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RNS Number : 8659S
Taylor Wimpey PLC
09 November 2023
9 November 2023
Taylor Wimpey plc
Trading statement
Resilient performance, expect to deliver full year profit at top
end of guidance
Jennie Daly, CEO, commented:
"Taylor Wimpey has delivered a resilient performance in what
continues to be a challenging market backdrop, reporting a robust
sales rate and strong financial position, and reiterating our full
year 2023 UK volume guidance in the range of 10,000 to 10,500
homes. Due to our focus on optimising price and sharp cost
discipline, we now expect Group operating profit* to be at the top
end of our guidance range of GBP440 million to GBP470 million. This
performance is testament to the hard work of our experienced teams,
who have continued to adapt and support customers through their
buying journey while being focused on delivering efficiencies
across the business.
Taylor Wimpey is a strong, sustainable and agile business
underpinned by a robust balance sheet and an excellent well-located
landbank. These attributes ensure we are well positioned to manage
the business and optimise performance in all market conditions,
delivering quality homes to our customers and long term growth and
value to our stakeholders.
Looking ahead, while the market backdrop remains uncertain, we
are confident in the medium to long term sector fundamentals, with
a meaningful supply and demand imbalance in UK housing."
UK trading
The market continues to be impacted by weak consumer confidence
influenced by high mortgage rates and cost of living pressures
which are negatively affecting affordability for our customers.
However, we have attractive and resilient locations which, combined
with our enhanced customer and marketing tools, has enabled us to
deliver a good performance against a challenging backdrop.
In the second half to date, our net private sales rate per
outlet per week was 0.51 (2022: 0.51) with a cancellation rate of
21% (2022: 24%). Excluding the impact of bulk deals, we achieved a
net private sales rate of 0.48 for the second half to date (2022:
0.50).
For the year to date, we achieved a net private sales rate of
0.63 (2022: 0.74), with a cancellation rate of 18% (2022: 18%).
Excluding the impact of bulk deals, we achieved a net private sales
rate of 0.57 for the year to date (2022: 0.72).
As at 5 November 2023, our current total order book excluding
joint ventures stood at c.GBP1.9 billion (2022: c.GBP2.6 billion)
representing 7,042 homes (2022: 9,153).
In the year to date, we have operated on an average of 239 sales
outlets (2022: 229), and we are currently operating from 227
outlets (2022: 234).
As expected, we have continued to see build cost inflation
moderate as the year has progressed.
Optimising performance in a challenging market
Over the last year we have acted decisively and proactively to
mitigate risk through the levers available to us. In light of
reduced market demand, we have closely controlled costs and our
investment in work in progress, with our teams focused on
delivering efficiencies across the business.
We continue to be highly selective in our land buying and year
to date approvals are c.3k plots.
As at the end of October 2023, our short term landbank stood at
c.82k plots (2 July 2023: c.83k) and our strategic land pipeline
stood at c.140k potential plots (2 July 2023: c.140k). In the year
to date we have converted c.6k plots from our strategic pipeline, a
significant number of which were already owned, further limiting
land spend.
We have a strong balance sheet and are highly cash generative.
We continue to expect to end the year with net cash** between
GBP500 million to GBP650 million after returning c.GBP338 million
in dividend payments during 2023.
Outlook
We continue to expect to deliver full year 2023 UK volumes in
the range of 10,000 to 10,500 homes, and due to our focus on
optimising price and sharp cost discipline, we now expect Group
operating profit to be at the top end of our guidance range of
GBP440 million to GBP470 million.
Looking ahead, there remains significant market uncertainty and
our focus is on ensuring we remain agile and well positioned to
optimise performance in all market conditions, delivering quality
homes to our customers and long term growth and value to our
stakeholders.
Taylor Wimpey is financially strong with a high-quality,
well-located landbank and a highly experienced management team with
a focus on protecting value while driving further operational
efficiency. We remain confident in the medium to long term sector
fundamentals with a continued meaningful supply and demand
imbalance in UK housing.
* 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:
2022 relates to 2022 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 8.00am on 9 November 2023. 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 us on Twitter @TaylorWimpeyplc
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END
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