Taylor Wimpey has announced its profit and revenue fell in 2024 in the face of growing fire safety costs.
The housebuilder published its full-year results for the year ending 31 December 2024, which showed that the company recorded a pre-tax profit of £310million, falling by 32.4% on the £474million achieved the previous year.
During the period, Taylor Wimpey’s exceptional costs rose to £98.2million, mostly due to provisions in relation to fire safety issues.
The costs included a £68.9million rise in provision for cladding fire safety, £15.7million in cladding fire safety provision for the Greenwich Millennium Village joint venture and a loss of £13.6million from the dissolution of the Winstanley and York Road joint venture with Wandsworth Council.
Across 2024, the housebuilder spent £28.5million on remediation works.
Taylor Wimpey’s operating profit also fell year-on-year from £470million to £416million, a reduction of 11.5%. The developer’s revenue decreased by 3.2%, from £3.51billion to £3.4billion while its net cash position also declined by 16.7% to £565million to £678million.
Throughout the year, the housebuilder completed 10,593, including through joint ventures. Its net private sales rate increased in the period, averaging 0.75 homes per outlet per week compared to 0.62 the previous year. Taylor Wimpey’s average selling price fell, however, falling from £324,000 to £319,000.
Despite the fall in profit and revenue, Taylor Wimpey is positive about the year ahead and said that it is well-positioned for growth.
Jennie Daly, chief executive of Taylor Wimpey, said: “I’m pleased with our performance in 2024, delivering a strong sales rate and in-line results while achieving the highest customer service scores and overall build quality that we have ever had at Taylor Wimpey. This is a testament to the hard work and commitment of our teams across the Group.”
“The start of the spring selling season has been robust, and we have seen good levels of demand for our homes. Affordability – while remaining a challenge for many, especially first-time buyers – is also moving in the right direction. As a result, our total order book is up on last year, putting us in a strong position to grow housing volumes this year. We expect to deliver full-year 2025 UK completions in the range of 10,400 to 10,800 excl. JVs and for Group performance to be in line with market expectations”
“We welcome the government’s recent planning reforms which are capable of delivering a real step change in planning outcomes. We look forward to seeing increased resources and a focus on the implementation phase to drive these outcomes and deliver much-needed new homes across the UK.”
