Pete Redfern, Chief Executive, commented:
“Taylor Wimpey delivered a record performance in 2015, building over 13,000 homes across the UK and contributing over £335 million to local communities. We are focused on creating long term value and are supportive of policy initiatives that promote sustainability and reduce volatility in the housing market.
2016 has continued to be positive across all of our regional markets, with demand strong and good access to mortgages. With a strong order book and high-quality landbank, we continue to work with stakeholders to ensure we open all sites with implementable planning and begin building as quickly and efficiently as possible.
We are focused on continuous improvement in the basics of the business, through our continued investment in our people, product and customer service.”
2015 UK operational highlights
- Completed a total of 13,219 homes (excluding joint ventures) across the UK, up 7.5 per cent (2014: 12,294 homes)
- 8.0 per cent increase in total average selling price to £230k (2014: £213k)
- Short term landbank of c.76k plots with 60 per cent sourced from the strategic land pipeline
- Acquired 6,971 high-quality plots in the short term land market
- Worked with communities, planners and landowners to convert a further 8,660 plots from the strategic pipeline
- Record year end order book representing 7,484 homes (31 December 2014: 6,601) with a total value of £1,779 million (31 December 2014: £1,397 million), excluding joint ventures
2015 Group financial highlights
- Strong financial performance, delivering on our three year medium term targets in the first year:
- Total maintenance dividend for 2015 of 1.67 pence per share (2014: 1.56 pence per share)
- Further c.£300 million (9.20 pence per share) surplus cash to be returned in July 2016 as previously announced, subject to shareholder approval
Current trading and outlook
The UK housing market remained robust during late 2015 and has strengthened into the beginning of 2016. The market continues to show price growth and very good sales rates across most geographies. In central London, the market is stable, with flat prices and sales rates returning to a more normal level.
The net private sales rate for the year to date (w/e 21 February 2016) is 0.77 (2015 equivalent period: 0.68). As at 21 February 2016, we are c.50 per cent forward sold for private completions for 2016 with an excellent total order book of £2,030 million (2015 equivalent period: £1,630 million), excluding joint ventures.
We have been successfully operating to our strategy for five years now, running the business according to our underlying principles. During that time we have invested heavily in land and people development.
In 2015, we delivered record operating results, and returned over £308 million to shareholders by way of total dividend. Today, Taylor Wimpey has one of the largest strategic land pipelines in the sector with c.107k potential plots, together with a high-quality short term landbank of c.76k plots.
The success of our strategy over the last five years, partially helped by a stable and positive market, has given us the opportunity to focus on continuously improving our business processes and systems, including our customer service, ensuring consistency across our 24 business units.
* Operating profit is defined as profit on ordinary activities before net finance costs, exceptional items and tax, after share of results of joint ventures.
** Return on net operating assets is defined as 12 month rolling operating profit divided by the average of the opening and closing net operating assets, which is defined as net assets less net cash less deferred tax balances, less any accrued dividends.
*** Operating cash flow is defined as cash generated by operations before tax and interest paid on a rolling 12 month basis.
† Tangible net assets per share is defined as net assets before any accrued dividends excluding goodwill and intangible assets divided by the number of ordinary shares in issue at the end of the period.
†† Adjusted basic earnings per share represents earnings attributed to the shareholders of the parent, excluding exceptional items and tax on exceptional items, divided by the weighted average number of shares in issue during the period.
††† Growth in net assets before cash distributions is defined as the percentage change between closing net assets pre accrued and paid returns to shareholders on a rolling 12 month basis and closing net assets on a rolling 12 month basis from the comparative period.
†* Net operating asset turn is defined as total revenue divided by the average of opening and closing net operating assets. Based on rolling 12 months.