Taylor Wimpey PLC

Latest Results (26.12.2024):

Revenue Decline

In the first half of 2024, Taylor Wimpey PLC reported a revenue of £1,517.7 million, marking a 7.3% decrease compared to the £1,637.1 million recorded in the same period of 2023. This decline reflects the challenging market conditions and the impact of high interest and mortgage rates on the housing market.

Operating Profit and Margin

The company's operating profit for H1 2024 was £182.3 million, down from £235.6 million in H1 2023, representing a 22.6% decrease. The operating profit margin also fell by 2.4 percentage points to 12.0%, indicating pressure on profitability due to market conditions and cost inflation.

Profit Before Tax

Taylor Wimpey PLC's profit before tax and exceptional items for the first half of 2024 was £187.7 million, a 21.0% decrease from the £237.7 million reported in the same period of the previous year. The overall profit before tax saw a more significant drop of 58.1% to £99.7 million, highlighting the impact of exceptional items on the company's financial performance.

Dividend Announcement

The company announced an interim dividend of 4.80 pence per share for 2024, slightly up from 4.79 pence per share in 2023. This dividend aligns with Taylor Wimpey PLC's Ordinary Dividend Policy, which aims to return 7.5% of net assets annually to shareholders, amounting to approximately £170 million for the period.

Outlook and Future Growth

Looking ahead, Taylor Wimpey PLC expects full-year UK completions to be towards the upper end of their guidance range of 9,500 to 10,000 homes. The company is positioned for growth from 2025, supported by a high-quality landbank and strong financial position, assuming supportive market conditions. The new government's focus on planning reforms is seen as a positive step towards unlocking future land supply and supporting housing needs.