23
April 2024
Taylor Wimpey plc
Trading statement for the period covering 1 January 2024 to
today
Spring selling season
progressing as expected, full year 2024 guidance
reiterated
Taylor Wimpey plc is holding its
Annual General Meeting (AGM) today at 10:30am at the Crowne Plaza
Hotel in Gerrards Cross, where the following comments will be made
regarding current trading, financial performance, and outlook for
the financial year.
Jennie Daly, Chief Executive commented:
"We have made a good start to 2024
with the Spring selling season progressing as expected. While we
are mindful of ongoing market uncertainty and affordability
challenges, it is pleasing to see continued market stability
supported by good mortgage availability and sustained customer
confidence. Our teams are working hard on the ground to support our
customers through the buying process, underpinned by our strong
marketing strategy and the quality and location of our homes, which
are driving good levels of interest.
Looking ahead, we are confident that
we have a strong and resilient business supported by a
high-quality, well-located landbank. We remain focused on driving
value and investing in the long term sustainability of the
business, and we remain on track to deliver our guidance for 2024
while ensuring we are positioned for growth from 2025, assuming
supportive market conditions."
UK
current trading
The Spring selling season is
progressing in line with our expectations. Traffic to our website
is encouraging and there are good levels of visitors to our sites
despite some market uncertainty and affordability challenges for
some customers. Lenders continue to be supportive and mortgage
rates remain competitive and below last year's highs, with good
product availability.
Our net private sales rate for the
year to 21 April 2024 was 0.73 per outlet per week (2023: 0.75),
with a cancellation rate of 13% (2023: 15%). Excluding bulk sales,
our net private sales rate for the year to 21 April 2024 was 0.69
per outlet per week (2023: 0.66).
As at 21 April 2024, our total order
book value stood at £2,090 million (2023: £2,379 million)
representing 7,686 homes (2023: 8,576 homes).
High-quality landbank
We are differentiated by our
high-quality, well-located landbank, which is supported by a strong
strategic land pipeline, providing additional optionality through
the cycle. We continue to focus on the conversion of plots from our
strategic pipeline and successfully converted c.1.5k plots into our
short term landbank in the period. We remain selective in our
approach to new acquisitions but will be active where we see
opportunities that balance risk, reward and returns to create
shareholder value. In the year to date we have approved c.1.4k new
plots. At the end of March 2024, our short term landbank stood at
c.81k plots (2023: c.86k plots), with a further c.140k potential
plots (2023: c.140k plots) in our strategic pipeline.
Dividend
As previously announced, we intend
to pay a 2023 final ordinary dividend of 4.79 pence per share on 10
May 2024 (2022 final dividend: 4.78 pence per share), subject to
shareholder approval at today's AGM. This is in line with our
Ordinary Dividend Policy to return c.7.5% of net assets annually,
in two equal instalments.
Outlook
We remain focused on prioritising
value over volume, building a strong order book and positioning
ourselves for growth from 2025, assuming supportive market
conditions.
We continue to expect 2024 UK
completions (excluding JVs) to be in the range of
9,500 to 10,000, with completions weighted 45% /
55% in favour of the second half of the year. As previously guided,
first half operating profit margin* will reflect slightly lower
pricing in the order book and build cost inflation embedded in work
in progress of around 4%.
Looking ahead, we remain well
positioned in an attractive market with significant unmet demand.
Our strong landbank and clear strategy enable us to build
high-quality homes, create thriving communities and drive value for
our stakeholders through the cycle and into the long
term.
* Operating profit is defined as
profit on ordinary activities before financing, exceptional items
and tax, after share of results of joint ventures.
Operating profit margin is defined as operating
profit divided by revenue.
Note:
2023 relates to the equivalent
trading period, unless stated
-Ends-
CEO Jennie Daly and Group Finance
Director Chris Carney will be hosting a conference call with
Q&A for analysts and investors at 8:30am on 23 April 2024. The
call will be recorded and streamed live to our website:
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. Our purpose is to deliver great homes and create thriving
communities.
For further information, please
visit the Group's website: www.taylorwimpey.co.uk/corporate
Follow our company page on LinkedIn,
Taylor Wimpey plc