Taylor Wimpey Plc · LSE:TW.
Taylor Wimpey — FY2024 Earnings Presentation
51 slides from Taylor Wimpey's earnings presentation, Feb 27, 2025
Slide 1: Full Year Results Presentation for the year ended 31 December 2024
Full Year Results Presentation for the year ended 31 December 2024 27 February 2025
Slide 2: Disclaimer
Disclaimer For the purposes of this notice, this “presentation” shall include these slides and any question-and-answer session that follows oral briefings by representatives of Taylor Wimpey plc. This presentation is for information purposes only and is not intended to, and does not constitute or fo
Slide 3: Agenda
Agenda 2024 trading and market Financial review Fit for the future: Priorities backdrop for the year and outlook Jennie Daly Chris Carney Jennie Daly 3 Results Presentation for the year ended 31 December 2024
Slide 4: 2024 trading and market backdrop
2024 trading and market backdrop Jennie Daly Chief Executive
Slide 5: Delivering a good performance
Delivering a good performance Net private sales rate Group completions Group operating profit Dividend per share (per outlet per week) including joint margin* paid in 2024 ventures 0.75 10,593 12.2% 9.59p (2023: 0.62) (2023: 10,848) (2023: 13.4%) (2023: 9.57p) Plots in short term 8-week ‘would you C
Slide 6: 2024 UK trading performance: stable sales rate
2024 UK trading performance: stable sales rate Fluctuations in mortgage rates having less of an impact on Improved 2024 sales performance monthly sales rates in 2024 (excluding bulk deals) ● Net private sales rate of 0.75 (2023: 0.62), and 0.67 excluding bulk deals (2023: 0.54) 7 1.00 0.90 Net priva
Slide 7: Financial review
Financial review Chris Carney Group Finance Director
Slide 8: Summary Group results
Summary Group results £m (before exceptional items) FY 2024 FY 2023 Change Revenue 3,401.2 3,514.5 (3.2)% Gross profit 648.7 716.5 (9.5)% Gross profit margin % 19.1 20.4 (1.3)ppt Operating profit*† 416.2 470.2 (11.5)% Operating profit margin† % 12.2 13.4 (1.2)ppt Profit before tax and exceptional it
Slide 9: UK performance summary
UK performance summary FY 2024 FY 2023 Change Legal completions – excl JVs 9,972 10,356 (3.7)% Private 7,794 8,005 (2.6)% Affordable 2,178 2,351 (7.4)% Average selling price – excl JVs 319 324 (1.5)% Private £000 356 370 (3.8)% Affordable £000 186 168 10.7% Legal completions – JVs 117 82 42.7% Share
Slide 10: UK operating profit margin
UK operating profit margin Impact on 2024 ● As previously guided the reduction in operating profit Illustrative movements in UK operating Annual income statement margin for 2024 was driven by: profit margin FY 2023 to FY 2024 change (ppt) ● Lower pricing of 2024 legal completions due to market Marke
Slide 11: Summary Group balance sheet
Summary Group balance sheet Group £m 31 Dec 2024 31 Dec 2023 Change Long term assets and JVs 97.0 143.2 (46.2) Land 3,387.5 3,269.5 118.0 WIP 1,989.1 1,900.1 89.0 Debtors 145.3 152.5 (7.2) Land creditors (627.9) (516.1) (111.8) Other creditors (845.1) (812.3) (32.8) Pensions and post-retirement bene
Slide 12: Group cashflow
Group cashflow 1,200 416.2 (13.7) (26.5) (60.3) (4.0) 311.7 (84.6) 1,000 (339.4) 800 677.9 (0.8) £m 600 564.8 400 200 0 Opening net Operating profit Movement in Investment in Investment in Payments to Cash generated Tax paid and Dividends Other*** Closing net cash cash debtors and land * WIP pension
Slide 13: Our capital allocation priorities
Our capital allocation priorities Highly cash generative business allows for investment for growth and attractive shareholder returns 1 2 3 4 Investment in land and Maintain a strong Sustainable ordinary WIP to drive future Return excess cash balance sheet dividend growth Maintain low adjusted geari
Slide 14: 2025 guidance
2025 guidance Guidance 10,400 to 10,800 range UK completions (excl. JVs) Half year c.45% of full year Group operating profit (incl. JVs) In line with current market expectations1 Net finance charges c.£20 million net expense (including c.£2 million cash receipt) JV share of profit c.£2 million 1 As
Slide 15: Fit for the future: Priorities for the year and outlook
Fit for the future: Priorities for the year and outlook Jennie Daly Chief Executive
Slide 16: Underpinned by supportive fundamentals
Underpinned by supportive fundamentals Short term drivers ⚫ Supportive mortgage lending backdrop ⚫ Mortgage rates were relatively stable in 2024 with good mortgage availability ⚫ Unemployment remains at a low level with rise in real wages helping to repair affordability ⚫ For those with larger depos
Slide 17: Our approach to driving quality leads
Our approach to driving quality leads ⚫ Our goal with website visitors is to move people through buyer behaviour stages to appointment and ultimately convert to reservation Organic traffic Advertising ⚫ Optimising marketing strategy including use of automation ⚫ Continue to improve each stage of onl
Slide 18: Improved organic customer interest and increased quality of overall traffic
Improved organic customer interest and increased quality of overall traffic Organic customer interest* Total website traffic 1 6 11 16 21 26 31 36 41 46 51 1 6 11 16 21 26 31 36 41 46 51 2023 2024 2025 2023 2024 2025 * Organic traffic i.e. traffic via a search engine, to our plot and development pag
Slide 19: Current trading
Current trading H1 2025 (w/e 23 Feb 2025) H2 2024 H1 2024 Average outlets open 211 207 224 Private sales rate (net) 0.75 0.76 0.75 Private sales price £000 348 347 349 Cancellation rate (private) 16% 15% 14% ● Trading encouraging with sales rate in the first 8 weeks up 12% year on year ● Total order
Slide 20: Fit for the future
Fit for the future Operational Land excellence Capital Sustainability allocation rs D ri ld e vin ho g ke su st t a a in ed a ll s gr o wth and retur s f or n 20 Results Presentation for the year ended 31 December 2024
Slide 21: A quality landbank ready to deliver
A quality landbank ready to deliver ● In a position of strength with a well invested landbank and mature strategic pipeline in good quality locations ● Short term owned landbank increased by over 4k plots year on year ● Good track record of conversions from the strategic pipeline ● Proactively prepa
Slide 22: Resilient outlets and site depth supporting volume growth in 2025 and beyond
Resilient outlets and site depth supporting volume growth in 2025 and beyond ● Expect to open more outlets in 2025 than in 2024 with openings weighted towards the end of the year ● 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 implem
Slide 23: Focused on operational excellence to drive value and sustained growth
Focused on operational excellence to drive value and sustained growth ● Operational excellence now part of the business culture ● Procurement and partner strategies ● Working closely with our suppliers to better forecast and mitigate pinch points ● Continued scrutiny and management of costs includin
Slide 24: Prepared for future regulation
Prepared for future regulation ⚫ Future Homes Standards and transitional arrangements expected to be published later in the year, possibly Summer ⚫ Further developing knowledge on new technologies and innovations, and preparing our teams for the changes ahead ⚫ Well prepared for changes associated w
Slide 25: The capacity built for sustained growth
The capacity built for sustained growth ⚫ Retained the infrastructure to enable us to capture growth ⚫ Continuous business improvement embedded in the way we work ⚫ Timber frame factory supporting efficiency and environmental performance ⚫ Focused on skills ● Attracting the best people with an attra
Slide 26: Outlook
Outlook ⚫ The start of the Spring selling season has been robust with good levels of demand for our homes ⚫ Entered 2025 with an improved order book compared to the prior year, and have remained focused on building this ⚫ Expect 2025 UK completions (excluding JVs) to be in the range of 10,400 to 10,
Slide 27: Investment case
Investment case Q&A Strong and resilient Differentiated by Sustainable and Reliable business landbank responsible shareholder returns Operational High-quality ESG embedded Committed to paying excellence to landbank together throughout the an annual ordinary optimise margin and with a significant org
Slide 28: Future investor communications
Future investor communications ● 30 April 2025 AGM and trading update ● 30 July 2025 Half year results 2025 ● 12 November 2025 Trading update 28 Results Presentation for the year ended 31 December 2024
Slide 29: Appendices
Appendices Full Year Results Presentation for the year ended 31 December 2024 Taylor Wimpey plc
Slide 30: Incremental improvement in the short term drivers of demand
Incremental improvement in the short term drivers of demand Mortgage rates were relatively stable in 2024 but ticked up slightly Real wage growth improving affordability towards the end of the year 8% 8% 6% 6% 4% 2% 0% 4% -2% -4% 2% -6% -8% 0% 2020 2021 2022 2023 2024 2 year 75% LTV fixed rate mortg
Slide 31: Fundamentals remain positive
Fundamentals remain positive Unemployment levels remain stable Population growth continues to underpin demand for housing 9% 1000k 8% 900k 800k 7% 700k 6% 600k 5% 500k 4% 400k 3% 300k 2% 200k 1% 100k 0% 0k 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2001 2005 2009 2013 2017 2021
Slide 32: UK planning backdrop
UK planning backdrop 120,000 7,000 6,000 100,000 5,000 80,000 Number of projects 4,000 60,000 Number of units 3,000 40,000 2,000 20,000 1,000 0 0 Q1 2011 Q3 2013 Q1 2006 Q3 2006 Q1 2007 Q3 2007 Q1 2008 Q3 2008 Q1 2009 Q3 2009 Q1 2010 Q3 2010 Q3 2011 Q1 2012 Q3 2012 Q1 2013 Q1 2014 Q3 2014 Q1 2015 Q3
Slide 33: Good delivery against our operational KPIs
Good delivery against our operational KPIs Land FY 2024 FY 2023 Land cost as % of ASP on approvals 17.0% 15.2% Landbank years c.7.8 c.7.7 % of completions from strategically sourced land 40% 45% Operational excellence Construction Quality Review (average score / 6) 4.93 4.89 Average reportable items
Slide 34: Building safety update
Building safety update Financial position £m ● Long held belief that leaseholders should not pay Total funds set aside for cladding and fire safety remediation 245 at 31 December 2023 ● Dedicated remediation team in place 2024 H1 provision increase: ● Good progress being made with design, - Cost inf
Slide 35: Summary income statement
Summary income statement* Group £m FY 2024 FY 2023 Change H1 2024 Revenue 3,401.2 3,514.5 (3.2)% 1,517.7 Cost of sales (2,752.5) (2,798.0) (1.6)% (1,225.5) Gross profit 648.7 716.5 (9.5)% 292.2 Net operating expenses (232.3) (248.7) (6.6)% (110.7) Profit on ordinary activities 416.4 467.8 (11.0)% 18
Slide 36: 2024 exceptional items
2024 exceptional items Cladding fire safety provision Provision Disposal of increase H2 release Recognition Winstanley Total reported in on JV of provision & York Road exceptional £m H1 buildings in JV JV items Net operating expenses (88.0) 19.1 - (13.6) (82.5) Share of results of joint ventures - -
Slide 37: UK performance summary
UK performance summary H1 2024 H2 2024 FY 2024 Private ASP £000 356 356 356 Affordable ASP £000 179 191 186 Total ASP £000 317 320 319 Private and affordable completions 4,512 5,460 9,972 45% 55% 100% Affordable % of total completions 22.3 21.5 21.8 Gross profit margin % 18.9 18.2 18.5 Operating pro
Slide 38: Cash flow summary
Cash flow summary Group £m FY 2024 H2 2024 H1 2024 FY 2023 Profit on ordinary activities before finance costs 333.9 240.4 93.5 467.8 (Increase) / decrease in inventories (86.8) 11.8 (98.6) (148.7) Exceptional items charge 82.5 (5.5) 88.0 - Other operating items* (17.9) (38.0) 20.1 (30.2) Cash genera
Slide 39: Group segmental analysis
Group segmental analysis FY 2024 FY 2023 Operating Operating Operating Operating profit profit margin RONOA profit profit margin RONOA £m % % £m % % UK 368.8 11.5 9.9 434.9 12.9 12.0 Spain 47.4 25.4 51.7 35.3 24.7 38.4 Group 416.2 12.2 10.9 470.2 13.4 12.6 39 Results Presentation for the year ended
Slide 40: Cash returns payment profile
Cash returns payment profile Paid (or to be paid) pence per share FY 2025** FY 2024 FY 2023 Ordinary dividend* c.9.33 9.59 9.57 Paid (or to be paid) £m FY 2025** FY 2024 FY 2023 Ordinary dividend* 330 339 338 ● Final ordinary dividend of 4.66 pence per share will be paid on 9 May 2025 (c.£165 millio
Slide 41: Financing
Financing ● Net cash at 31 December 2024: £564.8 million (31 December 2023: £677.9 million) ● Adjusted gearing including land creditors of 1.4% (2023: -3.6%) ● Average net cash during 2024: £494.5 million (2023: £606.6 million) ● Borrowings and facilities: ● £600 million Revolving Credit Facility ex
Slide 42: Finance charges
Finance charges £m FY 2024 FY 2023 Change Interest on bank and other loans 8.0 8.3 (0.3) Foreign exchange loss 0.1 0.5 (0.4) Unwind of discount on land creditors 16.7 14.8 1.9 and other items Net interest on pension liability 1.1 1.3 (0.2) Interest on lease liabilities 1.5 1.0 0.5 Total 27.4 25.9 1.
Slide 43: Tax
Tax Asset / (liability) Current tax £m Deferred tax £m Net tax £m As at 1 January 2024 (1.6) 23.4 21.8 Income statement (99.0) (1.7) (100.7) SOCI / SOCIE - (0.8) (0.8) Cash paid 102.5 - 102.5 Other (including foreign exchange) 0.9 (0.3) 0.6 As at 31 December 2024 2.8 20.6 23.4 ● Pre-exceptional effe
Slide 44: Pension funding
Pension funding £m FY 2024 FY 2023 FY 2022 Deficit contributions to the Scheme - - - Payments to escrow - - - Pension Funding Partnership 5.1 5.1 5.1 Scheme expenses 2.0 2.0 2.0 Total 7.1 7.1 7.1 ● IAS 19 surplus at 31 December 2024 of £90.2 million, deficit of £22.0 million recognised after IFRIC 1
Slide 45: UK completions mix
UK completions mix £201k – £251k – £301k – £451k – £601k – UK completions 2024 <£200k £250k £300k £450k £600k £1m >£1m Total Price band 18% 14% 17% 37% 10% 3% 1% 100% UK completions FY 2024 H2 2024 H1 2024 FY 2023 H2 2023 H1 2023 First time buyers 31% 30% 31% 29% 28% 31% Second time buyers 39% 40% 3
Slide 46: UK land commitments
UK land commitments 2024 2023 £m (at 31 December 2024) < 1 yr 1-2 yrs 2-5 yrs 5+ yrs total total Committed cash payments in respect of unconditional land contracts 352 147 92 28 619 498 Expected cash payments in respect of conditional land contracts 67 70 154 56 347 279 ● Included in unconditional l
Slide 47: UK implementable planning permissions
UK implementable planning permissions 20,000 Sites with implementable planning permission 18,000 92.8% 16,000 14,000 12,000 10,000 8,000 6,000 4,000 5.6% 2,000 0.4% 1.2% 0 Started on site as at 31 December 2024 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Starting
Slide 48: UK landbank – plots and net cost
UK landbank – plots and net cost 31 Dec 2024 31 Dec 2023 Plots Owned Controlled Total Total Plots £m Plots £m Plots £m Plots £m Detailed planning 35,812 1,864 4,230 13 40,042 1,877 38,952 1,977 Outline planning 26,299 932 5,104 31 31,403 963 28,083 700 Resolution to grant 3,410 94 3,771 11 7,181 105
Slide 49: UK sales performance
UK sales performance Private and affordable reservations H1 2025 (w/e excl. JVs 23 Feb 2025) H2 2024 H1 2024 H2 2023 H1 2023 Average outlets open 211 207 224 232 244 Average selling price £000 340 316 329 305 325 H1 2025 (w/e As at 23 Feb 2025) 31 Dec 2024 30 June 2024 31 Dec 2023 2 July 2023 Total
Slide 50: Spain financial summary
Spain financial summary FY 2024 FY 2023 Change Average number of active sites 24 23 4.3% Legal completions 504 410 22.9% Average selling price £000 370 347 6.6% Average selling price €000 440 400 10.0% Revenue £m 186.6 142.8 30.7% Operating profit £m 47.4 35.3 34.3% Operating profit margin % 25.4 24
Slide 51: Definitions
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. ● Adjusted basic earnings per share represents earnings attri