Taylor Wimpey Share Discussion Threads

[danvandan] 31/7/2024 07:41

Production at a four-year low; shareprice at a two-year high. Costs increasing, selling prices falling, profitability decreasing. The market is looking fwd to a 'supportive' environment. Sentiment is the driver here - the facts don't matter... for the moment.

[jugears] 31/7/2024 07:34

Dd, couldn't agree more & look at that land bank 10-15 years in front on current levels, I note today that berkeley are starting to purchase land again, what is interesting is that a few weeks ago my old company was asked what measure needed to be put into place to increase production by one of there customers, I know who but not mentioning any names on here.

[disneydonald] 31/7/2024 07:26

Worth noting that average selling cost was expected to fall this year, reflecting the close out of the last high value units in the Postmark development in central London; between £1 - £2M per unit.

It helps that the market is having a storming start, everything being dragged upwards. See how the call goes at 0900 hrs, if no surprises then should hold the early gains.

[beckers2008] 31/7/2024 07:26

K, DvD, sT and Sikhthetech,

It is all panning out as I have been telling you over the last few years.
You have called it wrong and made fools out of yourselves and the market is playing you for fools, lol.

Expect earning growth to continue in 2025 and also in 2026.

BoE base rate at 6%
Absolutely no chance.

Q3 2024 interest rate reduction?
Absolutely every chance.

Looks like I am going to be correct yet again.

Nothing more to see here.

[danvandan] 31/7/2024 07:23

disney, I don't disagree that it's a well run business. The sector is in trouble though.

TW will pay out £370m in dividends from its net cash. If profitability continues to fall - and it seems likely that it will - that cash pile will not be refilled and the dividend will have to be cut. The dividend is the only thing supporting the share price right now.

[danvandan] 31/7/2024 07:22

I think you are broadly right sunshineT and increased labour costs are probably a big factor in the falling operating profit, from 14.4% to 12%. TW have been unable to pass cost increases on to customers (selling prices are down on last yr) so build-cost inflation is slowly destroying profit.

[disneydonald] 31/7/2024 07:19

Dan, bulk sales to HA's are not part of Wimps strategic direction. They don't form any significant part of the business, just trundle along a a low rate if the opportunity presents itself.

Commitment to paying a stable and predictable dividend, which means final dividend is also nailed on.

£88M exception obviously skews accounting metrics, but importantly cash conversion is up to 90%, which shows how well the management is doing re cost control. Well run business.

[kreature] 31/7/2024 07:15

‘ As we look ahead, we continue to focus on building our order book to optimise value and to position us for growth from 2025, assuming a supportive market. ‘

‘Assuming̵7; a lot then ?

[sunshine today] 31/7/2024 07:14

Umm, so the cladding tenders have gone out and results are back in.

Costs have jumped a staggering 35%

Yet building material costs are perhaps up 3% thus labour rates have gone ballistic.

I put it to the loons here, that when mortgage rates finally fall a tad, and TW starts to plan increased production, the tenders they put out for work on their new sites, will come in on a par with the above.

[kreature] 31/7/2024 07:06

Well spotted……;..what good are new homes if not affordable to those that most need them ? …..

‘ Increased borrowing costs and regulatory pressures are negatively impacting the ability of Housing Associations to commit to affordable housing deals as part of Section 106 agreements.
While this is not expected to impact our 2024 outcome, lack of funding for Housing Associations has the potential to impact sector order books and the overall delivery of affordable housing in coming years ‘

[jugears] 31/7/2024 07:05

gbh2, that wouldn't surprise me, there is a lot of unrest in this country & it's only going to escalate.

[gbh2] 31/7/2024 06:59

JUGEARS, Judging by what's going on in Southport we could be at war with the migrant hordes when Labour open the flood gates!

[danvandan] 31/7/2024 06:57

One other little thing buried in the update - bulk sales to housing associations have collapsed.

[danvandan] 31/7/2024 06:55

Taylor Wimpey fire safety work costs soar to £333m

Taylor Wimpey has been forced to increase provisions for expected fire safety work after an escalation in costs on recent tenders.

The house builder had previously set aside £245m to cover the full fire safety remediation of its building portfolio. But this morning Taylor Wimpey said the expected cost had now soared by over a third.

[danvandan] 31/7/2024 06:53

Taylor Wimpey's half-year profit down over 58% to £99.7 million
Taylor Wimpey, one of the UK’s biggest developers, revealed the impact of the slowdown in the country’s house market today and stood by plans to complete up to 10,000 homes this year.

The FTSE 100 firm said its half-year profit fell by over 58% to £187.7 million from revenue of £1.517 billion.

It stood by plans to complete between 9,500 and 10,000 homes this year, at the upper end of guidance.

Jennie Daly, chief executive pointed to the “high” level of “interest rates and mortgage rates” .

[kreature] 31/7/2024 06:52

Prob need to focus on the positives…..maybe it’s some kind of inverted growth ?Minus 22.6% operating profit? ( ignoring exceptionals)

[jugears] 31/7/2024 06:52

gbh2, I have a hunch labour won't go the full term, they have all Ready alianted all the pensioners by cutting winter fuel allowance & will not come anywhere near close to housing targets.
I wonder what time sickly will join us, bound to be negative being a renowned melancholic 😒

[danvandan] 31/7/2024 06:44

So jugears has his rose-tinted spectacles turned up to blood-red opaque. A collapse in profit by more than half; selling prices down and when inflation at just 5% is taken into account, it's a dramatic fall in selling prices. Return on assets has halved. Net cash is falling. Every key metric on profitability is falling. As expected, results are amazing... amazingly bad.

[kreature] 31/7/2024 06:41

Minus 58% profit before tax ? Is that a typo ?

[gbh2] 31/7/2024 06:37

Facts will never impede Labours ability to Lie!

[citytilidie] 31/7/2024 06:36

The fact that T.W built 10000 homes puts Labours building plans in tatters if they expect to build 340000 houses each year for the next 5 years. We haven’t got the number of companies to get anywhere near those figures

[gbh2] 31/7/2024 06:36

Decent set of results, dividend most welcome, on we go :)

[tialouise] 31/7/2024 06:29

That dream came true !!!!!

[jugears] 31/7/2024 06:17

Well well well, I am more than happy with that,higher sales per week, lower cancellations & dividend increased oh & sales towards the top end,yet again Tw defying expectations, as I have said before the best hb with the very best management, excellent even better than I was expecting now for 1.80 quickly IMEO.

[kreature] 31/7/2024 00:33

Oops sorry, was just a dream