TIDMTW.
RNS Number : 2311W
Taylor Wimpey PLC
22 April 2021
22 April 2021
Taylor Wimpey plc
Trading statement for the period covering 1 January 2021 to
today
Taylor Wimpey plc is holding its Annual General Meeting (AGM) at
10:00am today at its registered office in High Wycombe, where the
following comments will be made regarding current trading,
financial performance, and outlook for the financial year. In light
of current restrictions, shareholders will unfortunately not be
permitted to attend the AGM in person and are encouraged to follow
the AGM remotely via an audiocast facility.
Pete Redfern, Chief Executive, commented:
"The UK housing market continues to be resilient and we are
trading in line with our full year expectations. With strong market
fundamentals, customer demand for our high-quality homes remains
robust and we are achieving a strong sales rate and building a
healthy forward order book.
The last year has been very challenging for everyone and I must
again thank our teams for their outstanding efforts and commitment
which have enabled us to continue to deliver for customers. It was
pleasing to be recognised by the Home Builders Federation as a
five-star homebuilder in March this year and we remain focused on
delivering the highest quality service to our customers.
We are a cash generative business with a strong balance sheet
and remain focused on our strategic priorities to drive operating
profit margin while creating long term value for our customers and
shareholders."
UK current trading and operations
The UK housing market has remained healthy in 2021, underpinned
by continued strong customer demand, low interest rates, good
mortgage availability and ongoing Government support, particularly
for first time buyers. The transition into the next phase of Help
to Buy has progressed smoothly and we have experienced strong
customer demand for our homes under the new scheme.
Our net private sales rate for the year to 18 April was strong
at 1.00 (2020 equivalent period: 0.90) with a cancellation rate of
14% (2020 equivalent period: 16%). We have achieved growth on sales
prices realised at the end of last year.
As at 18 April 2021, our total order book value stood at
approximately GBP2,808 million (2020 equivalent period: GBP2,668
million). This represents 10,995 homes (2020 equivalent period:
10,853 homes), excluding legal completions to date.
We have made good early progress on our 2021 priorities,
including driving operating profit* margin and an enhanced cost
control mindset across the business. Our focus remains on
delivering our operating profit margin target of c.21-22% in the
medium term.
Growing quality landbank
Our high-quality landbank continues to be a strategic
differentiator for the business. At the end of March 2021, our
short term landbank stood at c.82k plots (2020 equivalent period:
c.78k plots). Our strategic land pipeline stood at c.143k potential
plots as at the end of March 2021 (2020 equivalent period: c.137k
plots).
Dividends
As previously announced, we intend to pay a 2020 final ordinary
dividend of 4.14 pence per share on 14 May 2021 (2019 final
dividend: nil), subject to shareholder approval at today's AGM, and
a 2021 interim dividend of c.4.14 pence per share in November, in
line with our Ordinary Dividend Policy to return c.7.5% of net
assets annually, in two equal instalments.
As we look forward, it remains our intention to return excess
capital to shareholders in line with our policy. We are not
planning to make a capital return in 2021 and will review the
potential level of excess capital at the time of our 2021 full year
results in March 2022, for payment in 2022.
Board updates
Since last year's AGM, Kate Barker stepped down at the end of
her tenure after serving commendably on the Board since 2010. Two
new Non Executive Directors, Scilla Grimble and Jitesh Gadhia
joined our Board on 1 March 2021. Both are highly experienced
executives who will add valuable skills and perspectives to the
Board.
Outlook
Despite the continuation of national restrictions in the first
few months of the year, customer demand for new housing has
remained resilient. The extension of the Stamp Duty Land Tax
holiday and the announcement of the 95% Mortgage Guarantee Scheme
demonstrate that housing remains a priority for the UK
Government.
Trading is in line with expectations and we remain on track to
deliver against our guidance set out at our 2020 full year results
in March.
-Ends-
* Operating profit is defined as profit on ordinary activities
before net finance costs, exceptional items and tax, after share of
results of joint ventures.
For further information please contact:
Taylor Wimpey plc Tel: +44 (0) 7826 874461
Chris Carney, Group Finance Director
Debbie Archibald, Investor Relations
Andrew McGeary, Investor Relations
Finsbury TaylorWimpey@Finsbury.com
Faeth Birch
Anjali Unnikrishnan
Notes to editors:
Taylor Wimpey plc is a customer-focused residential developer,
operating at a local level from 23 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 Twitter via @TaylorWimpeyplc
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END
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