AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
_09_03_2024_01_03_36_873870.jpg)
Highlights:
- Stable Demand: Taylor Wimpey reports a rise in private sales rates, reflecting steady demand in the housing market.
- Positive Order Book: The company’s order book value stands at £2.2 billion, showcasing strong future commitments.
- Financial Health: Taylor Wimpey expects to close the year with a net cash balance around £500 million, reinforcing its financial position.
Taylor Wimpey PLC (LSE:TW) delivered a stabilizing update for the housebuilding sector following Persimmon’s recent cautionary note on rising costs. In its latest trading statement, the FTSE 100 housebuilder highlighted resilience in demand and a steady performance outlook, with anticipated UK volumes and operating metrics on track to meet prior guidance.
As of the second half of 2024, Taylor Wimpey’s net private sales rate per outlet per week rose to 0.70, up from 0.51 the previous year. This growth indicates sustained demand, as does the company’s solid order book, which holds a value of £2.2 billion as of 4 November.
In financial terms, Taylor Wimpey projects a strong end to 2024, expecting to retain approximately £500 million in net cash. This figure remains subject to the timing of planned land purchases, but even with these investments, the full-year UK volumes are set toward the higher end of the company’s guidance of 9,500 to 10,000 homes, excluding joint ventures.
Taylor Wimpey’s strategic land bank also strengthens its market positioning. With all land required for 2025 completions either owned or controlled, and with detailed planning in place for most of these sites, the company is well-equipped to meet future demand. It noted the potential positive impact of the UK government’s focus on addressing housing supply and streamlining the planning system, which could facilitate land availability over the medium term.
While some in the sector remain cautious, Taylor Wimpey’s outlook and forward-looking order book demonstrate its strong footing. As the year draws to a close, Taylor Wimpey’s strategic focus remains on reinforcing its order book and readying for future growth, supported by its robust financial position and comprehensive land portfolio.
