Taylor Wimpey PLC (TWODF) (FY 2024) Earnings Call Highlights: Strong Revenue Growth and ...
Revenue: GBP3.4 billion in 2024.
UK Sales Rate: 0.75%, 21% ahead of 2023.
Group Completions: 10,593 in 2024.
Operating Profit: GBP416 million in 2024.
Order Book: Improved, positioning for growth in 2025.
Average Selling Price: GBP319,000 in 2024.
Net Cash Position: GBP565 million at year-end 2024.
Land Bank: 79,000 plots, with 7.8 years of supply.
UK Completions Guidance for 2025: 10,400 to 10,800 homes.
Group Operating Profit Guidance for 2025: GBP444 million, including joint ventures.
Net Finance Charges: Expected to be GBP20 million in 2025.
Private Order Book: Up 25% in volume year-on-year.
Warning! GuruFocus has detected 6 Warning Signs with TWODF.
Release Date: February 27, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Taylor Wimpey PLC (TWODF) achieved the highest construction quality scores, customer scores, and overall build quality in its history during 2024.
The company maintained a strong balance sheet while providing reliable dividend payouts to shareholders.
Taylor Wimpey PLC (TWODF) ended the year with a robust land bank of 79,000 plots, positioning it well for future growth.
The UK sales rate increased by 21% compared to 2023, contributing to a stronger order book and improved revenue outlook.
The company demonstrated strong cost discipline, achieving an operating profit of GBP416 million despite challenging market conditions.
Affordability remains a challenge, particularly for first-time buyers, despite improvements in mortgage rates.
The tangible net asset value per share decreased by 2.6% due to additional fire safety provisions and joint venture exits.
The operating margin was impacted by house price inflation and build cost inflation, with expectations of further margin pressure in the first half of 2025.
Land sales in 2024, which improved margins, are not expected to have a similar beneficial impact in 2025.
The company anticipates low single-digit build cost inflation in 2025, driven primarily by material costs.
Q: Can you elaborate on the slight improvement in pricing this year and whether it's more pronounced in the Midlands and North compared to the South? Also, what are your thoughts on the potential for outlet numbers to increase in a better planning environment? A: Jennie Daly, CEO: We've seen improvement in pricing across the board, with the North showing more strength. The South is also improving, albeit at a slower pace. Regarding outlets, if the planning environment improves, we could see an increase in outlet numbers. However, this depends on the implementation of planning policies and the viability of sites.
Q: How do you balance sales rate versus average selling price (ASP) in the near term? A: Jennie Daly, CEO: We assess this on a site-by-site basis. If there's strong demand, we aim to drive prices up. It's not about choosing sales rate over ASP growth; it's about maximizing each site's potential.
Q: What are your expectations for the impact of the fire safety levy on costs per unit? A: Jennie Daly, CEO: There's limited information on the fire safety levy, but previous consultations suggested a cost of around GBP3,500 per unit. However, this could vary across markets. Our teams are actively working on strategies to mitigate its impact.
Q: Can you provide more details on the expected whip (work in progress) build-up for this year? A: Christopher Carney, CFO: We expect whip investment to increase to between GBP2.1 billion and GBP2.2 billion by mid-year, reflecting the second-half weighting of completions and infrastructure investments.
Q: What is your view on the need for demand-side support from the government? A: Jennie Daly, CEO: The government's focus has been on supply-side measures. While the mortgage guarantee scheme is helpful, more lenders need to offer 95% loan-to-value products for it to make a significant impact. Further government intervention could be beneficial, especially in the affordable housing sector.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
25 minutes ago
- Yahoo
Nvidia Ignites Quantum Stocks Rally With Bold Forecast at Paris Event
June 11 - Quantum-focused stocks climbed in early trading Wednesday after Nvidia (NVDA) Chief Executive Jensen Huang said the sector is approaching a critical phase in its development. Speaking at the GTC conference in Paris, Huang said quantum computing is nearing an inflection point, citing growing progress in making the technology more applicable for real-world problems. He also highlighted Nvidia's Cuda Q platform, a quantum computing service introduced to support further industry growth, according to a Wednesday press release. Warning! GuruFocus has detected 3 Warning Signs with RGTI. Huang said quantum systems, which process data using qubits rather than traditional bits may soon be capable of tackling meaningful challenges across industries. IonQ (NYSE:IONQ) shares advanced about 4% following the remarks, while Rigetti Computing (NASDAQ:RGTI) rose 5%. Quantum Computing (NASDAQ:QUBT) jumped 8%, and both D-Wave Quantum (NYSE:QBTS) and Arqit Quantum (ARQQ) added nearly 3%. Huang's comments mark a shift in tone. In January, he said practical use cases for quantum computing were still decades away. But by March, he revised that outlook during Nvidia's first Quantum Day, suggesting faster progress than previously expected. Earlier this week, Nvidia said it partnered with IonQ, Amazon Web Services, and AstraZeneca to develop a quantum-enhanced workflow in computational chemistry. This article first appeared on GuruFocus.
Yahoo
31 minutes ago
- Yahoo
Nvidia Teams With Novo Nordisk to Supercharge Early-Stage Drug R&D
June 11 - Novo Nordisk (NYSE:NVO) has teamed up with Nvidia (NASDAQ:NVDA) to integrate artificial intelligence into its drug development pipeline, aiming to speed up early-stage research, according to a Wednesday press release. The collaboration will build AI models tailored for Novo Nordisk's researchers, helping simulate and optimize early clinical trial stages. The tools are designed to support work across advanced simulation platforms and physical AI systems. Warning! GuruFocus has detected 4 Warning Signs with NVDA. This effort will also back Novo Nordisk's existing agreement with the Danish Centre for AI Innovation. That institution manages Gefion, Denmark's flagship AI supercomputer, which will play a key role in powering the new drug discovery tools. Nvidia said the initiative will apply generative and agent-based AI to pharmaceutical R&D. The announcement came during the chipmaker's GTC event in Paris, where it also highlighted broader partnerships across Europe. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
40 minutes ago
- Yahoo
General Motors Expands U.S. Capacity with $4 Billion Investment
General Motors (NYSE:GM) is committing $4 billion over two years to boost U.S. manufacturing capacity for both gas and electric vehicles. Warning! GuruFocus has detected 2 Warning Sign with GM. General Motors will channel the investment into three plants: Michigan, Kansas and Tennessee. In Michigan, full-size SUVs and light-duty pickupsonce earmarked for electric truckswill roll off the line starting in early 2027. Kansas will ramp up Chevrolet Equinox production mid-2027 and begin building the all-electric Bolt by late 2025, with plans to adapt the facility for next-generation affordable EVs. Tennessee will add gas-powered Chevrolet Blazer assembly in 2027, alongside the electric Cadillac LYRIQ and VISTIQ and existing XT5 production. Collectively, these upgrades push GM's U.S. assembly capacity north of two million vehicles per year. This latest commitment follows GM's recent $888 million pledge to modernize its Tonawanda Propulsion plant for next-gen V-8 engines, underscoring a dual strategy of sustaining its legacy gas-vehicle lineup while accelerating its EV roadmap. By repurposing and expanding existing factories, GM aims to balance short-term demand for internal-combustion models with long-term electrification goals, optimizing capital spend and preserving thousands of U.S. jobs. Why It Matters: GM's capital allocation signals confidence in near-term gas-vehicle sales even as it scales EV production, hedging against market swings while aligning capacity with evolving consumer preferences. This article first appeared on GuruFocus. Sign in to access your portfolio
