Taylor Wimpey on track and well positioned to hit completions target
Taylor Wimpey PLC on Wednesday said it is confident in the fundamentals of the UK housing market despite some possible near-term constraints.
The Buckinghamshire, England-based housebuilder said it remains on track to deliver 10,400 to 10,800 UK housing completions in 2025, excluding joint ventures, and a full-year operating profit of around £424 million.
In 2024, the firm, which has recently been demoted to the FTSE 250, reported completions of 10,593 and an operating profit of £416.2 million.
Taylor Wimpey said the net private sales rate was 0.65 per outlet per week in the nine weeks to September 28, down from 0.70 a year ago. Pricing remained broadly flat with a cancellation rate of 16%, unchanged year-on-year.
‘Against the backdrop of softer market conditions beginning in the second quarter, we have delivered a robust sales rate,’ the firm stated.
The sales rate for the year to date is 0.74 per outlet per week, ahead of 0.72 a year ago, with the cancellation rate edging up to 16% from 15%.
Taylor Wimpey, which is hosting an investor and analyst event on Wednesday, also outlined medium-term targets including UK completions, excluding joint ventures, of 14,000, a group operating profit margin of 16% to 18% and group return on net operating assets of more than 20%.
‘Growth will be driven by higher outlet numbers, without the need for net land investment as we unlock the value of our strong, existing landbank and reinvest in smaller sites,’ the firm explained.
Taylor Wimpey expects operating profit margins to benefit from operating leverage as volumes grow.
It also reaffirmed ‘confidence in our capital allocation policy’ which ‘prioritises balance sheet strength, investment in the business to support growth across the cycle and a reliable dividend for shareholders.’
The company said it was ‘mindful’ of the various issues impacting customer sentiment, including the impact of the delayed UK budget on short term customer confidence, but remains ‘well positioned and own all land with planning for 2026 completions.’
‘We remain confident in the underlying fundamentals of the UK housing market, with its pressing need for new homes, and in the medium term potential of the business to deliver profitable growth and maximise shareholder returns,’ the firm added.
Taylor Wimpey said it is currently operating from 215 outlets and expects 2025 year end outlets to be in the range of 210 to 215, little changed year-on-year.
Shares in the company were up 0.3% at 103.30 pence each in London on Wednesday morning.
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