According to the volume housebuilder, it remains on track to deliver against its guidance as detailed in its 2021 full-year results in March, in which it said it continued to expect “low single-digit” year-on-year completion growth this year and to progress towards its 21-22% operating margin target.
It noted its “strong” net private sales rate up to April 17 at 0.96 although this was slightly below the equivalent period of 2021’s 1.00. “Healthy” levels of price growth were continuing to offset labour and material cost inflation. It said that the recent rise in interest rates - from 0.5% to 0.75% - had “not impacted customer appetite”.
As of April 17, the firm’s total order book stood at around £2,972 million (2021 equivalent period: £2,808 million). This represents 10,957 homes (2021 equivalent period: 10,995 homes).
The business also pointed to signing the government’s fire safety pledge this month. This has extended to 30 years its original commitment to bring all its apartment buildings above 11 metres completed in the past 20 years up to the current EWS1 standard. Under the pledge, it will also reimburse any funds allocated or used for its buildings above 18 metres from the Building Safety Fund.
These added commitments to addressing fire safety would mean a further provision of around £80 million, bringing Taylor Wimpey’s total provision to around £245 million, it said.
Demand for new housing had remained resilient, but the company noted the “wider uncertainty” of the Ukrainian conflict and cost of living squeeze, “which we continue to monitor, and our focus remains on price optimisation, operational delivery and cost control”.
As previously announced, after nearly 15 years as CEO, Pete Redfern has stepped down from the board after leading Taylor Wimpey’s recovery from the financial crisis and more recently the housebuilder’s response to the pandemic. He has spent around 21 years with the company.
Jennie Daly, who worked in the housebuilding and land and planning industries for almost 30 years before taking over at Taylor Wimpey, said: "Taylor Wimpey is an outstanding business, and it is an honour to take up the role of chief executive today.
“Trading has continued to be strong, supported by a healthy market backdrop. We have also continued to make good progress against our strategic priorities, including driving growth in operating profit margin and outlet openings.”
Outgoing CEO, Pete Redfern, said: “It has been a privilege to lead Taylor Wimpey over the last 15 years and I’m immensely proud of what the business has achieved and the strong position it is in today.”
