7th Nov 2024 09:59
(Alliance News) - Taylor Wimpey PLC on Thursday reported good performance in the second half of 2024, leaving the company on track to deliver the upper end of guidance.
The High Wycombe, England-based housebuilder said its net private sales rate per outlet improved to 0.70 per week in the second half from 0.51 in 2023, with a cancellation rate of 17% compared with 21% previously. Excluding bulk deals the rate was 0.68 per outlet per week compared with 0.48 before.
This in turn produced a year-to-date rate of 0.73 per outlet per week, up from 0.63, with the cancellation rate reduced to 15% from 18%. Excluding bulk deals the rate was 0.68 compared with 0.57 before.
As of Monday, Taylor Wimpey's total order book excluding joint ventures stood at GBP2.2 billion, an increase of 16% from GBP1.9 billion on-year. This amounts to 7,716 homes, up from 7,042.
Chief Executive Officer Jennie Daly said: "Looking ahead, we continue to expect to deliver full year 2024 UK volumes towards the upper end of our guidance range of 9,500 to 10,000 homes. Underpinned by a strong balance sheet, well-located landbank and highly experienced teams, we are well positioned for growth from 2025, assuming supportive market conditions."
At the end of October the short-term land bank represented around 79,000 plots, unchanged from June 30. The strategic land pipeline meanwhile reduced to approximately 136,000 potential plots from 140,000 over the same period.
Taylor Wimpey operated an average of 209 outlets in the second half, up from 231, and by year-end the company expects to be operating from "just over 200 outlets".
"Looking ahead, we welcome the [UK] government's focus on addressing the UK's housing supply and unlocking the planning system which we expect to have positive implications for the supply of land over the medium term," Taylor Wimpey added. "We have excellent visibility of our land pipeline to deliver growth from 2025, assuming a supportive market."
Taylor Wimpey shares were up 0.4% at 140.41 pence each in London on Thursday morning.
By Elijah Dale, Alliance News reporter
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