27 February 2025
Taylor Wimpey plc
Full year results for the year ended 31 December
2024
Well positioned for
sustained growth
Jennie Daly, Chief Executive,
commented:
"I'm pleased with our performance
in 2024, delivering a strong sales rate and in line results while
achieving the highest customer service scores and overall build
quality that we have ever had at Taylor Wimpey. This is testament
to the hard work and commitment of our teams across the
Group.
The start of the Spring selling
season has been robust, and we have seen good levels of demand for
our homes. Affordability - while remaining a challenge for many,
especially first time buyers - is also moving in the right
direction. As a result, our total order book is up on last year,
putting us in a strong position to grow housing volumes this year.
We expect to deliver full year 2025 UK completions in the range of
10,400 to 10,800 excl. JVs and for Group performance to be in line
with market expectations1.
We welcome the Government's recent
planning reforms which are capable of delivering a real step change
in planning outcomes. We look forward to seeing increased resources
and a focus on the implementation phase to drive these outcomes and
deliver much-needed new homes across the UK."
Operational highlights:
·
Group completions (including JVs) of 10,593
(2023: 10,848)
·
UK net private sales rate of 0.75 homes per
outlet per week (2023: 0.62). Excluding bulk deals, the net private
sales rate was 0.67 (2023: 0.54)
·
UK average selling price on private completions
of £356k (2023: £370k) with the overall average selling price £319k
(2023: £324k)
·
Operated in the UK from an average of 216 outlets
(2023: 238) and opened 55 outlets in the year (2023: 47), ending
the year with a total of 213 outlets (31 December 2023:
237)
·
Strong landbank of c.79k plots (31 December 2023:
c.80k plots) and a c.4k plots year on year increase in the short
term owned landbank to c.66k plots
·
Year end net cash‡ position of £565 million (31
December 2023: £678 million net cash), ahead of our guidance as a
result of the timing of land purchases
·
Final ordinary dividend of 4.66 pence per share,
subject to shareholder approval at the AGM, total dividend for the
year of 9.46 pence per share (2023: 9.58 pence per share),
consistent with our Ordinary Dividend Policy to return 7.5% of net
assets per annum
1As published on 24 February 2025, the Company compiled
consensus expectation for full year 2025 Group operating profit* is
£444 million.
Responsible business and a leader in
sustainability:
·
Rated five-star for customer service in the Home
Builders Federation (HBF) survey with Taylor Wimpey's highest ever
customer service score of 96% (2023: 92%)
·
Improved Construction Quality Review (CQR) score
of 4.93 (2023: 4.89)
·
Annual Injury Incidence Rate
(AIIR)†*** per 100,000 employees and contractors of 212 (2023:
151)
·
Overall employee engagement score of 93% (2023:
93%), with a 73% response rate (2023: 69%)
·
Contributed £345 million to local communities
across the UK (2023: £405 million)
·
Reduced absolute operational carbon emissions by
47% from a 2019 baseline (2023: 35%)
·
Added a net £68.9 million to the Group's cladding
fire safety provision in the year and making good progress on
remediation of identified buildings
·
Recognition of ESG progress: included in the Dow
Jones Sustainability Europe Index and S&P Sustainability
Yearbook 2025, The Financial Times Europe's Climate Leaders list,
rated A- by CDP Climate Change and recognised in Sustainalytics
2025 ESG top rated companies, with an ESG Risk Rating of
Low
·
In 2024, again achieved certification to the
Carbon Trust's Route to Net Zero Standard, Advancing level, the
only housebuilder to hold this standard during the year
·
Selected four ESG metrics (across Health and
Safety, Diversity and Inclusion, and timber frame completions) for
independent limited assurance procedures by PwC
·
Recognised in the NHBC Pride in the Job Awards,
with 62 Quality Awards (2023: 51), 16 Seal of Excellence Awards
(2023: 13), two Regional Awards and the Supreme Award in the Large
Builder category
Group financial highlights:
|
|
2024
|
2023
|
Change
|
|
Revenue £m
|
3,401.2
|
3,514.5
|
(3.2)%
|
|
Operating profit* £m
|
416.2
|
470.2
|
(11.5)%
|
|
Operating profit
margin*† %
|
12.2%
|
13.4%
|
(1.2)ppt
|
|
Profit before tax £m
|
320.3
|
473.8
|
(32.4)%
|
|
Profit before tax and exceptional
items £m
|
418.5
|
473.8
|
(11.7)%
|
|
Profit for the year £m
|
219.6
|
349.0
|
(37.1)%
|
|
Basic earnings per share
pence
|
6.2
|
9.9
|
(37.4)%
|
|
Adjusted basic earnings per share
pence††
|
8.4
|
9.9
|
(15.2)%
|
|
Ordinary dividend per share
pence
|
9.46
|
9.58
|
(1.3)%
|
|
Tangible net assets value per
share pence†
|
123.8
|
127.1
|
(2.6)%
|
|
Net cash £m
|
564.8
|
677.9
|
(16.7)%
|
N.B. Definitions can be found at
the end of the Group financial review
Current trading and
outlook
The start of the Spring selling
season has been robust and we have seen good levels of demand for
our homes.
Appointments and overall customer
interest in our homes remain at healthy levels, supported by our
quality product, site locations and focused sales and marketing
efforts. There is good mortgage availability at competitive rates
as lenders remain committed to the mortgage market. As a result,
the encouraging sales performance seen towards the end of 2024 has
continued in the year to date.
The year to date net private sales
rate (w/e 23 February 2025) is 0.75 per outlet per week (2024
equivalent period: 0.67), up 12% year on year. We have seen some
incremental improvement in market pricing since the start of the
year with current pricing flat year on year. The cancellation rate
is 16% (2024 equivalent period: 12%) and the number of down
valuations remain low.
As at 23 February 2025, our total
order book excluding joint ventures was £2,255 million (2024
equivalent period: £1,949 million), comprising 8,021 homes (2024
equivalent period: 7,402 homes).
We have a strong landbank, and an
excellent strategic pipeline with over c.26.5k plots for first
principle planning determination in the planning system as at 31
December 2024, (2023: c.30.2k plots). We were more active in the
land market than expected in 2024, approving c.12k plots (2023:
c.3k plots) which, as previously reported, partly reflects an
increase in attractive opportunities brought forward in the run up
to the Budget. We will remain active and opportunistic in our
approach to land acquisition in 2025.
As previously stated, we have
begun to see modest build cost inflation and we expect this to be
low single digit for the year, depending on the response from our
subcontractors to rising employer costs. We will continue to work
with our supply chain to identify opportunities for savings across
the business.
While appetite for Section 106
affordable housing continues to be impacted by headwinds faced by
Housing Associations, we have good visibility on this year's
affordable deliveries.
Overall, given the strong order
book and confidence in delivery of our plans, we expect 2025
performance to be in line with market
expectations1. This reflects 2025 UK completions
excluding JVs in the range of 10,400 to 10,800, with
approximately 45% occurring in the first half of the year. Margin
in the first half will reflect weighting of completions over the
year, the impact of underlying pricing in the order book at the
start of the year (which was c.0.5% lower year on year), and build
cost inflation.
Looking ahead, we operate in an
attractive market, with significant underlying demand for the
quality homes we build. We have a clear strategy focused on driving
value and operational excellence while investing in the long term
success and sustainability of the business. We have a strong
balance sheet, excellent landbank and experienced teams, and are
well positioned to deliver sustained growth.
-Ends-
A presentation to analysts will be
hosted by Chief Executive Jennie Daly and Group Finance Director
Chris Carney, at 9am on Thursday 27 February 2025. This
presentation will be webcast live on our website:
www.taylorwimpey.co.uk/corporate
An on-demand version of the
webcast will be available on our website in the afternoon of 27
February 2025.
For further information please
contact:
Taylor Wimpey plc
Tel: +44 (0) 1494 885656
Jennie Daly, Chief
Executive
Chris Carney, Group Finance
Director
Debbie Archibald, Investor
Relations
Andrew McGeary, Investor
Relations
FGS Global
TaylorWimpey@fgsglobal.com
Faeth Birch
Anjali Unnikrishnan
Notes to editors:
Taylor Wimpey plc is a
customer-focused homebuilder operating at a local level from 22
regional businesses across the UK. We also have operations in
Spain. Our purpose is to build great homes and create thriving
communities.
For further information please
visit the Group's website: www.taylorwimpey.co.uk/corporate
Follow our company page on LinkedIn,
Taylor Wimpey plc
2024 overview
During the year, we maintained
strong operational focus and delivered a good financial performance
against a mixed backdrop. Total Group completions including joint
ventures (JVs) were 10,593 (2023: 10,848). UK home completions
excluding JVs were 9,972 (2023: 10,356). We provided 2,178
affordable homes excluding JVs (2023: 2,351) equating to 22% of
total UK completions (2023: 23%). UK average selling price on
private completions was £356k (2023: £370k) with the overall
average selling price £319k (2023: £324k).
Group operating profit of £416.2
million, was in line with our guidance, with an operating profit
margin of 12.2% (2023: 13.4%), reflecting the build cost and
pricing dynamics as well as impact of overhead costs being
recovered across fewer completions.
Exceptional costs in the year,
before tax, totalled £98.2 million consisting of the net cladding
fire safety provision increase in the year (£68.9 million), loss on
disposal of the Winstanley and York Road joint venture (£13.6
million) and the impact of our share of the cladding fire safety
provision recognised in the Greenwich Millennium Village joint
venture (£15.7 million).
Profit for the year was £219.6
million (2023: £349.0 million). We continued to be highly cash
generative with a year end net cash position of £564.8 million (31
December 2023: £677.9 million), ahead of our guidance as a result
of the timing of land purchases.
In the UK, we opened 55 outlets in
the year (2023: 47). We traded from an average of 216 outlets in
2024 (2023: 238) and ended the year with a total of 213 outlets (31
December 2023: 237), slightly ahead of expectations due to a small
number of delayed outlet closings.
We also prepared our business for
growth in 2025 and beyond, with a continued focus on progressing
our existing landbank while taking advantage of increased
opportunities in the land market in 2024. We worked to ensure our
regional businesses are equipped to grow, using technology to
enhance our operating efficiency and with targeted investment to
increase our responsiveness to market opportunity. For example,
scaling up our timber frame business and upgrading our warehouse
management system at Taylor Wimpey Logistics, to ensure we are fit
for the future.
Our purpose and contribution to the UK
economy
Our purpose is to build great
homes and create thriving communities. This is a shared purpose
across our business and value chain. It is not only vital for our
customers but also has far reaching positive societal impacts of
which we are extremely proud.
The new build housing sector makes
a substantial contribution to both the communities in which we
operate and the UK economy as a whole. We build much needed homes
and infrastructure, create new communities and enhance existing
communities, and strive to make a significant social and economic
contribution to local economies across the UK.
The Home Builders Federation (HBF)
estimates that the housebuilding industry contributes around £53
billion per year in economic activity and provides around 270k
direct jobs in England and Wales, with many more employed
indirectly in various roles across our supply chain.
It is not always well understood
the very real benefit that housebuilding can bring to a local area.
Our new housing developments drive economic growth and positively
benefit local communities.
In 2024, Taylor Wimpey contributed
£345 million to local communities across the UK via planning
obligations (2023: £405 million). This funded affordable housing, green spaces, community facilities,
commercial and leisure facilities, transport infrastructure,
heritage buildings and public art, and helped to deliver on our
purpose.
The homes we build are
significantly more carbon efficient than the vast majority of
existing housing stock and the new build sector is at the forefront
of the UK's efforts to deliver zero carbon ready homes.
Performance and positioning
2024 saw the return of some
stability to the UK's new homes market. However, the year was not
without its challenges. At the start of 2024, an improved interest
rate outlook meant lower mortgage rates for our customers with
affordability improving. The summer brought positive changes to the
planning system from the new Government, aimed at getting Britain
building, but some caution on UK finances ahead of the Autumn
Budget. After the Budget, forecasts for future inflation rose
slightly and mortgage rates began to rise, albeit
modestly.
Against that backdrop we are
pleased with our sales performance which remained resilient
throughout 2024. Our net private sales rate for the year of 0.75
(2023: 0.62) reflects the hard work of our teams and the
high-quality of our locations.
Affordability remained challenging
for many potential customers, particularly first time buyers, in
particular in the South of England. Incentives remained an
important element in driving customer commitment throughout 2024
and overall pricing in the year end order book was marginally lower
than the prior year. We continued to optimise the balance between
pricing and volume with a focus both on margin and return on
capital. However, as stated, 2024 margin continued to be impacted
by build cost and pricing dynamics as well as the impact of
overhead costs being recovered across fewer completions.
Our regional businesses continue
to work hard to embed the efficiency savings we have made over the
past few years. Build costs on new tenders were stable over the
course of the year. We expect the 2025 cost environment to return
to a more normal profile of low single digit cost increases, given
the extended period without price increases for our suppliers and
well known inflationary pressures for businesses as a result of the
Autumn Budget changes to National Insurance and Minimum
Wage.
During the year we focused on
setting up our business for growth in 2025 and beyond. We entered
this year with a strong order book and an excellent
landbank. We currently have outlets open
that are expected to deliver all of this year's legal completions
and have prepared our highly engaged and experienced teams for the
next phase in the cycle, to deliver growth in 2025 and
beyond.
Proven strategy and fit for the future
Our strategy remains consistent
and is centred on four strategic cornerstones: land, operational
excellence, sustainability and capital allocation to build a
stronger and more resilient business. These strategic cornerstones
guide our principles of working while allowing us to be agile to
respond to opportunities and risks in changing market
conditions.
We manage the business through the
cycle which means that while short term performance is important,
strategic decisions also protect the longer term interests of the
Group and its stakeholders. Our approach has enabled us to optimise
value for our stakeholders and, through our differentiated Ordinary
Dividend Policy, to provide a reliable income stream for our
investors through this cycle.
While short term market conditions
remain uncertain, the long term fundamentals remain very strong
with an increasingly marked undersupply of housing estimated at
over four million homes, that is particularly acute in some areas
of the country.
Being fit for the future includes
making sure we have the strategy and structures in place across all
areas of our business to build the capacity to support our ambition
for growth, focusing on areas we can control.
The changes to the National
Planning Policy Framework (NPPF) introduced by the Government, will
require local authorities to identify land to meet the housing
needs of their area for a five year period. Required housing need
is now based on a stock-based approach (a proportion of existing
housing in each region), which has removed ambiguity and increased
the national total annual approvals required to 370k plots per
year. If a local authority is unable to provide evidence that it
has a five year housing land supply, there will be presumption in
favour of sustainable development.
We are optimistic that these
changes to the planning system should help unlock the land needed
to support homebuilding in coming years, placing the land market on
a similar footing to that of 2012 to 2019 when land conditions were
supportive of industry growth. For our part, we are focusing on the
proactive submission of high-quality applications to planning
authorities to best position Taylor Wimpey to benefit from
improvements to the planning process. As at 31 December 2024 we had
c.26.5k such applications for first principle planning
determination in the planning system (2023: c.30.2k), with a
significant number to follow. This will translate into more outlets
which will provide future opportunities to grow volumes.
In 2024, we continued to focus on
embedding the operational efficiencies and savings we have
delivered over the last few years and this remains an ongoing
focus. However, we also put in place many of the building blocks to
prepare for the next phase of the market and enable us to grow our
volumes, with market demand, including investing in aspects key to
the long term sustainability of the business, to ensure we are fit
for the future.
For example, in 2024, we delivered
cost savings through our measured value improvement programme. We
identified savings in certain product types and by omitting
products from certain supplier contracts to source more efficiently
elsewhere. We continued to drive standardisation through Taylor
Wimpey Logistics (TWL) and by driving greater conformity to our
standard house types, which comprised 94% of our 2024 home
completions excluding apartments (2023: 90%).
TWL is a key differentiator and
remains integral to our drive for increased efficiency and
standardisation. TWL holds strategic stock and then provides build
packs that can be called off on a 'just in time' basis for site.
This improves control, consistency of supply and also provides a
buffer for our regional businesses, which received orders 98% on
time in full from TWL in 2024. This enhances the efficiency of our
operations as well as visibility for our site teams and
subcontractors. In 2024, we installed a new warehouse management
system to future proof our facility and further increase efficiency
and quality.
During 2024, we delivered the
first kits as planned from our ISO 9001 accredited timber frame
manufacturing factory. This has been a strategic component of the
ability of our businesses to scale up and to also increase
sustainability. We continue to scale up timber frame production and
our regional businesses are actively looking for opportunities
suitable for timber frame. In combination with our existing
suppliers, our own facility will help us in our goal to increase
timber frame usage to 30% of our completions by 2030. In 2024,
1,624 of our completions were timber frame (2023:
1,661).
We continue to support the UK's
transition to net zero through delivery of energy-efficient, low
carbon homes and delivery of our Net Zero Transition Plan. As we
move forward, we are ensuring that commitment to the UK's
biodiversity and nature is still prioritised as changes to the
planning system are rolled out. In 2024, we again achieved
certification to the Carbon Trust's Route to Net Zero Standard,
Advancing level, the only housebuilder to hold this standard during
the year.
For a number of years Carbon Trust
have provided limited assurance over our carbon and energy data;
this year we have gone further by selecting four additional ESG
metrics (across Health and Safety, Diversity and Inclusion and
timber frame completions) that have been subjected to independent
limited assurance procedures by PwC, demonstrating our commitment
to ESG.
It matters to us how we achieve
our results. We are a leader in build quality in the volume
industry and have again improved our CQR score. This is a key
performance indicator (KPI), reflecting our commitment to
delivering high-quality homes for our customers.
Further KPIs relate to our
customer service and we are particularly pleased to have increased
our 8-week customer service score to 96% (2023: 92%) our highest
ever performance, and our 9-month customer service score to 80%
(2023: 77%). This is the result of targeted work over the past few
years and the efforts of our excellent teams to improve our
processes. We have improved management information systems with our
Customer Relationship Management (CRM) system and enhanced the
customer journey by raising standards, increasing customer contact
points and the speed of our response. Continuous improvement in our
customer offer is one of the ways we will continue to drive and
capture opportunities in all market conditions.
The industry is facing a
significant skills shortage. We are pleased to have highly skilled
and engaged employees and in 2024, we launched a compelling
employee value proposition, to ensure we will continue to attract
and retain the best people, a key component of our preparedness for
the future.
We are developing our IT
capabilities via our InnovateTW programme with a focus
on improving our processes, increasing business-led innovation, and
using technology to share best practice quickly across the Group.
Our team are working to identify actionable ideas from over 260
received from employees so far. We have also employed artificial
intelligence (AI) to simplify tasks and free up employee time for
more value added activities, such as supporting our customers,
monitoring build programmes and ensuring build quality, and closely
scrutinising costs.
New workstreams are designed to
enable us to optimise our operations in a sustainable way.
Continuous business improvement remains key to protecting
stakeholder value against a backdrop of increasing regulatory and
economic demands. This includes increased standardisation and use
of modern methods of construction such as timber frame.
2025 priorities
Over the past year we have set up
the business for growth, with a strong financial position and order
book, and an excellent landbank, meaning we are well placed for
2025. This year we want to embrace those opportunities for growth
and further drive performance.
There are aspects that we consider
as fundamental to Taylor Wimpey and as such these are considered
'business as usual' including, health, safety and environmental
protection, high-quality build, an excellent customer service
journey for all customers and partners and a keen focus on cost.
Over and above the fundamentals we have a number of specific focus
areas for 2025:
·
Continue to
improve build efficiency and compliance: protecting the value we create means enhancing efficiency and
extracting economies of scale to deliver best practice across the
Group. Build compliance and standard processes are key to ensure we
continue to drive performance and optimise efficiencies.
·
Deliver sales
performance and optimise price: our
teams are incentivised to drive value as we continue to optimise
the balance between sales rate and price.
·
Drive outlet
openings: business wide focus on
delivering new quality outlets efficiently to support execution of
the growth opportunity, with asset turn and return on capital front
of mind. We expect to open more outlets in 2025 than in 2024 with
outlet openings to be weighted towards the second half of the
year.
·
Further digitise
our processes to drive efficiencies and future proof the
business: we are developing our IT
capabilities via our InnovateTW programme with a focus
on digitising our processes to create the platform to deliver
greater business-led innovation, using technology to share best
practice quickly across the Group.
·
Employee value
proposition: our industry is facing
a skills shortage, and we continue to work hard to attract and
retain the best people. Our revamped employee value offer outlines
the benefits of working for Taylor Wimpey, including development
and training for all our employees and additional enhancements to
our family policies, including improvements to maternity, adoption,
paternity, and the introduction of paid carers leave.
·
Deliver against
our environmental targets and commitments in our Environment
Strategy and Net Zero Transition Plan: environmental performance is growing in importance and, like
health and safety, is a key priority for Taylor Wimpey.
Increasingly we need to extend our environmental performance data
to ensure we can comply with changing regulation and drive progress
on our sustainability commitments.
Competition and Markets Authority (CMA)
Taylor Wimpey welcomed the CMA's
final report, published on 26 February 2024, from its housebuilding
market study with its focus on improving the planning system,
adoption of amenities and outcomes for house buyers.
At that time of publication, the
CMA commenced an investigation into a number of housebuilders,
including Taylor Wimpey, relating to concerns that they may have
exchanged competitively sensitive information. On 10 January 2025,
the CMA updated its timetable stating that further investigation,
including additional evidence gathering and CMA analysis and
review, would continue until May 2025.
We will continue to cooperate
fully with the CMA in relation to its investigation as we have done
throughout the process to date.
Commitment to sustainability
Environment and net zero by 2045
We published our Net Zero
Transition Plan in early 2023, with our goal to be net zero aligned
in our operations by 2035 and to reach net zero carbon emissions
across our value chain by 2045, five years ahead of the UK
Government's target. Our net zero targets have been independently
validated by the Science Based Targets initiative (SBTi). Our
Environment Strategy, Building a Better World, includes ambitious
targets up to 2030 across climate, nature, resources and
waste.
As stated, in 2024, we again
achieved certification to the Carbon Trust's Route to Net Zero
Standard, Advancing level, the only housebuilder to hold this
standard during the year. A scope 1 and 2 carbon reduction measure
was included in the incentive plans for senior leadership and
regional management in 2024 to support progress on our near term
carbon reduction targets. For a number of
years we have received limited assurance over our carbon and energy
data from The Carbon Trust.
We were included in the Dow Jones
Sustainability Europe Index and the S&P Sustainability Yearbook
2025, rated A- by CDP Climate Change and recognised in
Sustainalytics 2025 ESG top rated companies, with an ESG Risk
Rating of 'Low'. We are a member of Next
Generation, the sustainability benchmark for UK housebuilders, and
received a silver rating in 2024.
Cladding fire safety
The safety of our customers is of
paramount importance, and we have always been guided by this
principle. It is our long held view that leaseholders should not
have to pay for the cost of fire safety remediation and our
priority has always been to ensure that customers in Taylor Wimpey
buildings have a solution to cladding remediation.
We took early and proactive
action, committing significant funding and resources to address
fire safety and cladding issues on all affected Taylor Wimpey
apartment buildings built since 1992.
In 2022, we signed up to the
Government's Building Safety Pledge for Developers and the Welsh
Government Building Safety Developer Remediation Pact which
reaffirmed our commitment that leaseholders should not have to pay
for fire safety remediation. In the first half of 2023 we also
signed the Scottish Safer Buildings Accord. Prior to signing these,
we had already begun working on affected Taylor Wimpey buildings.
By the end of 2022 we had recorded a total provision for cladding
fire safety remediation works of £245.0 million.
In the first half of 2024 we
reassessed the remediation costs based on tenders received and
based on this updated information and enhanced cost appraisal, the
expected fire safety remediation cost was increased by £88.0
million. The increase was due to increased costs based on recent
tenders, including project delivery administration costs and
funding of the Building Safety Fund pre-tender costs and a small
number of new buildings being added. In the second half of 2024 one
of the Group's joint ventures recognised a provision for
remediation works on the buildings it built and as a result £19.1
million has been released from the provision held by the Group in
relation to those buildings. This results in a net charge for the
year of £68.9 million, recognised in operating expenses as an
exceptional item.
During the year we spent £28.5
million on remediation works and continued to progress work with
building owners, management companies and leaseholders and we
remain committed to resolving these issues as soon as practicable
for our leaseholders. We have 203
buildings within the scope of our provision, all of which have been
assessed by our specialist team. We signed
the Ministry of Housing, Communities and Local Government's Joint
Plan in 2024 and are working to meet the targets it sets
out.
Winstanley and York Road joint venture
In December 2024, we disposed of
our interest in the Winstanley and York Road Regeneration LLP joint
venture - this was a mutual agreement with Wandsworth Council
enabling the Council to take a new approach to prioritise the
delivery of affordable housing provision. The JV was formed in 2017
to deliver a 12-to-15-year estate regeneration scheme including a
mixed-use development of up to 2,550 homes, improved community
facilities and a new park. Under the JV, 139 homes, a new school,
church, multi-use games area and play area have been successfully
delivered. The net impact was a £13.6 million loss, recognised as
an exceptional cost in 2024.
Capital allocation
framework
Our priority is to maintain a
strong balance sheet with low adjusted gearing. We use cash
generated by the business to fund our investment in land and work
in progress to support and drive future growth. Thereafter, our aim
is to provide an attractive and reliable income stream to our
shareholders throughout the cycle, including during a normal
downturn, via an ordinary cash dividend linked to Group net
assets.
In line with our Ordinary Dividend
Policy to return 7.5% of net assets, or at least £250 million
annually, we have today announced a final ordinary dividend payment
of 4.66 pence per share, which is subject to shareholder approval
at the Annual General Meeting (AGM). With the 2024 interim dividend
payment of 4.80 pence per share, the total ordinary dividend for
the year is 9.46 pence per share or approximately £335
million.
Board changes
After just over nine years,
Humphrey Singer stepped down from the Board on 31 December 2024.
Scilla Grimble, independent Non Executive Director, succeeded
Humphrey as Chair of the Audit Committee with effect from 1
September 2024 and Lord Jitesh Gadhia, independent Non Executive
Director, succeeded Humphrey as the Senior Independent
Director.
Martyn Coffey joined the Board as
an independent Non Executive Director on 1 December 2024 and became
a member of the Audit and Nomination and Governance Committees.
Having previously served as CEO of Marshalls Plc for over ten years
and as a Non Executive Director of Eurocell plc for eight years,
Martyn brings a wealth of experience and deep knowledge of
manufacturing for the building industry and of supply
chains.
Operational
review
Our operational review
focuses on the UK (unless stated otherwise) as
the majority of metrics are not comparable in our Spanish business.
There is a short summary of the Spanish business in the
Group financial review. The financial review is presented at
Group level, which includes Spain, unless otherwise indicated.
Joint ventures are excluded from the operational review and are
separated out in the Group financial review, unless stated
otherwise.
Our Key Performance Indicators (KPIs)
Our key performance indicators
align to our strategic cornerstones.
|
UK
|
2024
|
2023
|
|
Change
|
|
Land
|
|
|
|
|
|
Land cost as % of average selling
price on approvals
|
17.0%
|
15.2%
|
|
1.8ppt
|
|
Landbank years
|
c.7.8
|
c.7.7
|
|
1.3%
|
|
% of completions from
strategically sourced land
|
40%
|
45%
|
|
(5)ppt
|
|
Operational excellence
|
|
|
|
|
|
Construction Quality Review
(average score / 6)
|
4.93
|
4.89
|
|
0.8%
|
|
Average reportable items per
inspection
|
0.18
|
0.28
|
|
(0.10)
|
|
Annual Injury Incidence Rate (per
100,000 employees and contractors)
|
212
|
151
|
|
40.4%
|
|
Employee engagement (annual
survey)
|
93%
|
93%
|
|
-
|
|
Sustainability
|
|
|
|
|
|
Customer satisfaction 8-week
score
'Would you recommend?'
|
96%
|
92%
|
|
4ppt
|
|
Customer satisfaction 9-month
score
'Would you recommend?'
|
80%
|
77%
|
|
3ppt
|
|
Reduction in operational carbon
emissions intensity against our 2019 baseline
|
21%
|
5%
|
|
16ppt
|
N.B. The 8-week 'would you
recommend' score for 2024 relates to customers who legally
completed between October 2023 and September 2024, with the
comparator relating to the same period 12 months prior. The 9-month
'would you recommend' score for 2024 relates to customers who
legally completed between October 2022 and September 2023, with the
comparator relating to the same period 12 months prior.
2024 sales, completions and pricing
Total Group completions including
joint ventures were 10,593 (2023: 10,848). UK home completions
excluding joint ventures were 9,972 (2023: 10,356). We provided
2,178 affordable homes excluding joint ventures (2023: 2,351)
equating to 22% of total UK completions (2023: 23%). Our UK net
private sales rate for 2024 was 0.75 homes per outlet per week
(2023: 0.62). Excluding the impact of bulk deals, the net private
sales rate was 0.67 (2023: 0.54). The cancellation rate for the
full year was 15% (2023: 18%).
UK average selling price on
private completions was £356k (2023: £370k) with the overall
average selling price £319k (2023: £324k).
We estimate that market-led house
prices have seen c.1% deflation for completions in 2024 (2023: c.1%
inflation).
In the second half of the year, we
experienced weaker pricing in the South of England where
affordability has been most stretched, compared to the North where
we have captured some price growth. As a result, underlying pricing
in the year end order book was around 0.5% lower year on
year.
Underlying build cost inflation on
completions in 2024 was c.1.5% (2023: c.8.5%).
We ended the year with a strong
order book valued at £1,995 million (31 December 2023: £1,772
million), excluding joint ventures, which represents 7,312 homes
(31 December 2023: 6,999 homes), of which 3,208 are private (2023:
2,565) and 4,104 are affordable (2023: 4,434).
In the UK, we traded from an
average of 216 outlets in 2024 (2023: 238) and ended the year with
a total of 213 outlets (31 December 2023: 237), slightly ahead of
expectations due to a small number of delayed outlet
closings.
Land
As at 31 December 2024, our short
term landbank stood at c.79k plots (2023: c.80k plots). The short
term owned proportion of our landbank increased by c.4k plots to
c.66k plots. Our strategic land pipeline was c.136k potential plots
(2023: c.142k potential plots). We approved c.12k plots (2023: c.3k
plots) in 2024 which, as previously reported, partly reflects
increased opportunities in the land market in the run up to the
Autumn Budget.
The average cost of land as a
proportion of average selling price within the short term owned
landbank remains low at 12.9% (2023: 13.7%). This reflected the
impact of strategic land pull through as well as the regional mix
of sites being weighted towards the North.
The average selling price in the
short term owned landbank in 2024 increased by 5.2% to £344k (2023:
£327k).
As at 31 December 2024, we were
building on, or due to start in the first quarter of 2025, on 98.4%
of sites with implementable planning (2023:
99.6%).
Our success in developing our
strong strategic pipeline means that 56% of our short term landbank
has originated from this source (2023: 54%). In the year, 40% of
our completions were sourced from the strategic pipeline (2023:
45%).
During 2024, we converted a
further c.6k plots from the strategic pipeline to the short term
landbank (2023: c.8k plots).
Customers
We are pleased to have increased
our Home Builders Federation (HBF) 8-week 'would you recommend?'
score to 96%, the best we have ever recorded (2023: 92%) and
retained our five-star rating. We also saw an increase in our
9-month score which gives us insight into how customers feel about
the homes and places we build over the longer term. Our score is
our highest ever at 80% (2023: 77%) which reflects the work we have
been doing to strengthen our customer service and build quality and
to improve the time taken to resolve customer issues.
We encourage customers to leave
reviews on Trustpilot. At the end of 2024, with
10,107 reviews, we had a 4 out of 5 star rating (end of
2023: 4 out of 5 with 8,950 reviews).
We have prioritised
working with all our partners to deliver
excellent customer service and leverage our customer database
capabilities and data insights provided by our
fully integrated CRM system to better support our customers and
align our marketing strategy, in order to build a strong
order book. In a changing market, understanding
our customers is more important than ever.
Build quality
We continue to see improvements in
our build quality as measured by the NHBC CQR score, which measures
build quality at key build stages. In 2024, we scored an average of
4.93 (2023: 4.89) from a possible score of six. This compares with
an industry benchmark group average score of 4.70.
We aim to maintain high standards
by ensuring our quality assurance processes are embedded at every
stage of the build. We clearly communicate our quality standards to
subcontractors and invest in training, process improvements and
regular inspections throughout the build process to ensure
consistently high standards and prevent quality issues from
occurring.
Placemaking
Good placemaking ensures our teams
plan, design and deliver schemes that become successful and
sustainable new communities, where our customers can enjoy a good
quality of life.
Placemaking is about creating
communities that are socially, environmentally and economically
sustainable. During 2024, we have been developing our Placemaking
Charter, a new framework to further embed strong placemaking
standards across our business. The Charter will be fully rolled out
to our teams in 2025 and is based around five key
principles:
-
Connected communities
-
Places where life happens
-
Attractive and welcoming places
-
Safe places
-
Places designed with nature
Access to transport and local
infrastructure and facilities contributes to the success of our
schemes. In 2024, we contributed £345 million to local communities
in which we build across the UK via planning obligations (2023:
£405 million). This funded a range of infrastructure and facilities including affordable housing,
green space, community facilities, commercial and leisure
facilities, transport infrastructure, heritage buildings and public
art. We aim to install infrastructure at an early stage of the
build process to enhance our schemes and help the new community
become established quickly. We also invest
in public and community transport, walkways and cycle
paths.
Employees
Health and safety
Health and safety remains our
number one priority and it is the first topic covered in every
Board, Group Management Team (GMT) and regional management team
meeting across the country. Building sites are inherently dangerous
places and so it is essential that strict safety protocols are
identified, embedded, monitored and enforced and a clear,
consistent and disciplined approach to safety is paramount
throughout the organisation. 98% of our employees agree that we
take health and safety seriously (2023: 98%).
Our Annual Injury Incidence Rate
(AIIR) for reportable injuries per 100,000 employees and
contractors was 212 in 2024 (2023: 151). This reflects an increase
in minor slips, trips and falls. Around 40% of accidents were
slips, trips and falls and this will be an increased area of focus
this year.
Despite the increase, we remain
below the HBF Home Builder Average AIIR of 246.
Our AIIR for major injuries per
100,000 employees and contractors was 59 in 2024 (2023:
65).
Culture and people
We have a strong culture at Taylor
Wimpey which we and our employees are proud of. This is
demonstrated in our latest employee survey with an overall employee
engagement score of 93% (2023: 93%), with a 73% response rate
(2023: 69%).
We seek feedback from, and
engagement with, all employees. This includes regular updates and
Teams calls from the Chief Executive and a wide variety of senior
management. It is important that management is accessible and
visible. In addition to regular visits to the regional businesses,
we operate a National Employee Forum, National Young Person's Forum
and Local Employee Forums in our regional businesses, where
employee representatives are able to feedback to, and ask questions
of, members of the Board and other senior management directly. We
also support six employee resource groups to advance our Equality,
Diversity and Inclusion agenda. During
2024, our voluntary employee turnover rate reduced to 12.1% (2023:
14.2%).
We are pleased to report that
Taylor Wimpey was once again recognised in the NHBC Pride in the
Job Awards, achieving a total of 62 Quality Awards (2023: 51), 16
Seal of Excellence Awards (2023: 13) and two Regional
Awards. We are proud to announce that in
January 2025, Site Manager, David McClure, from our Castle Gate
development in West Scotland was honoured with the Supreme Award in
the Large Builder category - the very highest achievement in the
Pride in the Job awards programme.
Skills
During 2024, we directly employed,
on average, 4,354 people across the UK (2023: 4,618) and provided
opportunities for, on average, a further c.9.4k operatives (2023:
c.9.3k) on our sites.
We recognise that building the
skills of our current and future workforce is essential to address
current and potential future skills gaps in our industry and
subcontractor base. We continue to work closely with our partners,
peer companies, industry associations and educational organisations
to identify and address skills gaps and upskill our workforce and
also share best practice within the industry bodies.
We support our regional businesses
to develop local links with colleges, universities and schools and
encourage a diverse range of candidates to consider careers in
housebuilding. Each of our regional businesses has a schools
engagement plan and we engaged with 550 schools and reached 330,000
students in 2024 also offering webinars for parents /
guardians.
Our career converters programme
supports ex-service personnel to join our business. In 2024, this
included a focus on recruiting former service personnel to Trainee
Assistant Site Manager roles.
Equality, diversity and inclusion
(ED&I)
We remain committed to creating a
more diverse workforce and will publish our third Diversity and
Inclusion Report in 2025. We have set quantitative targets to
improve gender balance at all levels and to increase ethnic
minority representation. Our targets are aspirational, but we
believe that it is important to be ambitious and hold ourselves to
account.
Our aim is to create a workplace
where colleagues feel championed and supported regardless of their
background and identity.
Investment in ED&I is a long
term commitment for Taylor Wimpey, supported by our Board, and all
levels of our leadership. Alongside our successes, we remain
focused on the areas we still need to progress. Due to market
conditions, we recruited and employed fewer people in 2024, and
this impacted our ability to make progress on our diversity
targets.
Our workforce is not yet
reflective of the UK's ethnic diversity. As at 31 December 2024,
5.5% of our employees were from a Black, Asian or other minority
ethnic background (2023: 5.7%). Ethnic representation in the GMT
and direct reports was 6.9% (2023: 6.9%) and 2.5% in regional
business leadership roles (2023: 3.7%).
In 2024, our employee base
comprised 2,823 males (2023: 2,912) and 1,503 females (2023:
1,524), which equates to a gender mix of 65% male (2023: 66%) and
35% female (2023: 34%) across the Company. Our GMT was 33% female
(2023: 33%). Our Board of Directors was 44% female (2023: 44%),
comprising 4 females (2023: 4) and 5 males (2023: 5). Females in
the GMT and direct reports to GMT was 26% (2023: 28%), comprising
19 females (2023: 20) and 53 males (2023: 52).
Reduced overall recruitment
impacted our graduate and trainee recruitment. 33% of graduates
were females (2023: 62%) and 29% were from a minority ethnic
background (2023: 17%). In our other early entry talent
programmes the figures were 14% and 11% (2023: 15% and
7%).
In line with the Gender Pay Gap
regulations, we calculated our 2024 gender pay gap based on pay and
bonus data at the 'snapshot date' of 5 April 2024 (paid over the
preceding 12 months). The calculations cover all staff employed by
Taylor Wimpey UK Limited as at 5 April 2024. This data shows that
our mean gender pay gap was 8% in favour of men (2023: 6% in favour
of men) and median pay gap 6% in favour of men (2023: 2% in favour
of men).
The shift in our pay gap this year
reflects a number of factors, including: lower levels of sales
commission (due to market conditions) which impacts more female
employees (females make up 81% of sales employees (2023: 83%));
larger than average pay increases for all lower paid employees
which impacted more male employees; and a reduction in the overall
number of employees. We will continue to focus on our programmes to
increase female representation across different functions and
levels of the business which will reduce the pay gap over time.
More information is available online in our Diversity and Inclusion
Report.
Charity partnerships
During 2024, we continued our
partnership with our national charities as well as local charity
partners across the UK. Our national partners are Youth Adventure
Trust, Every Youth, Crisis, CRASH, Magic Breakfast, and St Mungo's.
In total, during 2024, we donated and fundraised c.£1 million for
registered charities (2023: c.£1 million). This included supporting
St Mungo's Construction Skills Training Centres to help people
recovering from homelessness gain new skills and find employment in
the construction industry.
This year we also took part in
CRASH's Christmas washbag campaign, where our employees assembled
more than 3,000 bags with essential toiletries, such as soap,
toothbrushes, and toothpaste, for homeless charities and hospices
across the UK. In its tenth year, our annual Taylor Wimpey
Challenge reached the £1 million milestone for total funds raised.
In 2024, 355 employees took part in the event and headed to the
Jurassic Coast in Dorset, with a total of 56 teams that raised over
£113k for the Youth Adventure Trust, and over £44k to support other
charities. In addition, through our partnership with Magic
Breakfast we contributed £80k to help serve over 285k breakfasts to
pupils in England and Scotland from September 2023 to September
2024.
Sustainability
We recognise the importance of
sustainability which is integrated throughout our business and has
been incorporated as one of our four strategic cornerstones. Our
approach encompasses environmental, social, economic and governance
aspects.
Our Environment Strategy, Building
a Better World, is our response to the environmental crisis and the
physical and transitional risks posed by climate change. It sets
out how we will play our part in creating a greener, healthier
future for our customers, colleagues and communities, with
ambitious targets up to 2030 focusing on climate change, increasing
nature on our developments, cutting waste and improving resource
efficiency.
Environment Strategy performance update
|
Our strategic objectives
|
Performance update
|
|
Climate change
Achieve our science-based carbon
reduction target:
- Reduce operational carbon
emissions intensity by 36% by 2025 from a 2019 baseline
- Reduce scope 3 emissions by
52.8% per 100 sqm of completed floor area from a 2019 base year
(based on a reduction of 46.2% in absolute emissions against the
base year)
|
Since 2019, our operational
emissions intensity has decreased by 21% and absolute operational
emissions have fallen by 47%.
We have reduced scope 3 carbon
emissions intensity by 8% compared with 2023 and by 12% against our
2019 baseline. Absolute scope 3 emissions decreased by 9% compared
with 2023 and by 41% against our baseline.
|
|
Nature
Increase natural habitats by 10%
on new sites from 2023 and include our priority wildlife
enhancements from 2021.
|
New sites submitting their first
planning application now include a minimum biodiversity net gain
(BNG) of at least 10% in line with regulation. We have published
guidance and held training sessions for our regional businesses to
support them to manage the risks, costs and opportunities
associated with BNG.
We integrate nature enhancements
on all suitable new sites and have started with hedgehog highways,
bee bricks, bug hotels, bird boxes and bat boxes. Since 2021, we
have installed over 5,500 wildlife enhancements such as bee bricks,
bug hotels, bird and bat boxes, to support native species and 326
sites included hedgehog highways.
|
|
Resources and waste
Cut our waste intensity by 15% by
2025 and use more recycled materials.
|
Our waste intensity has reduced by
14% against our 2019 baseline, and by 22% compared with 2023. Total
waste volumes also decreased year-on-year and against our baseline.
Our Towards Zero Waste Strategy and Action Plan guide our approach
to reducing waste.
|
N.B. At the time of publication,
our waste data was undergoing audit by the Carbon Trust. We will
publish the final audited figures on our website on completion of
this process which could differ from those reported
here.
A full summary of our
Environmental Strategy and progress against targets will be
published in our Annual Report and Accounts 2024 and Sustainability
Summary and Data document 2024.
Climate change and net zero
Our approach to climate change
aims to reduce emissions from our business and value chain,
to manage the business risk, and to prepare for
the impacts of climate change on our business, supply chain and
customers. We take a science-based approach and aim to continually
review and improve performance.
Our Net Zero Transition Plan
commits us to reduce our climate footprint ahead of the UK's 2050
target. The two key commitments in our strategy are:
- Net zero aligned in our
operations by 2035 (scope 1 and 2)
- Net zero emissions across our
value chain by 2045 (scope 1, 2 and 3) (comprising at least a 90%
absolute reduction and neutralising residual emissions)
Our target was developed with the
Carbon Trust in line with the requirements of the SBTi Corporate
Net Zero Standard. Our net zero target for 2045 has been validated
by the SBTi confirming that it is aligned with the SBTi's 1.5°C
mitigation pathways for reaching net zero by 2050 or sooner. This
is currently the most ambitious designation available through the
SBTi process. Our near term targets have also been validated by the
SBTi. We have achieved certification to
the Carbon Trust's Route to Net Zero Standard, Advancing level, and
were one of the first organisations to gain this new
standard.
Our Net Zero Transition Plan
comprises a four-stage roadmap detailing the actions we will take
to achieve our overall commitment and supporting targets,
incorporating both new and existing workstreams such as the
construction of low and zero carbon ready homes, increasing the use
of construction materials with lower embodied carbon including
timber frame, transitioning to 100% renewable electricity, reducing
or replacing fossil fuels and decarbonising our fleet.
In 2024, we reduced absolute
operational emissions (scope 1 and 2) by 47% against our 2019
baseline, with operational emissions intensity falling by 21% over
the same period. This reflects fewer completions in 2024 compared
to 2019 as well as the impact of carbon reduction measures such as
our sourcing of renewable electricity and a reduction in the use of
diesel due to roll out of hybrid generators and use of hydrotreated
vegetable oil.
A carbon reduction measure is part
of the incentive schemes for our senior and regional leadership to
help drive further progress.
We report against the
recommendations of the Task Force on Climate-related Financial
Disclosures (TCFD) in our Annual Report and Accounts.
We also publish a Sustainability Summary and Data
document with additional data including the Sustainability
Accounting Standards Board (SASB) recommended disclosures for our
sector. For a number of years we have received limited assurance
over our carbon and energy data from The Carbon Trust.
Nature and resource efficiency
Our Environment Strategy targets
include biodiversity net gain requirements and go beyond regulation
to deliver priority wildlife enhancements and wildlife friendly
planting. Since 2021, we have installed over 5,500 wildlife
enhancements such as bee bricks, bug hotels, bird boxes and bat
boxes to support native species, and 326 sites included hedgehog
highways.
Our Towards Zero Waste Strategy
and action plan sets out a three year programme of action and
capacity building in relation to resource use and waste across all
stages of development. We are working with our suppliers to reduce
waste from packaging, increase recycling and identify opportunities
to increase use of sustainable and recycled materials.
Preparing for regulatory changes and opportunities in green
building
Over the next five years there
will be significant changes to new build homes in the UK reflecting
the UK's climate change targets. Our target is to reduce emissions
from customer homes in use by 75% by 2030, and we are testing a
range of technologies and enhanced fabric standards to achieve
this.
Following the phasing in of the
new Parts L, F & O of the Building Regulations
in England from June 2022, Parts L & F from
November 2022 for Wales and Section 6 in Scotland from February
2023, our homes have enhanced fabric standards with additional
features that include wastewater heat recovery systems, triple
glazing and PV panels. Homes built to this specification will
achieve a 31% reduction in carbon emissions compared with our
previous specification.
We expect an update from the
Government following the consultation on Future Homes Standard
(FHS) regulation later in the year. We have been preparing for this
regulation which will see our homes become all electric and zero
carbon ready and successfully completed our first trial of zero
carbon ready homes in 2023.
The Building Safety Act in England
has introduced enhanced building safety and compliance measures for
the design, construction and management of buildings. We are well
prepared due to our existing procedures and the quality of our site
management teams, which can be evidenced in our high Construction
Quality Review (CQR) scores.
The Building Safety Levy was first
announced by the previous Government, which conducted two
consultations (from July 2021 to October 2021 and November 2022 to
February 2023). So far the Government has stated that the Levy will
be charged on all new residential buildings in England (subject to
exemptions) which require building control approval, and
applications for building control after the date the regulations
come into force will be liable for the levy charge. The Levy aims
to raise around £3.4 billion over at least ten years and the
Government intends that the Levy will come into effect in Autumn
2025. While we are awaiting further detail and the implementation
date, we are proactively mitigating and managing risk, in so far as
is possible, in our landbank and strategic pipeline and in our
approach to ongoing and future land buying.
Group financial
review
Income statement
Group revenue was £3,401.2 million
in 2024 (2023: £3,514.5 million), with Group completions, excluding
joint ventures, being 2.7% lower at 10,476 (2023: 10,766). The UK
average selling price on private completions decreased by 3.8% to
£356k (2023: £370k), due to both underlying price deflation and
mix. Partially offsetting this, the UK average selling price on
affordable housing increased to £186k (2023: £168k), with a
slightly lower proportion of affordable housing in 2024 (22%) than
the prior year (2023: 23%). This resulted in the total UK average
selling price being 1.5% lower at £319k (2023: £324k).
Group gross profit decreased to
£648.7 million (2023: £716.5 million), with build cost inflation
and house price deflation partially offset by a higher profit
generated from land sales in the period, resulting in a gross
margin of 19.1% (2023: 20.4%).
Net operating expenses were £314.8
million (2023: £248.7 million), which includes £68.9 million of
exceptional costs relating to the cladding fire safety provision as
described in the previous section and £13.6 million loss on
disposal of the Winstanley and York Road joint venture,
arising from the difference between proceeds on
disposal and the Group's net investment in the joint
venture, with no such amounts in the prior
year.
Excluding exceptional costs, the
net operating expenses were £232.3 million (2023: £248.7 million),
which was predominantly made up of administrative costs of £242.0
million (2023: £232.7 million) that increased due to cost inflation
and investment in our timber frame facility and IT infrastructure.
This resulted in a profit on ordinary activities before financing
of £333.9 million (2023: £467.8 million), £416.4 million (2023:
£467.8 million) excluding exceptional items.
Completions from joint ventures in
the year were 117 (2023: 82). The Group's share of joint ventures'
results in the year, excluding exceptional items, was a £0.2
million loss (2023: £2.4 million profit). The loss arose from
operating costs of the Winstanley and York Road joint venture now
disposed of and on joint ventures that are between phases of
developments. One of the Group's joint ventures has recognised an
exceptional expense for building remediation works on buildings it
constructed. The Group had previously provided for its share of the
costs in its central provision held for cladding fire
safety, which has been released in the
year as noted above. Including exceptional
items the Group's share of joint ventures' results, after tax, was
a £15.9 million loss (2023: £2.4 million profit).
When including the share of joint
ventures' results in the profit on ordinary activities before
financing and exceptional items, the resulting operating profit was
£416.2 million (2023: £470.2 million), delivering an operating
profit margin of 12.2% (2023: 13.4%). The total order book value of
joint ventures as at 31 December 2024 increased to £28 million (31
December 2023: £6 million), representing 104 homes (31 December
2023: nine).
The net finance income of £2.3
million (2023: £3.6 million) reflects that interest earned on
deposits continued to more than offset the imputed interest on land
acquired on deferred terms, bank interest and interest on the
pension scheme.
Profit on ordinary activities
before tax decreased to £320.3 million (2023: £473.8
million). The total tax charge for the period was £100.7
million (2023: £124.8 million), a rate of 31.4% (2023: 26.3%); the
current year includes a credit of £20.2 million in respect of the
exceptional charge recognised. The pre-exceptional tax charge was
£120.9 million (2023: £124.8 million), representing an underlying
tax rate of 28.9% (2023: 26.3%).
As a result, profit for the year
was £219.6 million (2023: £349.0 million).
Basic earnings per share was 6.2
pence (2023: 9.9 pence). The adjusted basic earnings per share was
8.4 pence (2023: 9.9 pence).
Spain
Our Spanish business
primarily sells second homes to European and
other international customers, with a small proportion of sales
being primary homes for Spanish occupiers. The business completed
504 homes (2023: 410) with the average selling price increasing to
€440k (2023: €400k), due to regional mix, and to a lesser extent
mix of house types sold. The total order book as at 31 December
2024 was consistent at 491 homes (31 December 2023: 490
homes).
Gross margin was 28.2% (2023:
28.1%), this flowed through to an operating profit of £47.4 million
(2023: £35.3 million) and an operating profit margin of 25.4%
(2023: 24.7%).
The total plots in the landbank
stood at 3,214 (31 December 2023: 2,755), with net operating
assets** of £89.5 million (31 December 2023: £94.0
million).
Balance sheet
Net assets at 31 December 2024
decreased to £4,405.2 million (31 December 2023: £4,523.4 million),
with net operating assets decreasing marginally by £6.7 million
(0.2)%, to £3,817.0 million (31 December 2023:
£3,823.7 million). Return on net operating assets**
decreased to 10.9% (31 December 2023: 12.6%) due
primarily to the reduction in Group operating
profit. Group net operating asset
turn†* was 0.89 times (31 December 2023: 0.94), reflecting both the
decreased revenue and slightly higher average net operating
assets.
Land
Land as at 31 December 2024
increased by £118.0 million in the period to £3,387.5 million due
to being active and opportunistic in
reviewing land opportunities, resulting in
land creditors increasing to £627.9 million (31 December 2023:
£516.1 million). Included within the gross land creditor balance is
£39.9 million of UK land overage commitments (31 December 2023:
£44.9 million). £355.9 million of the land creditors is expected to
be paid within 12 months and £272.0 million thereafter (31 December
2023: £301.2 million and £214.9 million).
As at 31 December 2024, the UK
short term landbank comprised 78,626 plots (31 December 2023:
80,323), with a net book value of £2.9 billion (31 December 2023:
£2.8 billion). Short term owned land had a net book value of £2.9
billion (31 December 2023: £2.7 billion), representing 65,521 plots
(31 December 2023: 61,190). The controlled short term landbank
represented 13,105 plots (31 December 2023: 19,133).
The value of strategic owned land
decreased to £180 million (31 December 2023: £242 million),
representing 31,764 plots (31 December 2023: 34,319), with a
further total controlled strategic pipeline of 104,375 plots (31
December 2023: 107,676). Total potential revenue in the owned and
controlled landbank was £60 billion (31 December 2023: £61
billion).
Work in progress (WIP)
Total WIP investment, excluding
part exchange and other, increased to £1,949.3 million (31 December
2023: £1,871.0 million), due to build cost inflation and preparing
for volume growth in 2025 and beyond, including new site
infrastructure. Average WIP per UK outlet also increased as a
result to £8.9 million (31 December 2023: £7.6 million).
Provisions and deferred tax
Provisions increased to £306.7
million (31 December 2023: £286.7 million) due to the
£88.0 million increase in the first half of the
year in the cladding fire safety provision, which in the second
half of the year was reduced by £19.1 million as a joint venture
recognised a provision for those works directly. This net
£68.9 million increase was partly offset by
utilisation of that provision (£28.5 million) as works have been
carried out, as well as utilisation in other provisions which
largely relate to remedial works on a limited number of sites
around the Group.
The net deferred tax asset of
£20.6 million (31 December 2023: £23.4 million) relates to the
pension deficit and UK and Spanish provisions that are tax
deductible when the expenditure is incurred.
Pensions
During 2023, the Group engaged
with the Trustee of the Taylor Wimpey Pension Scheme (TWPS) on the
triennial valuation of the Scheme with a reference date of 31
December 2022. The valuation was concluded in March 2024 and showed
that the TWPS had a surplus of £55 million on its Technical
Provisions funding basis and a funding level of 103%. As a result,
no deficit contributions were required to be paid to the TWPS or to
the escrow account established following the 2019 valuation. The
escrow account will remain in place until 30 June 2028, at which
point a funding test will be conducted and funds will either be
paid to TWPS or returned to the Group.
In March 2024, the Group also
reached agreement with the Trustee to restructure the Group's
Pension Funding Partnership (PFP). The restructure retained the
existing contributions payable until 2029 but replaced the payment
of up to £100 million that may have been due in 2029, with seven
annual payments of up to £12.5 million each from 2029 to 2035.
These are only payable if the TWPS has a deficit on its Technical
Provisions funding basis at the prior 31 December.
The Group continues to provide a
contribution for Scheme expenses (£2.0 million per year) and also
makes contributions via the PFP (£5.1 million per year). Total
Scheme contributions and expenses in the period were £7.1 million
(2023: £7.1 million) with no further amounts paid into the escrow
account (2023: nil). At 31 December 2024, the IAS 19 valuation of
the Scheme was a surplus of £90.2 million (31 December 2023: £76.7
million). Due to the rules of the TWPS, any surplus cannot be
recovered by the Group and therefore a deficit has been recognised
on the balance sheet under IFRIC 14. The deficit is equal to the
present value of the remaining committed payments and any
forecasted distributions from the PFP.
Retirement benefit obligations of
£22.2 million at 31 December 2024 (31 December 2023: £26.5 million)
comprise a defined benefit pension liability of £22.0 million (31
December 2023: £26.3 million) and a post-retirement healthcare
liability of £0.2 million (31 December 2023: £0.2
million).
The Group continues to work
closely with the Trustee in managing pension risks, including
management of interest rate, inflation and longevity
risks.
Net cash and financing position
Net cash decreased to £564.8
million at 31 December 2024 from £677.9 million at 31 December
2023, due primarily to the increased investment in WIP. Average net
cash for the year was £494.5 million (31 December 2023: £606.6
million).
Despite the decrease in
completions in the period, management of land and WIP spend has
resulted in a cash conversion‡‡ of 74.9% of operating
profit for the year ended 31 December 2024 (2023:
61.4%).
Net cash, combined with land
creditors, resulted in an adjusted gearing‡‡‡‡ of 1.4% (31 December
2023: (3.6)%).
At 31 December 2024, our committed
borrowing facilities were £683 million, of which the £600 million
revolving credit facility was undrawn throughout the period. The
weighted average maturity of the committed borrowing facilities at
31 December 2024 was 4.6 years (31 December 2023: 4.8 years).
During the year an extension of one year to 2029 was agreed for the
revolving credit facility. The revolving credit facility includes
three sustainability-linked performance measures to be assessed and
verified annually, which can have a minor impact on the margin. The
three performance measures are: reductions in scope 1 and 2 GHG
emissions; reductions in waste; and reductions in carbon emissions
of the homes we build. These measures align with our environment
strategy, Building a Better World.
Dividends
Subject to shareholder approval at
the AGM scheduled for 30 April 2025, the 2024 final ordinary
dividend of 4.66 pence per share will be paid on 9 May 2025 to
shareholders on the register at the close of business on 28 March
2025 (2023 final dividend: 4.79 pence per share). In combination
with the 2024 interim dividend of 4.80 pence per share this gives
total ordinary dividends for the year of 9.46 pence per share (2023
ordinary dividend: 9.58 pence per share).
The dividend will be paid as a
cash dividend, and shareholders have the option to reinvest all of
their dividend under the Dividend Re-Investment Plan (DRIP),
details of which are available on our website:
www.taylorwimpey.co.uk/corporate.
Going concern
The Directors remain of the view
that the Group's financing arrangements and balance sheet strength
provide both the necessary liquidity and covenant headroom to
enable the Group to conduct its business for at least the next 12
months from the date of signature of the 2024 financial statements.
Accordingly, the financial statements are prepared on a going
concern basis, see Note 1 of the Condensed Consolidated Financial
Statements for further details of the assessment
performed.
Viability disclosure
In accordance with the 2018 UK
Corporate Governance Code, the Directors and the senior management
team have assessed the prospects and financial viability of the
Group for a period longer than the 12 months required for the
purpose of the 'going concern' assessment.
Time period
The Directors have assessed the
viability of the Group over a five-year period, taking account
of the Group's current financial position, current market
circumstances and the potential impact of the Principal and
emerging risks facing the Group. The Directors have determined this
as an appropriate period over which to assess the viability
based on the following:
- It is aligned with the Group's bottom-up five-year budgeting
and forecasting cycle
- Five years represents a reasonable estimate of the
typical time between purchasing land, its progression through the
planning cycle, building out the development and selling homes to
customers from it
Five years is also a reasonable
period for consideration given the following broader external
trends:
- The cyclical nature of the market in which the Group
operates, which tends to follow the economic cycle
- Consideration of the impact of government policy, planning
regulations and the mortgage market
- Long term supply of land, which is supported by our strategic
land pipeline
- Changes in technology and customer expectations
Assessment of prospects
We consider the long term
prospects of the Group in light of our business model. Our strategy
to deliver sustainable value is achieved through delivering
high-quality homes for our customers, in the locations where people
want to live, whilst carefully managing our cost base and the
Group's balance sheet.
In assessing the Group's prospects
and long term viability, due consideration is given to:
•
The Group's current performance and the Group's
financing arrangements
•
The wider economic environment and mortgage
market, as well as changes to government policies and regulations,
including those influenced by sustainability, climate change and
the environment, that could impact the Group's business
model
•
Strategy and business model flexibility,
including customer dynamics and approach to land
investment
•
Principal Risks associated with the Group's
strategy and business model, including those which have the most
impact on our ability to remain in operation and meet our
liabilities as they fall due
Principal Risks
The Principal Risks, to which the
Group is subject, have undergone a comprehensive review by the GMT
and Board in the current year. Consideration is given to the risk
likelihood based on the probability of occurrence and potential
impact on our business, together with the effectiveness of
mitigations.
The Directors identified the
Principal Risks that have the most impact on the longer term
prospects and viability of the Group, and as such these have been
used in the modelling of a severe but plausible downside scenario,
as:
·
Government policies, regulations and planning
(A)
·
Mortgage availability and housing demand
(B)
·
Availability and costs of materials and
subcontractors (C)
·
Quality and reputation (F)
·
IT environment and security (I)
A range of sensitivity analyses
for these risks together with likely mitigating actions that would
be adopted in response to these circumstances were modelled,
including a severe but plausible downside scenario in which the
impacts were aggregated together.
The impact from 'Natural resources
and climate change' (H) is not deemed to be material within the
five-year forecast period, as costs associated with the regulatory
changes have been included in the modelling.
Assessment of viability
The Group adopts a disciplined
annual business planning process involving the management teams of
the UK regional businesses and Spain, and the Group's senior
management, and is built on a bottom-up basis. This planning
process covers a five-year period comprising a detailed budget for
the next financial year, together with a forecast for
the following four financial years ('forecast').
The financial planning process
considers the Group's profitability and Income Statement, Balance
Sheet including landbank, gearing and debt covenants, cash
flows and other key financial metrics over the forecast period.
These financial forecasts are based on a number of key assumptions,
the most important of which include:
- Timing and
volume of legal completions of new homes sold, which includes
annual production volumes and sales rates over the life of the
individual developments
- Average
selling prices achieved
- Build
costs and cost of land acquisitions
- Working
capital requirements
- Capital
repayment plan, where we have assumed the payment of the ordinary
dividend in line with the current policy, which is a minimum of
£250 million or 7.5% of the Group's net assets per annum,
throughout the period
Stress testing our risk resilience
The assessment considers
sensitivity analysis on a series of realistically possible, but
severe and prolonged, changes to principal assumptions.
In determining these we have included macroeconomic and
industry-wide projections as well as matters specific to the
Group.
The severe but plausible downside
scenario reflects the aggregated impact of sensitivities, taking
account of a further decline in customer confidence, disposable
incomes and mortgage availability. To arrive at our stress test we
have drawn on experience gained from managing the business through
previous economic downturns.
We have applied the market
dynamics encountered at those times, as well as the mitigations
adopted, to our 2025 expectations in order to test the resilience
of our business. As a result, we have stress tested our business
against the following severe but plausible downside scenario, which
can be attributed back to the Group's Principal Risks
that have been identified as having the most impact on the
longer term prospects and viability of the Group.
Volume (Principal Risk: A, B,
C, F) - a further decline in total volumes of 10% in 2025 from 2024
levels, before recovering back to 2024 levels by 2027.
Price (Principal Risk: B) - a
reduction to current selling prices of 5%, remaining at these
levels across 2025 and 2026 before recovering to current levels by
2027.
One-off costs (Principal
Risk: A, F, I) - a one-off exceptional charge and cash cost of £150
million for an unanticipated event, change in government
regulations or financial penalty has been included in
2025.
Within the scenario, current build
costs are forecast to increase by 2% in 2025 but further cost
increases will be minimised due to lower volumes reducing demand
for materials and resources. Land cost also remains broadly
flat, as the possible increase in availability due to lower volumes
is offset by a restriction in supply.
The mitigating actions considered
in the model include a continued reduction in land investment, a
reduction in the level of production and work in progress held and
further reducing our overhead base to reflect the lower
volumes.
If this scenario were to occur,
the Directors also have a range of additional options to maintain
financial strength, including a more severe reduction in land spend
and work in progress, the sale of assets, reducing the dividend
and/or raising debt.
At 31 December 2024, the Group had
a cash balance of £647 million and access to £600 million from a
fully undrawn revolving credit facility, together totalling £1,247
million. The combination of both of these is sufficient to absorb
the financial impact of each of the risks modelled in the stress
and sensitivity analysis, individually and in aggregate.
Confirmation of viability
Based on the results of this
analysis, the Directors have a reasonable expectation that
the Group will be able to continue in operation and meet its
liabilities as they fall due over the five-year period of their
assessment.
Definitions
* Operating profit is defined as
profit on ordinary activities before financing, exceptional items
and tax, after share of results of joint ventures.
*† Operating profit
margin is defined as operating profit divided by
revenue.
** Return on net operating assets
(RONOA) is defined as rolling 12 months' operating profit divided
by the average of the opening and closing net operating assets of
the 12-month period, which is defined as net assets less net cash,
excluding net taxation balances and accrued dividends.
† Tangible net assets per share is defined as net assets before
any accrued dividends, excluding intangible assets, divided by the
number of ordinary shares in issue at the end of the
period.
†† Adjusted basic earnings per share represents earnings
attributed to the shareholders of the parent, excluding exceptional
items and tax on exceptional items, divided by the weighted average
number of shares in issue during the period.
†* Net operating asset turn is defined as 12 months' rolling
total revenue divided by the average of opening and closing net
operating assets of the 12-month period.
†***
The Annual Injury Incidence Rate (AIIR) is
defined as the number of incidents per 100,000 employees and
contractors, calculated on a rolling 12-month basis, where the
number of employees and contractors is calculated using a monthly
average over the same period.
‡ Net cash is defined as total cash less total
borrowings.
‡‡ Cash conversion is defined as operating cash flow divided by
operating profit on a rolling 12-month basis, with operating cash
flow defined as cash generated from operations (which is before
income taxes paid, interest paid and payments related to
exceptional charges).
‡‡‡‡
Adjusted gearing is defined as adjusted net debt
divided by net assets. Adjusted net debt is defined as net cash
less land creditors.
The Group uses Alternative
Performance Measures (APMs) as important financial performance
indicators to assess underlying performance of the Group. The
Group's two main financial targets are operating profit margin and
return on net operating assets. Definitions and reconciliations to
the equivalent statutory measures are included in Note 13 of the
Condensed Consolidated Financial Statements.
Shareholder information
The Company's 2025 Annual General
Meeting (AGM) will be held at 10:30am on 30 April 2025 in the
Gerrards Suite at the Crowne Plaza Gerrards Cross, Oxford Road,
Beaconsfield, HP9 2XE.
Copies of the Annual Report and
Accounts 2024 will be available from 25 March 2025 on the Company's
website www.taylorwimpey.co.uk/corporate. Hard copy documents will
be posted to shareholders who have elected to receive them and will
also be available from our registered office at Gate House,
Turnpike Road, High Wycombe, Buckinghamshire, HP12 3NR from 27
March 2025.
A copy of the Annual Report and
Accounts 2024 will be submitted to the National Storage Mechanism
and will be available for inspection
at: https://data.fca.org.uk/#/nsm/nationalstoragemechanism
Directors' responsibilities
The responsibility statement below
has been prepared in connection with the full Annual Report and
Accounts for the year ended 31 December 2024. Certain parts thereof
are not included within this announcement.
We confirm to the best of our
knowledge that:
·
the Group financial statements, which have been
prepared in accordance with UK-adopted international accounting
standards, give a true and fair view of the assets, liabilities,
financial position and profit of the Group; and
·
the Strategic report includes a fair review of
the development and performance of the business and the position of
the Group and Company, together with a description of the Principal
Risks and uncertainties that it faces.
This responsibility statement was
approved by the Board of Directors on 26 February 2025 and is
signed on its behalf by:
Robert Noel, Chair
Jennie Daly, Chief
Executive
Principal Risks and
uncertainties
The Board has overall
responsibility for risk oversight, for maintaining a robust risk
management and internal control system and for determining the
Group's appetite and tolerance for exposure to the Principal Risks
to the achievement of its strategy. Our Annual Report and Accounts
2024 details the full governance procedures and processes for
identification and subsequent monitoring of the risks undertaken by
the Group.
The Audit Committee supports the
Board in the management of risk and is responsible for reviewing
the effectiveness of the risk management and internal control
processes during the year.
The Chief Executive is primarily
responsible for the management of the risks with the support of the
GMT and other senior managers located in the business. In line with
the 2018 UK Corporate Governance Code, the Board holds formal risk
reviews at least half yearly and routinely considers risk at each
Board meeting as appropriate. The formal assessment includes a
robust consideration of the Principal Risks, to ensure they remain
appropriate, a review of the key risks identified by the business,
their risk profiles and mitigating factors, and an annual review of
the established risk appetite and tolerance levels. During the
year, one of our Principal Risks ('Mortgage availability and
housing demand') saw an increase in its inherent and residual
profiles, primarily due to a new key risk being identified around
availability of funding for affordable housing, impacting demand.
In addition, the previously named 'Cyber security' Principal Risk
has been renamed 'IT environment and security', although there is
no change to the coverage of the risk. Our Principal Risks are
described in more detail in the tables below.
The Board also considers emerging
risks which could impact on the Group's ability to deliver its
strategy. The emerging risks are those where the extent and
implications are not yet fully understood but consideration has
been given to the potential timeframe of occurrence and velocity of
impact that these could have on the Group. As part of our risk
management process, these are monitored and reviewed on an ongoing
basis and discussed and agreed by the Board.
Our emerging risks are grouped
into the categories listed in the table below, which also contains
some narrative description against each category indicating example
focus areas into which the identified emerging risks
fall.
|
Category
|
Example focus area
|
|
Environmental/climate
|
Unpredictable weather
patterns
|
|
Operational/build
|
Adaption of building
methodologies
|
|
Political/economic
|
Geopolitical
uncertainty
|
|
Social
|
Customer demographics and
preferences
|
|
Governmental
|
Changing Government
policies
|
The Group considers other specific
risk areas recognising the increasing complexity of the industry in
which it operates and which are in addition to its identified
Principal Risks. We continue to monitor and mitigate the impacts on
our supply chain and labour force and the overall economic market
impacting mortgage availability and demand.
Our Sustainability and Climate
Change Risk and Opportunity Register highlights the material risks
and opportunities facing the Group in relation to sustainability
and climate change. In addition, our climate change-related risks
and opportunities are available as part of our 2024 CDP submission.
More information is available at www.taylorwimpey.co.uk/corporate.
The Principal Risks, their
mitigations and risk indicators are detailed below:
|
Description
|
Residual risk rating
|
Risk appetite
|
Example risk indicators, mitigations and
opportunities
|
|
A. Government policies,
regulations and planning
The industry in which we operate
is becoming increasingly regulated. Failure to adhere to government
regulations could impact our operational performance and our
ability to meet our strategic objectives.
Changes to the planning system or
planning delays could result in missed opportunities to optimise
our landbank, affecting profitability and production
delivery.
Accountability
Group Technical Director
Director of Planning
Regional Managing
Directors
|
Moderate
|
Low
|
Example risk indicators
New government regulations (e.g.
around planning and climate)
- Delays in planning
- Sentiment towards the industry
(e.g. cladding fire safety remediation)
Key mitigations
- Research conducted to update
technical specification of our new house type range, in preparation
for the Future Homes Standard (FHS), including a trial of five
FHS-compliant plots
- Consultation with government
agencies
- Cladding fire safety remediation
and signing of the Government's Building Safety Pledge for
Developers
- Engagement with national and
local government
- Working with HBF and other
stakeholders
- Member of Future Homes
Hub
Opportunities
To build enhanced collaborative
networks with stakeholders and peers, to monitor the implications
of regulatory change.
Lead the business in addressing
pressing environmental issues, including reducing our carbon
footprint and targeting biodiversity.
|
|
Description
|
Residual risk rating
|
Risk appetite
|
Example risk indicators, mitigations and
opportunity
|
|
B. Mortgage availability and
housing demand
A decline in the economic
environment, driven by sustained growth in interest rates,
increased cost of living, low wage inflation or increasing levels
of unemployment, could result in tightened mortgage availability
and challenge mortgage affordability for our customers, resulting
in a direct impact on our volume targets.
Accountability
UK Sales and Marketing
Director
Regional Sales and Marketing
Directors
|
Moderate
|
Low
|
Example risk indicators
- Interest rate
increases
- Levels of
unemployment
- Volume of enquiries/people
visiting our developments
- UK household spending/levels of
disposable income
- Loan to value metrics
- Number and value of bids from
affordable housing providers
Key mitigations
- Increase outlets to provide
greater customer choice and flexibility to respond quickly to
changing market conditions
- Review of pricing and incentives
offered
- Monitor external market data
(e.g. HBF and mortgage lenders)
- Strong relationships with
mainstream lenders
- Work with financial services
industry to ensure customers receive appropriate advice on mortgage
products
Opportunities
To continue to develop strong
working relationships with established mainstream lenders and those
wishing to increase volume in the new build market.
|
|
Description
|
Residual risk rating
|
Risk appetite
|
Example risk indicators, mitigations and
opportunity
|
|
C. Availability and costs of
materials and subcontractors
Increase in housing demand and
production or a breakdown within the supply chain may further
strain the availability of skilled subcontractors and materials and
put pressure on utility firms to keep up with the pace of
installation, resulting in increased costs and construction
delays.
Accountability
Supply Chain Director
Procurement Director
Group Commercial Director
|
Moderate
|
Low-moderate
|
Example risk indicators
- Material and trade
shortages
- Material and trade price
increases
- Level of build quality and waste
produced from sites
- Longer build times
- Number of skilled
trades
Key mitigations
- Central procurement and key
supplier agreements
- Supplier and subcontractor
relationships
- Disaster recovery and business
continuity plans with all key suppliers
- Buffer stock with key
suppliers
- Contingency plans for critical
path products
- Direct trade and apprenticeship
programmes
- Key commodity risk assessment
matrix
- Regular checks on all key
suppliers
- Monitoring of the supply
chain
Opportunities
To develop and implement different
build methods as alternatives to conventional brick and
block.
|
|
Description
|
Residual risk rating
|
Risk appetite
|
Example risk indicators, mitigations and
opportunity
|
|
D. Attract and retain high-calibre
employees
An inability to attract, develop,
motivate and retain high-calibre employees, together with a failure
to consider the retention and succession of key management, could
result in a failure to deliver our strategic objectives, a loss of
corporate knowledge and a loss of competitive advantage.
Accountability
Group HR Director
Every employee managing
people
|
Low
|
Moderate
|
Example risk indicators
- Employee engagement
score
- Number of, and time to fill,
vacancies
- Employee turnover
levels
Key mitigations
- Production Academy and
Production Manager succession development programme
- Schools outreach
strategy
- Collaboration with major
organisations on sector skills plan
- Graduate and apprenticeship
programmes
- Management training
- Enhanced remote working
procedures
- Educational
masterclasses
- Salary benchmarking
Opportunities
To further develop in-house
capability, expertise and knowledge.
|
|
Description
|
Residual risk rating
|
Risk appetite
|
Example risk indicators, mitigations and
opportunity
|
|
E. Land availability
An inability to secure land at an
appropriate cost, the purchase of land of poor quality or in the
wrong location, or the incorrect timing of land purchases in
relation to the economic cycle could impact future
profitability.
Accountability
Divisional Chairs
Regional Managing
Directors
Regional Land and Planning
Directors
Managing Director Group Strategic
Land
Group Land Director
|
Low
|
Moderate
|
Example risk indicators
- Movement in landbank
years
- Number of land
approvals
- Timing of conversions from
strategically sourced land
Key mitigations
- Critically assess
opportunities
- Land quality
framework
- Engagement with national and
local government
- Review of land
portfolio
- Obtaining specialist
environmental and legal advice
Opportunities
A strong balance sheet allows us
to invest when land market conditions are attractive.
|
|
Description
|
Residual risk rating
|
Risk appetite
|
Example risk indicators, mitigations and
opportunity
|
|
F. Quality and
reputation
The quality of our products is key
to our strategic objective of being a customer-focused business and
in ensuring that we do things right first time.
If the Group fails to deliver
against these standards and its wider development obligations, it
could be exposed to reputational damage, as well as reduced sales
and increased costs.
Accountability
Customer Director
UK Head of Production
Director of Design
|
Moderate
|
Low
|
Example risk indicators
- Customer satisfaction scores
(8-week and 9-month)
- Number of NHBC claims
- Construction Quality Review
(CQR) scores
- Average reportable items per
inspection found during NHBC inspections at key stages of the
build
Key mitigations
- Customer-ready Home Quality
Inspection
- Consistent Quality
Approach
- Quality Managers in the
business
- Customer-driven
strategy
- Enhanced data
analytics
- Ombudsman readiness
Opportunities
To better understand the needs of
our customers, enabling increased transparency of our build
profile.
To lead the industry in quality
standards (our CQR score) and reduce the number of reportable items
identified through monitoring defects at every stage of
build.
|
|
Description
|
Residual risk rating
|
Risk appetite
|
Example risk indicators, mitigations and
opportunity
|
|
G. Health, safety and
environment
The health and safety of all our
employees, subcontractors, visitors and customers is of paramount
importance. Failure to implement and monitor our stringent health,
safety and environment (HSE) procedures and policies across all
parts of the business could lead to accidents or site-related
incidents, resulting in serious injury or loss of life.
Accountability
Head of Health, Safety and
Environment
Regional Managing
Directors
|
Low
|
Low
|
Example risk indicators
- Increase in near misses and
fatalities
- Health and safety audit
outcomes
- Number of reportable health and
safety incidents
Key mitigations
- Embedded HSE system
- HSE training and
inductions
- Mental health training and
support for all employees
- Robust monitoring and reporting
procedures
- Utilisation of certified
operatives
- Identification, review and
evaluation of the impact of new construction methods and
materials
Opportunities
To lead the industry in health and
safety and to reduce the amount and level of incidents.
|
|
Description
|
Residual risk rating
|
Risk appetite
|
Example risk indicators, mitigations and
opportunity
|
|
H. Natural resources and climate
change
An inability to reduce our
environmental footprint, the challenges of a degraded environment
including the impacts of climate change, nature loss and water
scarcity on our business, supply chain scarcity due to
environmental change and the increasing desire of our customers to
live more sustainably could impact our reputation, ability to
attract investment and obtain planning permission and the delivery
of our strategic targets.
Accountability
Director of
Sustainability
Regional Managing
Directors
|
Moderate
|
Low
|
Example risk indicators
- Energy use and greenhouse gas
emissions
- Biodiversity net gain
%
- Construction waste generation
and waste to landfill
Key mitigations
- Net Zero Transition
Plan
- Published Environment
Strategy
- Adopted and verified
science-based targets
- Climate change governance,
including LEAF Committee and sustainability champions
- Achievement of Carbon Trust
Standard
- HBF and investor
liaison
- Training and development in
house and in our supply chain
- External benchmarking
- Collection and interpretation of
data to drive relevant actions
Opportunities
Sustainable homes and developments
attractive to customers.
A sustainable business of choice
for investors.
Advantageous planning
positions.
|
|
Description
|
Residual risk rating
|
Risk appetite
|
Example risk indicators, mitigations and
opportunity
|
|
I. IT environment and
security
The Group places increasing
reliance on IT to conduct its operations and the requirement to
maintain the accuracy and confidentiality of its information
systems and the data contained therein. A cyber-attack leading to
the corruption, loss or theft of data could result in reputational
and operational damage.
Accountability
IT Director
|
Moderate
|
Low-moderate
|
Example risk indicators
- Number of devices with critical
and high open vulnerabilities
- Number of devices without latest
patching in place
- Phishing test results
- Cyber training completion
statistics
- Number of users with
administrative privileges to critical systems
Key mitigations
- Complex passwords policy and
multi-factor authentication for remote access
- Regular security patching and
penetration testing
- Risky logins check
- Intrusion detection and prevention
systems
- Suspected phishing emails
process
- Mandated cyber training for all
staff
- Cyber insurance
- Dedicated Head of Cyber
Security
- Cyber security KPIs
- Enhanced end-point
protection software implemented across the IT estate
- Blocked traffic originating from
countries deemed a threat to the UK
Opportunities
Together with our service
partners, provide a level of security to reinforce our reputation
as a trusted partner.
|
Cautionary note concerning
forward looking statements
This report contains certain
forward-looking statements. These statements are made by the
Directors and include statements regarding their current
intentions, beliefs and expectations, based on the information
available to them up to the time of their approval of this report
and unless otherwise required by applicable law, the Company and
its Directors undertake no obligation to update or revise these
forward looking statements, nor do they accept any liability should
the future results actually achieved fail to correspond to the
forward-looking statements included in this report.
By their nature these
forward-looking statements involve uncertainty (including both
economic and business risk factors) and are subject to a number of
risks since future events and circumstances can cause actual
results and developments to differ materially to those anticipated.
As such, these forward-looking statements should be treated with
caution.
Nothing in this report should be
construed as a profit forecast and does not constitute or form part
of, any offer, invitation or the solicitation of an offer to
purchase, otherwise acquire, subscribe for, sell or otherwise
dispose of, any securities in Taylor Wimpey plc or any other
invitation or inducement to engage in investment activities and
does not constitute a recommendation to sell or buy any such
securities.
