Highlights and details below:
Taylor Wimpey plc
Results for the year ended 31 December 2010
Land acquisitions driven by quality and value
– UK short-term land portfolio in excess of 6 years’ supply
– Over 8 years’ supply of strategic land
Continued focus on operational improvement
– Replanning successfully achieved on 63% of suitable sites
– Close engagement with government on Localism Bill and future planning policy
We have a Landbank with planning consent that is equivalent to more than six years of completions at current levels and a further 77,060 plots in our strategic landbank. We view this as an investment portfolio that we manage actively to create value for shareholders.
Looking back over the last housing market cycle in the UK, it is clear that the industry shifted towards a strategy of growing profits through growing volumes as the market picked up from the mid-1990s through to 2007. This led to land strategies based on achieving volume targets and increased the risks inherent in a cyclical business. The strength of our existing land portfolio enables us to target our activity in the land market to only the best opportunities. We continue to be highly selective with regard to the types of sites that we buy, in terms of location, product mix, anticipated returns and level of risk. We undertake a series of thorough reviews of each opportunity at all levels during the acquisition process. Only those opportunities that meet our requirements, including level of return on capital, operating profit and risk profile, are submitted for approval.
Having re-entered the land market during the second half of 2009, we remained active in 2010. We have seen an improvement in the availability of attractive opportunities during the second half of 2010 and have maintained our consistent, disciplined approach to land acquisition. During the year, we have approved a total of 8,713 new plots on 86 new sites with limited use of deferred payment terms (2009: 3,003 plots on 22 sites).
Our UK short term land portfolio, representing owned or controlled land with planning, or a resolution to grant planning, stood at 63,556 plots at 31 December 2010 (2009: 66,089 plots). The average cost per plot in the land portfolio was £31k at 31 December 2010 on the basis of allocating all net realisable value provisions against land value (2009: £30k).
We plan to retain our national coverage, selecting the best opportunities in each region to deliver the best returns. Our current land strategy is weighted towards both the south and houses. However, we believe that a long term strategy with a sensible mix of sites for all consumer groups, including first time buyers, and in all areas where there is significant housing need will deliver long term returns.
We continue to promote our strategic land through the planning process …
22% of our short term land portfolio was originally sourced without a planning consent and we expect to deliver further planning consents from our strategic portfolio during 2011. At the end of 2010, 55% of the land within our short term landbank was fully consented (2009: 57%), which compares favourably with long term averages.
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 very well in the current market conditions.
If you are a house builder and need 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