2019 starts well for TW

Taylor Wimpey’s completions in 2018 rose 2.9% to 15,275 from 14,842 in 2017 including joint ventures with the firm’s pre-tax profit rising 5.5% to £856.8 million from £812.0 million in 2017. Margin increased to 21.65% from 21.3% on revenue of £4.082 billion.

Announcing the firm’s final results for the year, TW said it had a strong UK forward order book of 8,304 units on 31 December 2018 compared to 7,136 on 31 December 2017.

Pete Redfern, Taylor Wimpey’s chief executive, commented: “2018 was another strong year for Taylor Wimpey with good progress against our strategic priorities. We delivered in line with our expectations, achieving a strong sales rate and record revenues. Despite ongoing macroeconomic and political uncertainty, we have made a very positive start to 2019 and are encouraged to see continued strong demand for our homes. We enter the year with a strong order book and a clear strategy in place to deliver long term value for shareholders.
“We are very pleased with how our business is adapting to our customer-centred strategy. We are enhancing every step of our customers’ buying and aftercare service so that we become the first choice homebuilder in all market conditions.”

The firm said that coming into the spring selling season, customer confidence remains robust. “The net private sales rate for the year to date (w/e February 24 2019) was 0.99 (2018 equivalent period: 0.82).” However it added: “This sales rate includes a forward build and sales contract that was entered into simultaneously with a large land purchase, reducing market risk. The underlying net private sales rate for the year to date, excluding this deal, was 0.90 (2018 equivalent period 0.82).”