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
• 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.”
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.
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