Taylor Wimpey PLC TW. Interim Management Statement

  Taylor Wimpey PLC (TW.) - Interim Management Statement

RNS Number : 8530Q
Taylor Wimpey PLC
12 November 2012








12 November 2012



Taylor Wimpey plc

Interim Management Statement



The following statement constitutes Taylor Wimpey's Interim Management
Statement, covering the period from 2 July 2012 to the date of this
announcement.



Having already achieved significant improvements across all of our key
financial metrics over the last three years, we have continued to make further
progress during the second half of this year. These improvements have been
delivered through the implementation of our strategy, which we continue to
drive through a combination of: increasing the proportion of strategic land
sites; improving returns from land purchases; an ongoing tight focus on costs
and value optimisation; and the benefits of the increasing use of our new
housetype range.



Current trading



Housing market conditions in the UK have remained stable and, although
mortgage availability remains restricted, we have seen incremental improvement
since the half year results. We welcome the Government's recent announcements
recognising the housebuilding industry's importance to the UK economy and hope
to see further improvements in mortgage lending over the coming months as the
'Funding for Lending' scheme gains more traction.



Sales rates in the second half of 2012 are similar to the equivalent period of
2011, with an average net private reservation rate of 0.57 sales per outlet
per week in 2012 to date (2011 equivalent period: 0.56). Cancellation rates
remain below the long term average at 15.3% for the year to date (2011
equivalent period 15.7%).



The Government's NewBuy scheme continues to generate strong interest amongst
our customers since its launch in March 2012 and we have now taken 467 net
reservations under the scheme and its recently launched equivalent in Scotland
"MI New Home". Of these, we have legally completed 137 homes and exchanged
contracts on a further 132. Although we remain selective in our use of shared
equity schemes, we continue to support the Government-backed FirstBuy scheme
and have now completed a total of 1,179 homes under the scheme. 365 of these
homes have been completed during the second half of the year to date and we
look forward to providing more much-needed new housing for first time buyers
following the Government's recent announcement of additional FirstBuy funding.



Maximising the value achieved from each home completion remains our top
priority and we are now fully sold for our targeted 2012 completions and are
building our order book for 2013 completions. The current order book for
future completions is £1.11 billion (6 November 2011: £1.02 billion), with the
growth being driven by the private order book. The margin achieved on these
sales also shows further improvement on the equivalent position last year and
on that achieved on completions in the first half of 2012.



We have received further external recognition since the half year, being
admitted to both the FTSE4Good Index and the Dow Jones Sustainability Europe
Index at their most recent reviews. We were also named 'Large Housebuilder of
the Year' at the recent Housebuilder Awards



Land portfolio and planning



We have maintained our consistent, disciplined approach to new land
acquisition and continue to consider it appropriate to hold a longer land
portfolio at this stage of the market cycle. We continue to deliver enhanced
returns on newly acquired sites as we open them for home sales and have
achieved a natural increase in the number of active outlets to 321 (6 November
2011: 307) without compromising our focus on optimising planning consents and
value-engineering sites.



We have approved the purchase of 3,436 new plots on 33 new sites since the
half year. This includes our successful bid for Chobham Manor, the first
residential phase of the redevelopment of the Queen Elizabeth Olympic Park in
London.



We also continue to improve the quality of our extensive strategic land
portfolio, both by the progression of existing sites through the planning
process and by the targeted addition of new potential plots.



Group financial position



Our balance sheet remains strong and we expect net debt at the end of 2012 to
be in line with the prior year (31 December 2011: £116.9 million).



We have bought back a further £9.1 million of 10.375% Senior Notes due 2015 in
the second half of 2012 to date, reducing the amount outstanding to £149.9
million.



We are also pleased to announce that we signed an agreement with
Prudential/M&G UK Companies Financing Fund LP on 9 November to extend our
existing £100 million term loan, which was originally due to mature in June
2015. This agreement gives us the option to extend the loan for a further
5.5 years to mature in November 2020 subject to redemption prior to 30 June
2015 of the outstanding 10.375% senior notes due 31 December 2015.



Outlook



We continue to prioritise value creation and margin improvement as we remain
focused on the creation of medium to long term value for our shareholders.
While we continue to take a cautious approach, given the uncertainty in the
wider economy, conditions within the UK housing market remain stable. We are
seeing the benefits of the consistent disciplined approach to land acquisition
that we have adopted over the last three years and continue to add attractive
short term and particularly strategic sites to our land portfolio.



We are confident of delivering full year performance in line with our
expectations and with our value-focused strategy, further increased order
book, high quality land portfolio and strong balance sheet, we remain well
positioned for the future.

-ends-



For further information please contact:



Taylor Wimpey plc
 Tel: +44 (0)
1494 885656

Pete Redfern, Group Chief Executive

Ryan Mangold, Group Finance Director

Jonathan Drake, Investor Relations



RLM Finsbury
 Tel:
+44 (0) 20 7251 3801

Andrew Dowler/Sarah Heald



Notes to editors:

Taylor Wimpey plc is a residential developer with operations in the UK and
Spain. We aim to be the leading developer for creating value and delivering
quality.



For further information, please visit the Group's website:

http://plc.taylorwimpey.co.uk



                     This information is provided by RNS
           The company news service from the London Stock Exchange

END


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