Half Year 2024 Taylor Wimpey PLC Earnings Call Transcript
Key Points
- Taylor Wimpey PLC (TWODF) expects full-year completions to be towards the upper end of their guidance range of 9,500 to 10,000 units.
- The company has a strong landbank of 79,000 plots, supported by a mature strategic land pipeline.
- Customer service scores have improved significantly from 90% to 96%, reflecting a focus on customer satisfaction.
- The company has maintained a stable pricing environment with only low single-digit erosion of house prices since September 2022.
- Taylor Wimpey PLC (TWODF) has a strong balance sheet with net assets of GBP4.4 billion and a net cash position of GBP584 million.
- The order book is down slightly, and building it remains a key priority for future growth.
- The company faces challenges with planning approvals, which have fallen to record lows, impacting future land supply.
- High mortgage rates continue to impact affordability, particularly for first-time buyers.
- The housing association sector is facing significant headwinds, potentially impacting affordable housing completions from 2025 onwards.
- The company has increased its fire safety provision by GBP88 million due to inflation in remediation costs and additional buildings identified for remediation.
So I'm running a little bit behind. I'm afraid that's my chatting. I apologize. But good morning to you all, and thank you for joining us. As usual, I'll do some brief introductory comments and the highlights from the half year. And Chris will take you through the financial review and our guidance, and then I'll take you through how we're seeing things today and how we're positioning the business for the future.
I think you will already have seen the statement and noted that we now expect full year completions, excluding JVs to be towards the upper end of our previous guidance of 9,500 to 10,000. I am very pleased to say that we performed well in the first half.
And importantly, we are very well set up to grow again from 2025, if the market is supportive. It is early days for the new Labour Government, but all early indications look positive for the sector with recognition that planning is a major barrier to economic growth, and that housebuilding contributes significantly to that much needed growth, but there
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