TW’s full year in line with expectations

Taylor Wimpey expects to announce full year results “in line with expectations” it said this week with a group operating profit anticipated of around £820 million.

Reporting ahead of its results for the year ending December 31 2021, expected on March 3, the volume housebuilder said that its total UK home completions (including joint ventures) rose 47% to 14,087 against 2020. But this was still down on the 15,719 total completions of the pre-pandemic 2019. The private average selling price rose 3% to £332,000.

Taylor Wimpey’s net private reservation rate for 2021 was 0.91 homes per outlet per week compared to the previous year’s 0.76.

With demand for its homes “remaining strong”, the company said it closed sales outlets ahead of time, trading from an average of 225 outlets in 2021 against 2020’s 240. It began 2022 with 228 outlets (December 31 2020: 239), with the business “remaining confident” that it would increase its outlets “meaningfully” from H2 2022.

It noted that during the year house price inflation had “fully offset” build cost inflation. “Our national scale and strong partner relationships and agreements enabled us to effectively manage these pressures,” it stated.

Taylor Wimpey also highlighted its “excellent order book” into 2022, valued at £2,550 million (31 December 2020: £2,684 million), with the business 47% forward sold for the new financial year (2021: 54%).

It also said that ongoing fire safety improvements were “an industry wide issue that needs an industry wide solution” and that it would continue to work with government “to try to help resolve these wider issues”. It pointed out the steps it had taken including announcing in March 2021 that it would cover costs to bring all its apartment buildings built within the past 20 years in line with current EWS1 guidance, “irrespective of height or whether we retain a legal interest”.

On the company’s trading update, ceo Pete Redfern, who announced in December that he was leaving the business, said: “Market conditions remain supportive and we continue to see strong demand for our homes. Our strategy of optimising sales rates, prices and operational excellence and efficiencies is enabling us to drive a significant improvement in operating margin.”