Taylor Wimpey Increases Sites from 271 to 301 and Maintains Landbank at c.63,500 Plots

Another House Builder – Taylor Wimpey plc –  issues a trading update this month.

A full copy of the Statement can be seen by following the links at the bottom of this post but the high lights on its land / site purchases and housing stock are posted below details regarding its trading figures and profit can be seen on our Onyx Consultants blog site:

18 January 2011
Taylor Wimpey plc


Trading Statement for the year ended 31 December 2010
Taylor Wimpey plc is issuing the following update on trading ahead of its Full Year
Results for the year ended 31 December 2010, which will be announced on 3 March
2011.
Overview
• Underlying operating profit and profit before tax ahead of the upgraded
expectations set in the November IMS due to outperformance in North America
• Full year reported operating margin for UK Housing expected to be approximately
7% (FY 2009: 0.8%)
• Refinancing completed, giving the Group greater operational flexibility and
secured funding at a lower blended rate
• Strong cash generation and lower than expected net debt of c.£660 million,
despite one-off refinancing payments and pension contribution of £183 million
• Strong position to deliver further margin improvement in 2011

Pete Redfern, Chief Executive of Taylor Wimpey, said “We have delivered a much
improved performance in 2010. We are now in a strong position to add significant
value by maximising returns from our existing land portfolio and adding high quality
new land on attractive terms.”
UK Housing
Despite the ongoing economic uncertainty, trading during the second half of the year
was in line with our overall expectations, with mortgage availability remaining the key
constraint on industry volumes.

Our net private reservation rate for the full year was 0.51 homes per outlet per week
(2009: 0.55) with cancellation rates remaining in line with the long term average at
18.2% (2009: 18.7%). Selling prices remained stable through the second half of the
year, after some small increases in the first half, and we continue to be sparing in our
use of shared equity incentives. We have increased our number of outlets to 301 at
the year end from a low point of 271 in September 2010 and expect to deliver further
growth during 2011.


We completed a total of 9,962 homes in 2010 (2009: 10,186), of which 8,103 were
private completions (2009: 8,432), 1,824 were affordable homes (2009: 1,709) and
35 were joint venture completions (2009: 45). The overall average selling price for
these completions was £171k, an increase of 7% over the 2009 equivalent of £160k.
The average selling price for private completions increased to £184k (2009: £171k)
and the affordable average selling price rose to £116k (2009: £108k).

We remain focused on enhancing the quality of our landbank, through replanning,
selective new acquisitions and promotion of our strategic plots. At the year end we
owned or controlled c63,500 plots in our consented landbank (04/07/2010: 63,291),
which represents approximately 6.4 years of supply at current completion levels. In
addition, we have maintained our consistent, disciplined approach to land acquisition
and have approved new land purchase commitments for 4,561 new plots since the
half year (H2 2009: 3,003 plots), with limited use of deferred payment terms.

A full copy of the statement from Taylor Wimpey can be obtained from their website http://www.taylorwimpeyplc.com/ or the following link Statement Report

Onyx Construction Consultants are pleased to count Taylor Wimpey as one of its valued clients working with its Bury St Edmunds, Milton Keynes and Borehamwood offices and glad to see that they are doing well in the current market conditions.

If you are a house builder and need temporary assistance with your commercial needs or a subcontractor looking for an introduction to major house builders then contact Andrew Fella at Onyx Construction Consultants Ltd

Bovis adds 3,700 Plots to its Land Bank with Terms Agreed on Further 2,500 Plots

More good news from another House Builder – Bovis who issued their trading update today.

A full copy of the Statement can be seen by following the links at the bottom of this post but the high lights on its land / site purchases and housing stock are posted below details regarding its trading figures and profit can be seen on our Onyx Consultants blog site:

Trading update January 2011, 14 January 2011

Overview

Bovis Homes Group PLC is today issuing the following trading update ahead of reporting its preliminary results for the year ended 31 December 2010 on Monday 14 March 2011.

The Group has achieved a significant improvement in profits in 2010 and has made strong progress in implementing its land investment strategy.

Strong balance sheet; land acquisitions to fuel growth

The cash position of the Group as at 31 December 2010 remained strong, with net cash of £52 million, having started 2010 with £113 million of net cash. The overall cash outflow was contributed to by payments during the year of c.£138 million relating to land investment, with strong operating cash inflows pre-land expenditure of c.£93 million.

The Group has outlined its growth strategy to acquire good quality residential land which will provide an increase in sales outlets to support volume growth, and based on current market conditions will deliver growth in profits and improved financial returns. The Group has been successful in 2010 in acquiring consented land, adding c.3,700 plots to the land bank at a cost of £203 million and with a gross profit potential of £181 million. This land has been purchased based on acquisition appraisals using current day sales prices and costs and which generate financial returns in line with the Group’s investment ‘hurdle’ rates. The land acquired has been geographically focused with 80% of the plots in the South of England. Furthermore, the Group has terms agreed for the acquisition of an additional c.2,500 plots.

Commenting on the progress achieved in 2010, David Ritchie , Chief Executive of Bovis Homes, said:

“We are pleased with the positive Group performance in 2010 and remain confident of our growth strategy through the acquisition of good quality residential land at attractive rates, which will provide an increase in sales outlets to support volume growth. Based on current market conditions this will deliver growth in profits and improved financial returns which will add significantly to future shareholder value.”

A full copy of the statement from Bovis Homes can be obtained from their website http://www.bovishomesgroup.co.uk/information-on/press-releases/ or the following link Statement Report

If you are a house builder and need temporary assistance with your commercial requirements or a subcontractor looking for an introduction to major house builders such as Bovis Homes then contact Andrew Fella at Onyx Construction Consultants Ltd

Galliford Try Increases Landbank to 9,500 Plots

Housebuilding and construction group Galliford Try said there was a 8% increase in its landbank to 9,500 plots and a 28% increase in total housing completions to 851 units in the half to end-December. In the Trading Statement released by the company today for the 6 months to End December 2010.

A full copy of the Statement can be seen by following the links at the bottom of this post but the high lights on its land are posted below:

GALLIFORD TRY PLC

TRADING UPDATE

Galliford Try plc, the housebuilding and construction group, today provides the following update on trading for the half year ended 31 December 2010.  The group expects to announce its results for the half year on 23 February 2011.

Highlights

Land

·      8% increase in total landbank to 9,500 plots (31 December 2009: 8,800 plots).

·      62% of landbank now secured at current market values, (31 December 2009: 36%).

·      Selected as preferred developer on projects in all three HCA delivery partner panel regions.

Greg Fitzgerald, Chief Executive, commented:

“While the economic outlook is still uncertain, the board continues to be encouraged by the progress being made in housebuilding and by the resilience of the Group’s construction business.  While remaining cautious in the short term, the Group is confident in its strategy for delivering the objectives of its expansion plan.”

Good land opportunities continue to be available.  Galliford Try’s expertise on working with local communities and planning authorities to obtain planning consents on land secured on a conditional basis remains an important factor in providing future development sites.  Our total land bank at 31 December 2010 is 9,500 plots (2009: 8,800) of which 5,900 plots, or 62% of our total landbank, have been acquired under current market conditions, compared to 36% a year ago.  Based on our strict financial criteria for land acquisitions, we have 2,700 plots with terms agreed in the pipeline.

We are now preferred bidder on development opportunities in all three regions of the Homes and Communities Agency’s delivery partner panels, demonstrating our industry leading presence in affordable housing and regeneration across the country.  We also anticipate that the Government’s designation of up to 80% of open market rent as affordable housing will support development levels, sustaining both pricing and sales volumes in the sector.

A full copy of the statement from Galliford Try can be obtained from their website http://www.gallifordtry.co.uk/investors or the following link Statement Report

If you are a house builder and need temporary assistance with your commercial requirements or a subcontractor looking for an introduction to major house builders such as Galliford Try then contact Andrew Fella at Onyx Construction Consultants Ltd

Barratt Looking to Open 110 Sites in next 6 Months

Barratt Developments issued an 6 month trading Statement today giving details of  its half year trading to End of December 2010 including details of Plot sales and land purchases with them looking to open 110 new sites in the next six months (net gain after closure of finished sites of 60 sites). The agreement of terms on 57 sites equating to a total of  6,078 plots (£318.0m of land purchases) in the last 6 months.

The relevant sections of the Statement are given below but a full copy showing the previous 18 months of land deal totals can be obtained from the link to their site and report given at the bottom of this post.

Barratt Developments PLC

TRADING UPDATE

Barratt Developments PLC is today issuing a trading update for the Company and its subsidiary undertakings (“the Group”) for the six months to 31 December 2010 (“the period”) ahead of its interim results announcement.

“The Group has delivered a significant improvement in both average selling prices and operating margin even though sales volumes have been affected by difficult trading conditions.  We are on course to make further progress in the second half as we open new higher margin sites and continue to be value and quality focused.” 

Trading 

During the period the Group operated from an average of 352 active sites, down from 368 for the equivalent period in the prior year and 353 in the second half of FY 2009/10.  The Group opened 79 active sites and closed 52 active sites, resulting in a net increase in active sites to 366 as at 31 December 2010.  In the second half we expect to open a further c. 110 sites, and taking into account site closures, the net increase in active sites as at 30 June 2011 is expected to be c. 60, taking active sites at 30 June 2011 to c. 400. 

Net private reservations per active site per week were down in the period at 0.39 (H1 2009/10: 0.49), reflecting weaker customer sentiment.  The cancellation rate for the first half was 20.1% (H1 2009/10: 17.8%). 

Total completions (Note 1) for the period were 4,832 units (H1 2009/10: 5,053) with private completions of 3,669 (H1 2009/10: 4,381), social housing completions of 1,127 (H1 2009/10: 647) and joint venture completions of 36 (H1 2009/10: 25).  Social housing accounted for 23.5% (H1 2009/10: 12.9%) of completions (excluding joint ventures). The social housing mix has increased due to the higher level of new site openings over the past twelve months and the phasing of social delivery upon existing sites… 

Given the constraints on mortgage finance, particularly at higher loan to value ratios, shared equity products have remained an important part of our sales mix.  In the period, total shared equity product represented 28% of completions (H1 2009/10: 27%).  Of these completions, 537 (H1 2009/10: 754) used the Government HomeBuy Direct initiative and the remainder used our own schemes.  We have also targeted and achieved an increase in part-exchange, with 13% (H1 2009/10: 10%) of our completions supported by this in the period.  We continue to manage our part-exchange stock effectively.

Land and planning

During the first half we have continued to pursue land opportunities where they provided attractive returns.

In the six months to 31 December 2010 we have agreed terms on £318.0m of land purchases equating to a total of 57 sites and 6,078 plots, of which 81% are for houses (Note 4).  For the full year 2010/11 we anticipate agreeing terms on around 8,000 plots (mid 2009 to June 2010: 13,359 plots).

The majority of the Group’s landbank already has outline or detailed planning consent.  Specifically the Group has detailed planning consent for 100% of budgeted volumes for FY 2010/11.  For FY 2011/12, 86% of budgeted volumes have detailed planning consent, with a further 7% having outline planning consent.

The Group’s owned land bank totalled around 50,800 plots as at 31 December 2010 (2009: 50,990).  This equates to approximately 4.5 years supply based on FY 2009/10 completion volumes.

Stock and work in progress

Stock and work in progress have been tightly controlled throughout the period.  Unreserved stock units as at 31 December 2010 totalled 837 (2009: 691), 2.3 units per active site (2009: 1.9 units).

A full copy of the statement from Barratts can be obtained from their website http://www.barrattdevelopments.co.uk/barratt/en/home or the following link Statement Report

Andrew Fella at Onyx Construction Consultants is pleased to have counted Barratt as one of his first Clients when he first went freelance many years ago helping them set up their new offices in the Eastern Region at Brentwood before they moved to new premises at Chelmsford a couple of years later having out grown the old offices. Its great to see some of the guys are still there and getting the job done.

If you are a house builder and need  assistance with your commercial requirements or a subcontractor looking for an introduction to major house builders such as Barratts then contact Andrew Fella at Onyx Construction Consultants Ltd

Bellway to Increases Sites from 185 to 200 in Early 2011

Things are looking up at Bellway Homes including the number of sites opening and more importantly their profit which was up 20%. With their land buyers looking to buy new land on top of the 1260 plots already bought in the later part of 2010.

Just a few of the facts issued by Bellway Homes in their Interim Management Statement on 7th December 2010.

The report in part:

Interim Management Statement

Bellway is today issuing an Interim Management Statement (IMS) relating to the
period from 1 August to 30 November 2010…

Our divisions are gradually increasing investment in new site openings and it
is anticipated that the number of selling outlets will increase from 185 to
around 200 in early 2011. Having completed the acquisition of 1,260 plots in
the period and still maintaining a net cash position, the balance sheet remains
robust. The Group’s land teams are actively looking to secure further
opportunities at attractive margins and the divisions are concentrating on
bringing newly acquired sites to the market as quickly as possible to underpin
the operating margin going forward.

The outcome for the year to 31 July 2011 will be greatly dependent on the level
of consumer confidence during the 2011 spring selling season. This, in turn is
reliant on a reasonable supply of affordable mortgages combined with sensible
lending criteria.

The Board believes it is currently well positioned in what continues to be a
tough and testing market for UK housebuilding.

A copy of the full report can be viewed on our sister site under the heading Bellway Homes – Interim Statement – Profits up 20%

Onyx Consultants are pleased to say that they have worked with a number of the people at Bellway Homes in the past and are glad to see that they will be kept busy again this year.

For more details on how Onyx Consultants Ltd and its Onyx Construction Marketing can help you do more work for the top house builders contact Andrew Fella 01473 743682 or visit the Onyx Website for more details.

Berkeley Group Increases Land Bank

As Part of its Interim Statement  issued Friday 3rd November 2010 the Berkeley Group gave details of its increased land bank, including traditional sites (one assumes not classed as brown field) in St Albans, Oxford and Horsham. Other sites acquired as their report suggests are in Prime London locations.

An Extract of the Land Section of the Interim statement is given below:

Land Holdings

At 31 October 2010, the Group (including joint ventures) controlled some 28,914 plots with an estimated gross margin of £2,301 million.  This compares with 28,099 plots and an estimated gross margin of £2,038 million at 30 April 2010. Of the total 28,914 plots, 28,647 plots (April 2010: 27,094) are owned and included on the balance sheet.  In addition, 226 plots (April 2010: 935) are contracted and 41 plots (April 2010: 70) have terms agreed. In excess of 95% of our holdings are on brown-field or recycled land.

The increase in the land bank is a result of new land acquisitions in the period which has seen Berkeley agree 13 new sites, covering some 2,500 plots.  These new sites include prime London sites in Westminster and on Hammersmith Embankment, traditional sites in St Albans and Oxford and a site in Horsham for over 1,000 units acquired through strategic land in its long-term pipeline. All of the sites agreed are in excellent locations in London and the South East with strong underlying demand for quality new homes where Berkeley can create vibrant new communities and enhance value through its development expertise.

In addition to the 28,914 plots in its land bank, and after accounting for the transfer of the site at Horsham acquired in the period to the land bank, Berkeley continues to have approximately 10,000 plots in its long-term pipeline, which it envisages delivering over the next ten years.  This includes the latter phases of Kidbrooke and Woodberry Down, strategic land and a number of sites being worked up within St Edward Homes, Berkeley’s joint venture with Prudential.  Of a more long-term nature; Berkeley hopes these sites will come through into the land bank but they currently have an uncertain outcome due to planning policy or vacant possession issues.

In terms of planning, Berkeley entered the year having achieved new or revised planning consents on 38 of its sites in the run up to the May Election.  It is therefore very pleasing to have had a number of further notable successes in the first half of this year.  These include sites in Belgravia, Westminster, Greenwich, Roehampton and Oxford, and revised consents for schemes in Battersea and Acton and the second phase of the student scheme being developed in Clapham for Imperial College.  Through the ongoing re-planning and re-assessment process, the land bank includes a net reduction of approximately 400 plots due to a combination of re-planning densities and increasing individual unit sizes and removing plots that are no longer commercially viable.

St Edward Homes accounts for some 1,400 plots in the land bank across three sites.  These include: Stanmore Place, where the first phase is selling well and development on later phases progressing and 375 Kensington High Street, which has been successfully launched to the market and where demolition work has begun.  In addition, Berkeley continues to work with Prudential to identify further sites to which St Edward Homes can add value and three of these are in the long-term pipeline.

It seems that the Berkeley Group have managed to capitalise on land at the right place and time. We remember them doing well through and after the last recession and they have done it again!

Onyx Consultants have a number of friends and contacts within the Berkeley Group of companies, glad to see they will still be employed this year and looking like being kept very busy.

For more details on how Onyx Consultants Ltd and its Onyx Construction Marketing can help you do more work for the top house builders contact Andrew Fella 01473 743682 or visit the Onyx Website for more details.

UK’s 20 Biggest House Builders by Turnover

The Top 20 house builders league table ranks the UK’s 20 biggest house builders by turnover and profit.

2010 Rank by turnover

2010 Rank by profit

Company

Latest turnover (£m)

Previous turnover (£m)

Latest pre-tax profit (£m)

Previous pre-tax profit (£m)

Latest margin (%)

Previous margin (%)

2009 Rank by Turnover

2009 Rank by Profit

1

20

Taylor Wimpey

2,596

3,468

-700

-1,970

-27.0

-56.8

2

25

2

19

Barratt

2,285

3,555

-679

137

-29.7

3.9

1

2

3

2

Persimmon

1,421

1,755

77.8

-780

5.5

-44.4

3

24

4

12

Bellway

684

1,150

-36.6

34.8

-5.4

3.0

4

4

5

1

Berkeley

615

702

110

120

17.9

17.1

5

1

6

8

Bloor *

311

335

-1.5

-51.9

-0.5

-15.5

13

18

7

17

Miller

310

646

-157

52.9

-50.6

8.2

12

21

8

16

Redrow

302

650

-141

-194

-46.7

-29.8

7

22

9

6

Bovis Homes

282

282

4.8

-78.7

1.7

-27.9

15

20

10

10

Stewart Milne

276

420

-27

25.1

-9.8

6.0

11

6

11

13

Crest Nicholson **

238

544

-50.7

-383

-21.3

-70.4

8

23

12

14

Galliford Try

235

486

-53.8

10.6

-22.9

2.2

6

8

13

3

McCarthy & Stone ***

226

457

19

114

8.4

24.9

10

3

14

7

Fairview

224

223

0.4

-32.3

0.2

-14.5

17

17

15

9

Countryside

188

518

-25.7

26.5

-13.7

5.1

9

5

16

11

Cala

168

175

-33.9

-266

-20.2

-152.0

14

11

17

5

Telford

159

107

7.3

4.3

4.6

4.0

24

12

18

15

Kier

151

312

-62.4

-21.2

-41.3

-6.8

16

15

19

18

McInerney

127

256

-164

-175

-129.1

-68.4

22

14

20

4

Morris

112

163

11.9

17.3

10.6

10.6

18

9

Totals

10,910

16,204

(1,901)

(3,410)

All companies ranked according to their most recently filed accounts.

For more details on how Onyx Consultants Ltd and its Onyx Construction Marketing can help you do more work for the top house builders contact Andrew Fella 01473 743682 or visit the Onyx Website for more details.

%d bloggers like this: