Building for the
future
Annual Report and Accounts 2023
Contents
Directors' report | Financial statements | Shareholder information | ||||
- Chair's statement
- Chief Executive's statement
- Our business model
- Our market environment
28 Market trends, opportunities and risks
- Purpose, values and strategy
- Performance and strategy
- Operational review
- Building for our customers
- Building for our people
- Materiality assessment
50 Our commitment to the |
Directors' report
- Governance at a glance
- Board of Directors
- Group management team
- Chair's Q&A
- Building strong governance
- Board activities
- Shareholder engagement
- Workforce engagement
- Board leadership
- Monitoring culture
- Diversity
107 Nomination and Governance Committee report
113 | Audit Committee report |
125 | Compliance statement |
129 | Governance structure |
Financial statements
- Independent auditors' report
- Consolidated income statement
- Consolidated statement of comprehensive income
- Consolidated balance sheet
- Consolidated statement of changes in equity
- Consolidated cash flow statement
- Notes to the consolidated financial statements
- Company balance sheet
- Company statement of changes in equity
- Notes to the Company financial statements
219 Particulars of subsidiaries, associates and joint ventures
Our investment case | Our business model |
Read more on pages2 to 5 | Read more on pages 16 to 20 |
Operational review | Our commitment to the |
environment | |
Read more on pages 39 to 42 | Read more on pages 50 to 52 |
environment |
53 Task force on Climate-related Financial Disclosures
69 Non-financial and sustainability information statement
71 Risk management
- Principal Risks and uncertainties
- Group financial review
- Viability statement
130 Role of the Board |
131 Remuneration Committee report |
153 Statutory, regulatory and other information
226 Five year review
Shareholder information
227 Notice of Annual General Meeting
231 Notes to the Notice of Annual General Meeting
239 Shareholder facilities
Our reporting suite
Building for the
future
Annual Report and Accounts 2023
Our 2023 Annual Report is an integrated report which includes key sustainability and financial disclosures.
Sustainability Summary 2023
Building for a
sustainablefuture
More information on our materiality process, sustainability activities and policies can be found in our Sustainability Summary 2023.
84 Stakeholder engagement and priorities
87 Section 172(1) statement
Scan to view | Scan for the full |
our online | Sustainability |
Annual Report | Summary 2023 |
2023 |
Building for
the future
In 2023 we delivered a good performance in the face of challenging market conditions. Going forward, we remain focused on driving value and ensuring we are ready and able to take advantage of opportunities. We are building for the future.
Directors' report | Financial statements | Shareholder information | ||||
2023 was a challenging year for the industry and our customers with rising interest rates and cost of living pressures impacting affordability.
Our clear purpose to build great homes and create thriving communities remains unchanged and is even more important today for our employees, customers, communities and partners.
With the benefit of a strong landbank and financial position and led by an experienced management team, Taylor Wimpey is well set to respond to changing market conditions in an agile way, building on momentum to ensure we optimise value and are poised for recovery and future growth from 2025, assuming supportive market conditions.
We have a compelling investment proposition:
A strong and resilient | A high-quality landbank |
business, well positioned | that differentiates us |
for all market conditions | |
A sustainable and | Reliable shareholder |
responsible business | returns |
1 Taylor Wimpey plc Annual Report and Accounts 2023
Directors' report | Financial statements | Shareholder information |
Our investment case
resilientStrong and
Experienced senior leadership and highly engaged employees
Tight control of cost and work in progress, ensuring build rates are aligned with sales rates at a site level
Increased standardisation to drive quality, savings and incremental operational efficiencies
Strong balance sheet
Leveraging Taylor Wimpey Logistics and our new timber frame facility to support security of supply, increase visibility and speed of build
Increased use of technology on site and data monitoring to aid simplification and drive decision-making
Focused on operational excellence to optimise margin and drive attractive long term returns
4.89
Construction Quality Review average score (out of 6)
(2022: 4.81)
13.4%
Operating profit margin*
(2022: 20.9%)
2 Taylor Wimpey plc Annual Report and Accounts 2023
Our investment case continued
We have a balance sheet light, industry leading strategic pipeline of c.142k potential plots (31 Dec 2022: c.144k)
£61bn
potential revenue in our landbank across both the short term landbank and strategic pipeline
(31 Dec 2022: £61bn)
High-quality,well-located landbank in places people want to live
Directors' report | Financial statements | Shareholder information | ||||
c.80k
plots in short term landbank
(31 Dec 2022: c.83k)
landDiffere tiated bybourank
Our high-qualitylandbank together with an industry-leading strategic land pipeline provides optionality throughout the cycle
c.8k
plots converted from strategic pipeline (2022: c.4k)
We remain selective in acquiring new sites but will be active where we see good opportunities to create value for shareholders
3 Taylor Wimpey plc Annual Report and Accounts 2023
Directors' report | Financial statements | Shareholder information |
Our investment case continued
Sustainable and
responsible
ESG is embedded throughout the business
for the benefit of all our stakeholders
We are driven by our purpose to build great homes and create thriving communities and by our core value to 'do the right thing'
98%
of our employees agree that we take health and safety seriously (2022: 98%)
Net Zero Transition Plan targets validated by Science Based
Targets initiative (SBTi)
Read more about our commitment to the environment on pages 50 to 52
In 2023, we launched our zero carbon ready prototype homes trial in Sudbury, the first trial of its kind on a live development site testing low carbon technologies
Read more on page 36
4 Taylor Wimpey plc Annual Report and Accounts 2023
Directors' report | Financial statements | Shareholder information |
Our investment case continued
7.5%
of net assets or at least £250 million annually throughout the cycle paid out via an ordinary cash dividend
returnsReliable sha eholder 4.79p
2023 final ordinary
dividend per share
(2022: 4.78p)
Highly cash generative business - allows for investment for growth and attractive shareholder returns
We are committed to paying an annual ordinary dividend through the cycle, and returning surplus capital at the appropriate time
- Definitions and reconciliations of our APMs to the equivalent statutory measures are included in Note 32 of the financial statements. Please see page 81 for definitions.
9.58p
2023 total ordinary dividend for the year (2022: 9.40p)
Established, differentiated Ordinary Dividend Policy aimed at providing investors with visibility of the annual income stream they can expect throughout the cycle, including during a normal downturn
Read more about our capital allocation priorities on page 37
5 Taylor Wimpey plc Annual Report and Accounts 2023
Directors' report | Financial statements | Shareholder information |
Business overview
We built over 10,000 homes in 2023, making us one of the UK's leading homebuilders. We operate across five divisions and at a local level from 22 regional businesses in the UK, with a small operation in Spain.
Where we operate
A national housebuilder operating at a local level.
Scotland, North East | North West | |
and North Yorkshire | and Yorkshire | |
4 | 3 | |
regional businesses | regional businesses | |
Midlands | London and | |
and Wales | South East | |
5 | 5 | |
regional businesses | regional businesses | |
Central, South
West and Spain
5 1
UK regional | Spanish |
businesses | regional |
business | |
Spain
Map key
Head office
Regional offices
6 Taylor Wimpey plc Annual Report and Accounts 2023
Business overview continued
Net zero by 2045
Our net zero targets have been independently validated by the Science Based Targets initiative, and we were only the second UK housebuilder to achieve this
Read more about our Net Zero
Transition Plan on page 51
ESG ratings and accreditations
More information about our approach to, and performance on, sustainability and ESG topics can be found throughout this report:
Environment
50 Our commitment to the environment
53 Task force on Climate-related Financial Disclosures
Social
- Building for our customers
- Building for our people
84 Stakeholder engagement and priorities
Governance
- Workforce engagement
- Board Leadership
- Anti-briberyand anti-corruption
- Succession planning
- Modern Slavery Act
Directors' report | Financial statements | Shareholder information | ||||
Built on a strong culture of doing the right thing
Respectful | Take |
and fair | responsibility |
Better | Be proud |
tomorrow |
We are defined by our purpose
To build great homes
and create thriving communities
To deliver superior returns for shareholders through
our high-quality landbank and enhance value
through sharper operational focus
Implemented through
our strategic cornerstones
Read more about our strategic cornerstones on pages 31 to 38
7 Taylor Wimpey plc Annual Report and Accounts 2023
Business overview continued
Delivering a good performance by managing through the cycle
*Alternative Performance Measures
The Group uses Alternative Performance Measures (APMs), such as those indicated above with a footnote symbol, as important financial performance indicators to assess underlying performance of the Group. The Group's two financial targets are operating profit margin and return on net operating assets. Definitions and reconciliations of our APMs to the equivalent statutory measures are included in Note 32 of the financial statements. Please see page 81 for definitions.
Directors' report | Financial statements | Shareholder information | ||||
Group financial | highlights | |||||
10,848 | £3,514.5m | £470.2m | ||||
Group completions including | Revenue | Operating profit* | ||||
joint ventures | ||||||
2023 | 10,848 | 2023 | £3,514.5m | 2023 | £470.2m | |
2022 | 14,154 | 2022 | £4,419.9m | 2022 | £923.4m | |
2021 | 14,302 | 2021 | £4,284.9m | 2021 | £828.6m |
£473.8m | 9.57p | £677.9m | |||
Profit before tax | Total dividend per share | Year end net cash* | |||
paid in the year | |||||
2023 | £473.8m | 2023 | 9.57p | 2023 | £677.9m |
2022 | £827.9m | 2022 | 9.06p | 2022 | £863.8m |
2021 | £679.6m | 2021 | 8.28p | 2021 | £837.0m |
127.1p | 13.4% | 12.6% | ||||
Tangible net assets per share* | Operating profit | margin* | Return on net operating assets* | |||
2023 | 127.1p | 2023 | 13.4% | 2023 | 12.6% | |
2022 | 126.5p | 2022 | 20.9% | 2022 | 26.1% | |
2021 | 118.1p | 2021 | 19.3% | 2021 | 24.7% |
8 Taylor Wimpey plc Annual Report and Accounts 2023
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Taylor Wimpey plc published this content on 20 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 March 2024 15:29:01 UTC.