Latest news with #JennieDaly
Times
08-05-2025
- Business
- Times
Is now a good time to take home some Taylor Wimpey shares?
The opening few months of 2025 have been steady for Britain's housebuilders, which is more than can be said for the previous two and a half years. Taylor Wimpey confirmed as much on Tuesday with the all-important spring selling season — the busiest time of the year for developers — progressing 'in line with expectations'. Since January, the group has been selling about 0.76 homes a week at each of its 208 developments, 9 per cent more than in the same period of 2024. The order book has increased to £2.34 billion, which is almost £300 million more than at this point last year. • House prices up 4% as buyers race to beat stamp duty deadline Jennie Daly, Taylor Wimpey's chief executive, noted 'good
Business Mayor
30-04-2025
- Business
- Business Mayor
Taylor Wimpey margins under pressure as homebuilder costs rise
Updated: 12:17 BST, 30 April 2025 Housebuilder Taylor Wimpey expects margins to come under pressure from lower selling prices and rising costs this year despite demand holding up well over the spring. The housebuilder still anticipates completing 10,400 to 10,800 properties this year, excluding joint ventures, with around 45 per cent of these homes being delivered in the first half of 2025. It also expects operating profits of £444million even though first-half operating margins are set to be lower. Taylor Wimpey blamed the effects of underlying pricing in its order book at the start of the year and a modest return of build cost inflation. Despite current economic volatility and affordability pressures, the High Wycombe-based business said there remained 'good quality customer interest' for its homes. Its weekly net private sales rate for the year to 27 April was 0.76 per outlet, compared to 0.70 in 2024. Outlook: Housebuilder Taylor Wimpey reiterated its full-year guidance on Wednesday Consequently, the company's order book totalled over £2.3billion and 8,153 houses as of Sunday, versus £2.1billion and 7,742 properties at the same time last year. Read More Here's Two Keirs: 10 Things We Learned This Week Jennie Daly, chief executive of Taylor Wimpey, said: 'The spring selling season has progressed in line with expectations, with good levels of customer demand reflected in our sales rate. 'Notwithstanding the wider macroeconomic backdrop, affordability is improving with lenders remaining committed to the housing market, albeit first-time buyers continue to experience some challenges.' Average UK house prices dipped by 0.6 per cent to £270,752 in April, according to figures released by Nationwide. It follows changes to stamp duty rates at the beginning of the month, with the zero threshold halving to £125,000 and the first-time buyers' threshold dropping from £425,000 to £300,000. All major British lenders now offer fixed-rate mortgage rate deals of under 4 per cent in the expectation that the Bank of England will continue cutting the base rate. The UK base rate currently stands at 4.5 per cent after being cut by 0.25 percentage points in February. Financial markets currently point to three more cuts of the same size this year, taking the base rate to 3.75 per cent at the end of 2025. Taylor Wimpey told investors: 'We operate in an attractive market with significant underlying demand for new homes. 'We have set the business up to deliver sustained growth with a high-quality landbank, strong balance sheet and experienced teams.' Anthony Codling, head of European housing and building materials research at RBC Capital Markets, remarked: 'As wages continue to grow and the expectation is for mortgage rates to fall, the outlook for Taylor Wimpey looks rosy.' Taylor Wimpey shares were 1.8 per cent lower at 116.3p on Wednesday morning, making them one of the FTSE 100 Index's ten worst performers.
Daily Mail
30-04-2025
- Business
- Daily Mail
Taylor Wimpey margins under pressure as homebuilder costs rise
Housebuilder Taylor Wimpey expects margins to come under pressure from lower selling prices and rising costs this year, despite demand holding up well over the spring. The housebuilder still anticipates completing 10,400 to 10,800 properties this year, excluding joint ventures, with around 45 per cent of these homes being delivered in the first half of 2025. It also expects operating profits of £444million even though first-half operating margins are set to be lower. Taylor Wimpey blamed the effects of underlying pricing in its order book at the start of the year and a modest return of build cost inflation. Despite current economic volatility and affordability pressures, the High Wycombe-based business said there remained 'good quality customer interest' for its homes. Its weekly net private sales rate for the year to 27 April was 0.76 per outlet, compared to 0.70 in 2024. Consequently, the company's order book totalled over £2.3billion and 8,153 houses as of Sunday, versus £2.1billion and 7,742 properties at the same time last year. Jennie Daly, chief executive of Taylor Wimpey, said: 'The Spring selling season has progressed in line with expectations, with good levels of customer demand reflected in our sales rate. 'Notwithstanding the wider macroeconomic backdrop, affordability is improving with lenders remaining committed to the housing market, albeit first-time buyers continue to experience some challenges.' Average UK house prices dipped by 0.6 per cent to £270,752 in April, according to figures released by Nationwide. It follows changes to stamp duty rates at the beginning of the month, with the zero threshold halving to £125,000 and the first-time buyers' threshold dropping from £425,000 to £300,000. All major British lenders now offer fixed-rate mortgage rate deals of under 4 per cent in expectation the Bank of England will continue cutting base rate. The UK base rate currently stands at 4.5 per cent after being cut by 0.25 percentage points in February. Financial markets currently point to three more cuts of the same size this year, taking base rate to 3.75 per cent at the end of 2025. Taylor Wimpey told investors: 'We operate in an attractive market with significant underlying demand for new homes. 'We have set the business up to deliver sustained growth with a high-quality landbank, strong balance sheet and experienced teams.' Anthony Codling, head of European housing and building materials research at RBC Capital Markets, remarked: 'As wages continue to grow and the expectation is for mortgage rates to fall, the outlook for Taylor Wimpey looks rosy.' Taylor Wimpey shares were 1.8 per cent lower at 116.3p on Wednesday morning, making them one of the FTSE 100 Index's ten worst performers.
Yahoo
04-03-2025
- Business
- Yahoo
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.
Yahoo
27-02-2025
- Business
- Yahoo
Taylor Wimpey expects rising house sales amid planning reforms
Taylor Wimpey has reported 'good levels' of demand for its houses so far in 2025, adding that Labour's planning reforms will help get more homes approved in the coming years. The FTSE 100 builder said the start of the spring selling season has been 'robust', while affordability is 'moving in the right direction'. Chief executive Jennie Daly said changes to the approvals system '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… and deliver much-needed new homes across the UK.' England's planning system has long been criticised for making it too easy to reject applications to build homes, and as a hurdle to fighting the chronic shortage of housing across the country. Labour's changes include hiking approvals targets for local authorities and making it easier to build on parts of the greenbelt. Sir Keir Starmer has said he wants to end a 'challenge culture' on infrastructure projects, including new homes. Taylor Wimpey, one of the biggest homebuilders in the UK, sounded the optimistic note despite house sales remaining well below 2021 levels. In the years after that, mortgage costs surged across the UK when interest rates rose following Liz Truss's mini budget in 2022, hobbling the industry. Taylor Wimpey expects to sell up to 10,800 homes in 2025, while it fell just short of the 10,000 mark last year, that compares to about 14,000 four years ago. Meanwhile, it also said it had seen 'modest' inflation in the cost of building, marking a slight pick-up in the speed of price rises, which fell last year following a period of rapid inflation previously. Housebuilders are among the many UK companies facing rising costs as a result of the October Budget, which include higher employment taxes. Nonetheless, it pointed to a slowly improving picture for house sales this year, after falling interest rates helped bring mortgage costs down for buyers in recent months. Taylor Wimpey said 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.'
