Taylor Wimpey reports steady results and good medium term prospects14 January 2020
The national housebuilder reported that despite challenging conditions in London and the South East the market remained stable elsewhere. Overall sales for 2019 were ‘in line with expectations’ with 15,719 units completed, a 5% year-on-year increase, with an average selling price of £269k.
For 2019 the focus was delivering on commitments made in 2017/18 and ensuring solid performance and customer satisfaction for 2020 and beyond. The company plans to concentrate further on ensuring its production capacity and has invested in a significant number of apprentice appointments.
The short term landbank remains steady at 76,000 plots with new land coming online at roughly the same rate as it is being built. This offers an in-hand supply of just under 5 years. The strategic pipeline increased significantly and now stands at 140k plots helping longer term forward planning and smoothing out shorter term land price fluctuations.
2019 saw an operating profit margin of 19.6% and a net cash balance of £546m. £600m was paid out in shareholder dividends with a further £600m due to be paid out in 2020.