes we sell. We have positioned our business to operate through
the cycle, leaving us well placed to create value for all our
stakeholders.
1 As published on 5 November 2024, the Company compiled
consensus expectation for full year 2024 Group operating profit
including joint ventures and excluding exceptional items is £416
million.
* Operating profit
is defined as profit on ordinary activities before financing,
exceptional items and tax, after share of results of joint
ventures.
** Net cash
is defined as total cash less total borrowings.
Note:
2023 relates to 2023 equivalent
trading period, unless stated otherwise.
-Ends-
CEO Jennie Daly and Group Finance
Director Chris Carney will be hosting a conference call with
Q&A for analysts and investors at 9.00am on 7 November 2024.
The call will be recorded and streamed live to our website:
https://www.taylorwimpey.co.uk/corporate/investors/results-and-reports
For further information please
contact:
Taylor Wimpey plc
Tel: +44 (0) 1494 885656
Jennie Daly, CEO
Chris Carney, Group Finance
Director
Debbie Archibald, Investor
Relations
Andrew McGeary, Investor
Relations
FGS
Global
TaylorWimpey@fgsglobal.com
Faeth Birch
Anjali Unnikrishnan
James Gray
Notes to editors:
Taylor Wimpey plc is a
customer-focused homebuilder, operating at a local level from 22
regional businesses across the UK. We also have operations in
Spain.
For further information please visit
the Group's website: www.taylorwimpey.co.uk/corporate
Follow our company page on LinkedIn,
Taylor Wimpey plc