Taylor Wimpey AGM update
It seems that what does not kill the housing market makes it stronger. First COVID, then rising interest rates and now rising costs of living and yet Taylor Wimpey's forward order book has grown in value terms over the last year.
Taylor Wimpey Trading update April 2022
FTSE 100 housebuilder Taylor Wimpey issued a trading update alongside its AGM statement today
What Taylor Wimpey said
The UK Housing market remains healthy underpinned by strong consumer demand and good mortgage availability
The recent increases in underlying interest rates have not impacted customer demand
house price inflation continues to offset labour and building material cost inflation
Twindig take
It seems that what does not kill the housing market makes it stronger. First COVID, then rising interest rates and now rising costs of living and yet Taylor Wimpey's forward order book has grown in value terms over the last year.
Taylor Wimpey's short term landbank continues to grow up 6% to 87,000 plots as it seeks to meet the high levels of demand and the Group's confidence in the longer-term future remains as it puts its money where its mouth is and increases the size of its longer- term strategic land pipeline from 143,000 plots to 145,000.
Taylor Wimpey has also increased its fire safety provision by £80m to £245m as it extends its provision from all buildings built over 11 metres high over the last 20 years to the last 30 years.
Previous Taylor Wimpey trading update review
FY 2021 Trading update highlights
Following a year of strong demand for new homes combined and good mortgage availability, Taylor Wimpey will deliver FY2021 results in line with the market’s expectations and is well-positioned for further growth this year. The Group remains focused on delivering sustainable growth, strong profitability and increased cash returns for shareholders.
UK home completions 14,087 up 47% (2020: 9,609)
Average selling prices up 3% to £332,000 (2020: £323,000)
Cash at year end £837.0m (2020: £719.4m)
Forward order book £2.6bn 10,009 homes (2020: £2.7bn 10,685)
Average number of sales outlets 225 (2020: 240)
Cancelation rates 14% (2020: 20%)
Private sales rate 0.91 (2020: 0.76)
Twindig take
In a year of shorter-term challenges, Taylor Wimpey remains focused on the long game, building homes in the right place at the right time for the right price. It has grown both its short term and longer-term strategic landbanks to provide a strong foundation for future growth and remains committed to covering all the cladding and fire safety-related rectification works required on homes it has built over the last 20 years.
In our view, this strategy is serving all stakeholders well and is likely to lead to more homes being built, more satisfied homeowners and higher returns for shareholders.