16
January 2025
Taylor Wimpey plc
Trading statement for the year ended 31 December
2024
Taylor Wimpey is issuing the
following update on trading ahead of its full year results for the
year ended 31 December 2024, which will be announced on 27 February
2025.
Delivering in line with
guidance
Jennie Daly, CEO,
commented:
"We have delivered
a good performance during 2024 with full year UK completions
towards the upper end of our
guidance range, as previously indicated, and operating profit
expected to be in line with our previous
guidance1.
These results have been achieved while maintaining
our high-quality build and customer service standards - with our
customer service scores the highest they have ever been - testament
to the hard work and commitment of our teams on the
ground.
Taylor Wimpey is a strong and agile
business with a clear strategy focused on operational excellence.
While market conditions are uncertain, and we
continue to monitor the impact of mortgage costs on affordability,
we enter 2025 with a strong order book
and land position, underpinned by a robust balance
sheet and highly experienced teams, which
positions us well to deliver volume growth in
2025.
We remain confident
in the attractive medium and long term fundamentals of the sector
and are well placed to play our part in addressing
the significant undersupply of UK housing."
2024 performance
Total Group completions including
joint ventures were 10,593 (2023: 10,848). UK home completions
excluding joint ventures were 9,972 (2023: 10,356). We provided
2,178 affordable homes excluding joint ventures2 (2023:
2,351) equating to 22% of total UK completions
(2023: 23%). Our UK net private reservation rate for 2024 was 0.75
homes per outlet per week (2023: 0.62). Excluding the impact of
bulk deals, the net private sales rate was 0.67 (2023: 0.54). The
cancellation rate for the full year was 15% (2023: 18%).
UK average selling price on private
completions was £356k (2023: £370k) with the overall average
selling price £319k (2023: £324k). We ended the year with a strong
order book valued at £1,995 million (31 December 2023: £1,772
million), excluding joint ventures, which represents 7,312 homes
(31 December 2023: 6,999 homes), of which 3,208 are private (2023:
2,565) and 4,104 are affordable (2023: 4,434). In the second half
of the year, we experienced weaker pricing in the South of England
where affordability has been most stretched, compared to the North
where we have captured some price growth. As a result, underlying
pricing in the order book is around 0.5% lower year on
year.
In the UK, we traded from an average
of 216 outlets in 2024 (2023: 238) and ended the year with a total
of 213 outlets (31 December 2023: 237), slightly ahead of
expectations due to a small number of delayed outlet
closings.
We expect to deliver a c.19% gross
margin for 2024, which includes a c.50 basis point benefit from
previously reported land sales. We continue to expect full year
Group operating profit* to be in line with previous
guidance1.
Land and planning
As at 31 December 2024, our short
term landbank stood at c.79k plots (2023: c.80k). Our strategic
land pipeline was c.136k potential plots (2023: c.142k potential
plots).
We approved c.12k plots (2023: c.3k)
in 2024 which, as previously reported, partly reflects increased
opportunities in the land market in the run up to the
Budget.
A well-functioning planning system
is key to achieving the Government's aims for growth in
housebuilding. In December 2024, the Government revised the
National Planning Policy Framework (NPPF) which we see as a
positive step for the industry.
We have a high-quality, well-located
landbank and our experienced teams continue to work hard to
progress this land through planning. Whilst changes to the planning
system are encouraging, we expect these to take time to impact land
supply.
Spain current trading
Our Spanish business performed well,
completing 504 homes in the year (2023: 410) at an average selling
price of €440k (2023: €400k). The total order book as at 31
December 2024 stood at 491 homes (31 December 2023: 490
homes).
Group cash position
We ended the year with a net
cash‡ position of £565 million (31 December 2023: £678
million net cash), ahead of our guidance as a result of the timing
of land purchases.
Outlook
We begin the year with an increased
order book compared to the start of 2024, thanks to stronger sales
in the latter half of last year. We have seen an encouraging level
of enquiries at the start of the year, however it is too early to
gauge customer behaviour for 2025. Given our order book and current
land position, we remain well placed to grow volumes in 2025,
dependent on the evolution of mortgage rates and their impact on
affordability.
Whilst price negotiations for 2025
are ongoing, we anticipate increased build cost pressure as a
result of the changed economic backdrop, including as suppliers
seek to factor in the impacts of the recent UK
Budget.
Looking forward, we maintain a
strong balance sheet, have highly experienced teams and are well
positioned to optimise our strong landbank and strategic pipeline
for growth. We remain confident in the attractive medium and long
term fundamentals of the sector and are well placed to play our
part in addressing the significant undersupply of UK
housing.
1 Previous guidance reflected Company compiled consensus
published on 5 November 2024 with full year 2024 Group operating
profit including joint ventures and excluding exceptional items of
£416 million.
2 Full year 2024 affordable home completions including joint
ventures were 2,199 (2023: 2,388).
* Operating profit is defined as
profit on ordinary activities before financing, exceptional items,
and tax, after share of results of joint ventures.
‡ Net cash is defined as total cash less total
borrowings.
-Ends-
CEO Jennie Daly and Group Finance
Director Chris Carney will be hosting a conference call with
Q&A for analysts and investors at 9.00am on 16 January 2025.
The call will be recorded and streamed live to our website:
www.taylorwimpey.co.uk/corporate/investors/results-and-reports
For further information please
contact:
Taylor Wimpey plc
Tel: +44 (0) 1494 885656
Jennie Daly, CEO
Chris Carney, Group Finance
Director
Debbie Archibald, Investor
Relations
Andrew McGeary, Investor
Relations
FGS
Global
TaylorWimpey@fgsglobal.com
Faeth Birch
Anjali Unnikrishnan
Notes to editors:
Taylor Wimpey plc is a
customer-focused homebuilder, operating at a local level from 22
regional businesses across the UK. We also have operations in
Spain.
For further information, please visit
the Group's website: www.taylorwimpey.co.uk
Follow our company page on LinkedIn,
Taylor Wimpey plc
