Taylor Wimpey (TW) Trading Update summary

Trading performance and financial highlights

• Delivered 9,972 UK completions (excluding joint ventures), at the upper end of guidance, with a gross margin of around 19%, including a 50bps benefit from land sales.

• Operating profit expected in line with guidance at £416 million.

• Ended the year with net cash of £565 million, ahead of guidance due to land transaction timing.

• 2024 sales rate of 0.75, up 21% year-on-year; net private sales rate for the year was 0.67, with a lower cancellation rate of 15%.

• Customer satisfaction scores reached record highs.

Market conditions and pricing

• Regional divergence emerged, with softer pricing in the South and pricing gains in the North; average UK order book price is 0.5% lower year-on-year.

• Incentives increased slightly to 5.5-6% towards year-end to support sales, especially in the broader South.

• Early 2025 trading started positively, with strong private order book up 25% by volume.

• Market uncertainty persists due to higher borrowing costs and delayed interest rate cut expectations.

Land, planning, and outlets

• Approved 12,000 new units in 2024, exceeding expectations due to attractive deals and increased landowner activity.

• Short-term landbank stood at approximately 79,000 plots, with a strategic pipeline of 136,000 potential plots.

• Opened 55 new sites in 2024; ended the year with 213 outlets, trading from an average of 216 outlets.

• Detailed planning permission held for approximately 36,000 plots; short-term land bank totals close to 40,000 plots.

• Government's revision of the National Planning Policy Framework seen as a positive industry step.