In her first company results presentation, the new chief executive unveiled £334.5m of pre-tax profits for the six months to 3rd July 2022, up 16% from £287.5m in the same period last year.
Group revenue was down 5.4% at £2,076.8m for the first half of 2022 (2021 H1: £2,196.3m), but the 2021 number was artificially boosted by completions carried over from covid-related delays.
UK completions (excluding joint ventures) totalled 6,587 units (H1 2021: 7,219. Average selling prices on private completions increased by 3.1% to £337k (H1 2021: £327k), primarily due to house price inflation partly offset by changes to product mix.
These results include an £80m provision for post-Grenfell related fire safety remediation work, having signed the government’s fire safety pledge for developers. Taylor Wimpey has now recorded total provisions of £245m for fire safety remediation works on buildings that it has constructed since 1992.
Jennie Daly, who took over from Pete Redern as chief executive on 26th April this year, said: “I am pleased to report an excellent financial and operational performance with completions in the first half slightly ahead of expectations. This was a very good performance against a strong comparator and only possible due to the hard work of our outstanding teams across the business, and I would like to thank them for their continued commitment and efforts.
“While we recognise and are closely monitoring wider macro-economic and political uncertainty, housing market fundamentals remain positive, supported by an enduring supply and demand imbalance and good availability of attractively priced mortgages. Demand for our homes remains strong and we now expect full year group operating profit to be around the top end of the current market consensus range.
“With a clear strategy, a renewed focus on operational excellence, and our sector leading landbank we are well positioned to build a stronger and more resilient business capable of achieving superior returns.”
As at 31 July 2022, Taylor Wimpey’s order book value was £2,893m (2021 equivalent period: £2,712m), excluding joint ventures, representing 10,392 homes (2021 equivalent period: 10,589 homes). Year-end net cash balance is anticipated to be around £600m, subject to the timing of land transactions
Jennie Daly also revealed that Taylor Wimpey we will begin construction later this year on pilot homes on a site in Sudbury to test solutions for the government’s Future Homes Standard. “These homes will provide invaluable insights into the best methods for incorporating the requirements of the Future Homes Standard well ahead of its implementation in 2024 in Scotland and 2025 in England and Wales,” she said.