Taylor Wimpey Plc – Full year results 2021

Taylor Wimpey plc

Full year results for the year ended 31 December 2021

Pete Redfern, Chief Executive, commented:

“I am very pleased with our operational, financial and customer service performance in 2021. Demand for our homes remains strong and we continued to drive significant margin improvement in 2021, as we optimise selling prices and maintain our strong focus on cost efficiency. 

While we recognise the challenging geopolitical, macro-economic and regulatory environment, we remain confident of delivering modest growth in completions in 2022 and of making further progress towards our operating margin target.

With the opportunistic purchase of additional land over the last 18 months, our land pipeline leaves us well placed to accelerate high-quality, profitable volume delivery from 2023, generating additional value and compelling investor returns.” 

Group financial highlights:

N.B. Definitions can be found at the end of the Group financial review of operations

Key highlights:

• Strong 2021 full year results in line with our expectations with 47% increase in UK completions including joint ventures to 14,087 (2020: 9,609), driven by good build performance and strong demand
• Improved operating profit margin to 19.3% (2020: 10.8%), with focus on optimising selling prices and strong cost control
• Final ordinary dividend of 4.44 pence per share subject to shareholder approval making total ordinary dividends for the year 8.58 pence per share (2020: 4.14 pence per share)
• Return of excess cash via a c.£150 million share buyback in 2022
• Jennie Daly, current Group Operations Director, appointed as CEO effective from 26 April 2022

UK Operating highlights:

• Strong net sales rate for the year of 0.91 (2020: 0.76)
• Positive forward order book of 10,009 homes as at 31 December 2021 (31 December 2020: 10,685), valued at £2,550 million (31 December 2020: £2,684 million)
• Acquired c.14k plots in 2021, increasing the short term landbank by c.8k plots to c.85k plots (2020: c.77k plots) to support future growth
• Once again leading the volume housebuilders in build quality, with a National House Building Council (NHBC) Construction Quality Review (CQR) score of 4.67 out of 6 (2020: 4.45 out of 6)
• Maintained 5 star customer rating for 2021 in the Home Builders Federation (HBF) survey
• New house type pilots successfully completed, with first site containing new house types going on sale in August 2022, delivering customer, build cost and energy efficiency benefits

Responsible business and Environmental Social Governance (ESG) leader:

We took early and proactive action a year ago which meant that funding was in place to bring all affected Taylor Wimpey buildings constructed in the last 20 years up to EWS1 standard

Significant progress in our sustainability agenda: 

• 50% reduction in direct (scope 1 and 2) carbon emissions intensity, with 35% absolute reduction since 2013
• On track to meet our Science Based Target for carbon reduction with 13% reduction in direct (scope 1 and 2) carbon emissions intensity and 20% absolute reduction (scope 1 and 2) against 2019 baseline
• Committed to develop a credible net zero transition plan and target during 2022
• Scored A- in CDP Climate Change (2020: B), included in the Financial Times European  Climate Leaders list 2021 and achieved a Gold Award in the 2021 Next Generation sustainability benchmark for the UK housebuilding sector (2020: Silver)
• Received accreditation from The Living Wage Foundation as a Living Wage Employer 

Competition and Markets Authority concluded its investigation into the historical sale of leasehold properties

High employee engagement with over 60% of employees also shareholders

We are deeply shocked and saddened by the tragic events in Ukraine and, together with our employees, we will be pledging our support to the humanitarian effort