Housebuilder Taylor Wimpey has reported a good performance, as it improved its sales rate and increased its order book in its latest trading update.
In the second half to date, Taylor Wimpey said its net private sales rate per outlet per week has increased to £0.70 up from 0.51 in 2023, with a cancellation rate of 17 per cent (2023: 21 per cent).
Excluding the impact of bulk deals, it achieved a net private sales rate of 0.68 (2023: 0.48).
The High Wycombe-headquartered housebuilder generated a net private sales rate of 0.73 up to 0.63 in 2023, with a cancellation rate of 15 per cent (2023: 18 per cent).
Excluding the impact of bulk deals, its net private sales rate was 0.68 (2023: 0.57).
As of 4 November 2024, its total order book (excluding joint ventures) stood at c.£2.2 billion, a 15.8 per cent increase on 2023 with c.£1.9 billion), which translates to 7,716 homes (2023: 7,042).
The firm operated an average of 209 outlets up from 231, and expects to be operating from “just over 200 outlets” by the end of the year.
As a result of its ‘active and opportunistic’ approach in reviewing land opportunities, Taylor Wimpey said its year to date approvals were c.11,000 plots (2023: c.3k plots).
It now expects to end the year with net cash of c.£500 million, subject to the timing of land purchases in the remainder of the year.
At the end of October, the short-term land bank represented around 79,000 plots, unchanged from June 30, while its strategic land pipeline was reduced to 136,000 potential plots from 140,000 over the same period.
Looking ahead, the housebuilder expects to deliver full year 2024 UK volumes excluding JVs towards the upper end of guidance range of 9,500 to 10,000 homes, and to deliver Group operating profit in line with current market expectations.
The company’s expectations for full year 2024 operating profit (including joint ventures and excluding exceptional) items is £416 million.
The housebuilder expressed hope in the Government’s focus on addressing the UK’s housing supply and unlocking the planning system.
Jennie Daly, CEO, said: “We’re pleased with the progress and performance of our business in the second half to date.
“Our teams have continued to work extremely hard on the ground, supporting customers through their buying journey and delivering an improved sales rate – thanks to the quality of our sites and locations, and our focus on operational excellence.
“Delivering high-quality homes is essential to achieving sustainable economic growth and a thriving society and we welcome the steps the Government is taking to unlock the planning system and deliver more 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.”
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