TW sees “strong” 2021

Taylor Wimpey has enjoyed “strong” full year results matching its expectations, with the housebuilder seeing a 47% increase in its completions and revenue rising 53.6% against 2020.

Issuing its results for the year ending December 31 2021, the business achieved 14,087 home completions against 2020’s 9,609. This compares to the pre-pandemic 16,042 of 2019.

Taylor Wimpey’s revenue in 2021 was £4,284.9 million, close to 2019’s £4,341.3 million. Pre-tax profit jumped 157% to £679.6 million but was still notably down on the £835.9 million of two years ago.

Its operating profit grew to £828.6 million from 2020’s £300.3 million and only a little behind 2019’s £850.5 million. Operating profit margin lifted from 2020’s 10.8% to 19.3% (2020: 19.6%).

During 2021, Taylor Wimpey’s net private reservation rate was 0.91 homes per outlet per week against 2020’s 0.76. Private average selling prices rose 3% to £332,000.

As of December 31 2021, its forward order book stood at 10,009 homes (December 31 2020: 10,685), valued at £2,550 million (December 31 2020: £2,684 million).

Taylor Wimpey said that the spring selling season had “started well,” with its net private sales rate for the year to date (as of week ending February 27 2022) at 1.02 per outlet per week, compared to the 0.91 of last year’s equivalent period.

Assuming “broadly stable” market conditions, the volume housebuilder said it continued to expect “low single digit” year-on-year completion growth this year and to progress towards its 21-22% operating margin target.

The business also used its statement to say that it “fully supported” the HBF’s recent letter to housing secretary Michael Gove, expressing an industry commitment to resolve fire safety concerns on all its buildings over 11 metres. “If accepted by government, the HBF proposal would result in an additional modest provision for Taylor Wimpey,” the firm added.

With its strong performance, Taylor Wimpey is implementing a share buyback programme to return excess cash of around £150 million this year. An initial tranche of around £75 million is expected to be completed by “no later than” June 3.

Pete Redfern, the housebuilder’s ceo, said: “I am very pleased with our operational, financial and customer service performance in 2021. Demand for our homes remains strong and we continued to drive significant margin improvement in 2021, as we optimise selling prices and maintain our strong focus on cost efficiency.”

As previously reported, Redfern is to leave his post as ceo after more than 14 years in the role. He will step down from the board on April 26, at which point Jennie Daly, currently group operations director, will become ceo. Redfern will remain available to the business until December 8, the end of his notice period.