Government planning reforms reason for optimism, says housebuilder
Pre-tax profit was down at Taylor Wimpey in 2024 as the housebuilder racked up costs addressing historic fire safety issues.
In its full-year results for the year ended 31 December 2024, published this morning, the firm revealed pre-tax profit of 拢320m, down 32.4% from the 拢474m recorded the year prior.
Operating profit was also down 11.5% in the year from 拢470m to 拢416m. As was revenue, which fell to 拢3.4bn, down 3.2% from 拢3.51bn.
According to an analyst note from Stifel, the full-year results were in line with guidance, with revenue hit by fewer completions and lower selling prices.
The group, including its joint ventures, completed 10,593 homes in the year, down slightly from 10,848 in the year prior.
In its full-year results presentation, Taylor Wimpey said its operating profit for the year had been impacted by build cost inflation and lower pricing of 2024 completions.
Pre-tax frofit was impacted by exceptional costs in the year before tax, which stood at 拢98.2m, with the majority stemming from provisions related to fire safety issues.
They consisted of a 拢68.9m increase in provision for cladding fire safety, a 拢13.6m loss on disposal of the Winstanley and York Road joint venture, and the impact of the firm鈥檚 share of the cladding fire safety provision recognised in the Greenwich Millenium Village joint venture, worth 拢15.7m.
During the year, 拢28.5m was spent on remediation works.
The net private sales rate was up, standing at 0.75 homes per outlet per week in the year, compared with 0.62 in 2023, while the average selling price was down at 拢319,000 from 拢324,000. Taylor Wimpey鈥檚 net cash position declined 16.7% from 拢678m to 拢565m.
Jennie Daly, chief executive, said the start of the key spring selling season had been 鈥渞obust鈥� and that affordability was 鈥渕oving in the right direction鈥�.
She also pointed to the government鈥檚 ambitious plans for housebuilding as reason for optimism. 鈥淲e look forward to seeing increased resources and a focus on the implementation phase to drive these outcomes and deliver much-needed new homes across the UK.鈥�
Taylor Wimpey said it was 鈥渙ptimistic that these changes to the planning system should help unlock the land needed to support homebuilding in coming years鈥�.
It said that the changes could put the land market 鈥渙n a similar footing to that of 2012 to 2019 when land conditions were supportive of industry growth鈥�.
The firm said it expected to deliver full year completions in 2025 of between 10,400 and 10,800, excluding joint ventures.
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