Taylor Wimpey – Land Aquasitions Driven by Quality and Value

 

In a Final Results Statement issued by Taylor Wimpey this week, The company went in to some detail on how it had improved the quality of its Landbank.

Highlights and details below:

Taylor Wimpey plc

Results for the year ended 31 December 2010

Highlights

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

 

Selecting land

 

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



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

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.

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