AUS
NZ
UK
CA
USA
IND
Taylor Wimpey PLC has released its financial results for the first half of 2024, showing a mixed performance with notable adjustments and updates to future guidance. The company's group completions, including joint ventures, totaled 4,728 homes, compared to 5,120 in H1 2023. This decrease reflects the ongoing challenges in the housing market.
Financial Highlights
- Operating Profit: The group's operating profit for H1 2024 was £182.3 million, which includes £18.6 million from land sales. This represents a decline from £235.6 million in the same period last year, where only £2.7 million was derived from land sales. The decrease in profit is partly attributed to increased costs related to cladding fire safety.
- Dividend: Taylor Wimpey has announced an interim dividend of 4.80 pence per share, slightly up from 4.79 pence per share in H1 2023. This dividend amounts to approximately £170 million, in line with the company’s policy of returning 7.5% of net assets annually.
- Cladding Fire Safety Provision: The company has increased its cladding fire safety provision by £88 million. This rise is mainly due to cost inflation on new tenders and increased administrative costs for project delivery.
Guidance and Outlook
- UK Completions: For the full year, Taylor Wimpey anticipates that UK completions, excluding joint ventures, will be towards the upper end of the previous guidance range of 9,500 to 10,000 homes. The full-year group operating profit, including joint ventures, is expected to align with current market expectations.
- Net Cash: The company ended the period with a net cash balance of £584 million, down from £654.9 million at the end of H1 2023. The anticipated year-end net cash balance for 2024 is approximately £550 million, contingent on land expenditure in the remaining months of the year.
Sales Performance
In the four weeks ending July 28, 2024, Taylor Wimpey experienced a net private sales rate of 0.64 per outlet per week, up from 0.47 in the equivalent period of 2023. The cancellation rate for this period was 19%, a decrease from 24% in the same period last year. These figures indicate a modest improvement in sales performance despite the summer holiday season typically being quieter.
Order Book
As of the week ending July 28, 2024, Taylor Wimpey’s total order book value was £2.1 billion, slightly down from £2.175 billion in the equivalent period of 2023. This order book represents 7,667 homes, compared to 7,900 homes last year. Of these, 74% are exchanged, down from 77% in 2023.
Taylor Wimpey’s H1 2024 results reflect a challenging operating environment with a decrease in completions and operating profit. However, the company’s strategic adjustments, including increased provisions for cladding safety and a slight rise in dividends, demonstrate its commitment to navigating market conditions while maintaining shareholder returns.
