TIDMTW.
RNS Number : 3171Z
Taylor Wimpey PLC
11 January 2024
11 January 2024
Taylor Wimpey plc
Trading statement for the year ended 31 December 2023
Taylor Wimpey is issuing the following update on trading ahead
of its full year results for the year ended 31 December 2023, which
will be announced on 28 February 2024.
Group operating profit expected to be at the top end of our
guidance range
Jennie Daly, CEO, commented:
"We are pleased to have delivered a full year performance in
line with expectations and expect to report full year operating
profit* at the top end of our guidance range. Despite the difficult
market conditions throughout the year, we maintained a sharp
operational focus and delivered a good performance.
Looking ahead, it is encouraging to see a reduction in mortgage
rates, however, in the short term the market remains uncertain and
the planning backdrop extremely challenging.
Taylor Wimpey is a strong and agile business underpinned by a
robust balance sheet and an excellent, well-located landbank. These
attributes enable us to manage the business in all market
conditions, delivering quality homes to our customers and long term
value to our stakeholders. We remain confident in the attractive
medium and long term fundamentals of the sector."
2023 performance
Total Group completions (including joint ventures) were 10,848
(2022: 14,154). UK home completions (including joint ventures) were
10,438 (2022: 13,773), which included 2,388 affordable homes (2022:
2,920) equating to 23% of total completions (2022: 21%). Our net
private reservation rate for 2023 was 0.62 homes per outlet per
week (2022: 0.68). Excluding the impact of bulk deals, the net
private sales rate was 0.54 (2022: 0.65). The cancellation rate for
the full year was 18% (2022: 18%).
UK average selling prices on private completions increased by
5.1% to GBP370k (2022: GBP352k) with the overall average selling
price increasing by 3.5% to GBP324k (2022: GBP313k). We ended the
year with a lower order book valued at GBP1,772 million (31
December 2022: GBP1,941 million), excluding joint ventures, which
represents 6,999 homes (31 December 2022: 7,499 homes), of which
2,565 are private (2022: 2,943) and 4,434 are affordable (2022:
4,556).
In the UK, we traded from an average of 238 outlets in 2023
(2022: 232) and ended the year with a total of 237 outlets (31
December 2022: 259).
We continue to expect full year Group operating profit to be at
the top end of our guidance range of GBP440 million to GBP470
million.
As expected, prevailing build cost inflation continued to
moderate throughout H2 2023 and is now running at 0-1% on new
tenders. We expect underlying build cost inflation of c.4% on H1
2024 completions as inflation contained in the opening work in
progress balance is realised.
Land and planning
As at 31 December 2023, our short term landbank stood at c.80k
plots (2022: c.83k). Our strategic land pipeline was c.142k
potential plots (2022: c.144k potential plots).
Our strong land position enabled us to continue to be highly
selective in our land buying during the year and as a result, 2023
approvals were significantly lower, at c.3k plots (2022: c.7k).
The planning system remains slow and continues to impact outlet
openings as material delays in planning and technical
determinations persist. However, we have a high-quality,
well-located landbank and our experienced teams continue to work
hard to progress this land through planning.
Spain current trading
Our Spanish business performed well, completing 410 homes in the
year (2022: 381) at an average selling price of EUR400k (2022:
EUR383k). The total order book as at 31 December 2023 stood at 490
homes (31 December 2022: 448 homes).
Group cash position
We ended the year with a strong net cash(++) position of GBP678
million (31 December 2022: GBP864 million net cash).
Outlook
As previously guided, we enter the year with a reduced order
book. Whilst too early in the year to gauge customer behaviour, we
have seen good levels of enquiries so far this year and it is
encouraging to see recent mortgage rate reductions which will
improve affordability.
We will continue to focus on driving value and sales
performance, maintaining tight control on costs and investment in
work in progress.
The planning environment remains challenging and will continue
to impact outlet openings. However, as we look ahead, with a strong
balance sheet and a highly experienced management team, we remain
well positioned to optimise our strong landbank and strategic
pipeline and remain confident in the attractive medium and long
term fundamentals of the sector.
* 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:
Joint ventures completions were 82 in 2023 (2022: 222).
-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 11 January 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.
For further information, please visit the Group's website:
www.taylorwimpey.co.uk
Follow us on X via @TaylorWimpeyplc
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END
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