Taylor Wimpey (TW) Trading Update summary

Trading performance and financials

• Delivered 9,972 UK completions (excluding joint ventures), at the upper end of guidance, with a gross margin around 19% and operating profit in line with guidance at £416 million.

• Total group completions, including joint ventures, were 10,593.

• Net private reservation rate improved to 0.75 homes per outlet per week, with a lower cancellation rate of 15%.

• UK average selling price on private completions was £356k, with overall ASP at £319k.

• Ended 2024 with a strong order book of £1,995 million, representing 7,312 homes.

Market conditions and pricing

• Regional divergence emerged, with softer pricing in the South and gains in the North, resulting in a 0.5% year-on-year decline in the UK order book's underlying price.

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

• Early 2025 trading indicators are positive, with increased website and organic inquiries, though walk-in appointments were weaker.

Land, planning, and outlets

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

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

• Strong land bank with 26,500 plots in the planning system; 98% of 2025 volumes will come from outlets already open or in preparation.

• Ended 2024 with 213 outlets, slightly above plan due to delayed closures; expect more openings in 2025, weighted to the second half.

• Traded from an average of 216 outlets in 2024.