Annual Report and Accounts 2024
Fit for the
future
Contents
Strategic report
1-101
1
Fit for the future
6
Business overview
10
Investment case
11
Chair’s statement
13
Chief Executive’s statement
18
Adding value
20
Our business model
30
Our market environment
37
Market trends, opportunities and risks
39
Performance against our
strategic cornerstones
50
Operational review
52
Building for our customers
55
Building for our people
58
ESG assurance
59
Materiality assessment
60
Our commitment to the environment
63
Task Force on Climate-related
Financial Disclosures
80
Non-financial and sustainability
information statement
82
Risk management
85
Principal Risks and uncertainties
91
Group financial review
95
Viability statement
97
Stakeholder engagement and
Section 172 (1) statement
Directors’ report
102-166
103
Governance at a glance
104
Board of Directors
107
Group Management Team
108
Chair’s introduction to the Directors’ report
109
The Board’s year
112
Understanding shareholder views
113
Engaging with our employees
115
Monitoring our culture
116
Our governance structure
119
Nomination and Governance
Committee report
125
Diversity
126
Audit Committee report
136
Remuneration Committee report
160
UK Corporate Governance Code
compliance statement
163
Statutory, regulatory and
other information
Financial statements
167-237
168
Independent auditors’ report
178
Consolidated income statement
179
Consolidated statement of
comprehensive income
180
Consolidated balance sheet
181
Consolidated statement of
changes in equity
182
Consolidated cash flow statement
183
Notes to the consolidated
financial statements
221
Company balance sheet
222
Company statement of
changes in equity
223
Notes to the Company
financial statements
229
Particulars of subsidiaries,
associates and joint ventures
237
Five year review
Shareholder information
238-251
238
Notice of Annual
General Meeting
250
Shareholder facilities
Our reporting suite
Annual Report
Our 2024 Annual Report is an integrated
report which includes key sustainability
and financial disclosures.
Scan for the full
Sustainability
Summary 2024
Sustainability Summary
More information on our materiality process,
sustainability activities and policies can be
found in our 2024 Sustainability Summary.
Scan to view our
online Annual
Report 2024
Fit for the
Our strategic cornerstones of land, operational excellence,
sustainability and capital allocation
remain consistent and have
enabled us to adapt quickly to optimise changing market conditions.
Our focus has been ensuring we are
fit for the future
and well
positioned
to drive sustained growth and returns for all
stakeholders,
with:
A quality landbank ready to deliver
Read more on
page 2
A business focused on operational excellence to drive value
Read more on
page 4
An agile strategy to manage the housing cycle
Read more on
page 5
The capacity built for sustained growth
Read more on
page 3
future
1
Strategic report
Directors’ report
Financial statements
Shareholder information
We have the land we need to grow
We have an excellent short term landbank and
mature strategic pipeline
which gives us a competitive
advantage and will enable us to deliver more homes
in the improving planning environment
A quality landbank
ready to deliver
Fit for the future continued
Taken a proactive
approach to upcoming
planning changes
c.26.5k
plots for first principle planning
determination in the planning system
(2023: c.30.2k)
Short term
landbank of
c.79k
plots across quality locations
(2023: c.80k) with 56% converted from
the strategic pipeline (2023: 54%)
Mature strategic
pipeline of
c.136k
potential plots
(2023: c.142k)
Increased opportunistic
landbuying in 2024
c.12k
plots approved
(2023: c.3k)
Land
Read more on
pages 39 to 41
Taylor Wimpey plc
Annual Report and Accounts 2024
2
The capacity built for
sustained growth
We have invested in the capacity to scale the business
, including opening
a timber frame plant and developing a compelling employee value proposition to
ensure we recruit and retain the best people in a skills constrained industry
Fit for the future continued
30%
timber frame target
(of completions) by 2030,
using our own facility,
in combination with
our existing suppliers
93%
employee engagement score
(2023: 93%)
1,624
A
homes built using timber frame
(2023: 1,661)
The best home
for the best people
Operational excellence
Sustainability
Read more on
pages 42 to 47
A
This metric was subject to external independent limited
assurance by PricewaterhouseCoopers LLP (‘PwC’).
For further information please see page 58.
3
Strategic report
Directors’ report
Financial statements
Shareholder information
With an efficient standard house type range, consistent processes
and the ability to leverage the only logistics business in the sector,
we are driving efficiency and reducing costs
A business focused on operational excellence to
drive value
98%
of materials received
on time in full to site from
Taylor Wimpey Logistics
(2023: 99%)
94%
completions from standard
house type range,
excluding apartments
(2023: 90%)
98%
of employees believe we take
health and safety seriously
(2023: 98%)
Operational excellence
Read more on
pages 42 to 44
Fit for the future continued
Taylor Wimpey plc
Annual Report and Accounts 2024
4
An agile strategy to manage the
housing cycle
With proven strategic cornerstones
providing flexibility
to perform in all market conditions and a differentiated
Ordinary Dividend Policy providing reliable returns
Land
Operational excellence
Sustainability
Capital allocation
Read more on
pages 39 to 49
Total dividend
for 2024
£335m
(2023: £339m)
Differentiated Ordinary
Dividend Policy based on
7.5%
of net assets, or at least
£250m annually, providing
reliable returns through the cycle
Strong
balance sheet
£565m
net cash*
(2023: £678m)
Resilient
sales rate
0.75
net private sales rate
per outlet per week
(2023: 0.62)
*
Definitions and reconciliations of our APMs to the equivalent statutory measures are included in Note 32 of the financial statements. Please see page 94 for definitions.
Fit for the future continued
5
Strategic report
Directors’ report
Financial statements
Shareholder information
Map key
Head office
Regional offices
Scotland, North East and
North Yorkshire
1
regional
business
Spain
4
regional
businesses
5
regional
businesses
3
regional
businesses
North West and Yorkshire
Midlands and Wales
5
regional
businesses
Central and South West
5
regional
businesses
London and South East
Spain
10,000 homes in
2024
, making us one
of the UK’s leading
Where we operate
a local level from 22 regional businesses
Business overview
Taylor Wimpey plc
Annual Report and Accounts 2024
6
Net zero by 2045
We achieved certification to the Carbon Trust’s Route to
Net Zero Standard, Advancing level in 2024 and were
the only housebuilder to hold this standard in the year.
Read more on
page 61
More information about our approach to, and
performance on, sustainability and ESG topics
can be found throughout this report:
Environmental, social and
governance (ESG) ratings
and accreditations
Read more about our strategic cornerstones on
pages 39 to 49
Our purpose
We are defined by our clear purpose
to build great homes and
create thriving communities.
We seek to deliver superior returns for shareholders
through our high-quality landbank and enhance
value through sharper operational focus.
Land
Operational
excellence
Sustainability
Capital allocation
Implemented through
our strategic cornerstones
Business overview continued
Environment
60
Our commitment to
the environment
63
Task Force on Climate-related
Financial Disclosures
Social
52
Building for our customers
55
Building for our people
97
Stakeholder engagement and
Section 172 (1) statement
Governance
113
Engaging with our employees
115
Monitoring our culture
116
Our governance structure
117
Board leadership
Built on a strong culture
of doing the right thing
Our values
Take
responsibility
Be
proud
Better
tomorrow
Respectful
and fair
ESG assurance
For a number of years we have received
limited assurance over our carbon and
energy data; this year we have gone
further, selecting four additional ESG
metrics that have been subjected
to independent limited assurance
procedures, demonstrating our
commitment to ESG.
Read more on
page 58
7
Strategic report
Directors’ report
Financial statements
Shareholder information
* 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 main 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 94 for definitions.
Group financial highlights
Delivering
a good set
of results
Business overview continued
2022
2023
2024
10,593
10,848
14,154
Group completions including joint ventures
10,593
2022
2023
2024
£320.3m
£473.8m
£827.9m
Profit before tax
£320.3m
2022
2023
2024
123.8p
127.1p
126.5p
Tangible net assets per share*
123.8p
2022
2023
2024
12.2%
13.4%
20.9%
Operating profit margin*
12.2%
2022
2023
2024
10.9%
12.6%
26.1%
Return on net operating assets*
10.9%
2022
2023
2024
9.59p
9.57p
9.06p
Total dividend per share paid in the year
9.59p
2022
2023
2024
£564.8m
£677.9m
£863.8m
Year end net cash*
£564.8m
2022
2023
2024
£3,401.2m
£3,514.5m
£4,419.9m
Revenue
£3,401.2m
2022
2023
2024
£416.2m
£470.2m
£923.4m
Operating profit*
£416.2m
Taylor Wimpey plc
Annual Report and Accounts 2024
8
UK highlights
New outlets opened
in the year
55
(2023: 47)
Construction Quality Review
average score (out of 6)
4.93
(2023: 4.89)
Employee engagement
score
93%
(2023: 93%)
Contributions to local communities,
via planning obligations
£345m
(2023: £405m)
Average selling price
on private completions
£356k
(2023: £370k)
Plots in short
term landbank
c.79k
(2023: c.80k)
Customer satisfaction
8-week score
96%
(2023: 92%)
Annual Injury Incidence
Rate (per 100,000 employees
and contractors)
212
A
(2023: 151)
Reduction in operational CO
2
emissions (absolute) since 2019
47%
(2023: 35%)
Business overview continued
A
This metric was subject to external independent limited assurance by
PricewaterhouseCoopers LLP (‘PwC’). For further information please see page 58.
9
Strategic report
Directors’ report
Financial statements
Shareholder information
Taylor Wimpey is well positioned
with a trusted brand and
a national presence. The UK
housing market offers an
attractive opportunity. There is
a significant undersupply of
homes underpinning long
term growth potential.
10.6k
total homes completed
(2023: 10.8k)
Strong and resilient
business well-positioned
for all market conditions
Operational excellence to optimise
margin and drive attractive
long term returns.
• Business set up to manage through
the cycle to optimise performance
in different trading conditions
• Preparing all areas of the business
for the next phase of the market,
with volume growth in 2025
and beyond
£3.4bn
of land on the balance sheet
(2023: £3.3bn)
A high-quality landbank
that differentiates us
High-quality landbank and excellent
strategic pipeline provide optionality
throughout the cycle.
• High-quality landbank to deliver
future volumes
• Strong track record of strategic
land conversion benefiting margin
and visibility of supply
• Aligned to benefit from planning
reform with high-quality applications
in the planning system
93%
employee engagement score in 2024
(2023: 93%)
Sustainable and responsible
business built for the long term
ESG embedded throughout the
organisation for the benefit of all
our stakeholders.
• Health and safety is our number
one priority
• Continuing to invest in long term
sustainability with investment in
customer service and employees
• Target to achieve net zero by 2045,
five years ahead of regulation
£339m
dividends paid to shareholders in 2024
(2023: £338m)
Reliable returns providing
visibility to our shareholders
Committed to paying an annual ordinary
dividend through the cycle and returning
surplus capital at the appropriate time.
• Differentiated Ordinary Dividend
Policy to pay out 7.5% of net assets
or at least £250 million annually
throughout the cycle
We have a
compelling investment
proposition
to optimise
shareholder returns
Investment case
Taylor Wimpey plc
Annual Report and Accounts 2024
10
Performance in line with
expectations and positioned
for sustained growth
Dear shareholder,
2024 saw the return of some stability to the
UK’s new homes market. However, the year was
not without its challenges. At the start of 2024,
an improved interest rate outlook meant lower
mortgage rates for our customers with
affordability improving. The summer brought
positive changes to the planning system from
the new Government, aimed at getting Britain
building, but some caution on UK finances ahead
of the Autumn Budget. After the Budget,
forecasts for future inflation rose slightly and
mortgage rates began to rise, albeit modestly.
Against that backdrop, our teams continued to
work hard for our stakeholders, and I am pleased
that we delivered a good financial performance
with revenue of £3.4 billion (2023: £3.5 billion)
and operating profit* of £416.2 million
(2023: £470.2 million), which was in line
with expectations.
We also delivered a good performance in our
ESG (environmental, social and governance)
metrics, including our highest ever customer
service and build quality scores. On behalf
of the Board, I congratulate our colleagues
on these achievements.
We continue to support the UK’s transition to net
zero, by building low carbon homes and through
delivery of our Net Zero Transition Plan. As we
move forward, we are ensuring that commitment
to the UK’s biodiversity and nature is still
prioritised as changes to the planning system
are rolled out.
In 2024, we increased the number of ESG
metrics that were subject to independent limited
assurance procedures, further demonstrating our
commitment to ESG. This focus is important to
our stakeholders and key to Taylor Wimpey’s
continued success over the long term, which is
why sustainability will remain a key cornerstone
of our strategy.
You can read more about how our 2024 financial
performance was achieved, together with our
performance in relation to ESG, in Chief Executive
Jennie Daly’s statement, in Group Finance
Director Chris Carney’s review and throughout
this report.
Dividend
We are pleased to have provided a reliable return
to our shareholders through changing markets.
Recognising that housebuilding is a cyclical
industry, our Ordinary Dividend Policy to return
7.5% of net assets per year provides increased
visibility to our shareholders. At our full year
results in February 2025, we announced the
2024 final ordinary dividend payment of
4.66 pence per share, subject to shareholder
approval at the Annual General Meeting (AGM).
Together with the 2024 interim dividend payment
of 4.80 pence per share, the total ordinary
dividend for the year is 9.46 pence per share
or approximately £335 million.
Managing through the cycle
Your Board manages the business for the cycle,
meaning that while short term performance
is important, strategic decisions also protect
the longer term interests of the Group and
its stakeholders.
In 2024, this meant preparing our teams for the
next phase in the cycle. ‘Fit for the future’ is the
theme of this report and making sure we are
equipped to meet new opportunities and
challenges has been our focus, as Jennie
outlines in her statement on page 16.
We must optimise
short term performance
but continue to invest in
areas that matter for the
future sustainability of
the business.”
Robert Noel
Chair
Chair’s statement
11
Strategic report
Directors’ report
Financial statements
Shareholder information
Health and safety remains our number one
priority in all markets. This is the first topic
covered in every Board and local regional
management team meeting across the country.
The safety of our customers is of paramount
importance and we remain focused on the
remediation of legacy buildings to bring them into
compliance with revised fire safety standards.
We will continue our focus on health, safety and
environmental compliance across the business,
with additional emphasis on employee and
subcontractor wellbeing.
Last year, I wrote to you about our strong Group
culture of ‘doing the right thing’. I am pleased
that the 2024 employee survey showed this to
be a continued strength, with an even higher
response rate to the survey of 73% (2023: 69%)
and a consistently high engagement score of
93% (2023: 93%).
This year, Board members have visited a number
of regional businesses and sites, and each Board
member continues to be impressed with the skill
and commitment of our employees. We continue
to promote the employee voice through our local
and national employee forums and through
Mark Castle in his role as Employee Champion.
During the year, the Executives and I actively
engaged with institutional shareholders, including
the executive management’s trip to see our North
American investors, the first for several years.
We look forward to meeting shareholders at the
AGM which will again take place at the Crowne
Plaza Hotel, Gerrards Cross on Wednesday
30 April 2025. Shareholders will again be able
to submit their vote in advance by proxy and
email questions in advance of the meeting.
Board changes
After just over nine years, Humphrey Singer
stepped down from the Board on 31 December
2024. Scilla Grimble, independent Non Executive
Director, succeeded Humphrey as Chair of the
Audit Committee with effect from 1 September
2024 and Lord Jitesh Gadhia, independent
Non Executive Director, succeeded Humphrey
as the Senior Independent Director from
1 December 2024.
On behalf of the Board, I would like to express
our sincere thanks to Humphrey for his wise
counsel, stewardship and commitment both
during his long service as Chair of the Audit
Committee and more recently as the Board’s
Senior Independent Director.
I would also like to welcome Martyn Coffey
who joined the Board as an independent Non
Executive Director on 1 December 2024 and
became a member of the Audit and Nomination
and Governance Committees. Having previously
served as CEO of Marshalls Plc for over 10 years
and as a Non Executive Director of Eurocell plc
for eight years, Martyn brings a wealth
of experience and deep knowledge of
manufacturing for the building industry
and of supply chains.
Fit for the future
The future is exciting for Taylor Wimpey, and
we are determined to play our part in providing
much needed quality homes for our customers.
The UK has a significant housing shortage,
estimated at over four million, meaning there
will be major opportunities for Taylor Wimpey to
grow as affordability improves and consumer
demand returns to stronger levels.
In addition, changes in the planning system
should help unlock the land needed to support
home building in the coming years. With a clear
strategy in place, a strong balance sheet,
excellent landbank and experienced and
engaged teams, we are well positioned to
benefit and are fit for the future.
Robert Noel
Chair
Chair’s statement continued
*
Definitions and reconciliations of our APMs to the equivalent statutory measures are included in Note 32 of the financial
statements. Please see page 94 for definitions.
Taylor Wimpey plc
Annual Report and Accounts 2024
12
Our continued focus on
operational discipline
and driving value
in 2024
has enabled us to navigate
another year of changing
market conditions for
our customers.”
Jennie Daly
Chief Executive
Dear shareholder,
2024 has been another year of market change,
but also one of opportunity in which we have
been able to further build on our successes,
secure a competitive advantage and ensure
we are well positioned for the future.
2024 backdrop
While 2024 brought more market stability than
2023, the delay in interest rate cuts and high
mortgage rates continued to impact affordability
and therefore customers’ ability to transact in 2024,
resulting in lower completion levels compared with
previous years. Affordability remained challenging
for many potential customers, particularly first time
buyers as well as some of our customers in the
South of England. Incentives remained an important
element in driving customer commitment
throughout 2024 and overall pricing in the year end
order book was marginally lower than the prior year.
We continued to optimise the balance between
pricing and volume with a focus both on margin and
return on capital. However, as stated, 2024 margin
continued to be impacted by build cost and pricing
dynamics as well as the impact of overhead costs
being recovered across fewer completions.
Through 2024 we have continued to identify and
pull all the levers we have available to us to drive
performance, from our continued focus on cost
management and value improvement, through
to a fully refreshed marketing campaign.
Our regional businesses continue to work hard to
embed the efficiency savings we have made over
the past few years. We had relatively flat build costs
on new tenders in 2024 and modest overall inflation
for the year’s completions. We expect the 2025
cost environment to return to a more normal profile
of low single digit increases, given the extended
period without price increases for our suppliers and
well-known inflationary pressures for businesses as
a result of the Autumn Budget changes to National
Insurance and Minimum Wage.
The planning environment remained difficult in the
year, albeit we have been very pleased with the
Government’s pace of implementation on the
National Planning Policy Framework (NPPF)
which will in time lead to increased land supply
and more certainty in planning outcomes. During
2024 we opened 55 new outlets (2023: 47).
Our strong balance sheet and excellent landbank
enabled us to navigate these challenges effectively.
Against this backdrop, I am pleased to report we
delivered a good set of financial results, in line with
guidance, achieving a Group operating profit* of
£416.2 million and Group completions (including
joint ventures) of 10,593 (2023: £470.2 million and
10,848). The reduction in operating profit for the
year reflects the challenging trading backdrop.
Our short term landbank of c.79k plots (2023:
c.80k), a c.4k increase in the owned land to
c.66k, and strategic pipeline of c.136k potential
plots (2023: c.142k) is sector leading and is key
to our future success. Our land investment is
strategically targeted to quality locations with
strong demographics. This is demonstrated
by the resilience in our net private sales rate
of 0.75 per outlet per week (2023: 0.62).
Our results are made possible by our disciplined
approach and the hard work of our teams across
the business and I want to take a moment to
thank all of our employees and our partners
and suppliers for their support.
Fire safety
The safety of our customers is of paramount
importance, and we have always been guided
by this principle. It is our long held view that
leaseholders should not have to pay for the
cost of fire safety remediation and our priority
has always been to ensure that customers in
Taylor Wimpey buildings have a solution to
cladding remediation.
We took early and proactive action, committing
significant funding and resources to address
fire safety and cladding issues on all affected
Taylor Wimpey apartment buildings built
since 1992.
In 2022, we signed up to the Government’s
Building Safety Pledge for Developers and the
Welsh Government Building Safety Developer
Remediation Pact which reaffirmed our
commitment that leaseholders should not have
to pay for fire safety remediation. In the first half of
2023 we also signed the Scottish Safer Buildings
Accord. Prior to signing these, we had already
begun working on affected Taylor Wimpey
buildings. By the end of 2022 we had recorded
a total provision for cladding fire safety
remediation works of £245.0 million.
Chief Executive’s statement
13
Strategic report
Directors’ report
Financial statements
Shareholder information
A strong
business
set
up for growth
2024 was about preparing
and setting up the business
for growth to ensure we are
fit for the future.
We have come into 2025 with a strong
order book and excellent landbank.
We have the sites open, the plots in the
planning system for future years and an
engaged and experienced workforce
ready to deliver sustained growth.
Chief Executive’s statement continued
In the first half of 2024 we reassessed the
remediation costs based on tenders received
and based on this updated information and
enhanced cost appraisal, the expected fire safety
remediation cost was increased by £88.0 million.
The increase was due to increased costs based
on recent tenders, including project delivery
administration costs and funding of the Building
Safety Fund pre-tender costs and a small number
of new buildings being added. In the second
half of 2024 one of the Group’s joint ventures
recognised a provision for remediation works on
the buildings it built and as a result £19.1 million
has been released from the provision held by
the Group in relation to those buildings. This
results in a net charge for the year of £68.9
million, recognised in operating expenses as
an exceptional item.
During the year we spent £28.5 million on
remediation works and continued to progress
work with building owners, management
companies and leaseholders and we remain
committed to resolving these issues as soon
as practicable for our leaseholders. We have
203 buildings within the scope of our provision,
all of which have been assessed by our specialist
team. We signed the Ministry of Housing,
Communities and Local Government (MHCLG’s)
Joint Plan in 2024 and are working to meet the
targets it sets out.
More information on the Building Safety Levy
and our approach to mitigating and managing
risk can be found on page 36, alongside an
update on the Future Homes Standard.
Winstanley and York Road
joint venture
In December 2024, we disposed of our interest in
the Winstanley and York Road Regeneration LLP
joint venture (JV) – this was a mutual agreement
with Wandsworth Council enabling the Council to
take a new approach to prioritise the delivery of
affordable housing provision. The JV was formed
in 2017 to deliver a 12-to-15-year estate
regeneration scheme including a mixed-use
development of up to 2,550 homes, improved
community facilities and a new park. Under the
JV, 139 homes, a new school, church, multi-use
games area and play area have been successfully
delivered. The net impact was a £13.6 million
loss, recognised as an exceptional cost in 2024.
Competition and Markets
Authority (CMA)
Taylor Wimpey welcomed the CMA’s final report,
published on 26 February 2024, from its
housebuilding market study with its focus on
improving the planning system, adoption of
amenities and outcomes for house buyers.
At that time of publication, the CMA commenced
an investigation into a number of housebuilders,
including Taylor Wimpey, relating to concerns that
they may have exchanged competitively sensitive
information. On 10 January 2025, the CMA
updated its timetable stating that further
investigation, including additional evidence
gathering and CMA analysis and review,
would continue until May 2025.
We will continue to cooperate fully with the
CMA in relation to its investigation as we have
done throughout the process to date.
Delivering in the right way
for all stakeholders
It matters to us how we achieve our results.
I am particularly pleased to have achieved these
good results while also increasing our 8-week
customer service score to 96% (2023: 92%)
and our 9-month customer service score to 80%
(2023: 77%) as measured by the Home Builders
Federation (HBF) customer satisfaction survey.
This is our highest ever performance and
we remain a five-star housebuilder. We are
a leader in build quality in the volume industry
and have again improved our CQR score to
4.93 (2023: 4.89). This reflects our commitment
to delivering high-quality homes and excellent
customer service.
We are in a great place,
with a strong balance sheet
and order book, and an
excellent landbank.
In 2025 we want to embrace
the opportunity for growth and
further drive performance.”
Jennie Daly
Chief Executive
Taylor Wimpey plc
Annual Report and Accounts 2024
14
Our strategic cornerstones
We remain focused on our proven strategic cornerstones
An agile approach to optimising value
• Focused on progressing land through the
planning system to open quality outlets
• Strong landbank and excellent strategic
pipeline enabling us to deliver more homes
in the improving planning environment
and positioning us for sustained growth
Driving efficiency and execution
• Continued focus on driving performance
• Investing in the long term success
and sustainability of the business
• Advanced preparation for
changing regulations
• Optimising value across all areas
of the business
Investing to protect
long-term value for stakeholders
• Continue to advance
Environment Strategy
• Embed net zero plan in the business
• Creating thriving communities
through placemaking
• Prioritise value
A clear and disciplined approach
• Maintain a strong balance sheet
• Funding business needs including land
investment and work in progress (WIP)
• Clear and sustainable Ordinary Dividend
Policy to provide visibility to shareholders
Land
Sustainability
Capital
allocation
Operational
excellence
Chief Executive’s statement continued
Read more on
pages 39 to 41
Read more on
pages 42 to 44
Read more on
pages 45 to 47
Read more on
pages 48 to 49
2025 priorities
There are aspects that we consider as
fundamental to Taylor Wimpey and as such
these are considered ‘business as usual’
including, health, safety and environmental
protection, high-quality build, an excellent
customer service journey for all customers
and partners and a keen focus on cost.
Over and above the fundamentals, we have
a number of specific focus areas for 2025:
•
Continue to improve build efficiency
and compliance:
protecting the value
we create means enhancing efficiency and
extracting economies of scale to deliver
best practice across the Group. Build
compliance and standard processes
are key to ensure we continue to drive
performance and optimise efficiencies.
•
Deliver sales performance and
optimise price:
our teams are
incentivised to drive value as we continue
to optimise the balance between sales
rate and price.
•
Drive outlet openings:
business-wide
focus on delivering new quality outlets
efficiently to support execution of the
growth opportunity, with asset turn and
return on capital front of mind. We expect
to open more outlets in 2025 than in 2024
with outlet openings to be weighted
towards the second half of the year.
•
Further digitise our processes to drive
efficiencies and future proof the
business:
we are developing our IT
capabilities via our Innovate
TW
programme,
with a focus on digitising our processes
to create the platform to deliver greater
business-led innovation, using technology
to share best practice quickly across
the Group.
•
Employee value proposition:
our industry is facing a skills shortage,
and we continue to work hard to attract
and retain the best people. Our revamped
employee value offer outlines the benefits
of working for Taylor Wimpey, including
development and training for all our
employees and additional enhancements
to our family policies, including
improvements to maternity, adoption,
paternity, and the introduction of paid
carers leave.
•
Deliver against our environmental
targets and commitments in our
Environment Strategy and Net Zero
Transition Plan:
environmental
performance is growing in importance
and, like health and safety, is a key priority
for Taylor Wimpey. Increasingly we need
to extend our environmental performance
data to ensure we can comply with
changing regulation and drive progress
on our sustainability commitments.
15
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Shareholder information
Health and safety is non-negotiable at
Taylor Wimpey. While I am delighted we continue
to perform very favourably against the sector,
and once again 98% of our employees believe
we take health and safety seriously, there is
always more that we can do. Our Annual Injury
Incidence Rate (per 100,000 employees and
contractors) of 212
A
has increased from 151,
as a result of minor slips, trips and falls. This will
be an area of increased focus this year.
I am delighted to report that in 2024 62 of
our Site Managers were awarded National
House-Building Council (NHBC) Pride in the
Job Quality Awards, with 16 Seals of Excellence
and two Regional Awards. This year our Site
Manager David McClure, from our Castle
Gate development in West Scotland, was also
honoured with the NHBC Supreme Award in
the Large Builder category, one of the highest
industry accolades.
Quality housing makes a positive difference
across almost every area of life including
educational attainment and better health
outcomes, and is one of the key contributors to
economic growth, at both a local and national
level. We are pleased to see the recognition from
Government of the importance of the sector and
we are playing our part in the delivery of that
much needed growth. In 2024, we contributed
£345 million to local communities in which we
build across the UK via planning obligations
(2023: £405 million). This funded a range of
infrastructure and facilities including affordable
housing, green space, community facilities,
commercial and leisure facilities, transport
infrastructure, heritage buildings and public art.
An agile strategy
We are a cyclical business and so our strategy is
set up to manage the cycle effectively, building
a stronger and more resilient business and
optimising trading conditions. This includes
our differentiated capital allocation policy which
our shareholders continue to benefit from,
with £339.4 million paid in dividends in 2024
(2023: £337.9 million). Over the last ten years
we have returned £3.7 billion to shareholders.
Our strategy remains consistent and is centred
on four strategic cornerstones which can be seen
on page 7. These strategic cornerstones guide
our principles of working while allowing us to
be agile to respond to opportunities and risk
in changing market conditions.
In this year’s Annual Report and Accounts we
have extended out our business model to give
more insight into how our business operates
including the challenges we face at each stage.
You can find this on pages 20 to 29.
Fit for the future
While short term market conditions remain
uncertain, the long term fundamentals remain very
strong with an increasingly marked undersupply of
housing estimated at over four million homes, that
is particularly acute in some areas of the country.
Being fit for the future includes making sure we
have the strategy and structures in place across
all areas of our business to build the capacity to
support our ambition for growth, focusing on
areas we can control.
The changes to the NPPF introduced by the
Government, will require local authorities to
identify land to meet the housing needs of their
area for a five year period. Required housing
need is now based on a stock-based approach
(a proportion of existing housing in each region),
which has removed ambiguity and increased the
national total annual approvals required to 370k
plots per year. If a local authority is unable to
provide evidence that it has a five year housing
land supply, there will be presumption in favour
of sustainable development.
We are optimistic that these changes to the
planning system should help unlock the land
needed to support homebuilding in coming years
placing the land market on a similar footing to
that of 2012 to 2019 when land conditions were
supportive of industry growth. For our part, we
are focusing on the proactive submission of
high-quality applications to planning authorities
to best position Taylor Wimpey to benefit from
upcoming improvements to the planning process.
As at 31 December 2024 we had c.26.5k
such applications for first principle planning
determination in the planning system (2023:
c.30.2k), with a significant number to follow.
This will translate into more outlets which will
provide future opportunities to grow volumes.
In 2024, we continued to focus on embedding
the operational efficiencies and savings we have
delivered over the last few years and this remains
an ongoing focus. However, we also put in place
many of the building blocks to prepare for the next
phase of the market and enable us to grow our
volumes, with market demand, including investing
in aspects key to the long term sustainability of
the business, to ensure we are fit for the future.
For example, in 2024, we delivered cost savings
through our measured value improvement
programme. We identified savings in certain
product types and by omitting products from
certain supplier contracts to source more
efficiently elsewhere. We continued to drive
standardisation through Taylor Wimpey Logistics
(TWL), our logistics function, and by driving
greater conformity to our standard house types,
which comprised 94% of our 2024 home
completions excluding apartments (2023: 90%).
TWL is a key differentiator and remains integral
to our drive for increased efficiency and
standardisation. TWL holds strategic stocks and
Chief Executive’s statement continued
A
This metric was subject to external independent limited assurance by PricewaterhouseCoopers LLP (‘PwC’).
For further information please see page 58.
Taylor Wimpey plc
Annual Report and Accounts 2024
16
then provides build packs that can be called off
on a ‘just in time’ basis for site. This improves
control, consistency of supply and also provides
a buffer for our regional businesses, which
received orders 98% on time in full from TWL
in 2024. This enhances the efficiency of our
operations as well as visibility for our site teams
and subcontractors. In 2024, we installed a new
warehouse management system to future proof
our facility and further increase efficiency
and quality.
During 2024, we delivered the first kits as planned
from our ISO 9001 accredited timber frame
manufacturing factory. This has been a strategic
component of the ability of our businesses to scale
up and to also increase sustainability. In combination
with our existing suppliers, our own facility will help
us in our goal to increase timber frame usage to
30% of our completions by 2030.
The industry is facing a significant skills shortage.
We are pleased to have highly skilled and
engaged employees (with a 93% engagement
score in 2024 and in 2023) and in 2024,
we launched a compelling employee value
proposition, to ensure we will continue to attract
and retain the best people, a key component
of our preparedness for the future.
We are developing our IT capabilities via our
Innovate
TW
programme with a focus on improving
our processes, increasing business-led
innovation, and using technology to share
best practice quickly across the Group.
Our team are working to identify actionable
ideas from over 260 received from employees so
far. We have also employed artificial intelligence
(AI) to simplify tasks and free up employee
time for more value added activities, such as
supporting our customers, monitoring build
programmes and ensuring build quality and
closely scrutinising costs.
New workstreams are designed to enable us
to optimise our operations in a sustainable way.
Continuous business improvement remains
key to protecting stakeholder value against
a backdrop of increasing regulatory and
economic demands. This includes increased
standardisation and use of modern methods
of construction such as timber frame.
You can read more about these areas on
page 29
Current trading and outlook
The start of the Spring selling season trading
has been robust and we have seen good levels
of demand for our homes.
Appointments and overall customer interest in
our homes remain at healthy levels, supported by
our quality product, site locations and focused
sales and marketing efforts. There is good
mortgage availability at competitive rates as
lenders remain committed to the mortgage
market. As a result, the encouraging sales
performance seen towards the end of 2024
has continued in the year to date.
The year to date net private sales rate (w/e
23 February 2025) is 0.75 per outlet per week
(2024 equivalent period: 0.67), up 12% year
on year. We have seen some incremental
improvement in market pricing since the start of
the year with current pricing flat year on year.
The cancellation rate is 16% (2024 equivalent
period: 12%) and the number of down valuations
remain low.
As at 23 February 2025, our total order book
excluding joint ventures was £2,255 million
(2024 equivalent period: £1,949 million),
comprising 8,021 homes (2024 equivalent
period: 7,402 homes).
We have a strong landbank in place, and an
excellent strategic pipeline with over c.26.5k plots
for first principle planning determination in the
planning system as at 31 December 2024
(2023: c.30.2k). We were more active in the
land market than expected in 2024, approving
c.12k plots (2023: c.3k plots) which, as previously
reported, partly reflects an increase in attractive
opportunities brought forward in the run up to the
Budget. We will remain active and opportunistic
in our approach to land acquisition in 2025.
As previously stated, we have begun to see
modest build cost inflation and we expect this
to be low single digit for the year, depending on
the response from our subcontractors to rising
employer costs. We will continue to work with
our supply chain to identify opportunities for
savings across the business.
Chief Executive’s statement continued
Scan to see Chief Executive
Jennie Daly and
Group Finance Director
Chris Carney presenting
our Full Year 2024 results
While appetite for Section 106 affordable housing
continues to be impacted by headwinds faced by
Housing Associations, we have good visibility on
this year’s affordable deliveries.
Overall, given the strong order book and
confidence in delivery of our plans, we expect
2025 performance to be in line with market
expectations
¹
. This reflects 2025 UK completions
excluding JVs in the range of 10,400 to 10,800,
with approximately 45% occurring in the first half
of the year. Margin in the first half will reflect
weighting of completions over the year, the
impact of underlying pricing in the order book at
the start of the year (which was c.0.5% lower
year on year) and build cost inflation.
Looking ahead, we operate in an attractive
market, with significant underlying demand for
the quality homes we build. We have a clear
strategy focused on driving value and operational
excellence while investing in the long term
success and sustainability of the business.
We have a strong balance sheet, excellent
landbank and experienced teams and are well
positioned to deliver sustained growth.
Jennie Daly CBE
Chief Executive
*
Definitions and reconciliations of our APMs to the equivalent statutory measures are included in Note 32 of the financial statements. Please see page 94 for definitions.
1
As published on 24 February 2025, the Company compiled consensus expectation for full year 2025 Group operating profit* is £444 million.
17
Strategic report
Directors’ report
Financial statements
Shareholder information
Creating
stronger,
thriving
communities
Together with thousands of
subcontractors and partners,
we do work that matters every
day – not just for our customers,
but for local residents and the wider
communities, supporting important
charities and local organisations
to make a lasting difference.
Our purpose is to build
great homes and create
thriving communities.
This is a shared purpose across our whole
business and value chain. It is not only vital for
our customers but has far reaching societal
impacts of which we are extremely proud.
It is not always well understood the very real
benefit that housebuilding can bring to a local
area. Our new housing developments drive
economic growth and positively benefit local
communities. The HBF estimates that in England
and Wales the new housebuilding industry
contributes around £53 billion per year in
economic activity and provides around 270k
direct jobs, with many more employed indirectly
in various roles across our supply chain. New
quality housing is vital to our progress as a nation.
It contributes to improved economic and social
mobility, community cohesion, better health
outcomes and increased educational attainment.
In 2024 alone, Taylor Wimpey contributed
£345 million to local communities in which we
build across the UK via planning obligations
(2023: £405 million). This funded affordable
housing, green space, community facilities,
commercial and leisure facilities, transport
infrastructure, heritage buildings and public
art underlining our purpose to build great
homes and create thriving communities.
During 2024, we continued our partnership
with our national charities as well as local charity
partners across the UK. Our national partners
are Youth Adventure Trust, Every Youth, Crisis,
CRASH, Magic Breakfast, and St Mungo’s.
In total, during 2024, we donated and
fundraised c.£1 million for registered charities
(2023: c.£1 million). This included supporting
St Mungo’s Construction Skills Training Centres
to help people recovering from homelessness,
gain new skills and find employment in the
construction industry.
Being part of the local community is important
to us and to date we have engaged with
550 schools, reaching 330,000 children via our
schools outreach programme. We worked with a
specialist company to help our regional businesses
develop links with schools in a more targeted way
to promote careers in our sector. In addition,
through our partnership with Magic Breakfast
we contributed £80k to help serve over 285k
breakfasts to pupils in England and Scotland
from September 2023 to September 2024.
>3,000
washbags collected for CRASH’s
Christmas washbag campaign for
homeless charities
355
employees took part in the tenth
annual Taylor Wimpey Challenge
raising a total of £157k in 2024
(2023: £146k) and reached the
£1m milestone for total funds raised
Adding value
18
Taylor Wimpey plc
Annual Report and Accounts 2024
Infrastructure improvement to
benefit all local residents
New facilities including:
•
Local nursery:
Providing over 160 places
•
New sports centre:
6,000 sqm
state-of-the-art sports centre
•
NHS Hub:
Providing accessible healthcare
services to the community, improving
public health and wellbeing
•
Marketplace:
Delivered in January 2025,
the vibrant marketplace was developed to
encourage local vendors and artisans to sell
their goods, fostering local entrepreneurship
and community engagement
•
Commercial units:
Constructed to support
local businesses and to provide opportunities
for new enterprises to thrive in the area
Local employment and job creation:
4,630
total number of all jobs created
32
new trade apprenticeships
30
work placements
Education
Female staff from Taylor Wimpey and
our subcontractors spoke to over
100 year 5 and 6 children about their
work in the industry, including the different
roles available and shared the barriers
they faced to inspire them to follow
their dreams.
Collaborated with 15 local educational
institutions and participated in over
30 careers fairs and workshops within
the local borough to promote diverse
careers, challenge stereotypes and
assist in curriculum development.
15
local institutions collaborated with
Stimulating local economies
Local spending:
c.£3m
investment in local suppliers, through
our subcontractors, and service
providers, supporting local businesses
Community Infrastructure Levy and
Section 106 planning payments:
£6.5m
contribution to local infrastructure projects
and community facilities, affordable
housing, and public services that
directly benefit the local population
Community investment includes:
• Donations to the Winter Spaces project
and towards the Leyton Orient Trust
para sports event
• Local charity organisations
Coronation Square in London
brings to life our role as
a partner and in creating
thriving local communities.
Adding value continued
19
Strategic report
Directors’ report
Financial statements
Shareholder information
We are one of the UK’s leading
national homebuilders, operating
at a local level from 22 regional
businesses. We also have a small
operation in Spain.
1
What we do
Read more on
pages 21 to 22
2
How we make money and invest
Read more on
pages 23 to 25
4
How we are evolving
Read more on
page 29
3
Critical resources and relationships
Read more on
pages 26 to 28
We manage the homebuilding process throughout
the value chain,
from original land investment decision
to after sales service. We are providing additional detail on
our business model this year, to explain what we do and
help frame our strategic decisions based on the strength
of our business model.
Our business model
Taylor Wimpey plc
Annual Report and Accounts 2024
20
1
2
3
4
Our business model continued
We buy land at the right price, using our longstanding land
and planning expertise, creating high-quality developments
in places customers want to live. Our teams understand
local housing needs and are able to select the right
locations and develop these through the planning system.
How we identify land opportunities
We consider the macro and micro location of our land.
For example, the macro location may be city, broken down
by major suburb, town, village or rural area. The micro
location is then the position within the macro location.
We use an internal rating system ranking our sites
to ensure we identify the most suitable locations.
This approach applies to how we continue to target
high-quality locations both in the short-term market
and strategic intake.
Detailed upfront financial assessment
Before we bid for land, we conduct a detailed commercial
assessment called a land purchase exercise (LPE). This
incorporates analysis of local demographics, a full costing
of the site to development and specific commercial and
technical considerations. Site evaluation involves several
teams, including land, sales and marketing, commercial,
production, technical and finance.
It includes our assessment of risks and culminates in
a detailed assessment of the income, profit, margin
and return on capital that a development is expected to
generate, which we then monitor throughout the process.
Each successful land proposal is assessed and approved
by our Chief Executive.
Our regional businesses assess the potential of land and
calculate the cost, taking into consideration building density
and infrastructure requirements. To protect our margin and
ultimately turn a profit, we must tightly manage costs from
onset and through each subsequent stage in the process.
Quality is key to protecting our reputation and the
sustainability of the business and is therefore a focus
across our operations. We also pride ourselves on
providing a positive experience for customers throughout
their buying journey.
Our teams work closely with local authorities
and other regulators to meet increasingly
complex technical, environmental and health
and safety requirements. We strive to open
our sites as efficiently as possible; however,
the time between buying land and opening
our sites is dependent on site-specific
planning status and conditions. Planning
has been difficult over the past few years.
However, we expect changes to the planning
system from the NPPF that took effect at
the end of 2024, to help underpin land for
housing delivery over the coming years.
Read more on pages 16 and 34.
Working with communities
It is important to consult communities in our
process. While housing is much needed,
we realise development can be disruptive
to local communities. We work hard to
showcase the benefit to local communities
and the employment and economic activity
they create. With biodiversity net gain our
developments increasingly add to the
local environment. We held over 100
community meetings and events in 2024.
Working with local
authority partners
Short term land will always have some form
of residential planning permission. For
example, ‘resolution to grant’ (RTG) status
or ‘outline planning’ means that residential
development is permitted, but the nature of
that development (aesthetics, housing mix,
density etc.) is still to be agreed. Progressing
our land from those stages to ‘implementable
planning’ (when we are permitted to start
on site), can take months or even years.
During this process our land, design,
technical, production and legal teams
consult with local authority partners and
other interested parties to resolve issues
and achieve the required permits.
Preparation for infrastructure
Appropriately, there is a significant
administrative burden to overcome before
we can begin building. For example, we must
work with National Highways, services such
as electricity, water and sewers, and establish
infrastructure such as roads before we can
start building.
Detailed planning
Achieving ‘detailed planning’ status and then
satisfying any pre-commencement conditions
allows us to attain ‘implementable planning’
and start building.
Throughout the planning process, we engage
and consult with local communities and
relevant stakeholders. Universal acceptance
may not be achieved, but we do our best
to outline the benefits of our project and to
minimise disruption.
Resolving issues
Planning can, of course, be a contentious
area. Our developments are sometimes
challenged, and we may need to collaborate
with local residents and authorities to resolve
issues. We will appeal decisions through the
legal system if a project has stalled, yet we
are fully meeting our obligations.
Affordable housing and
community facilities
In 2024, 22% of our UK completions
were affordable housing (2023: 23%).
We deliver significant local economic
benefits, including employment, and through
our planning obligations build or fund the
building of numerous schools, and leisure
and recreational facilities.
Strategic land pipeline
Alongside our landbank, our strategic pipeline allows us
to develop land in a balance sheet-efficient way. We own
around a quarter of our strategic pipeline and control the
remainder. For the controlled portion, we pay a fee which
gives us the option to buy land at certain milestones.
We buy this land when we have achieved certain planning
status, typically at a small discount to market value. This
enhances our visibility of land supply, helps protect our
margins and allows us to be selective in the land market.
Sustainability
Sustainability is a key consideration in our landbuying.
We consider how land relates to placemaking, ensuring
it is in the right location to provide customers with good
access to infrastructure and facilities, and access to nature.
We design and deliver schemes that become successful
and sustainable new communities, where our customers
can enjoy a good quality of life. We also look at ways to
mitigate social and environmental risks such as flood risk
as part of our early evaluation.
Highly experienced teams
We develop two main types of land. Short term land has some
form of planning for residential development, though it may
still be months or years from reaching implementable planning
status which would allow us to build. We are also highly
experienced in developing strategic land, which, at the time we
acquire it, has no form of approval for residential development.
Our highly experienced strategic land teams often work
on land long before it is earmarked for development.
There can be no certainty that strategic land will achieve
planning permission, which is why most of our strategic
pipeline is not owned but is controlled via option
agreements. We only include plots in our pipeline which
we believe have greater than 50% probability of success.
As at 31 December 2024, 56% of short term land
originated from our strategic land pipeline (2023: 54%).
c.79k
plots in the short term landbank
as at 31 December 2024 (31 December 2023: c.80k)
Make the right land investments
Manage the planning process
What we do
21
Strategic report
Directors’ report
Financial statements
Shareholder information
1
2
3
4
Our business model continued
What we do
Support customers through
the buying process
Our highly trained and dedicated sales teams use our
customised Microsoft Dynamics customer relationship
management (CRM) system to identify high-quality
customers and optimise conversion and service levels
throughout the buying journey. This includes real time
dashboards, lead scoring and management reporting.
Our sales teams understand and meet customer
needs by offering a range of tailored solutions.
These could include selling schemes to assist the
buying journey or home personalisation.
Our responsibilities do not end when we have
completed a home sale. Our Customer Relations
Manager is available to our customers. We also
provide a two-year warranty that covers any defects.
We have worked on processes to enhance our
customer service including extending our customer
contact to well beyond the sales period (read more
on page 47).
Design and develop
sustainable homes
We design homes to meet the needs of our customers
today and in the future. Our energy-efficient homes
meet or exceed regulatory requirements, and our
finished sites exhibit greater biodiversity than prior
to our involvement.
We use the digital platform LEADR (Land and
Environment Assessment of Development Risk),
to assess and manage sustainability and technical
risks associated with land during the acquisition and
construction process (read more on page 65).
We consider how our developments work as a whole
and how they will contribute to a thriving community.
Good placemaking, which involves attractive landscaping
and shared communal and recreational areas, means
that our customers can live well, feel part of a community
and adopt active, more sustainable lifestyles. We design
carefully considered street scenes, and consider how
our developments interact with nature.
Good plotting means we are using our land resources
efficiently, while our standard house types – designed
following extensive consumer research – help us
maintain high-quality through contractor familiarity
with our processes and materials.
Our developments factor in biodiversity net gain,
meaning our completed sites are required to have 10%
more natural habitat than when we acquired them.
We work to prepare for when new regulations are
implemented, such as the proposed Future Homes
Standard. When in place, we will build all-electric,
zero carbon ready homes. Having successfully trialled
these homes in 2023, we are well positioned to adapt
when the new regulation comes into place, the timing
of which is yet to be determined.
10%
habitat net gain required on our new sites
(or equivalent contribution)
How our structure adds value
We are a leading UK homebuilder with a
national reach, operating at a local level.
We are financially strong with an excellent
balance sheet and a net cash position. We
have committed and experienced teams,
a high-quality landbank and strategic pipeline,
providing visibility and growth potential.
As a national homebuilder we have
operational efficiencies and benefits of scale
due to standardisation and bulk purchasing.
Our business benefits from a shared
purpose and is underpinned by a strong
Group culture and values.
Underpinned by strong culture
Our values of respectful and fair, take
responsibility, better tomorrow and
be proud, guide the way we work at
Taylor Wimpey. We work hard to maintain
our culture and regularly survey our
employees to ensure we are on the
right track. We have a high employee
engagement score of 93%. Not only is
this key in driving high performance, but
it is also vital in attracting and retaining
high-quality people in an industry with a
recognised skills shortage. Further details
on how the Board assesses and monitors
our culture can be found on page 115.
Clear and efficient
operating structure
We have a clear operating framework
with key controls in place to maintain
consistency across our operations,
benchmark best practice and achieve
efficiencies. This includes non-negotiable
processes covering areas such as health
and safety and compliance. This is key to
maintaining high standards and driving
value and mitigating risk. We have Group
department heads for the key operating
functions to ensure we are applying
consistent standards and best practice
across the business. There is strong central
oversight from the GMT and health and
safety and legal, with the key Group
functions including commercial, finance,
technical, production, customer service,
sales and marketing and land and planning
supporting the regional teams. Further
details on our risk management processes
and internal controls can be found on
pages 82 to 84.
The Board is responsible for establishing
and monitoring our strategy, and looks
to the Group Management Team (GMT),
comprising our Chief Executive, Group
Finance Director, Group General Counsel
and Company Secretary, five Divisional
Chairs and Group Human Resources
Director to implement strategy on a day
to day basis.
Our Divisional Chairs oversee five divisions:
Scotland and North East and North
Yorkshire; North West and Yorkshire;
Midlands and Wales; London and South
East; and Central and South West. These
cover 22 UK regional businesses that are
managed by a regional Managing Director
and a management team representing the
key functions.
Supporting the
regional businesses
The main purpose of the central Group
functions is to support and optimise
operating conditions for our 22 UK
regional businesses.
The regional businesses benefit from our
strong trusted brand and national supplier
relationships. Our internal logistics function,
TWL provides hub and spoke distribution
to our regional businesses to improve
efficiency and security of supply. In addition,
our timber frame production, Taylor Wimpey
Manufacturing, located in close proximity
to TWL, is working to help address a critical
business dependency.
Build efficiently and
deliver for customers
Accurate budgeting and active management enable
us to set up our sites to deliver on our targets. Our
Taylor Wimpey Logistics and central procurement
functions enable us to operate consistently and
efficiently. Standard house types comprise the majority
of our build which helps us drive efficiencies and
ensure quality.
We recently established our own timber frame facility,
which will provide efficiency benefits and help reduce
our carbon footprint (read more on page 29).
Maintaining excellent supplier and subcontractor
relationships is how we keep up our high standards,
and reputation as the ‘partner of choice’. The health
and safety of our employees and subcontractors is
always our number one priority.
Our ‘right first time’ approach to building results in strong
customer satisfaction scores. We are regularly one of
the highest independently rated volume homebuilders
in terms of construction quality.
Taylor Wimpey plc
Annual Report and Accounts 2024
22
1
2
3
4
Our business model continued
How we make money and invest
Generating cash
We make money by buying land, developing it
through the planning system and completing the
sale of a home to our customers. There is typically
a period of several years between our initial land
investment decision and the moment we realise
our return. However, as an established business,
our constant flow of maturing land investments
allows us to cycle capital more efficiently than
would be possible from a standing start.
We work hard to establish the economic
parameters of a development before committing
to an investment decision. In every case, our
experienced teams identify land where potential
customers want to live. Afterwards, our expertise
and tight operational controls allow us to enhance
and protect that value throughout the value chain.
In the early stages of a development we
deploy capital to develop infrastructure such
as, services, sewers, gas, electricity, water,
telecommunications, supply roads, and general
landscaping. When we have established early site
infrastructure, we typically build our sales centre
including a number of show homes. We call this
sales centre, together with the homes an ‘outlet’.
We typically begin our selling processes when we
have opened our outlet, allowing customers to
experience examples of the homes we will build.
We sell ahead of and alongside production to
ensure we are protecting capital and not building
up excess stock. Forward sales provide good
security for future income, but we do not receive
funds until we have handed over the keys to
our customers.
Our 22 regional businesses have a good deal of
autonomy and are charged with managing capital
efficiently. Our ‘bottom-up’ budgetary process
ensures accountability – each regional team
agrees its budget first with the Divisional Chairs,
and then with the Chief Executive and Group
Finance Director.
Each regional business has tight WIP controls in
place, with oversight from our Divisional Chairs
and Executives. Each regional business monitors
site sales rates and other demand indicators to
ensure it is deploying the appropriate level of
investment in its build programmes. This is key,
since once we start foundation works on a home,
we have begun the WIP investment cycle that
will last around nine months until the home is
completed. In addition, we invest in building
infrastructure such as roads, services and public
facilities. Therefore, it is vital that we manage WIP
effectively, releasing investment that appropriately
reflects the demand environment we are facing.
Land
Our land investments can be with us for several
years, so it is vital we get it right. Every potential
land investment is reviewed for sign off by
our Chief Executive, ensuring tight control over
Group capital. Our experienced land and regional
management teams conduct a detailed
assessment called a Land Purchase Exercise
(LPE) to determine the amount we are prepared
to bid. The LPE is presented to our Chief
Executive and other senior management who will
provide the challenge and scrutiny necessary to
ensure we are invested in the right areas, at the
right returns and with the appropriate risk profile.
The weighting of land investment will depend
on where we are in the market cycle and the
prevailing planning backdrop. Over the longer
term, continued investment in land is important.
However, our strong landbank means we can
flex the timing of land investment decisions.
For example, we approved a very limited number
of land deals between the second half of 2022
to the end of 2023. There was a higher level of
land approvals in 2024, given opportunities for
high-quality deals, particularly in the run up to the
Autumn Budget. Not all land investment is made
equal. For example, we could choose to either
convert our strategic pipeline, where we have the
exclusive option and a one on one negotiation
with the land vendor, or invest in land available
on the open market. Decisions will depend
on the market backdrop and the prevailing
planning conditions.
Dividends
We have a defined, differentiated Ordinary
Dividend Policy to give investors strong visibility of
the returns they can expect throughout the cycle.
Capital allocation decisions are based on our long
term goals, as well as what we are seeing on
a day to day and month to month basis in our
market. There is a decision hierarchy that defines
how we allocate capital. Our first priority is to
ensure we have a strong balance sheet at all
times. We must then satisfy the requirements
of the business for investment in land, WIP and
business needs. We are then able to offer returns
to shareholders via our Ordinary Dividend Policy.
Any excess cash will also be returned to
shareholders at the appropriate time in the cycle.
We seek to drive continuous improvement and
efficiency benefits through a relentless focus on
operational excellence throughout the business.
Operational excellence is a key strategic
cornerstone for Taylor Wimpey and is therefore
embedded in our culture and the way we work.
Our land is a valuable asset, so it is vital we work
hard to optimise its value for all our stakeholders.
As previously stated, we establish expected
returns at the outset and to protect and optimise
our margin and returns, we must tightly manage
costs throughout.
With an efficient standard house type range,
consistent processes, and the ability to leverage
the only logistics business in the sector, we are
able to drive efficiency and stakeholder value.
A cost control mindset is embedded in our
business, and we have installed management
information systems and leveraged IT to drive
further efficiencies.
Operational excellence is not just about driving
efficiencies and cost savings, it is equally about
raising and maintaining high standards to ensure
we are delivering high-quality homes and
excellent customer service. Both are key to
protecting our reputation and the sustainability
of the business.
Allocating and recycling capital
Focus on operational
excellence
23
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Our business model continued
1
2
3
4
How we make money and invest
Generating cash
Optimising margin
Key costs
Our key costs include land, labour, building materials
and central overheads including design, finance, legal
and administrative functions. We operate with tight cost
discipline and, over the past few years, have invested to
improve management information systems, enabling us
to keep close control of costs across our business.
Against a backdrop of rising regulatory costs, we work
on continuous business improvement to find efficiencies
and cost savings. This allows us to optimise margin in
times of higher demand while minimising margin impact
in times of lower demand. As stated, standardisation,
via our standard house types will help us drive
efficiencies. Increasing subcontractor familiarity with
our processes enables us to build right first time.
Using industry-standard products and procedures
helps us to achieve economies of scale from our
suppliers. Both factors help us control our costs.
In recent years, our margins have been negatively
affected by falling effective demand and rising costs.
If cost increases are not met with rising house prices,
as has happened in recent years, there is an inevitable
impact on margin.
Upgrade options and financial incentives for our
customers are a useful tool to cement interest,
particularly in weaker markets. We carefully manage
incentives since these directly impact our profit margin.
For transparency, we have stated reported selling prices
net of incentives.
Capacity for growth
While optimising margin is critical, we have maintained
a national footprint, capable of delivering sustained
growth. As volumes increase, there is the potential
for improved overhead recovery.
Capacity for growth includes our approach to use
of modern methods of construction and off site
manufacturing for certain components of our build
such as timber frame for which we have recently
established our own factory.
Read more about our performance through our key performance indicators on pages 39 to 49 and about
our Principal Risks on
pages 85 to 90
Health and safety is our non-negotiable priority on
site, and we focus on implementing high safety
standards and training our employees and
contractors. We have driven consistently high
build standards and remain a leader in the volume
industry in the independently assessed
Construction Quality Review (CQR) measure.
We have invested in our customer service to drive
both quality and service, through training provided
by our internal academies. We are working
throughout the business to ensure we are well
prepared meet the challenges of changing
regulations well ahead of their implementation
(read more on pages 35 and 36).
When we progress to build stage, day to day
responsibility passes to the site management
team, with oversight from the regional teams.
Ultimate responsibility resides with the
regional MD.
The commercial team ensures that costs
of labour and materials are as expected,
with regular updates provided by our Quantity
Surveyors. Managers have access to an
information dashboard throughout the life of
a development which allows them to control costs.
The Group has national framework agreements
in place to access economies of scale, and to
ensure consistent quality. TWL provides ‘build
packs’ that can be requested on a ‘just-in-time’
basis by site teams, ensuring standardisation
and security of supply.
Typically, our sites are managed by Taylor Wimpey
employees. However, given that we are regularly
opening and closing sites, it is important to have
a flexible cost base.
Therefore, the vast amount of our day to day
labour is provided by subcontractors. These
subcontractors like to work with us because
of our efficiency, visibility of earnings, and our
no-compromise approach to health and safety.
During 2024, on average c.9.4k operatives
worked with us on our sites.
Focus on operational excellence continued
c.9.4k
average number of operatives
managed by our site teams
(2023: c.9.3k)
In 2024, we delivered
10.6k
Group completions (including JVs) (2023: 10.8k)
Group operating profit margin*
12.2%
(2023: 13.4%)
Taylor Wimpey plc
Annual Report and Accounts 2024
24
Investing in our
long term success
Sustainability is a key strategic cornerstone for our
business. We protect the long term sustainability of
the business by investing in our customer offering,
in our employees and in our systems and processes.
While we seek to grow, we want to do this in a
responsible way, including protecting our environment,
and it is our target to reach net zero in our operations
by 2045. Our timber frame facility is a good example
of how we have invested in both efficiency
(Operational excellency) and environmental
performance (Sustainability).
In 2024, we launched Innovate
TW
, a Company-wide
programme aimed at transforming the way we use
technology, freeing up our employees from routine
tasks to allow them to focus on areas of greater value
to the business (read more on page 44).
Prior to this we launched our Microsoft Dynamics
CRM system, which significantly enhances our ability
to support customers.
Over recent years we have invested in Touchpoint, an
online platform where customers can track the progress
of their homes, order options and interact with us.
The integration of Touchpoint with our CRM makes us
more responsive, improves data capture and allows us
to generate notifications for our sales executives and
diarise key customer contact points.
We have continued to advance our training capabilities,
bolstered by a number of best practice academies.
We also continue to invest in business improvement via
standardisation and procurement, and in implementing
operational best practice and benchmarking.
£339m
paid in dividends to shareholders
in 2024 (2023: £338m)
Our business model continued
1
2
3
4
How we make money and invest
Reinvest and return
By protecting and optimising value throughout the value chain, we are able
to both return capital to our shareholders and reinvest in our business.
Our Ordinary Dividend Policy is to return 7.5% of net assets, or at least
£250 million, to shareholders annually, throughout the cycle. In 2024,
we returned £339 million to shareholders through ordinary dividends
paid in the year (2023: £338 million).
25
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Our business model continued
1
2
3
4
Materials
Our key materials include brick, cement and concrete,
timber and roof tiles. We extensively use external and
internal doors, windows and insulation, and increasingly
use solar panels on our homes.
We use a small amount of steel, mostly related to
fixings. Other common materials include gypsum
(plasterboard), flooring, kitchens, sanitary ware and
white goods. We seek to minimise supply chain
disruption by operating at least a dual supplier
strategy for key components.
Land and environment
Land is our key resource underpinning our ability to
fulfil our purpose of building great homes and creating
thriving communities.
It is important that we work with land and our local
environments in the least disruptive way possible to
provide attractive places to live for our customers and
help preserve the UK’s biodiversity.
Building can be disruptive to the natural environment
and construction is a major contributor to carbon
emissions. We have targeted becoming net zero carbon
by 2045, five years ahead of the Government target.
Our developments will now add to natural habitat
(by at least 10% on site or via offsets where this is
not achievable on site).
Our Environment Strategy, Building a Better World,
includes ambitious targets up to 2030 in relation to
climate, nature and resources, and waste. We are
targeting reaching net zero emissions by 2045.
Net zero
carbon targeted by 2045, five years
ahead of Government target
Workforce
Taylor Wimpey UK has around 4.3k employees.
We have highly experienced and dedicated teams
throughout our 22 regional businesses and in our
head office, with expertise in land and planning, legal,
commercial, production, technical, design and sales
and marketing.
We manage each of our sites with our own team of
Site Managers, sales teams, health and safety personnel
and Production and Technical Managers.
We also provide employment for thousands of
skilled tradespeople, working with, on average,
c.9.4k operatives in 2024 (2023: c.9.3k).
Regulatory and
legal environment
We recognise the need for updated regulation to tackle
areas such as limiting climate change and we regularly
cooperate with the Government on consultations
around topics such as fire safety, the planning system,
and changing building regulations such as the Future
Homes Standard.
c.26.5k
applications for first principle planning
determination in the planning system
as at 31 December 2024 (2023: c.30.2k)
Taylor Wimpey plc
Annual Report and Accounts 2024
26
Critical resources and relationships
Resources
Our business model continued
1
2
3
4
Suppliers and subcontractors
Our suppliers and subcontractors play a major role in
our business. We choose suppliers carefully, selecting
partners that share our values. We have quarterly
meetings with all UK national suppliers. We provide
training and support for subcontractors in areas such
as health, safety and environment and engage with
them in product development. We increasingly help
them fulfil their environmental requirements and assist
in finding new talent such as apprentices.
Group suppliers are required to confirm compliance
with our standards via our digital tender system. Our
subcontractors sign up to Taylor Wimpey’s code of
conduct, customer service policy, agree to our quality
standards and are added to our subcontractor portal to
enable us to accurately check progress and compliance
to the required service level agreements.
Subcontractors working on our sites receive guidance
on respectful workplace practices during their induction.
100%
of suppliers required to sign up
to our code of conduct
Government
We work with central Government on issues connected
to the UK housing and business agenda. We use our
industry expertise to give central government our views
on proposed legislation and policy changes.
We also engage with Government agencies such as
the Environment Agency and National Highways.
Local authorities
and Housing Associations
We engage with local government across the UK as
part of the planning process for our developments.
We place significant importance on engaging with
local government as it helps us reflect local priorities
in our plans.
We engage with local authorities and parish councils
and councillors and participate in the development
of strategic frameworks, Local Plans and
Neighbourhood Plans. Wherever possible, we engage
with planners through pre-application discussions.
Housing Associations (or registered social landlords) are
key partners for us. We work extensively with housing
associations across the country to provide them with
high-quality affordable homes for their customers.
2,178
affordable completions excluding
joint ventures (2023: 2,351)
Customers and communities
Our customer proposition is closely tied to our purpose
and centres on building great homes and creating
thriving communities.
We focus on customer service and quality as key
priorities, and these are also key performance indicators
for the Group.
We have a consistent and thorough community
engagement process, with a framework in place
that provides clear procedures for all of our
regional businesses.
We engage with local communities at every site,
from planning and throughout construction, including
through meetings, exhibitions, workshops, newsletters,
information boards, social media and our website.
Engagement can be both face-to-face and virtual and
helps us create developments that reflect local needs.
Critical resources and relationships
Relationships
27
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Our business model continued
1
2
3
4
Critical resources and relationships
Identifying stakeholder
priorities
•
Customers
require a quality product and good
service along their journey, which are key priorities
•
Investors
want share price growth, and value reliable
and transparent returns – it is in their interest that
the business is optimised at all stages of the cycle,
to enable this consistency
•
Employees
want a great place to work,
with the right remuneration and opportunities
for advancement
•
Supply
chain partners want to maximise their earning
potential in the short term, but also want to grow
alongside us and work together long term
•
Local Authorities
want an attractive environment
for their constituents, affordable homes, minimal
disruption, local employment and tax revenue.
The level of support for new development among
local authorities varies
•
Government
wants more housing that is affordable
for the UK and a planning system that supports
economic growth
•
Local communities
benefit from local employment
opportunities and facilities we provide but will want
to see minimal disruption to their lives from our build
Managing trade-offs
between stakeholders
Increasingly, stakeholders want to work with
values-based businesses. This is something that is
important to our customers, employees, investors,
local communities, government and local authorities.
Our supply chain appreciates the lengths we go to protect
their health and safety on our sites. However, while there
are many areas of shared stakeholder interest, there are
undoubtedly some trade-offs we need to evaluate.
For example, customers cannot be expected to pay
more for a house to accommodate above-market
employee pay rises, while investors will have a
preference about the size of our cost base. On the
other hand, maintaining a good working environment
and staff retention are key. Balance between these
competing demands is critical.
Annual shareholder returns are important, but so is long
term growth of the business. Therefore, there are times
when the Board will opt to invest in growth rather than
return capital to investors, over and above the level set
in our Ordinary Dividend Policy.
Safety for employees is non-negotiable and would never
be a trade-off. Relationships with communities are
important, but not all developments are welcomed by
surrounding communities. We mitigate this through
the outreach work we do, but developments can be
disruptive by nature and may still prove unpopular,
particularly during the build stage.
212
A
Annual Injury Incidence Rate
(per 100,000 employees
and contractors)
(2023: 151)
A
This metric was subject to external independent limited
assurance by PricewaterhouseCoopers LLP (‘PwC’).
For further information please see page 58.
Taylor Wimpey plc
Annual Report and Accounts 2024
28
Our business model continued
1
2
3
4
How we are evolving
Evolution in the way we work
Changes in land availability and planning rules have
affected the way we do business. Good-quality
brownfield and accessible greenfield sites have
become scarcer over the years, and so we have had
to adapt the type of sites we develop.
Sites in attractive locations can often present significant
challenges in terms of accessibility for building, and
more challenging topographies, such as hilly or uneven
surfaces or challenging ground conditions. However, our
technical ability has grown to meet these challenges –
we can now develop, for example, medium-sized sites
on distinct levels, with complicated groundworks, build
routes and drainage solutions.
Incorporating more modern methods of construction
(MMC) into our process also constitutes an evolution
of our model. Up to now, modular build has proven
problematic in the UK, given the limitations of road
infrastructure. We have, however, been pursuing
componentisation, where key components are built
off site and then assembled on site.
Increasingly, we use timber frame and modular products
such as smart roofs. For our ‘room in the roof’ house
types, roof structures are largely constructed off site
and craned into place ready for tiling. Staircases and
ceiling and roof cassettes can also be added in the
same way. Many of our homes now include some
form of MMC componentisation.
Research and development (R&D)
We continue to assess the best ways of working,
including new processes and technologies that will
drive efficiencies and help us meet future regulatory
requirements. For the last few years, establishing
solutions to meet the Future Homes Standard
requirements (read more on pages 35 and 36) has
been a major focus for our R&D efforts.
Our teams conducted research to consider the most
appropriate technical specification of our house type
range, in preparation for the Future Homes Standard
(FHS), including a trial of five FHS-compliant plots in
2023. We built all-electric homes on further sites during
2024. As well as identifying new products, our R&D
efforts have helped introduce a range of new solutions
for our build processes that improve efficiency and
benefit health and safety.
Vertical integration
We have long sought to increase our use of timber
frame to benefit from greater flexibility and reduce
our carbon emissions. With limited suppliers and
increasing demand, in 2021 we foresaw a shortage in
timber frame availability, which would coincide with its
increasing importance to us in meeting our efficiency
and climate goals.
We identified timber frame as a key component on
our critical path and made sure that in removing it as
a potential bottleneck we would not create another
further down the line.
Therefore, we established our own timber frame facility
mid-2023 and delivered first kits to site in the first half
of 2024. We are scaling up production in a controlled
manner towards an ultimate expected capacity of 3,000
kits per year. In combination with our existing suppliers,
our own facility will help us in our goal to increase timber
frame usage to 30% of our completions by 2030.
Vertical integration is only of interest to us if there is a
compelling need. In this case, creating our own timber
frames addresses something in our critical path that is
not widely available, and that we are able to develop
ourselves at a competitive cost.
*
Definitions and reconciliations of our APMs to the equivalent statutory measures are included in Note 32 of the financial
statements. Please see page 94 for definitions.
29
Strategic report
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Financial statements
Shareholder information
Our market environment
A more stable
market
in 2024
We take an agile approach to manage
the cycle
, maintaining a strong balance sheet
and tight operational controls.
This section looks at our market context and outlines
some of the key drivers of supply and demand.
The new build market
With private new build completions representing
around 8% of annual transactions, the sector
remains a small segment of the overall housing
market. Drivers of demand tend to follow
the same trends in both the new build and
second-hand homes markets. Therefore, the
health of the second-hand market has a direct
impact on our sector.
New build supply is impacted by government
policy, land availability and regulation.
Drivers of demand
•
Interest and mortgage rates and
mortgage availability
– major factors in
affordability and accessibility for customers
•
Employment and consumer confidence
– affects the ability and confidence of
consumers to purchase houses
•
House prices
– impacts the affordability of
housing and the profitability of housebuilding
•
Rental cost
– influences the relative
attractiveness of ownership versus renting and
therefore affects demand for new homes
•
Second-hand transactions
– set the
price for the overall housing market and
are an indicator of the health and liquidity
of the market
•
Population growth
– impacts the availability
of housing and therefore the demand and
pricing dynamics
Drivers of supply
•
Planning backdrop and land availability
– impacts the supply and timing of land
available for building, the industry’s ability to
meet housing demand, and affects land prices
•
Government policy
– impacts the
political support for the planning system
and development
•
House prices and build costs
– impacts
the profitability of housebuilding
•
Labour and material availability
– impacts
the resources available to build new homes
•
Industry regulation
– impacts barriers
to entry
New build completions and property transactions
in Great Britain
c.8%
proportion of property transactions
over the past five years that have
been private new build
Taylor Wimpey plc
Annual Report and Accounts 2024
30
Private new home completions
Residential property transactions in Great Britain
Source: HMRC, NHBC
82,423
1,022,220
1,441,860
1,229,700
995,810
1,075,390
98,660
109,793
87,069
78,320
2020
2021
2022
2023
2024
Our market environment continued
Interest and mortgage rates:
easing of interest rates
Interest rates are one of the key tools the Bank
of England (BoE) uses to manage economic
growth and inflation. The Government mandates
the BoE to target UK inflation of 2%.
Inflation eased significantly in 2024, towards the
BoE’s 2% target, allowing the BoE to deliver two
25 basis point interest rate cuts in August and
December, with the base rate ending the year
at 4.75%.
Inflation started 2024 at 4%, reducing to 2.2% in
the summer of 2024, and as at December 2024,
it was 2.5%. Following the Government’s Budget
on 31 October 2024, the Office for Budget
Responsibility (OBR) increased its expectations
for Consumer Prices Index (CPI) inflation to 2.6%
in 2025 which exceeds the BoE target. With the
inflationary backdrop being the key element in
determining the future direction of interest rates,
expectations on the pace and quantum of further
rate cuts were scaled back.
As stated, 2024 saw two 25 basis point interest
rate cuts, the first in August taking rates down
from a peak of 5.25% to 5%, and a second
cut in November reducing the rate to 4.75%.
In February 2025, the base rate was cut by
a further 25 basis points, bringing it down to 4.5%.
4.5%
base rate as at
February 2025
2.6%
OBR expectation for
CPI inflation in 2025
Fluctuating mortgage rates are having less of an impact on monthly sales rates
excluding bulk deals
0
1
2
3
6
5
4
7
0.00
0.10
0.20
0.30
0.60
0.70
0.80
0.90
0.50
0.40
1.00
Mortgage rate %
Net private sales rate
Jan
2023
Mar
2023
May
2023
Jul
2023
Sep
2023
Nov
2024
Nov
2023
Jan
2024
Mar
2024
May
2024
Jul
2024
Sep
2024
5-year 75% LTV fixed-rate mortgages
Net private sales rate excluding bulk deals
2-year 75% LTV fixed-rate mortgages
Source: Bank of England, Taylor Wimpey
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Our market environment continued
4.4%
UK unemployment,
3 months to December 2024
(3 months to December
2023: 3.9%)
2.5%
annual growth in real pay for
October to December 2024
(October to December
2023: 1.8%)
Real wage growth remaining positive through 2024
Taylor Wimpey plc
Annual Report and Accounts 2024
32
Mortgage rates reflect interest rate expectations.
Overall mortgage rate stability and affordability was
much better than in late 2022 and 2023. According
to BoE, the average monthly mortgage rate for a
five-year fixed mortgage with a 75% loan to value
(LTV) decreased from 5.71% in July 2023 to a low
of 4.07% in October 2024. Following the OBR’s
updated estimates of a more inflationary future
backdrop, the rate for the same mortgage had
ticked up to 4.38% by December 2024.
Using BoE’s average quoted household interest
rates, a 5-year fixed 75% LTV mortgage for
a £300k home with a 30-year term would have
cost £1,410 per month in July 2023 but reduced
to £1,235 per month by December 2024.
This improved affordability enabled an increase
in our net private sales rates to 0.75 per outlet
per week in 2024, compared with 0.62 per outlet
per week in 2023.
However, mortgage rates remain higher than
those seen in recent years, and this continues
to impact some customers’ ability to transact,
particularly first time buyers who generally tend
to require larger LTV ratios, where mortgage
lending rates are higher.
Overall mortgage availability remains supportive
and rates are competitive with banks continuing
to want to lend.
Demand for mortgages ticked up through
2024, with a total of 753k mortgage approvals
for the year compared with 608k for 2023.
However, this remains lower than the 853k
per year on average over the period from
2019 to 2021 (source: Bank of England).
Further rate reductions should help support more
people to access the finance needed to buy
a property and could therefore increase market
demand. However, the impact on our sales
completions will be lagged given the time taken
for sales in the order book to be converted
to completions.
Employment and
consumer confidence
A healthy level of real wage growth (in excess of
inflation) improves the affordability of homes for
our customers. Coupled with low unemployment
this can lead to increased consumer confidence
that helps boost demand for new homes.
UK unemployment was 4.4% in the three
months to December 2024. Though this reflects
a modest rise on the 3.8% in the three months
to December 2023, unemployment remains at
historically low levels (source: ONS).
According to the Office for National Statistics
(ONS), annual growth in regular earnings
was 5.9% in October to December 2024.
This translated to annual growth in real terms
(adjusted for inflation) of 2.5%. Compared
with peak house prices in Q3 2022, real
house prices (again factoring in the impact of
inflation) were c.13.2% lower as at Q4 2024
(source: Nationwide). This factors in real wage
growth of c.3.75% over that same period,
which has helped to repair affordability.
-8%
-6%
-4%
-2%
0%
2%
4%
6%
8%
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
Total real average weekly earnings three-month annual growth rates in Great Britain
Source: Monthly Wages and Salaries Survey, ONS
Our market environment continued
33
Strategic report
Directors’ report
Financial statements
Shareholder information
House prices
Following a period where there were no major
differences in pricing trends between the regions,
in the second half of 2024, we experienced
weaker pricing in the South of England where
affordability has been most stretched, compared
with the North, where we captured some price
growth. As a result, we entered 2024 with
underlying pricing in the order book around
0.5% lower year on year.
Rental costs continue to rise
Rental costs are another factor that influence
demand, particularly for first time buyers. For
those with larger deposits, the monthly cost of
servicing a mortgage remained cheaper than
an equivalent rental throughout 2024. Data from
HomeLet shows that in December 2024 average
monthly rental costs were 1.3% higher than
the year before. For those with smaller deposits,
requiring higher loan to value financing, average
rental costs continue to be more affordable.
This suggests that falling interest rates should
unlock additional demand.
Second-hand transactions
According to the HMRC’s provisional estimate,
in the 12 months to December 2024 UK
residential property transactions were 1,093k,
6.8% higher than the prior 12-month period
(12 months to December 2023: 1,023k).
However, this remains below the average of 1,209k
per annum recorded between 2015 and 2019.
A normalised level of transactions should provide
additional liquidity to the market, which would
also be supportive for the new build sector.
House prices remained broadly flat in real terms (adjusted for inflation) in 2024
£100,000
£200,000
£300,000
£400,000
1986 Q4
1988 Q4
1990 Q4
1992 Q4
1994 Q4
1996 Q4
1998 Q4
2000 Q4
2002 Q4
2004 Q4
2006 Q4
2008 Q4
2010 Q4
2012 Q4
2014 Q4
2016 Q4
2018 Q4
2020 Q4
2022 Q4
2024 Q4
Real House Price
UK house prices adjusted for inflation
Source: Nationwide Building Society
£2,000
£1,500
£1,000
£500
£0
Dec 2014
Jun 2015
Dec 2015
Jun 2016
Dec 2016
Jun 2017
Dec 2017
Jun 2018
Dec 2018
Jun 2019
Dec 2019
Jun 2020
Dec 2020
Jun 2021
Dec 2021
Jun 2022
Dec 2022
Jun 2023
Dec 2023
Jun 2024
Dec 2024
Average UK rental value
Monthly mortgage 75% LTV
Monthly mortgage 95% LTV
Sources: Bank of England, Nationwide, HomeLet Rental Index
For those with larger deposits, the monthly cost of servicing a mortgage
remained cheaper than rental
Our market environment continued
Population growth continues to underpin demand for housing
0
100
200
300
400
500
600
700
800
900
1,000
Growth in population UK (thousands)
Net additional dwellings England (thousands)
2001
2003
2005
2007
2009
2011
2013
2015
2017
2019
2021
2023
2025
2027
2029
2031
2033
2035
2037
2039
2041
2043
2045
Source: ONS, DLUHC
Taylor Wimpey plc
Annual Report and Accounts 2024
34
Population growth and
structural undersupply
With population growth continuing to be ahead
of the pace of net additional dwellings, there
continues to be a recognised undersupply of
homes in the UK.
In the summer of 2024, the Government set out
its target for 1.5 million new homes across this
Parliament. This is a significant increase on the
221k net additional dwellings completed in
England in 2023/2024. This target equates
to 300k new homes per year, but it will take
time to scale up. The last time greater than
300k homes per year were built was over
50 years ago. To support its housebuilding aims, the
Government has proposed changes to the NPPF.
National Planning
Policy Framework and
Government policy
A functioning planning system is key for the
UK sector, supporting the availability and visibility
of land for future housebuilding. In 2024, there
was a continued slowdown in planning approvals
as shown in the chart outlining projects approved
for residential planning. The numbers of new
project permissions were at the lowest levels
on record in Q3 2024.
The number of units approved was also at
a low level, with c.270k plots approved in Great
Britain in the 12-month period to September
2024. The low level and slow pace of approvals
has impacted land availability. As a result, land
prices have not adjusted in the same way as in
previous downturns which has implications for
the attractiveness of land opportunities for the
sector. However, we saw a number of attractive
opportunities in the lead up to the 2024 Autumn
Budget, and approved land deals amounting
to c.12k plots in total in 2024 (2023: c.3k).
The NPPF sets out the Government’s planning
policies. The NPPF was first published in 2012
and was a significant change for the sector
resulting in greater land availability and a more
predictable planning system. As the residential
planning approvals chart shows, following its
introduction planning approval units trended up.
However, the NPPF was revised in 2018, 2019,
2021 and 2023, and since those revisions,
housing projects approved have trended down.
Since then, the current Government has placed
growth in the centre of its manifesto and
recognised the economic benefit of
housebuilding. The Government identified
planning bottlenecks as a key barrier to
economic growth not just for the housebuilding
sector but for the wider economy.
6.8%
year on year increase in property
transactions in 2024
Number of units and projects approved for residential planning in Great Britain continue to fall
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
0
20,000
40,000
60,000
80,000
100,000
120,000
Number of Units
Q3 2006
Q3 2007
Q3 2008
Q3 2009
Q3 2010
Q3 2011
Q3 2012
Q3 2013
Q3 2014
Q3 2015
Q3 2016
Q3 2017
Q3 2018
Q3 2019
Q3 2020
Q3 2021
Q3 2022
Q3 2023
Q3 2024
N.B. Includes residential projects of all sizes, residential units on non-residential schemes and conversions.
Source: Glenigan, HBF
Number of Projects
Number of Units
Number of Projects
Our market environment continued
35
Strategic report
Directors’ report
Financial statements
Shareholder information
The Government has made rapid progress
with land reform, announcing a consultation
on changes to the NPPF in July 2024 and
putting the revised framework in place in
December 2024.
These updates to the NPPF included a return to
mandatory housing targets while simplifying the
methodology to calculate this to a stock-based
approach. This means that housing targets would
equate to 0.8% of housing stock, and that in
areas where affordability is particularly stretched
there would be an uplift to this.
Using these calculations, the UK will require
planning approvals to be granted for c.370k
homes per year. Local authorities will also be
required to demonstrate a five-year housing land
supply, and if they do not have a Local Plan in
place for this there will be presumption in favour
of sustainable development.
These changes will take some time to be fully
implemented and make a material difference to
the supply backdrop. However, we expect these
reforms to lead to a better functioning planning
system, freeing up more land to support future
growth in housebuilding. In preparation for
these changes, our teams have worked hard
to progress land and prepare applications.
We are also pleased to see the Government
recognise that there is a need to invest in
resources to support the planning process and,
in July 2024, it announced an additional 300 new
planning officers. However, following a sustained
period of declining funding for local planning,
the planning system continues to be stretched.
The proposed Planning and Infrastructure Bill
will look to support delivery of the Government’s
policy objectives and manifesto commitment to
support housing and infrastructure delivery.
Build cost
Build costs are driven by several factors, chief
among these being the availability of labour and
materials. Industry volumes and sector profitability
play a large part in determining the supply and
demand characteristics that impact build cost
inflation or deflation.
In times of strong industry growth, house price
growth and tight labour and materials supply
can drive build cost inflation, while surplus
capacity, in times of downturn, can lead to lower
inflation or deflation. However, the movement
in labour and materials prices can often lag
changing market conditions. We experience
housebuilding specific cost impacts as well as
some in relation to the wider construction
industry. For example, certain trades such as
bricklayers and carpenters are more focused
on new build while other trades such as
groundworkers can have more of a crossover
into commercial or infrastructure projects.
In terms of materials, timber, steel, sand
and cement are also widely employed in
commercial and infrastructure projects.
Therefore, competing demands for labour
and materials (e.g. infrastructure projects
such as HS2, home refurbishment, DIY, etc.)
can also impact our market.
Additionally, as the past few years have
demonstrated underlying inflation in
other input costs such as energy, and global
commodities can have a major bearing on
our cost environment.
Build costs on new tenders were stable over
the course of the year.
Declining industry volumes reduced the
demand for resources and impacted labour costs.
In October 2024, the Government announced
changes to employers’ National Insurance
contributions and increases to the National Living
Wage and National Minimum Wage for 18 to
20 year olds. These changes will have both a
direct impact to Taylor Wimpey, particularly from
employer National Insurance contributions, and
also an indirect impact through the supply chain,
which we continue to monitor.
In coming years, expected increases in industry
output are likely to lead to pressure on labour
and materials.
As previously stated, we have begun to see
modest build cost inflation and we expect this
to be low single digits for the year, depending
on the response of our subcontractors to rising
employer costs. We will continue to work with
our supply chain to identify opportunities for
savings across the business.
Industry regulation
We expect an update from the Government
following the consultation on Future Homes
Standard (FHS) regulation later in the year. We
have been preparing for this regulation which will
see our homes ultimately become all electric and
zero carbon ready and successfully completed
our first trial of zero carbon ready homes in 2023.
We have continued to support a variety of
working groups. The business is well prepared
for the release of FHS, we will need to conduct
further analysis and test our solutions with the
new Home Energy Model (HEM), the system
used to assess the energy performance of
homes, before moving through the transition
to FHS.
370k
national total
annual approvals
required per year
300
new planning
officers announced
Our market environment continued
Taylor Wimpey plc
Annual Report and Accounts 2024
36
Throughout 2024 we continued to develop our
specification concept in anticipation of the release
of the FHS in 2025, and continued to explore
innovative ideas through our R&D team.
We have a number of fully electric homes
already occupied and under construction
including our Network Heat solution in Sudbury
which is providing invaluable insights from
a customer experience, cost, practicalities
and installation perspective.
Building Safety Act
The Building Safety Act (BSA) in England
has introduced enhanced building safety
and compliance measures for the design,
construction and management of buildings.
We are well prepared due to our existing
procedures and the quality of our site management
teams, which can be evidenced in our high
Construction Quality Review (CQR) scores.
We are training all relevant staff and
subcontractors on the BSA, and modules will
be built into our Academies to ensure new
colleagues also receive the same training.
Building Safety Levy
The Building Safety Levy was first announced by
the previous Government, which conducted two
consultations (from July 2021 to October 2021
and November 2022 to February 2023). So far
the Government has stated that the Levy will
be charged on all new residential buildings in
England (subject to exemptions) which require
building control approval, and applications for
building control after the date the regulations
come into force will be liable for the levy charge.
The Levy aims to raise around £3.4 billion over
at least 10 years and the Government intends
that the Levy will come in to effect in Autumn
2025. While we are awaiting further detail
and the implementation date, we are proactively
mitigating and managing risk, in so far as
is possible, in our landbank and strategic
pipeline and in our approach to ongoing and
future landbuying.
Fire safety
We took early and proactive action, committing
significant funding and resources to address
fire safety and cladding issues on all affected
Taylor Wimpey apartment buildings built
since 1992.
In 2022, we signed up to the Government’s
Building Safety Pledge for Developers and the
Welsh Government Building Safety Developer
Remediation Pact which reaffirmed our
commitment that leaseholders should not have
to pay for fire safety remediation. In the first half of
2023 we also signed the Scottish Safer Buildings
Accord. Prior to signing these, we had already
begun working on affected Taylor Wimpey
buildings. We signed MHCLG’s Joint Action
Plan in 2024 and are working to meet the
targets it sets out.
Competition and Markets
Authority (CMA)
Taylor Wimpey welcomed the CMA’s final report,
published on 26 February 2024, from its
housebuilding market study with its focus on
improving the planning system, adoption of
amenities and outcomes for house buyers.
At the time of publication, the CMA commenced
an investigation into a number of housebuilders,
including Taylor Wimpey, relating to concerns that
they may have exchanged competitively sensitive
information. On 10 January 2025, the CMA
updated its timetable stating that further
investigation, including additional evidence
gathering and CMA analysis and review,
would continue until May 2025.
We will continue to cooperate fully with the
CMA in relation to its investigation as we have
done throughout the process to date.
Nutrient Neutrality
The Nutrient Neutrality issue relates to excessive
growth of algae in water that can disrupt
ecosystems and impact wildlife. This growth
is predominantly caused by nitrates and
phosphates entering the watercourse.
The sources of excess nutrients are wastewater
and agricultural run-off (fertilisers and animal
waste, which accounts for 70% of the overall
nutrient load) with around 1% of the nutrient
load relating to housing.
Prior to early 2022, this issue had been largely
confined to the Solent and Somerset Levels.
However, after March 2022 many additional
catchments were added, resulting in
development stops in 74 council areas and,
in 2023, the HBF suggested this was affecting
150,000 homes at various stages in planning.
Studies commissioned by the HBF suggest new
homes have a very low impact on Nutrient
Neutrality. Therefore, Nutrient Neutrality is an
issue that needs to be addressed by wastewater
authorities, to which, according to the HBF,
homebuilders have paid over £1 billion between
2020/21 and 2022/23.
Evidence suggests relatively small movements in
agricultural practices would offset the impact of
new homes.
Government has acknowledged challenges
faced by the industry due to poor underlying
environmental conditions arising from
other causes. It has committed a further
£47 million to help unblock stalled housing sites
and has announced proposals to introduce a
strategic approach to nature recovery via the
Planning and Infrastructure Bill that could help to
support delivery of homes affected by Nutrient
Neutrality restrictions.
Market trends, opportunities and risks
37
Strategic report
Directors’ report
Financial statements
Shareholder information
Key driver
Interest rates and mortgage availability
Employment, skills and labour availability
Link to Principal Risks
B: Mortgage availability and housing demand
C: Availability and costs of materials
and subcontractors
Material impacts
Our homes and places
Link to Principal Risks
D: Attract and retain high-calibre employees
C: Availability and costs of materials
and subcontractors
Material impacts
Our people and suppliers
Interest rates and mortgage availability are key factors determining housing affordability
and accessibility for our customers. The BoE is mandated by the Government to maintain
a 2% inflation target. Interest rates are the BoE’s main tool in managing economic demand
to meet the inflation target.
Mortgage providers use the Bank Rate as a base and charge an additional margin to their
customers and often move ahead to factor in expectations of future interest rates.
The UK employment rate has implications for consumer confidence and our customers’ desire and
ability to buy homes. A healthy employment outlook is important for general consumer confidence,
the housing market and the wider economy. In previous cycles, higher unemployment has been
a factor in weaker demand for housing.
2024 backdrop
Throughout 2024, easing inflation towards the BoE’s 2% target, has been supportive of a trend
towards an interest rate cutting trajectory.
Inflation started 2024 at 4%, reducing to 2.2% in the summer of 2024 and, as at December 2024,
it was 2.5%. Following the Budget on 31 October 2024, the Office for Budget Responsibility (OBR)
increased its expectations for CPI inflation to 2.6% in 2025 which exceeds the BoE target.
UK unemployment was 4.4% in the three months to December 2024, a modest rise on the 3.8%
in the three months to December 2023, but remaining at fairly low levels. According to the ONS,
annual growth in regular earnings was 5.9% in October to December 2024. This translated to
annual growth in real terms (adjusted for inflation) of 2.5%.
Job vacancy numbers continued their downward trajectory seen since mid-2022 and were 841k
for July to September 2024, compared to 983k for the same period in the year prior. (Source: ONS).
Declining industry volume in the year reduced the demand for construction labour, improving
availability and easing cost pressure.
Drivers,
short term
opportunities
and risks
UK inflation of 2.5% in December 2024 remains a little above the UK target of 2% but is expected to
increase in 2025, which has pushed out the timeline for further rate reductions and potentially the
quantum. With mortgage rates reflecting interest rate expectations, following the OBR’s updated
estimates for a more inflationary backdrop, mortgage rates ticked up and were 4.38% by
December 2024 for a 5-year fix with a 75% LTV.
The real wage growth has supported affordability repair. Compared to peak house prices in
Q3 2022, real house prices (factoring in the impact of inflation) were c.13.2% lower as at
Q4 2024. This compares to real wage growth of c.3.75% over that same period.
Drivers,
long term
opportunities
and risks
Further cuts are expected to the Bank Rate in 2025, with the first cut of 2025 taking place on
5 February reducing the rate to 4.5%. This is a higher level than most of the previous decade
so the expense of monthly mortgage costs is also likely to remain higher.
Employment and wage outlook is key for customer confidence and their ability to transact.
Stability of both of these factors should support demand, assuming other factors are supportive.
The Government is targeting 1.5 million new homes over this Parliament. If there is a significant
increase in housebuilding this will raise demand for labour and materials in coming years.
One way that we are preparing for this is our investment into our timber frame factory, which
reduces the pressure for bricklayers.
We invest in skills to help us recruit, retain and develop talented people and to address current
and future skills gaps in our business and subcontractor base. We partner with subcontractors,
suppliers, peer companies, and industry associations on many of our skills programmes.
Market trends, opportunities and risks continued
Taylor Wimpey plc
Annual Report and Accounts 2024
38
Key driver
Climate change
Land and planning
Link to Principal Risks
A: Government policies, regulations and planning
H: Natural resources and climate change
Material impacts
Our planet
Our homes and places
Link to Principal Risks
A: Government policies, regulations and planning
E: Land availability
Material impacts
Responsible and resilient business
Our homes and places
The Future Homes Standard (FHS) outlines new regulations aimed at making new homes
more energy-efficient and is currently due to come into effect from 2025. At that point
(and following any transitional arrangements) gas central heating systems will no longer
be allowed in new developments.
Land is the key component for a housebuilder, therefore the availability of land suitable for
development and the effectiveness of the planning system have a major effect on the medium
to long term development of the industry and the supply of homes.
2024 backdrop
From 15 June 2023, parts L, F, S and O changes to the Building Regulations requiring 31%
savings in carbon emissions (from a 2013 baseline) came into effect, following a one-year
transitional period. We are incorporating the material enhancements needed to meet the
new standards.
FHS regulation will require a 75% reduction in carbon emissions compared to 2013 building
regulations from 2025. We expect an update from the Government following the consultation
on Future Homes Standard (FHS) regulation later in the year. We have been preparing for this
regulation which will see our homes become all electric and zero carbon ready and successfully
completed our first trial of zero carbon ready homes in 2023.
During the year we were active and opportunistic in reviewing land opportunities. In the weeks
leading up to the UK Budget we saw a number of attractive opportunities and as a result approved
c.12k plots in 2024 (2023: c.3k).
The planning backdrop remained challenging in 2024, with planning approvals in England of
c.240k plots in the 12-month period to September 2024. However, following the 2024 General
Election, the Government recognises that housing is vital to growth in the UK economy. We expect
this to be a major focus during its time in Parliament. The early measures taken in amending the
NPPF will be supportive for the land and planning backdrop and result in an improvement, albeit
from a low base.
Drivers,
short term
opportunities
and risks
The 2025 FHS marks a major change in the way we will build. The transitional period for moving
to the standard is yet to be confirmed.
While we have a good understanding of the technology options we can employ, there remain
risks until the Government outlines the final results of the consultation, allowing us to refine the
specification of our homes.
Adjusting to this regulation will add further cost to our build process. These changes have been
well flagged and therefore cost is generally reflected in our landbuying.
Amendments to the NPPF announced by the Government in December 2024 included a return
to mandatory housing targets while simplifying the methodology to calculate this to a stock-based
approach. This means that housing targets equate to 0.8% of housing stock, and in areas where
affordability is particularly stretched, there is an uplift to this. Using these calculations, planning
permissions will need to be granted for 370k homes per year.
Local authorities are also required to demonstrate a five-year housing land supply, and if
they do not have a Local Plan in place for this then there will be presumption in favour of
sustainable development.
While these will take some time to fully embed we are seeing early positive signs.
Drivers,
long term
opportunities
and risks
Less than 5% of existing older properties achieve an A or B Energy Performance Certificate rating
(Source: MHCLG, HBF). We see potential for a competitive advantage and a price premium for
new, more energy-efficient homes.
Our future homes should benefit consumers who should not be exposed to the retrofit costs
owners of older homes may face. In addition, depending on changes to energy tariffs,
our customers could achieve meaningful savings in the cost of running their homes.
We have already seen lenders offer green mortgages however, currently these are only slightly
cheaper than other mortgage rates. However, if the pricing of green mortgages was to become
more favourable, this may also mean that new build becomes comparably cheaper than
second-hand homes.
A combination of these factors may allow new homes to attract a future pricing advantage over
older stock.
As recent updates to the NPPF bed in and planning permissions become more free-flowing,
this should support a better functioning land market. Up-to-date Local Plans will provide greater
visibility of land supply.
Assuming a supportive demand and affordability backdrop, these measures, which support
greater availability of land, should encourage increased build to satisfy latent demand.
Land
Our excellent landbank and strategic
pipeline
enabled us to be highly
selective in the land market in 2024.
2024 highlights
• Strong short term landbank of c.79k plots as
at 31 December 2024 (2023: c.80k plots)
• Balance sheet light, industry-leading strategic
pipeline of c.136k potential plots as at
31 December 2024 (2023: c.142k plots)
Priorities
Short term
• Remain highly selective in acquiring new sites but
will be active where we see good opportunities
• Securing delivery from our strategic land pipeline,
transferring assets to the operational business
Medium term
• Continuing to invest in quality land at the right time
• Adding value by progressing land through
the planning system and creating high-quality
developments
Performance against our strategic cornerstones
Buying the right land in the
right locations
Our core aim to buy high-quality land in the right
location does not change throughout the cycle.
However, the amount of land we buy depends on
conditions in the land market, where changing
dynamics such as planning regulation, taxation
and environment will influence our approach. The
nature of the demand environment will influence
the number of homes we are able to sell and our
requirement for replacement land. Therefore, an
agile approach to the land market is important.
Our strategy is to have a strong landbank
underpinning the business, but the quantity of
land and landbank years (the number of years
of land supply we hold at our current annual
production rate) may vary over the cycle. There
are certain points in the past 10 years where it
has been possible to shorten our landbank years
given the wide availability of land at competitive
prices in the open market. At other points, such
as the past three years, a shorter landbank
would have left us with less opportunity to build.
This is what we mean by an agile approach.
We reduced land and working capital spend
midway through 2022 as our indicators showed
consumer demand was tightening even ahead
of the shock created by the mini Budget in
September of that year. However, we retained
a strong and long landbank.
As stated, our land strategy is necessarily
dynamic. For example, in anticipation
of changes in the planning environment, we
increased our number of high-quality submissions
to planning authorities, to ensure we would
be well placed with and ready to progress
sustainable developments when planning
changes take effect.
As outlined in the Chief Executive’s statement,
(pages 13 to 17), we expect recent positive
changes to the planning system to significantly
improve the land market backdrop. However,
we expect it will take time for bottlenecks in the
system to unwind and allow for a freer flowing
supply of land and are well placed with a strong
land position during this transitional period.
39
Strategic report
Directors’ report
Financial statements
Shareholder information
2022
2023
2024
17.0%
15.2%
19.0%
2022
2023
2024
c.7.8
c.7.7
c.6.0
2022
2023
2024
40%
45%
52%
Key performance indicators
Objective
To maintain at current levels or
reduce our average land cost.
Definition
Cost of land as a percentage of
average selling price on approvals.
Why it is key to our strategy
Maintaining a sustainable land cost
percentage increases value for
our shareholders.
Land cost as % of average
selling price on approvals
Objective
To run an efficient landbank being
mindful of the external environment
such as planning environment.
Definition
The number of years of land supply
in our short term landbank based
on current completion levels.
Why it is key to our strategy
We seek to use our high-quality
landbank more efficiently to deliver
growth, both in the number and
quality of homes built for a wider
range of customers.
Landbank years
Objective
We aim to source more than
40% of our completions from
the strategic pipeline per annum
in the medium term.
Definition
Number of completions on land
which originally did not have a
residential planning permission
when we acquired a commercial
interest in it, expressed as a
percentage of total completions.
Why it is key to our strategy
The strategic pipeline enhances our
ability to increase the contribution
per legal completion because of the
inherent margin uplift from strategic
plots. It also allows us to take
a long term view of sites.
% of completions
from strategically
sourced land
Our agile strategy also means we buy land
opportunistically. In 2024, we approved more
land deals than we had expected, partly reflecting
attractive deals that became available in the run
up to the Autumn Budget.
We try to be a partner of choice for local authorities
and can help fulfil their requirement for a mandatory
five-year housing supply with well-conceived
sustainable sites, providing much needed homes
for our customers. As at 31 December 2024,
we had c.26.5k plots for first principle planning
determination in the planning system (2023:
c.30.2k). This is much higher levels than in recent
years, reflecting both the proactive nature of our
applications and the well-known bottlenecks that
have impacted the planning system in recent times.
Our continued investment in our strategic land
capabilities is a key element of our approach and
major strategic differentiator. This has resulted in one
of the industry’s largest and best quality strategic
pipelines. In times of uncertainty or land market
tightness this has provided us with optionality given
the ability to develop our own land resources
through exclusive options with landowners rather
than relying on the competitive short term land
market at scale. Operating in a cyclical market, our
strategic pipeline provides us with visibility of our
future land supply, added optionality (over whether
to invest in open market and/or focus on our
strategic pipeline) and helps drive our margins.
We have continued to invest in our strategic
land activities through different market conditions,
another element in how we manage through the
cycle. In times of a freer land supply, it could be
tempting to move away from investment in our
strategic capabilities, but we recognise a strategic
portfolio takes time to mature and requires
investment throughout the cycle.
Performance against our strategic cornerstones continued
Land
c.26.5k
plots for first principle planning
determination in the planning
system (2023: c.30.2k)
£3.4bn
value on land on the balance
sheet as at 31 December 2024
(2023: £3.3bn)
Taylor Wimpey plc
Annual Report and Accounts 2024
40
Performance against our strategic cornerstones continued
Land
Our presence in Didcot demonstrates our
longstanding commitment to the area, the
economic growth we can bring and the thriving
communities we help create. Valley Park is
a consortium development located on the
western edge of Didcot, covering approximately
178 hectares. Outline planning permission for
up to 4,254 homes, including c.1,489 affordable
homes was issued in February 2022.
With a 50% interest in the Valley Park scheme,
we expect to be building multiple phases, and
delivering homes for at least the next 10 years.
Valley Park
Helping create thriving
communities:
Valley Park,
Didcot is adjacent to
Great Western Park (GWP),
one of Taylor Wimpey’s
largest developments.
Strategic cornerstone in action
Great Western Park (GWP)
By its completion in 2022, GWP delivered
more than c.3k homes to Didcot. We
created a central oval, named Boundary
Park, as well as various outdoor sports
areas, including full-size cricket, rugby
and football pitches, four tennis courts
and a pavilion.
>3k
homes delivered for local community
at GWP
Environment
Homes at Valley Park will have EV car
charging points, and benefit from
sustainable technologies such as
air-source heat pumps and solar panels.
All of our phases will include ecological
features like swift boxes, bat boxes and
hedgehog highways. The development
retains and enhances green and blue
corridors, which seek to support
biodiversity and offer opportunities
for leisure activities and pedestrian
and cycle connections.
Helping create thriving communities
Our investments in public facilities in the
area include two new primary schools,
a special educational needs school,
two local centres, shops, a community
building, community sports facilities and
public open space. Sports pitches and
associated facilities will be provided
in Common Park (to the north of
the development) and Alma Park
(to the south of the development).
£60m
investment in public facilities
We are now selling from our first phase,
Primrose Gardens, which has reserved matters
planning permission for 246 new homes,
including 86 affordable homes. Primrose Gardens
has a mix of one and two-bed apartments
and two, three and four-bedroom houses.
GWP and Valley Park showcase the patience,
expertise and longstanding relationships with the
local community and our partners in the local
authority that are necessary to successfully
develop large strategic land opportunities.
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Operational
excellence
We seek to drive continuous
improvement and efficiency benefits
with a relentless focus on operational
excellence throughout the business.
2024 highlights
• Installed a new warehouse management system
in TWL to drive further efficiencies
• Timber frame factory awarded ISO:9001 by the
British Standards Institution and the Structural Timber
Association Gold Assure Accreditation,
demonstrating the robust nature of its quality systems
• Maintained industry leading build quality with
improved CQR score of 4.93 (2023: 4.89)
Priorities
Short term
• Continue to improve build efficiency and compliance
• Deliver sales performance and optimise price
• Further digitise our processes to drive efficiencies
and future proof the business
• Drive outlet openings
Medium term
• Continuous business improvement to hold on to
efficiency gains throughout the cycle
Performance against our strategic cornerstones continued
Operational excellence is
embedded in our culture
The second cornerstone of our strategy,
operational excellence, is embedded in the way all
our regional businesses are run and reflects our
focus on protecting and optimising the value chain
throughout our processes. Standardisation and
componentisation are key elements and also tie
into our procurement and logistics strategy. Our
consistent drive to maintain high build quality is
reflected in management and employee incentives.
As discussed in our business model description
(pages 20 to 29), we have evolved to our first
vertical integration, with the launch of our timber
frame facility last year. We carefully considered
our approach to vertical integration, establishing
our timber frame factory following a thorough
assessment of its benefit to the long term
sustainability of our business.
This is a strategic move that gives us control of
a resource that is critical in our plan to increase
the use of timber frame in or completions. In
combination with our existing suppliers, our own
facility will help us in our goal to increase timber
frame usage to 30% of our completions by 2030.
From an operational standpoint, our facility will help
alleviate pressure on the supply of bricklaying labour,
while the better environmental credentials of timber
frame will help us address our net zero obligations.
We anticipate greater demand for market
sourced timber frame in coming years, given
the drive for net zero across the industry and
potential shortages in bricklaying labour. In terms
of our own operations, we concluded that having
in house timber frame capability will positively
impact other areas of the build path, allowing our
later trades (electricians, plumbers etc.) to access
the home at an earlier stage, for example.
We would not consider vertical integration for
widely available relatively low-cost products or if
the effect of that integration was to free up one
area only to create a bottleneck somewhere else.
1,624
A
homes built using timber frame
(2023: 1,661)
A
This metric was subject to external independent limited
assurance by PricewaterhouseCoopers LLP (‘PwC’).
For further information please see page 58.
Taylor Wimpey plc
Annual Report and Accounts 2024
42
2022
2023
2024
4.93
4.89
4.81
2022
2023
2024
0.18
0.28
0.32
2022
2023
2024
212
151
166
2022
2023
2024
93%
93%
93%
Key performance indicators
Objective
To achieve an average score of four
out of six across Taylor Wimpey.
Definition
The average score, out of six,
achieved during an in-depth annual
review of construction quality on
a site-specific basis.
Why it is key to our strategy
Right first time continues to
be a key priority within our
customer-focused approach.
Construction Quality Reviews
focus on construction quality and
understanding ‘why or how’ given
levels of quality have resulted.
Construction
Quality Review
(average score/6)
Objective
Reduce defects found during
build stages.
Definition
The average number of defects
found per plot during National
House Building Council (NHBC)
inspections at key stages of
the build.
Why it is key to our strategy
Reducing the number of defects
per plot is crucial to ensuring we
deliver consistently high-quality
homes for our customers,
whilst also minimising the cost
of rectifications.
Average reportable
items per inspection
Objective
We are committed to providing a
safe place in which our employees
and subcontractors can work and
our customers can live.
Definition
Reportable injuries and incidents
(meeting the HSE criteria), as
reported to the HSE, per 100,000
employees and contractors
over a 12-month period. For more
details on how this metric is
calculated refer to page 58 where
our detailed methodology and
criteria document is linked.
Why it is key to our strategy
Health and safety is our
non-negotiable top priority. As well
as having a moral duty to maintain
safety on site, accidents and
injuries can have a detrimental
impact on the business through
additional costs, delays and/or
reputational damage.
Objective
We aim to maintain a high level of
overall employee engagement.
Definition
Our employee engagement score
measures a range of factors in
terms of employees’ sense of
belonging, how proud they are to
work for Taylor Wimpey and their
willingness to go the extra mile
for the business.
Why it is key to our strategy
As a key part of our employee
engagement strategy, the survey
provides an opportunity for
employees to provide feedback
on all aspects of working at
Taylor Wimpey. This leads to clear
action plans at both a national and
local level where improvements can
continue to be made. Ensuring that
the employee voice continues to be
heard remains an important part of
our overall engagement strategy.
Annual Injury
Incidence Rate
(per 100,000 employees and
contractors)
Employee engagement
(annual survey)
Performance against our strategic cornerstones continued
Operational excellence
In terms of production, our approach is to match
our build to sales, but there are times when it is
necessary to exercise less or more caution,
when our indicators tell us that demand is likely
to increase or fall.
In 2024, we kept tight control on WIP release,
which effectively means the timing at which we
release capital for groundworks to commence.
Each regional business carefully monitors WIP
to ensure it appropriately reflects the level of
demand it is seeing, which is a fundamental
element in how we manage capital allocation.
This is an important consideration, since once
we have started a home we will continue through
to completion around nine months later.
£2.0bn
WIP as at 31 December 2024
(2023: £1.9bn)
A
A
This metric was subject to external independent limited
assurance by PricewaterhouseCoopers LLP (‘PwC’).
For further information please see page 58.
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Innovate
TW
Innovate
TW
is a Group-wide
project
that is a key part
of how we are positioning
ourselves to be fit for the future,
by adapting our approach
to technology.
Over the last decade we have been increasing
the digitisation of our processes to enhance on
site efficiency, using tablets on site to record
quality checks at key build stages.
Innovate
TW
marks a step change in our use of
technology with our new IT provider helping
shape a range of business-led system upgrades.
We will use technology to respond quicker to
our business needs, accelerating its adoption
and improving our employees’, contractors’
and customers’ experience with a series of
incremental changes making a meaningful
difference to the Group.
To enable this, we have introduced IT Business
Partners to work with the business to identify
technology needs and enact changes quicker.
We want to embrace technology to make jobs
easier, enhance job satisfaction and to gather
and use good quality data in a consistent way.
The aim is to free up our colleagues’ time to
focus on more value added activities. We are
targeting automation of manual spreadsheet
based processes.
For example, freeing up Production Managers
and Quantity Surveyors from repetitive
administrative tasks will allow them to be on
site more, overseeing quality of work and
closely scrutinising work quality and costs.
As part of Innovate
TW
, we have established our
Ideas portal, an online platform where best
practice is easily shared across the Group to
drive the efficiency of our operations.
One of the first enhancements rolled out to
employees earlier this year is a new AI-powered
chatbot, which offers more efficient IT support for
employees. During 2025, we will roll out a new
digital Build Quality Checklist to streamline the
quality assurance process across our sites.
Facing the future with AI
Following a successful trial, we have
been training our colleagues to use
Microsoft Copilot AI and extended
licences to over 800 users across the
business, helping free up time for our
employees to better support the
business in value added activities.
>800
enabled users of Microsoft Copilot AI,
with a c.88% active user rate
Ideas Portal
Our Ideas Portal is one of the ways
we will encourage innovation and more
quickly leverage best practice across the
Group. The portal has already received
more than 260 ideas from our employees
and our teams have been working to
assess and, where additive, quickly
share these across the Group.
>260
ideas for innovation from
our colleagues
Performance against our strategic cornerstones continued
Operational excellence
Strategic cornerstone in action
Taylor Wimpey plc
Annual Report and Accounts 2024
44
Sustainability
Investing to protect long-term
value for all stakeholders
and
continue to develop sustainable
communities, playing our part in
limiting climate change.
2024 highlights
• We have obtained external independent assurance
over select ESG metrics, further demonstrating
our commitment to ESG in addition to external
assurance on our carbon data from the
Carbon Trust
• Continued to prepare for upcoming regulation
change, including building all-electric homes on
further sites following the prior year’s successful
delivery of the UK’s first zero carbon ready scheme
on a live site at our award winning project at Sudbury
Priorities
Short term
• Continue to invest in the long term sustainability
of the business including training our highly
engaged employees
Medium term
• Investing to protect long term value for
all stakeholders
• Further progress on our path to net zero
Performance against our strategic cornerstones continued
47%
reduction in operational CO
2
emissions
(absolute) since 2019 (2023: 35%)
Running a sustainable business
We run the business for the cycle, meaning that
although we are agile and alive to opportunity, we
believe a fundamentally strong core is key to our
long-term success. Therefore, investing in the long
term sustainability of the business is essential and
is reflected in our strategic thinking. For example,
we have continued to invest in quality and in our
people, both of which are strategic imperatives
in a highly regulated industry with a skills
shortage – and this is also the right thing to do.
This year we launched our employee value
proposition, which sets out our attractive and
competitive offering to our employees, including
agile working, training and development and
benefits package (see Building for our people
pages 55 to 57 for more detail). In addition, we
have consistently invested in the training of
our employees through dedicated training
academies, including our Sales Academy,
Production Academy and Customer Academy.
In 2024, we launched our Technical Academy
and are now working on the launch of
a Commercial Academy. We continue to prioritise
reducing our carbon footprint as part of our drive
towards net zero, and in 2024, recorded a 47%
reduction in operational CO
²
from the 2019
baseline (2023: 35%).
This year we have selected an additional four
ESG metrics that have been subjected to
independent limited assurance procedures
(read more about this on page 58), demonstrating
our commitment to advancing in this vital area.
We have significantly modernised our business
over the last decade, using a best in class
customer relationship management (CRM)
system to improve the customer journey.
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We have updated our own internal systems
to ensure we have the best management
information systems and controls in place to
enable us to operate efficiently and remain future
fit including digitising previously manual quality
control and checking processes at our sites.
Our goal is to become the first fully digital
housebuilder and, as stated, we have invested in
modernising the business through our internal IT
upgrade and innovation project Innovate
TW
.
We have worked hard to ensure that our homes
in use are a force for good and will help the UK
achieve its net zero objectives. We are well
placed for future homes regulations that will
ultimately remove gas central heating from new
builds. We were the first major developer to
build and sell zero carbon ready homes on a live
development site from our Sudbury development
featuring all-electric homes containing a range
of internal heating solutions.
We have connected other homes at Sudbury to
a district heat network comprised of large
external air source heat pumps. For certain larger
sites heat networks are a cost effective way to
make our homes zero carbon ready.
During the year, we rolled out further QR codes
and more interactive ways to view new
technologies to our sales centres.
Protecting our valuable environment is a key
focus and we have previously published our
detailed roadmap to net zero carbon by 2045,
with targets approved by the Science Based
Targets initiative, which is available on our
website. Our carbon data is assured by the
Carbon Trust.
Objective
We strive to achieve 90% or above
in this question, which equates
to a five-star rating.
Definition
Percentage of customers who
would recommend Taylor Wimpey
to a friend as measured by the
National New Homes Survey
undertaken by the NHBC on
behalf of the HBF eight weeks
after legal completion.
Why it is key to our strategy
Identifying and serving the needs
of our customers by delivering
a high-quality product is key
to our ambition to become a
customer-focused homebuilder.
Customer satisfaction
8-week score
‘Would you recommend?’
Objective
We strive to improve this score and
to understand the reasons behind
(and underlying drivers) of this
customer feedback.
Definition
Percentage of customers who
would recommend Taylor Wimpey
to a friend as measured by the
National New Homes Survey
undertaken by the NHBC nine
months after legal completion.
Why it is key to our strategy
We think about how customers live
in the homes and places we build
for longer than the first few months
after they move in. Ensuring our
customer satisfaction remains high
in the months following completion
is important.
Customer satisfaction
9-month score
‘Would you recommend?’
Objective
Reduce operational carbon
emissions intensity by 36% by
2025 from a 2019 baseline.
Definition
Our science-based carbon
reduction target for scopes 1 and 2
emissions intensity tracks tonnes of
emissions per 100 square metres
of completed build. The target has
been verified by the Science Based
Targets initiative, and the data
assured by the Carbon Trust.
Why it is key to our strategy
These are the emissions directly
from our own business operations
and as such are an indicator
of our own performance
and commitment.
Reduction in operational
carbon emissions intensity
(measured at end of year)
Key performance indicators
2022
2023
2024
96%
92%
90%
2022
2023
2024
80%
77%
78%
2022
2023
2024
21%
5%
15%
Performance against our strategic cornerstones continued
Sustainability
Taylor Wimpey plc
Annual Report and Accounts 2024
46
During the year we made changes to further enhance
our customer journey. These include increased
communication with customers as they approach
completion date, extending our interaction with
customers out past the 8-weeks post completion
and improved consistency and quality of self-help
customer materials and communications.
We have standardised outbound voice calls
to customers at 6-months post completion,
highlighting our commitment to longer term
customer satisfaction.
Following the successful pilot of the expanded
customer journey, we will roll out build progress
updates with pictures and snagging lists with
other Touchpoint enhancements in 2025.
Improved consistency and quality of
communications will support our customer,
protect our brand and promote our long-term
sustainability in a highly competitive and
regulated market.
Changes in the Home Builders Federation
star ratings
For several years we have increased our focus
on longer term customer measures such as the
9-month score, and going forward, this will be a
key part of how we are rated as a housebuilder.
The new rating system is based on four questions
relating to quality and service from the 8-week
survey and four questions on quality and service
Using technology to improve the
customer journey
In addition to one on one contact with our
teams, our Touchpoint portal provides
a personalised online homebuying
experience. Customers are able to
use Touchpoint to stay informed
throughout the build process and
after they have moved in.
NHBC Pride in the
Job Supreme Award
We are proud to announce that in
January 2025, Site Manager,
David McClure, from our Castle Gate
development in West Scotland was
honoured with the Supreme Award in the
Large Builder category – the very highest
achievement in the Pride in the Job awards
programme. We congratulate David and
the whole team at Taylor Wimpey West
Scotland for this fantastic achievement.
Increasing customer service score
We are delighted to have maintained a
five-star rating and achieved our highest
ever customer service score. This is
testament to the focus we have put
on improving our customer journey
and tightening our processes and
communication, assisted by our CRM
and made possible by the work and
dedication of our excellent teams.
96%
of customers would recommend
us to a friend (2023: 92%)
Better
customer
journeys
Performance against our strategic cornerstones continued
Sustainability
Strategic cornerstone in action
from the 9-month survey. The rating will be
calculated from a ‘mean’ of the question scores
to arrive at score of 1 to 5 with 5=very satisfied;
4=fairly satisfied, 3=neither satisfied
or dissatisfied; 2=fairly dissatisfied; 1=very
dissatisfied. The first time our star will be
awarded against this will be in March 2026.
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Capital
allocation
Our clear capital allocation
framework
balances investment in our future with
sustainable dividends and excess cash
returns for investors at the appropriate
time in the cycle.
1
2
3
4
Maintain a strong
balance sheet
Maintain low adjusted
gearing* to reflect cyclical
nature of the industry
1.4%
adjusted gearing (2023: (3.6)%)
Investment in
land and work
in progress
(WIP) to drive
future growth
Focus on funding business
needs to drive growth
£2.0bn
WIP investment as at 31 December
2024 (31 December 2023: £1.9bn)
Sustainable
ordinary dividend
Ordinary Dividend Policy
of 7.5% of net assets or
at least £250 million annually
throughout the cycle
£339m
paid in year in relation to 2023
final and 2024 interim dividends
(2023: £338m)
Return excess cash
Excess cash returned after
funding land investment,
working capital, taxation
and the ordinary dividend.
The method of return (share
buyback or special dividend)
will be considered at the
appropriate time
Performance against our
strategic cornerstones continued
A clear and disciplined capital allocation
In terms of capital allocation, our priority is to always maintain a strong balance sheet, which allows us
to fulfil our aims of providing a reliable return to investors. Being in a strong financial position also allows
us to capitalise on land opportunity as the land market varies. This allows us to lean into growth at
appropriate times when there is customer demand, whilst optimising shareholder returns and value.
Our capital allocation priorities are:
For more detail on how we consider capital allocation decisions, see the Business model on
pages 20 to 29
*
Definitions and reconciliations of our APMs to the equivalent statutory measures are included in Note 32 of the financial statements. Please see page 94 for definitions.
48
Taylor Wimpey plc
Annual Report and Accounts 2024
When, where and how to buy land is one of the
most important capital allocation decisions we
make. Read more in our Business model on
pages 20 to 29.
As a homebuilder, land is our largest area of
investment. As at 31 December 2024, land
value stood at £3.4bn on the balance sheet
(31 December 2023: £3.3bn).
There are typically several years between our
initial investment decision and the moment we
realise our return, making landbuying a crucial
capital allocation decision.
Our regional teams conduct a detailed
assessment called a land purchase exercise
factoring in local demographics, density, cost of
development, margin and risk factors to
determine the amount we are prepared to bid.
This analysis is presented to our Chief Executive
and other senior management who will provide
the challenge and scrutiny necessary to ensure
we are invested in the right areas, at the right
returns and with the appropriate risk profile.
Management measures the land needs of
the business against prevailing and expected
future conditions in the land market and the
wider economy.
There are times in the cycle where it pays to
have a longer landbank, and times where a freer
flowing land market may enable us to reduce
landbank years.
Our approach
to buying land
Our approach to capital allocation remains
consistent and is governed by the principles,
outlined on page 48.
In addition, it is our goal to provide visibility to
our investors which is why we have a defined
Ordinary Dividend Policy to return 7.5% of our
net assets or at least £250m annually.
Agility to capture opportunities
It is important to be opportunistic in order to
capture value opportunities. For example,
we approved a higher than expected
number of land deals during 2024 partly
as a result of an increase in attractive land
deals in the run up to the Autumn Budget.
£3.4bn
land on balance sheet as at
31 December 2024 (2023: £3.3bn)
Performance against our strategic cornerstones continued
Capital allocation
Work in progress (WIP)
We can be invested in a site for a long
time but mature sites also recycle capital
once in production. We carefully manage
our build rate (WIP) to ensure we are
building at the appropriate level to reflect
demand. Therefore, we are likely to
commit more to WIP in growing markets.
£2.0bn
invested in WIP as at
31 December 2024 (2023: £1.9bn)
Strategic cornerstone in action
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Highlights for 2024
Group completions
10.6k
(2023: 10.8k)
Sales rate per outlet per week
0.75
(2023: 0.62)
Year end order book
£1,995m
(2023: £1,772m)
Operational review
2024 sales, completions
and pricing
Total Group completions including joint ventures
were 10,593 (2023: 10,848). UK home
completions excluding joint ventures were 9,972
(2023: 10,356). We provided 2,178 affordable
homes excluding joint ventures (2023: 2,351)
equating to 22% of total UK completions (2023:
23%). Our UK net private sales rate for 2024 was
0.75 homes per outlet per week (2023: 0.62).
Excluding the impact of bulk deals, the net private
sales rate was 0.67 (2023: 0.54). The cancellation
rate for the full year was 15% (2023: 18%).
UK average selling price on private completions
was £356k (2023: £370k) with the overall average
selling price £319k (2023: £324k).
We estimate that market-led house prices have
seen c.1% deflation for completions in 2024
(2023: c.1% inflation).
In the second half of the year, we experienced
weaker pricing in the South of England where
affordability has been most stretched, compared
to the North where we have captured some
price growth. As a result, underlying pricing in
the year end order book was around 0.5% lower
year on year.
Underlying build cost inflation on completions in
2024 was c.1.5% (2023: c.8.5%).
We ended the year with a strong order book
valued at £1,995 million (31 December 2023:
£1,772 million), excluding joint ventures, which
represents 7,312 homes (31 December 2023:
6,999 homes), of which 3,208 are private (2023:
2,565) and 4,104 are affordable (2023: 4,434).
In the UK, we traded from an average of 216
outlets in 2024 (2023: 238) and ended the year
with a total of 213 outlets (31 December 2023:
237), slightly ahead of expectations due to a
small number of delayed outlet closings.
Land
As at 31 December 2024, our short term
landbank stood at c.79k plots (2023: c.80k plots).
The short term owned proportion of our landbank
increased by c.4k plots to c.66k plots. Our
strategic land pipeline was c.136k potential plots
(2023: c.142k potential plots). We approved
c.12k plots (2023: c.3k plots) in 2024 which,
as previously reported, partly reflects increased
opportunities in the land market in the run up
to the Autumn Budget.
The average cost of land as a proportion of
average selling price within the short term owned
landbank remains low at 12.9% (2023: 13.7%).
This reflected the impact of strategic land pull
through as well as the regional mix of sites being
weighted towards the North.
The average selling price in the short term owned
landbank in 2024 increased by 5.2% to £344k
(2023: £327k).
Resilient
performance
Our operational review
focuses on the UK
(unless
stated otherwise) as the majority
of metrics are not comparable
in our Spanish business.
There is a short summary of the
Spanish business in the Group
financial review on page 92.
50
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Annual Report and Accounts 2024
As at 31 December 2024, we were building on,
or due to start in the first quarter of 2025, on
98.4% of sites with implementable planning
(2023: 99.6%).
Our success in developing our strong strategic
pipeline means that 56% of our short term
landbank has originated from this source (2023:
54%). In the year, 40% of our completions were
sourced from the strategic pipeline (2023: 45%).
During 2024, we converted a further c.6k plots
from the strategic pipeline to the short term
landbank (2023: c.8k plots).
Preparing for regulatory changes and
opportunities in green building
Over the next five years there will be significant
changes to new build homes in the UK reflecting
the UK’s climate change targets. Our target is to
reduce emissions from customer homes in use
by 75% by 2030, and we are testing a range of
technologies and enhanced fabric standards to
achieve this.
Following the phasing in of the new Parts
L, F and O of the Building Regulations in England
from June 2022, Parts L and F from November
2022 for Wales and Section 6 in Scotland from
February 2023, our homes have enhanced fabric
standards with additional features that include
wastewater heat recovery systems, triple glazing
and PV panels.
Homes built to this specification, which is
being phased in, will achieve a 31% reduction
in carbon emissions compared with our
previous specification.
We expect an update from the Government
following the consultation on Future Homes
Standard (FHS) regulation later in the year.
We have been preparing for this regulation which
will see our homes become all electric and zero
carbon ready and successfully completed our
first trial of zero carbon ready homes in 2023.
Developing our own timber
frame production
A key part of our strategy is to increase the use
of timber frame in our construction to 30% of our
production by 2030. Alongside efficiency benefits,
use of timber frame can reduce embodied
carbon in materials by around 15%, compared to
traditional brick and block building techniques,
supporting progress towards our net zero target.
In establishing our own facility, we aim to improve
the visibility and reliability of our supply and to
hold our own buffer stock which can mitigate
future supply chain challenges.
The facility delivered its first kits in 2024, and,
at full capacity will be expected to produce
around 3,000 kits per year. In combination with
our existing suppliers, our own facility will help
us in our goal to increase timber frame usage to
30% of our completions by 2030. We continue
to scale up timber frame production and our
regional businesses are actively looking for
opportunities suitable for timber frame. Taylor
Wimpey Manufacturing has achieved certification
to the ISO 9001 quality management standard
and the Structural Timber Frame Association
Gold Assure standard.
Taylor Wimpey Logistics (TWL)
TWL provides value added services to our
regional businesses primarily by providing
pre-kitted build packs of products when they
are needed at each build stage of production on
site. This aids production, improves speed of
build and significantly reduces site traffic.
The benefits of TWL can be seen in our site
deliveries. TWL supplies our regional businesses
98% on time in full (OTIF), compared with
receiving materials from suppliers 83% OTIF.
In 2024, we installed a new warehouse
management system to drive further efficiencies.
Operational review continued
56%
of our short term landbank originated form
strategic pipeline (2023: 54%)
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Better
customer
service
Highlights for 2024
five-star customer rating
96%
(2023: 92%)
Trustpilot rating
four star
(2023: four out of five star)
CQR score
4.93
(2023: 4.89)
Building for our customers
Customers
We are pleased to have increased our Home
Builders Federation (HBF) 8-week ‘would you
recommend?’ score to 96% the best we have
ever recorded (2023: 92%) and retained our
five-star rating. We also saw an increase in our
9-month score which gives us insight into how
customers feel about the homes and places we
build over the longer term. Our score is our
highest ever at 80% (2023: 77%) which reflects
the work we have been doing to strengthen our
customer service and build quality and to improve
the time taken to resolve customer issues.
We encourage customers to leave reviews on
Trustpilot. At the end of 2024, with 10,107
reviews, we had a four out of five-star rating
(end of 2023: four out of five with 8,950 reviews).
We have prioritised working with all our partners
to deliver excellent customer service and leverage
our customer database capabilities and data
insights provided by our fully integrated CRM
system to better support our customers and
align our marketing strategy, in order to build
a strong order book. In a more challenging
market, understanding our customers is more
important than ever.
Our new year campaign launched in 2025
‘Stop waiting, start living’ is a call to action for
a first engagement with our customers with
organic web traffic increasing. We have worked
to drive quality of our leads with increasingly
targeted marketing spend.
We want customers to receive great service, clear
information about their new home and the build
process and a prompt response to any issues
that arise. Each of our regional businesses has a
Customer Director who sits on the management
team to elevate the voice of the customer in our
regions. They review data on customer issues,
complaints and defects to identify any trends or
recurring issues and put measures in place to
address them and improve service.
Our training academies help us build the
functional skills we need to deliver great customer
service. Our Academy of Customer Excellence
covers our product range, Customer Journey,
consumer protection legislation, technical
standards, and health, safety and the
environment. Our Academy of Sales Excellence
builds the skills, knowledge and expertise of our
sales teams to deliver excellent customer service
and consistent sales in all market conditions.
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Annual Report and Accounts 2024
Building for our customers continued
Our Academy of Customer Excellence and
Academy of Sales Excellence training help us
build the functional skills we need to deliver
great customer service.
Quality and customer service are incentivised
from the top of the organisation, with a proportion
of our variable incentive scheme targets linked
to customer service and build quality. We also
integrate customer service and quality targets
into our all-employee bonus scheme.
Build quality
We continue to see improvements in our build
quality as measured by the NHBC CQR score,
which measures build quality at key build stages.
In 2024, we scored an average of 4.93 (2023:
4.89) from a possible score of six. This compares
with an industry benchmark group average
score of 4.70.
We aim to maintain high standards by ensuring
our quality assurance processes are embedded
at every stage of the build.
We clearly communicate our quality standards
to subcontractors and invest in training, process
improvements and regular inspections throughout
the build process to ensure consistently
high standards and prevent quality issues
from occurring.
Energy-efficient homes
The homes we build are significantly more carbon
efficient than the vast majority of existing housing
stock and the new build sector is at the forefront of
the UK’s efforts to deliver zero carbon ready homes.
We are investing in research and development to
help us further improve. Features include insulation,
energy-efficient walls and windows, 100% low
energy light fittings and energy-efficient appliances.
We are now building homes in line with the
updates to Building Regulations Parts L and F
on applicable developments.
These integrate enhanced fabric standards,
further energy efficiency measures and low
carbon technology including triple glazing,
wastewater heat recovery systems, high
efficiency boilers, thermally enhanced lintels
and photovoltaic panels. These changes result
in an average 31% reduction in carbon emissions
in our homes in England, compared with our
previous specification, with similar reductions
in Wales and Scotland.
Our new homes are also highly water efficient
with water meters (England and Wales), low flow
taps and showers, and dual flush toilets. We have
made integrated recycling bins part of the
specification for kitchens in our new standard
house types to help customers recycle.
We want to inspire customers to adopt
nature-friendly gardening techniques and are
distributing home welcome packs with wildlife
friendly products such as wildflower seeds
and bug hotels.
Affordable and accessible homes
We support a range of initiatives to help
customers to buy their own home or make it
easier to get a mortgage. In 2024, these included
shared ownership schemes, deposit top-ups and
mortgage contributions, and discounts for key
workers and members of our armed forces.
Most of our developments include affordable
social housing (homes made available at below
market rates including social rent, affordable rent,
low-cost home ownership and discount market
sale tenures) which are negotiated as part of
planning obligations. In 2024 we delivered
2,178 affordable homes excluding joint ventures
(2023: 2,351), equivalent to 22% of Group
completions (2023: 23%).
Contribution to communities
£345m
via planning obligations (2023: £405m)
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The majority of our new house types offer
improved accessibility, in line with the optional
requirements in Building Regulations Part
M4(2), to support customers with reduced
mobility or disabilities.
Placemaking
Good placemaking ensures our teams plan,
design and deliver schemes that become
successful and sustainable new communities,
where our customers can enjoy a good quality
of life.
Placemaking is about creating communities that
are socially, environmentally and economically
sustainable. During 2024, we have been
developing our Placemaking Charter, a new
framework to further embed strong placemaking
standards across our business. The Charter is
based around five key principles and will be fully
rolled out to our teams in 2025:
• Connected communities
• Places where life happens
• Attractive and welcoming places
• Safe places
• Places designed with Nature
For each of the five principles, we are developing
detailed design and delivery proof points enabling
us to more easily assess whether every scheme
is meeting our standards. A year-long programme
of training and upskilling for our teams will be
rolled out in 2025.
Access to transport and local infrastructure and
facilities contributes to the success of our
schemes. In 2024, we contributed £345 million to
local communities in which we build across the
UK via planning obligations (2023: £405 million).
This funded a range of infrastructure and facilities
including affordable housing, green space,
community facilities, commercial and leisure
facilities, transport infrastructure, heritage
buildings and public art.
We aim to install infrastructure at an early stage of
the build process to enhance our schemes and
help the new community become established
quickly. We also invest in public and community
transport, walkways and cycle paths.
In 2024, 69% of our UK completions were
within 500 metres of a public transport node
and 92% were within 1,000 metres.
Building for our customers continued
Good placemaking
ensures our teams plan,
design and deliver
schemes
that become
successful and sustainable
new communities.”
69%
of completions within 500 metres
of a public transport node (2023: 70%)
Taylor Wimpey plc
Annual Report and Accounts 2024
54
Attracting and
retaining
the
best people
Building for our people
Highlights for 2024
Employee engagement score
93%
(2023: 93%)
Health and safety
98%
agree we take health and safety seriously
(2023: 98%)
Voluntary employee turnover
12.1%
(2023: 14.2%)
Employees
Health and safety
Health and safety remains our number one
priority and it is the first topic covered in every
Board, Group Management Team (GMT) and
regional management team meeting across the
country. Building sites are inherently dangerous
places and so it is essential that strict safety
protocols are identified, embedded, monitored
and enforced and a clear, consistent and
disciplined approach to safety is paramount
throughout the organisation. 98% of our
employees agree that we take health and
safety seriously (2023: 98%).
Our Annual Injury Incidence Rate (AIIR) for
reportable injuries (per 100,000 employees and
contractors) was 212
A
in 2024 (2023: 151).
This reflects an increase in minor, slips, trips and
falls. Around 40% of accidents were slips, trips
and falls and this will be an increased area of
focus this year.
Despite the increase, we remain below the
HBF Home Builder Average AIIR of 246.
Our AIIR for major injuries per 100,000 employees
and contractors was 59 in 2024 (2023: 65).
Culture and people
We have a strong culture at Taylor Wimpey
which we and our employees are proud of.
This is demonstrated in our latest employee
survey with an overall employee engagement
score of 93% (2023: 93%), with a 73% response
rate (2023: 69%).
We seek feedback from and engagement with
all employees. This includes regular updates and
Teams calls from the Chief Executive and a wide
variety of senior management.
It is important that management is accessible
and visible so in addition to regular visits to the
regional businesses we operate a National
Employee Forum, National Young Person’s
Forum and Local Employee Forums in our
regional businesses, where employee
representatives are able to feedback to and ask
questions of members of the Board and other
senior management directly. We also support
six employee resource groups to advance our
Equality Diversity and Inclusion agenda.
During 2024, our voluntary employee turnover
rate reduced to 12.1% (2023: 14.2%).
A
This metric was subject to external independent limited
assurance by PricewaterhouseCoopers LLP (‘PwC’).
For further information please see page 58.
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Building for our people continued
Employee value proposition (EVP)
Make a Home at Taylor Wimpey
In a highly competitive labour market, it is
crucial to maintain our strong employer brand
to enable us to attract the best people. In 2024
building on feedback from employees about
why they love working at Taylor Wimpey,
we launched the EVP as a strategic initiative
to enhance the Group’s appeal as an employer
and ensure our employees feel valued
and engaged.
Our EVP positions us as an employer of
choice in a competitive market. We have
a consistent engaging message to allow us
to attract and retain talent which is key to
our long-term sustainability.
The EVP builds on strong foundations already
in place in our employee offering, including,
consistent employee feedback and training and
development opportunities, local and national
employee forums and employee networks and
agile working.
This year we have made additional
enhancements to our family policies, including
improvements to maternity, adoption, paternity,
and introduced paid carers leave. These
changes make the Group’s provisions
competitive and support employees in
balancing their work and family time underlining
our commitment to the well-being of
our employees and their families.
We are pleased to report that Taylor Wimpey was
once again recognised in the NHBC Pride in
the Job Awards, achieving a total of 62 Quality
Awards (2023: 51), 16 Seal of Excellence Awards
(2023: 13) and two Regional Awards. We are
proud to announce that in January 2025, Site
Manager, David McClure, from our Castle Gate
development in West Scotland was honoured
with the Supreme Award in the Large Builder
category – the very highest achievement in the
Pride in the Job awards programme.
Skills
During 2024, we directly employed, on average,
4,354 people across the UK (2023: 4,618) and
provided opportunities for, on average, a further
c.9.4k operatives (2023: 9.3k) on our sites.
We recognise that building the skills of our current
and future workforce is essential to address
current and potential future skills gaps in our
industry and subcontractor base. We continue
to work closely with our partners, peer
companies, industry associations and educational
organisations to identify and address skills gaps
and upskill our workforce and also share best
practice within the industry bodies.
We support our regional businesses to develop
local links with colleges, universities and schools
and encourage a diverse range of candidates to
consider careers in homebuilding. Each of our
regional businesses has a schools engagement
plan and we engaged with 550 schools and
reached over 330,000 students in 2024 also
offering webinars for parents/guardians.
Our career converters programme supports
ex-service personnel to join our business.
In 2024, this included a focus on recruiting
former service personnel to Trainee Assistant
Site Manager roles.
Equality, diversity and inclusion (ED&I)
We remain committed to creating a more diverse
workforce and will publish our third Diversity
and Inclusion Report in 2025. We have set
quantitative targets to improve gender balance
at all levels and to increase ethnic minority
representation. Our targets are aspirational,
but we believe that it is important to be ambitious
and hold ourselves to account.
Our aim is to create a workplace where
colleagues feel championed and supported
regardless of their background and identity.
Investment in ED&I is a long term commitment for
Taylor Wimpey, supported by our Board, and all
levels of our leadership. Alongside our successes,
we remain focused on the areas we still need to
progress. Due to market conditions, we recruited
and employed fewer employees in 2024 and this
impacted our ability to make progress on our
diversity targets.
Our workforce is not yet reflective of the UK’s
ethnic diversity. As at 31 December 2024, 5.5%
of our employees were from a Black, Asian or
other minority ethnic background (2023: 5.7%).
Ethnic representation in GMT and direct reports
(%) was 6.9%
A
(2023: 6.9%) and 2.5% in
regional business leadership roles (2023: 3.7%).
A
This metric was subject to external independent limited assurance by PricewaterhouseCoopers LLP (‘PwC’).
For further information please see page 58.
Taylor Wimpey plc
Annual Report and Accounts 2024
56
Building for our people continued
In 2024, our employee base comprised 2,823
males (2023: 2,912) and 1,503 females (2023:
1,524), which equates to a gender mix of 65%
male (2023: 66%) and 35% female (2023: 34%)
across the Company. Our Board of Directors was
44% female (2023: 44%), comprising 5 males
(2023: 5) and 4 females (2023: 4). Our GMT was
33% female (2023: 33%). Female representation
in GMT and direct reports (%) was 26%
A
(2023: 28%), comprising 53 males (2023: 52)
and 19 females (2023: 20).
We have more work to do in our regional
business management teams to address gender
balance. Females made up 28% of these roles
in 2024 (2023: 27%). This will be supported
this year through the launch of our first female
development programme entitled “Aspire”.
This programme will be piloted in April 2025 with
12 of our female Successors to Directors and
aims to help participants with their limiting beliefs
and confidence in stepping to the next level.
Reduced overall recruitment impacted our
graduate and trainee recruitment. 33% of
graduates were females (2023: 62%) and
29% were from a minority ethnic background
(2023: 17%). In our other early entry talent
programmes the figures were 14% and
11% (2023: 15% and 7%).
In line with the Gender Pay Gap regulations,
we calculated our 2024 gender pay gap based
on pay and bonus data at the ‘snapshot date’ of
5 April 2024 (paid over the preceding 12 months).
The calculations cover all staff employed by
Taylor Wimpey UK Limited as at 5 April 2024.
This data shows that our mean gender pay gap
was 8% in favour of men (2023: 6% in favour of
men) and median pay gap 6% in favour of men
(2023: 2% in favour of men).
The shift in our pay gap this year reflects a
number of factors, including: lower levels of sales
commission (due to market conditions) which
impacts more female employees (females
make up 81% of sales employees (2023: 83%);
larger than average pay increases for all lower
paid employees which impacted more male
employees; and a reduction in the overall number
of employees. We will continue to focus on our
programmes to increase female representation
across different functions and levels of the
business which will reduce the pay gap over
time. More information is available online in
our Diversity and Inclusion Report.
Big Promise
Creating a culture of action as we seek
to progress our diversity goals
In 2024, Taylor Wimpey took part in
‘The Big Promise’, an initiative developed
by the Race Equality Matters (REM) group
which is a commitment to create positive and
measurable change to diversity and inclusion
in the workplace.
For our part, each of our 22 regional businesses
along with our key functions committed to at
least one tangible and measurable action
to help improve diversity at Taylor Wimpey.
Progress against these promises was then
assessed during reviews with the Group
Finance Director.
A range of actions were undertaken by our
business from recognising key cultural events,
particularly those relevant to the local
demographics of our business, to extending
the schools outreach programmes to
encourage more diverse early talent.
We also launched our largest ever reverse
mentoring programme where ethnic minority
and female employees, provide insights to
senior management on the challenges they
faced in the workplace. In turn, the candidates
gain access to the invaluable coaching and
networks of our senior leaders to help their
career progression.
A
This metric was subject to external independent limited assurance by PricewaterhouseCoopers LLP (‘PwC’).
For further information please see page 58.
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Reporting and assurance of our ESG metrics
ESG principles are embedded throughout the business
and we recognise the importance of delivering against
our ESG priorities and commitments. We therefore also
recognise the importance of the accuracy and completeness
of our ESG disclosures. In addition to our own internal
processes and governance, for a number of years we have
received limited assurance over our carbon and energy data
from The Carbon Trust, as can be seen on page 79. This year
we have expanded the number and range of ESG metrics
subject to assurance procedures by additionally seeking
assurance on other strategic ESG metrics.
ESG assurance
PricewaterhouseCoopers LLP (‘PwC’) have performed limited assurance procedures over selected
ESG performance metrics for the year ended 31 December 2024, in accordance with International
Standard on Assurance Engagements 3000 (Revised) ‘Assurance engagements other than audits or
reviews of historical financial information’ (ISAE 3000 (Revised)), issued by the International Auditing
and Assurance Standards Board. A copy of PwC’s report and our Methodology and Criteria Document
is available on our website at www.taylorwimpey.co.uk/corporate/investors/ESG-assurance. The ESG
performance metrics subject to limited assurance procedures are marked with the
A
symbol below.
ESG area
ESG performance metric
31 December 2024
Health and safety
Annual Injury Incidence Rate (per 100,000 employees
and contractors)
212
A
Diversity and inclusion
Female representation in GMT and direct reports (%)
26%
A
Diversity and inclusion
Ethnic representation in GMT and direct reports (%)
6.9%
A
Carbon reduction through
alternative construction methods
Number of homes built using timber frame
1,624
A
Taylor Wimpey plc
Annual Report and Accounts 2024
58
Materiality assessment
Regular materiality
assessments support us
to manage sustainability
risks and opportunities,
impacts and dependencies
for our business and
our stakeholders.
We have taken a ‘double materiality’ approach to
identify the socio-economic and environmental
issues that have most impact on the value of our
business and those where our business activities
have most impact on people or the environment.
Comparing the significance of different types of
impacts is not straightforward, particularly where
quantitative and comparable data is not available.
We will continue to develop our approach to
materiality and impact assessment and we
will regularly update our assessment.
We are conducting a double materiality
assessment for our operations in Spain as
part of our preparations for complying with
the EU Corporate Sustainability Reporting
Directive (CSRD).
Our methodology
Our most recent assessment for our
UK operations was concluded in 2023.
Key steps in our methodology include:
•
Identifying impacts
– we identified a long
list of impact areas based on our previous
materiality processes and a review of external
reporting standards
•
Evaluation and prioritisation
– we used
stakeholder input and analysed a range of
sources to prioritise the identified impact areas.
This included stakeholder interviews, a media
and policy review, reference to sector-specific
standards, multi-stakeholder and corporate
benchmarks, and alignment with our business
strategy and risk management process
•
Review and validation
– the findings were
reviewed by members of our senior leadership,
and some minor adjustments were made to
reflect business priorities
We recognise the important link between
the Company’s material impacts and risk
management, and our material impacts have
been aligned to our Principal Risks, as set out
on pages 85 to 90.
Key findings
Some of our most material impacts relate to
our product – the new homes and communities
we build. This reflects the significant impact
that homes and communities have on the
wellbeing and quality of life of customers and
future residents, as well as people’s ability to
lead a more sustainable lifestyle. Our other most
material impacts include the health and safety of
people working on our sites, and our impact on
the climate and nature.
We set targets for many of our material impacts
and a full list can be found in our Sustainability
Summary 2024.
Our material impacts
*
Includes customer service.
Customer wellbeing in our homes*
Quality and sustainability of new communities
Affordability and accessibility of new homes
Climate change
Nature
Resource use and waste
Water quality and management
Site environmental impacts
Financial performance
and economic contribution
Governance and transparency
Ethical and responsible
business practices
Health, safety and wellbeing
Inclusion and equality
Skills development
Employment practices
Responsible sourcing and human rights
1. Our homes and places
2. Our people and suppliers
3. Our planet
4. Responsible and resilient business
Stakeholder impact
Financial impact
High
Medium
Medium
High
Material impacts
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Our environment
strategy
We want to play our part in creating
a greener, healthier future for our
customers, colleagues and communities,
while reducing and mitigating environmental
risks to our business.
Our Environment Strategy, Building a Better
World, includes ambitious targets up to 2030
and we have committed to achieve net zero
emissions by 2045.
Our commitment to the environment
What’s in this section?
61
Climate change and net zero
62
Nature, resources and waste
and ESG credentials
63
Task Force on Climate-related
Financial Disclosures
80
Non-financial and sustainability
information statement
Our Sustainability Summary 2024 which can
be found on our website, includes additional
performance information and ESG data.
Highlights for 2024
Carbon emissions
47%
reduction in absolute emissions
(scope 1 and 2) since 2019 (2023: 35%)
21%
reduction in operational emissions
intensity since 2019 (2023: 5%)
Timber frame
16%
homes completed using
timber frame (2023: 16%)
Our net zero targets have been validated by
the Science Based Targets initiative
Taylor Wimpey plc
Annual Report and Accounts 2024
60
Our commitment to the environment continued
Climate change and net zero
We aim to be net zero aligned in our operations
by 2035 and reach net zero across our value
chain by 2045, five years ahead of the UK’s
national target.
Our net zero target has been independently
validated by the Science Based Targets initiative
(SBTi). It is supported by our Transition Plan
and four-stage roadmap, detailing the actions
we will take up to 2045. Focus areas include:
• Construction of low and zero carbon homes
• Use of low carbon construction materials
and establishing decarbonisation plans for
key materials
• Transitioning to 100% renewable
electricity sourcing
• Reducing and replacing fossil fuels
• Decarbonising our fleet
Our target and roadmap will enable us to reduce
emissions in line with the 1.5°C ambition of the
Paris Climate Agreement and support the wider
transition to a low carbon economy through
zero carbon ready homes for customers and
collaboration with suppliers. Performance in
2024 is summarised on pages 75 and 76.
Read our Net Zero Transition Plan
www.taylorwimpey.
co.uk/corporate/sustainability/net-zero
0%
External
milestones
Net zero ready
homes in Scotland
2024
2025
2030
2035
2040
2045
Net zero ready homes in
England and Wales
Ban on sales of
petrol/diesel cars
UK electric grid
100% decarbonised
Absolute
reductions
25%
reduction
46%
reduction
61%
reduction
75%
reduction
100%
reduction
Science
based target
(scope 1 and 2)
All homes zero
carbon ready
All operations
net zero
Taylor Wimpey plc
A net zero
business
Science
based target
(scope 3)
2019
baseline
100%
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Nature
We want to create space for nature on our
sites to benefit both our customers and the
environment. Our approach starts with site design
and layout, and encompasses use of green
infrastructure, habitat improvements, wildlife
enhancements and wildlife friendly planting.
New sites submitting their first planning
application now include a minimum biodiversity
net gain (BNG) of at least 10% in line with
regulation. We have published guidance and
held training sessions for our regional businesses
to support them to manage the risks, costs and
opportunities associated with BNG.
We integrate wildlife enhancements on suitable
sites to support native species, including
hedgehog highways, bee bricks, bug hotels,
and bird and bat boxes. In addition, in 2024,
we helped to develop and signed the Homes for
Nature commitment via the Future Homes Hub,
committing to install a bird-nesting brick or box
for every home built and hedgehog highways
as standard on new sites.
5,500
wildlife enhancements installed on
our sites since 2021 (2023: 3,500)
We partner with nature organisations to ensure
our actions reflect best practice. Our current
partners are Hedgehog Street, a campaign by
the British Hedgehog Preservation Society and
People’s Trust for Endangered Species, and
Buglife – the Invertebrate Conservation Trust.
We publish our biodiversity policy on our website.
We recognise our business dependencies on
nature and the ecosystem services provided
by the natural world. We include a disclosure
against the recommendations of the Taskforce
on Nature-related Financial Disclosures in our
Sustainability Summary.
Resources and waste
We aim to reduce resource use and waste. 98%
of construction waste was diverted from landfill in
2024 (2023: 98%) and we aim to increase this.
Our Towards Zero Waste strategy and action
plan covers all stages of development from
land acquisition to demolition, construction,
occupancy and end of life. It focuses on
improving our data on resource use and waste
to enable us to adopt more circular approaches
alongside target setting, incentives, training,
supplier engagement and action plans for
key waste streams.
In 2024, we have focused on updating
induction training and strengthening regular
communication on waste with our site teams.
We are working with suppliers to reduce waste
from packaging, increase recycling and identify
opportunities to increase use of sustainable and
recycled materials.
Our commitment to the environment continued
ESG credentials
We participate in numerous global and sectoral
benchmarks. We are a constituent of the Dow
Jones Sustainability Europe Index (Standard &
Poor’s Corporate Sustainability Assessment) and
included in the S&P Sustainability Yearbook 2025.
We are a part of FTSE4Good, and have been
recognised in Sustainalytics 2025 ESG top rated
companies, with an ESG Risk Rating of Low.
We are a member of Next Generation, the
sustainability benchmark for UK housebuilders,
and ranked fifth with a silver rating in 2024.
We disclose our performance to CDP and scored:
CDP Climate Change A- (2023: A-), CDP Water C
(2023: B), and CDP Forests B- for deforestation
and forest risk commodities (2023: C).
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62
In preparing this statement, we have used
the Task Force on Climate-related Financial
Disclosures’ (TCFD) framework, in line with the
Financial Conduct Authority requirements for UK
premium listed companies (Listing Rule 6.6.8R).
We believe our disclosures are consistent with the
four recommendations and 11 recommended
disclosures set out in the ‘Recommendations of
the TCFD’ report. We have taken into account
the guidance in the TCFD Annex including the
Guidance for All Sectors and the Supplemental
Guidance for Non-Financial Groups in relation to
the Materials and Buildings Group. A summary is
included on pages 77 and 78.
We have also reviewed our reporting against
the IFRS Sustainability Disclosure Standard 2 –
Climate-related Disclosures and Industry-based
Guidance on implementing Climate-related
Disclosures. We expect to further increase
alignment over the next few years including in
relation to the anticipated financial effects of
climate risks and opportunities in the medium
and long term.
In preparing our disclosures we also refer
to the Sustainability Accounting Standard
Board (SASB) standards and the outcomes
of our materiality process, our risk assessment
process, our climate scenario analysis and
stakeholder feedback.
Climate risks
and opportunities
This statement identifies the risks and
opportunities that climate change presents
for our business and summarises the
actions we’re taking to address and
mitigate them.
A-
CDP Climate score (2023: A-)
57%
reduction in operational carbon
emissions since 2013 (absolute)
(2023: 48%)
47%
reduction in operational carbon
emissions since 2019 (absolute)
(2023: 35%)
Task Force on Climate-related Financial Disclosures
63
Strategic report
Directors’ report
Financial statements
Shareholder information
Governance for climate change
Board level:
Our Board of Directors is
responsible for oversight of our ESG initiatives
including climate-related risks and opportunities.
Oversight of the Company’s ESG initiatives is
included in the schedule of Matters Reserved for
the Board. The Board receives an ESG update
at every meeting, including a quarterly ESG
scorecard with key performance indicators
and progress towards climate targets.
ESG competencies are indicated in the
Directors’ skills matrix on page 103.
Executive level:
Our Chief Executive has
ultimate responsibility for achieving our climate
targets. Sustainability (including climate change)
is a standing agenda item for Group Management
Team (GMT) meetings and members receive a
monthly update from the Director of Sustainability.
The GMT members have received briefings on
climate change risks and opportunities to deepen
their understanding of this topic. A scope 1 and 2
carbon reduction measure was included in the
incentive plans for senior management and
regional management in 2024 (performance
share plan and medium term incentive plan),
to support progress on our carbon reduction
targets. Our Environment Policy covers climate
change and is reviewed and approved by our
Chief Executive.
Legacy, Engagement and Action for the
Future (LEAF) Committee:
Ian Drummond,
Divisional Chair for Scotland, North East and
North Yorkshire and a member of our GMT,
is executive sponsor for sustainability and
chairs our LEAF Committee. LEAF is responsible
for reviewing climate strategy, risks and
opportunities; it meets four times a year.
LEAF members include the heads or senior
leaders of our sustainability, technical, production,
procurement, commercial, customer and design
functions and representatives from our strategic
land and regional businesses.
In 2024, the Director of Sustainability was
responsible for monitoring climate-related
issues, updating our Climate Change and
Sustainability Risk and Opportunity Register
and overseeing our reporting and disclosures on
climate change and the assurance of our climate
data. He reported to our Group Technical Director
who has responsibility for low and zero carbon
homes, leads our Road to Net Zero Carbon
Working Group, and reports directly to our
Chief Executive.
Cross-functional working groups, including
our Road to Net Zero Carbon Working Group,
support effective governance of climate change.
Board of Directors
Group Management Team
Reviews and approves climate strategy, scrutinises performance,
and reviews progress on climate strategy and targets
Oversight of the business response to climate risks and opportunities
Legacy, Engagement
and Action for the
Future (LEAF)
Committee
(functional oversight)
Analyses climate risk and
opportunities, develops
the business response
and monitors progress
Managing Directors
(operational
implementation)
Drive implementation
at local level
Cross-functional
working groups
Support effective
governance of climate
change through:
Road to Net Zero
Carbon Working Group,
Construction
Waste Group,
Groundworks Group
Task Force on Climate-related Financial Disclosures continued
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Operational level:
The Managing Director in
each regional business has responsibility for
achieving our climate change targets at the local
level. They have a nominated Sustainability
Sponsor within their management team and
a Sustainability Champion to assist with
implementation and data collection. Each regional
business has annual energy and carbon
reduction targets up to 2025.
We monitor performance on energy and carbon
emissions and energy, water, waste and nature
for each of our regional businesses on a quarterly
basis. The Managing Directors and Business Unit
Management Teams receive a quarterly update
on their progress against our operational carbon,
nature and resource targets. This enables them
to compare performance between sites and with
other regional businesses. They are kept updated
about climate-related issues and we build
knowledge and expertise through training
workshops, masterclasses and briefings.
A carbon reduction measure was included
in incentive plans, see page 64.
We use a digital platform called LEADR (Land and
Environment Assessment of Development Risk)
for assessing and managing sustainability and
technical risks associated with land during the
acquisition and construction process. This draws
on external environmental databases to help us
manage risks associated with land, including
climate-related risks such as flood risk. It includes
a pre-acquisition screening and risk assessment
process for potential new sites. Environmental
risks during construction are managed through
our environmental management system,
including risks relating to climate change.
Stakeholder engagement
Our stakeholder engagement informs our
approach to climate change. We collaborate with
suppliers through the Supply Chain Sustainability
School and our procurement processes, and with
others in our industry through the Future Homes
Hub (FHH). We chair and are involved in a
number of FHH working groups including those
on metrics, embodied and whole life carbon and
zero carbon ready homes. Read more about
our stakeholder engagement on pages 97 to 99.
We participate in CDP Climate Change and
publish our submission on our website.
We received a score of A- for 2024 (2023: A-).
We were included on the Financial Times
Europe’s Climate Leaders list 2024. Our Net Zero
Transition Plan was shortlisted in the Net Zero
Strategy category in the 2024 Edie Awards.
We work with the Carbon Trust on many aspects
of climate change and held the Carbon Trust’s
Route to Net Zero Standard, Advancing Level
certification in 2024, the only housebuilder to
do so during the year.
Strategy
Sustainability is one of our four strategic
cornerstones, reflecting the importance of
climate change and other environmental
matters to our business and stakeholders.
Climate change presents both transition and
physical risks and opportunities for our business.
We assess these using short term (to the end
of 2025), medium term (to 2030) and long term
(beyond 2030) horizons, looking at their potential
impacts on our business, strategy and financial
planning. Our approach is informed by our
materiality assessment and climate scenario
analysis. We also refer to industry-based
guidance such as criteria set by the SASB
Standard for the Home Builders sector, the
Industry-based Guidance on Implementing
IFRS S2 Volume 35 – Home Builders, the Next
Generation benchmark and the work of the FHH.
Climate risks and opportunities are relevant
across our value chain and business model.
For example, some climate risks are more
relevant to our supply chain, while others impact
our construction sites or customer homes in
use. In cases where risks and opportunities
are concentrated on particular aspects of our
business model or value chain, we have indicated
this in the tables on pages 69 to 72 and in the
metrics and targets section on pages 73 and 74.
Climate transition plan
We have published a detailed Net Zero Transition
Plan setting out how we will respond to our
identified climate risks and opportunities and
achieve our net zero target. This includes our
roadmap up to 2045 incorporating workstreams
such as the construction of low and zero carbon
homes, increasing the use of construction
materials with lower embodied carbon,
transitioning to 100% renewable electricity,
reducing or replacing fossil fuels and
decarbonising our fleet. Our plan states
our commitment to a just transition.
The Net Zero Transition Plan is available on
our website at
www.taylorwimpey.co.uk/
corporate/sustainability/net-zero
Task Force on Climate-related Financial Disclosures continued
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Shareholder information
Task Force on Climate-related Financial Disclosures continued
Climate scenario analysis
We have analysed the resilience of our business
model and strategy, taking into consideration
different climate-related scenarios. We conducted
climate scenario analysis in 2022, commissioning
WTW (formerly Willis Towers Watson) to conduct
an assessment of climate transition risks and
opportunities across short term (to 2025) and
medium term (to 2030) horizons. The analysis:
• Considered our level of exposure to 15
transition risks in a low carbon economy
where temperature rises would be limited to
1.5°C this century (the most ambitious goal
of the Paris Agreement)
• Modelled the physical impacts of climate
change on our assets and supply chain
in two temperature scenarios (1.5°C and
4°C warming)
Impacts were estimated and likelihoods assessed
and aligned to our ERM (Enterprise Risk
Management) rating criteria. The process involved
subject matter experts from across our key
functions as well as members of our GMT.
In relation to transition risks, the analysis showed
a moderate to high level of residual risk exposure
in the short term, levelling out to moderate
exposure in the medium term. This reflects,
among other factors, the short term impact from
complying with the Future Homes Standard,
as well as from moving to lower emission
technologies and securing sufficient electrical
power supply. It also showed minor to moderate
opportunities from the transition to a low carbon
economy, including market share gains as
demand for low carbon homes grows and
potential reputational benefits with employees,
investors and other stakeholders.
In relation to physical risks, it showed moderate
exposure to risks relating to windstorms, flooding
and drought with the costs mitigated by building
to the standards of the day and by including
additional build costs within the assessment of
land values.
Scenario analysis findings informed development
of our Net Zero Transition Plan (including the cost
of investment needed to achieve our targets)
and have been integrated into our risk
assessment process.
Our 2022 analysis built on our preliminary
scenario analysis conducted with the Carbon
Trust in 2020. This reviewed three scenarios:
orderly transition (the goals of the Paris Climate
Change Agreement are met), climate breakdown
(warming of 4°C – 6°C), and disorderly transition
(the goals of the Paris Agreement on Climate
Change are not met in time but climate
breakdown is avoided). Workshops looked in
more detail at a ‘disorderly transition’ scenario
and the impact of regulation and changes to
stakeholder interactions and to how and what
we build.
We achieved certification to the Carbon
Trust’s Route to Net Zero Standard,
Advancing level in 2024 and were the
only housebuilder to hold this standard
in the year.
Taskforce on Nature-related
Financial Disclosures
We participated in the Taskforce on
Nature-related Financial Disclosures
(TNFD) Forum and publish a summary
disclosure against the TNFD
recommendations in our
Sustainability Summary 2024.
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Task Force on Climate-related Financial Disclosures continued
Impact on financial statements
Climate-related risks and opportunities have
not significantly affected our financial position,
financial performance or cash flows during the
year and we do not foresee any significant
financial impact over the next annual reporting
period. We are reviewing how we can enhance
our reporting on the anticipated financial effects
of climate-related risks and opportunities in the
medium and long term.
Cost allocation and margin recognition
We include known costs associated with
regulation designed to affect the impact of
climate change, e.g. building regulations Part L
(conservation of fuel and power) and Part F
(ventilation) within the assessment of the value
of inventory charged to cost of sales, including
expected Future Homes Standard costs. Where
a forecast site margin is affected by a change in
estimated costs to complete, the impact is
recognised across all plots completed on that site
in the current and future years. See page 191
for further details of the accounting policies in
relation to cost allocation and recognition.
Inventories
The carrying value of work in progress and land is
assessed via a net realisable value exercise and
any adjustments required are made within the
financial statements. In particular, in relation
to land and the possible impact from climate
change, the Group uses the latest environmental
reports to assess the impact from flooding on the
viability of the land. The accounting policy for
inventories is described on page 189 and the
outcome of the net realisable value exercise is
disclosed on page 201.
Goodwill and intangible assets
The Group does not have goodwill, or other
intangible assets, that would be subject to an
annual impairment assessment and thus the
impact of climate change on the future cash
flows required to perform this assessment
are not required.
Going concern and viability
‘Natural resources and climate change’ is one
of the Group’s Principal Risks, but given the time
frame over which both going concern and viability
are considered (at least 12 months from the date
of signing the financial statements and five years
respectively) the future impact of climate change
on the operating costs of the business and its
supply chain, beyond those costs (such as
estimates for the Future Homes Standard)
already included within the Group’s forecasts,
are not considered material.
In addition, the Group’s viability assessment
considers a reduction in volumes which,
although not explicitly linked, could come about
through tighter planning requirements to address
the impact of climate change or through the
reduced availability or increased cost of materials
due to restrictions in the supply chain due to
climate change.
Sustainability linked loan
In support of our environmental strategy,
our Revolving Credit Facility contains three
sustainability linked performance targets which
adjust the interest margin up or down by a small
amount. The three performance targets are:
(1) reductions in scope 1 and 2 GHG emissions;
(2) reductions in waste; and (3) reductions in
carbon emissions of the homes we build.
Risk management
The Board has overall responsibility for risk
management and holds formal risk reviews at
least half yearly and routinely considers risk at
each Board meeting as appropriate. Our risk
management approach involves a top-down
review of risks by senior management and the
Board, combined with a bottom-up review by
each individual function and regional business.
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Task Force on Climate-related Financial Disclosures continued
The assessment, mitigation and monitoring of
sustainability and climate-related risks is included
as part of our overall risk management process,
which has remained unchanged since the
previous reporting period. The individual
sustainability and climate-related risks are
considered through functional and regional
business risk registers, including our Climate
Change and Sustainability Risk and Opportunity
Register. Management considers the impact they
may have on the Group’s strategy, looking at
short, medium and in particular longer term
emerging risks which may arise as the area
continues to evolve.
In identifying risks, both internal and external
factors are considered, and they are assessed
using quantitative and qualitative (reputational,
customer, health and safety, employees,
environmental, operational, legal and regulatory
and IT) criteria.
The top-down review of key, Principal and
emerging risks by our GMT considers their
relative significance to the business, including
climate-related risks. This process covers the
whole of Taylor Wimpey.
The Group’s Principal Risk ‘Natural resources
and climate change’ (see page 89), recognises
the increasing significance of the transition to
a low carbon economy for both our operations
and the world in which we live and conduct
business. This Principal Risk is monitored by
the Audit Committee and senior management,
together with all other Principal Risks, as detailed
on page 82, as part of our risk management
process, assessing their impact on the Group’s
strategic objectives and ensuring appropriate
mitigations are in place.
Our Climate Change and Sustainability Risk
and Opportunity Register guides the climate
change adaptation of our business practices
and the homes we build. Our climate scenario
analysis is one of the inputs into the risk register.
For each climate-related risk and opportunity the
register identifies: risk driver, description of risk,
potential impact, time frame, whether the risk
or opportunity is direct or indirect, likelihood and
magnitude of impact. This is a standing item on
every LEAF Committee agenda. The Committee
makes recommendations to the GMT on
how to mitigate, transfer, accept or control
climate-related risks.
We monitor scope 1 and 2 emissions on a
quarterly basis for all our regional businesses
to enable us to better monitor short term risks
relating to our performance against our
climate targets.
There were no significant changes to the
processes used to identify, assess, prioritise
and monitor risks compared with the prior
reporting period.
Read more about our risk management process on
pages 82 to 84
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Task Force on Climate-related Financial Disclosures continued
Policy and legal
Description
Example risks/opportunities
Our mitigations
Residual risk after mitigation (1.5°C scenario unless stated)
R
Increasingly stringent
regulatory requirements
(e.g. Future Homes Standard).
Risk of delays and more expensive
design in order to deliver homes in
accordance with the Future Homes
Standard (FHS).
Potential for unexpected national
policy actions to impact the value of
strategic land pipeline.
•
We engage and consult regularly with government to understand its priorities
•
We have an established Research and Development (R&D) programme and
internal Road to Net Zero Carbon Working Group to prepare our business for
regulatory changes
•
We participate in the FHH to support the Future Homes
Delivery Plan – a sector-wide plan to embed key environmental issues
into housebuilding
•
We engage with land owners to ensure that the cost of regulation/compliance
with latest standards is reflected in the assessment of land values
Short term moderate risk exposure and almost certain
likelihood with the impact on the financial statements
considered immaterial as costs associated with the known
regulatory changes have been included in current costs
and forecasts as appropriate. Medium term moderate risk
exposure, balanced likelihood with any financial impact
considered within the future cost of land and, where
appropriate, sales price of new homes.
R
Increasingly stringent local
planning requirements
(e.g. in relation to flooding
and biodiversity) and potential
for variation in standards
between authorities.
Risk of delay and increased cost as
local councils introduce additional local
planning requirements or go beyond
the requirements of the FHS.
•
We engage with planning authorities to understand and integrate their
requirements, including participating in the development of strategic
frameworks, Local Plans and Neighbourhood Plans
•
We engage with land owners to ensure that the cost of compliance with
planning requirements is reflected in the assessment of land values
•
We have established guidance for our regional businesses in respect
of biodiversity net gain, flooding and other matters to address
planning requirements
•
We engage with the FHH and government to encourage a
consistent approach
Short term moderate risk exposure, likely with impact on the
financial statements not considered material as risk impacts
local areas rather than being nationwide. Medium term
moderate risk exposure, balanced likelihood with any
financial impact considered within the future cost of land.
R
Climate change-related
litigation claims brought
by stakeholders.
Risk of claims relating to our approach
to climate change adaptation,
our disclosure of climate-related
material financial risks or green
marketing claims.
•
We disclose our climate change approach and performance and continually
review and improve our data
•
We require our agencies to have a review process in place to ensure
compliance with regulation and the Green Claims Code guidance issued by
the UK’s Competition and Markets Authority (CMA)
Short term moderate risk exposure, likelihood considered
rare with impact on the financial statements considered
immaterial as build to latest regulations. Medium term
moderate risk exposure, unlikely with impact on the financial
statements considered immaterial as we comply with the
latest building regulations and any associated costs would
be embedded within the future cost of land.
Other residual risks or opportunities (currently identified as low):
• Enhanced emissions reporting obligations
Our risks and opportunities
The table below summarises the findings from our climate scenario analysis (conducted in 2022) which focused on transition risks in the short term (up to the end of 2025) and medium term (up to 2030) in a 1.5°C scenario
and physical risks in the medium and long term (up to 2030 and beyond) in a 1.5°C and a 4°C scenario. We have summarised the mitigating actions we are taking and shared the impact and likelihood for the more significant
risks and opportunities that were identified. Residual risk after mitigation relates to a 1.5°C scenario unless stated. The impact and likelihood ranges and scores are based on Enterprise Risk Management rating scales.
Where we identified additional risks or opportunities that are not currently considered significant, we have listed these.
The table outlines our risks primarily in relation to our operations in the UK. We have also looked at risks in relation to our operations in Spain. We did not identify any material risks in relation to our Spanish
operations. Our Spanish operations are expected to be in scope for CSRD from the December 2025 year end, with Taylor Wimpey plc as the parent company in scope from the December 2028 year end,
albeit CSRD has not yet been transposed into Spanish law.
Time frame analysed:
Short term (to end of 2025), Medium term (up to 2030)
Risk type:
Transition (policy and legal)
• Potential future carbon pricing
• Cost of purchasing emissions offsets
Key
R
Risk
O
Opportunity
Residual risks or opportunities (moderate to high):
see rows below
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Task Force on Climate-related Financial Disclosures continued
Technology
Time frame analysed:
Short term (to end of 2025), Medium term (up to 2030)
Risk type:
Transition (technology)
Description
Example risks/opportunities
Our mitigations
Residual risk after mitigation (1.5°C scenario unless stated)
R
Power supply and
infrastructure – increasing
focus on electricity as an
energy source for homes,
transport, machinery and
infrastructure as the economy
moves away from fossil fuels.
Risk of delays and costs due to
insufficient power in the grid to service
new homes and/or construction
sites and/or lack of reliable lower
emission infrastructure.
Risk of increased costs and delays
associated with needing to build or
upgrade primary sub stations.
•
We integrate power supply and infrastructure into site planning, accounting
for the shift to lower emission alternatives
•
We engage with industry stakeholders and government on its efforts to
address concerns around national electricity grid capacity and distribution
and the exploration of smart networks as we move towards electrification
of homes
•
We are exploring innovative energy approaches, including plot-based storage
and generation solutions and site wide network solutions like the community
heat network at our development in Sudbury
• Communicating risk to regional teams
Short term major risk exposure, almost certain likelihood.
The impact on the financial statements is not considered
material as risk considered to be localised rather
than national.
Medium term major risk exposure, balanced likelihood
with impact on financial statements mitigated
through assessment of future land purchases and
planning requirements.
R
Substitution of existing
technologies with lower
emission alternatives
(e.g. PV panels, EV charging
infrastructure, all electric
homes and construction
equipment) to comply with the
Future Homes Standard and
emissions reduction targets.
Risk of increased costs associated
with new technologies and potential
availability challenges.
Risk that current new technology
solutions quickly become outdated.
•
We have an ongoing R&D and supplier engagement programme to identify
beneficial new low carbon technology and test its performance against our
quality, safety, sustainability and technical standards
Short term moderate risk exposure, almost certain likelihood
with the impact on the financial statements considered
immaterial as known costs associated with the regulatory
change have been included in current costs and forecasts
as appropriate.
Medium term moderate risk exposure, balanced likelihood
with impact on financial statements considered immaterial
where any cost of change in regulation is included in the
future cost of land or passed on through house prices.
R
Skills shortages impacting
ability to install low
carbon technologies.
Risk of shortfall in supply of suitably
qualified professionals.
•
We are mapping the expected skills profile for our business and
subcontractor base and addressing potential skills gaps through
training, recruitment and work with subcontractors
•
We worked with other housebuilders and the HBF to create the Home
Building Sector Skills Plan. We are partnering with the Construction Industry
Training Board, the Home Building Skills Partnership and some of our
mid-sized subcontractors to help more subcontractors to recruit apprentices
Short term insignificant risk exposure, almost certain
likelihood with impact on financial statements considered
immaterial based on timing of implementation of
current regulations.
Medium term minor risk exposure, almost certain likelihood
with impact on financial statements dependent on extent
of skills shortage.
Key
R
Risk
O
Opportunity
Residual risks or opportunities (moderate to high):
see rows below
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Task Force on Climate-related Financial Disclosures continued
Market and reputation (stakeholder)
Time frame analysed:
Short term (to end of 2025), Medium term (up to 2030)
Risk type:
Transition (market, reputation)
Description
Example risks/opportunities
Our mitigations
Residual risk after mitigation (1.5°C scenario unless stated)
O
Changing customer demands
in relation to low carbon homes
as sustainability awareness
grows, green mortgages
evolve, and existing building
stock becomes comparatively
more expensive to run.
Opportunity if more efficient and lower
emission homes become more
attractive to customers than second-
hand market.
•
We conduct regular research to monitor and understand changing
customer attitudes to sustainability issues including low carbon homes
(e.g. post-occupancy research on our Sudbury future homes trial)
•
We engage customer, sales and marketing teams and marketing agencies to
ensure benefits of new low carbon homes are communicated effectively
•
We partner with peers through the FHH and engage with government to
ensure benefits of low carbon homes are communicated and to support
further development of green mortgages
Short to medium term minor opportunity and considered
likely with impact on financial statements potentially reflected
in increased revenue which could be material, but is not
possible to quantify reliably.
Medium term major opportunity and considered balanced
likelihood with impact on financial statements potentially
reflected in increased revenue which could be material,
but is not possible to quantify reliably.
R
Changing customer
demands in relation to
low carbon homes.
Risk that customers may resist
installation of new low carbon
technologies or be dissatisfied
with their performance.
Risk of reputational damage if
low carbon homes are not
delivered to customers in line
with changing expectations.
•
We will be communicating with customers and training our customer,
sales and marketing teams to ensure customers are supported to use
new technologies
•
We take a ‘fabric-first’ approach to home energy efficiency to minimise
complexity and maintenance for customers where possible
•
We invest in research and product trials to ensure quality, performance
and ease of use, e.g. our FHS trial homes
Short term minor risk exposure, likely with impact on financial
statements expected to be immaterial based on current
regulatory changes.
Medium term major risk exposure, unlikely with impact
on financial statements dependent on extent customer
demands change which is not possible to reliably estimate.
R
Increased cost of raw materials
as carbon pricing and
investment in low carbon plant,
equipment and facilities impact
the cost of materials such as
steel and cement.
Risk of increased development costs
that the business will need to absorb.
•
We will be monitoring carbon pricing developments and engaging with
suppliers on how carbon taxes and transition costs may affect raw
material prices
•
We have an ongoing R&D programme into lower carbon materials and
resource efficient ways of working
•
We are purchasing 100% Renewable Guarantee of Origin (REGO) backed
electricity for all new sites, reducing carbon taxation on energy consumption
Short term major exposure, balanced likelihood with
impact on financial statements potentially material on
existing developments.
Medium term major exposure, unlikely with impact on
financial statements dependent on ability to include
costs in land valuations and/or pass onto customers
via house prices.
R
Increased investor
expectations in relation to
sustainability performance
and disclosure.
Risk that failing to meet changing
investor expectations affects revenue
and investment streams.
•
We have made sustainability (including climate change) one of four strategic
cornerstones for the business
•
We disclose climate strategy and ESG performance to investors through
reporting, benchmarks, meetings and investor roadshows
•
We complete a regular materiality update (every three years) to ensure we
focus on priority ESG topics
Short term minor exposure, unlikely and medium term
major exposure, unlikely. Impact on financial statements
considered to be indirect through potential reputational
damage from poor performance which is not possible to
quantify reliably.
O
Increased investor
expectations in relation to
sustainability performance
and disclosure.
Opportunities to attract increased
investment by differentiating on
sustainability performance.
•
We have made sustainability (including climate change) one of four strategic
cornerstones for the business
•
We disclose climate strategy and ESG performance to investors through
reporting, benchmarks, meetings and investor roadshows and our climate
data is subject to external assurance by the Carbon Trust
•
We complete a regular materiality update (every three years) to ensure we
focus on priority ESG topics
Short term minor opportunity and likelihood considered
balanced with medium term opportunity increasing to
moderate and no change to likelihood. Impact on financial
statements would be the opportunity of increased revenues
through enhanced reputation in the market, but this is not
possible to quantify reliably.
Other residual risks or opportunities (currently identified as low):
• Cost of capital impacted by sustainability performance
•
Risks and opportunities associated with growing interest and expectations in relation to climate change performance among employees
•
Risks and opportunities associated with meeting changing local authority and central government expectations on climate change
Key
R
Risk
O
Opportunity
Opportunity type:
Products, markets
Residual risks or opportunities (moderate to high):
see rows below
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Task Force on Climate-related Financial Disclosures continued
Physical impacts
Time frame analysed:
Medium term (up to 2030), Long term (beyond 2030)
Risk type:
Physical (acute and chronic)
Description
Example risks/opportunities
Our mitigations
Residual risk after mitigation (1.5°C scenario unless stated)
R
Changing weather patterns
and an increase in number
and severity of extreme
weather events including
issues relating to heat stress,
flooding, drought, wildfire,
windstorm and subsidence.
Risk of production delays or damage
to construction sites from storms,
floods, wildfires and droughts.
Risk of increased costs relating to
adapting sites and homes to the
changing climate (e.g. due to increased
subsidence risk or impact of heat and
water stress).
Risk that climate change impacts sites
in the strategic land pipeline which
means that the carrying value of
land may need to be written down
and land costs may increase.
Risk of supply chain disruption and
increased costs of materials due to
climate related impacts, e.g. flooding
of supplier facilities or shortages of
raw materials.
•
We consider flood risk from the start of the landbuying process and identify
potential flood risk as part of our site selection process. We do not buy land
unless we can mitigate flood risk. We use the Environment Agency’s flood
mapping tools and integrate sustainable drainage features on our sites to
manage water run-off and reduce flow rates
•
We monitor weather conditions and have safety procedures in place to
prevent injuries or damage to our sites due to windstorms
•
We are increasing the amount of sustainability-related data we collect from
suppliers to inform our approach to mitigating material supply risks
•
Our Environment Policy guides our approach to climate change mitigation
and adaptation risks and opportunities
•
Longer term impacts, including flooding, heat, drought and drought
related subsidence, are best managed through updating industry-wide
standards. We continue to work collaboratively with organisations that set
or influence standards
We did not categorise likelihood for physical risks, the
assessment of the impact below shows an increasing
exposure to physical risks as temperatures rise.
•
Assets 1.5°C (medium and long term) – impact from
windstorm considered moderate
•
Assets 4°C (long term) – impact from flooding, drought and
windstorm moderate
•
Supply chain 1.5°C (medium and long term) – impact from
flooding and windstorm moderate
•
Supply chain 4°C (medium and long term) – impact from
flooding high, windstorm and drought moderate
Impact on financial statements to be mitigated through
assessment of land viability and associated cost of land
during acquisition and planning stages.
Other residual risks or opportunities (currently identified as low):
• Assets 1.5
o
C (2030 and beyond 2030) – flooding, heat stress, drought, wildfire and subsidence
• Assets 4
o
C (beyond 2030) – heat stress, wildfire and subsidence
• Supply chain 1.5
o
C (2030 and beyond 2030) – heat stress, drought and wildfire
• Supply chain 4
o
C (2030 and beyond 2030) – heat stress and wildfire
Key
R
Risk
O
Opportunity
Residual risks or opportunities (moderate to high):
see rows below
Taylor Wimpey plc
Annual Report and Accounts 2024
72
Task Force on Climate-related Financial Disclosures continued
Metrics and targets
Our metrics and targets support the business in
managing and mitigating identified climate risks
and ensure we capitalise on opportunities from
the transition to a low carbon economy. This
includes our net zero commitment. Metrics and
targets apply to the whole Group unless stated.
Our targets
Our net zero target for 2045 has been validated
by the Science Based Targets initiative (SBTi)
confirming that it is aligned with the SBTi’s
1.5°C mitigation pathways for reaching net zero
by 2050 or sooner. This is currently the most
ambitious designation available through the
SBTi process. The SBTi has also approved our
scope 1 and 2 near term reduction target and
determined that it is in line with a 1.5°C trajectory
and determined that our long term targets for
scope 1, 2 and 3 are aligned with the SBTi’s
1.5°C mitigation pathways for reaching net
zero by 2050 or sooner.
Our net zero target was developed with the
Carbon Trust in line with the requirements of the
SBTi Corporate Net Zero Standard, taking into
account the ‘Metrics, Targets, and Transition
Plans’ guidance issued by TCFD
1
. We have
modelled the costs and investment required to
reach our goals as well as our approach to
neutralising residual emissions.
Our near term scope 1 and 2 science-based
carbon reduction target is based on absolute
emissions reduction and is expressed as an
intensity reduction, to enable us to monitor
progress during different stages of the
housing cycle.
Progress against our targets is reviewed by the
GMT and Board of Directors at least annually.
Assurance
Our carbon and energy use data is externally
assured by Carbon Trust Assurance to a limited
assurance level. This includes verification to ISO
14064 for our scope 1 and 2 footprint, and three
selected scope 3 categories (Purchased Goods
and Services, Fuel and Energy-related Activities
and Use of Sold Products).
Use of carbon credits
We do not currently use carbon credits. Once we
have reduced our greenhouse gas emissions by
at least 90% we will neutralise the remaining
emissions through the removal and storage of
carbon from the atmosphere, in line with SBTi
requirements. There is a high likelihood that we
will need to use carbon removal offsets from
2035 for operational emissions and 2045 for
value chain emissions. In our Net Zero Transition
Plan we have set out three principles to guide our
approach to neutralising emissions. We will use
standards such as the Verified Carbon Standard,
Gold Standard Verified Emissions Reduction,
Voluntary Offset Standard and Climate
Community and Biodiversity Standards.
Our baseline
Our 2019 carbon footprint (used as our baseline)
was calculated in accordance with the
measurement requirements of the Carbon Trust
Standard and in accordance with the principles
of the World Resources Institute (WRI)/World
Business Council for Sustainable Development
(WBCSD) GHG Protocol.
In 2024, we updated our 2019 baseline for scope
3 emissions to reflect changes to methodologies
for emission categories 1, 4, 6, 7, 11. For
category 1 emissions (purchased goods and
services) we now calculate our baseline using
our quantity-based measurement methodology
(introduced in 2022 to replace a spend-based
methodology). This reduced our baseline
for purchased goods and services by 38%.
The other significant change was for emissions
category 7 (employee commuting) which
now includes emissions from subcontractors
commuting to our sites. This increased baseline
emissions from employee commuting by
478%. As a result of these changes, our
total 2019 baseline is now 21% lower than
previously reported.
1
Sectoral guidance for housebuilding had not been published when our targets were developed.
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Task Force on Climate-related Financial Disclosures continued
Measurement approach,
inputs and assumptions
We measure progress against our targets by
calculating emissions in accordance with the
Greenhouse Gas Protocol: A Corporate
Accounting and Reporting Standard (2004). We
use emission factors from the UK Government’s
GHG Conversion Factors for our corporate
reporting and data from Environmental Product
Declarations provided by our Group suppliers
where these are available and up to date.
The majority of our footprint is CO
2
but N
2
O
and CH
4
are included in conversion factors,
for example in relation to gas and diesel usage.
We currently exclude refrigerants (HFCs, PFCs,
SF
6
) from our footprint as these are not material
for our business.
More detail is included in the footnotes on
page 79. We also publish our carbon
reporting methodology on our website
www.taylorwimpey.co.uk/corporate/
sustainability
TCFD cross-sector metrics
Up to 100% of our business activities and
revenues are aligned with climate-related
opportunities in connection with the delivery
of low carbon, energy-efficient homes. Up to
100% of business activities may be impacted by
transition risks in relation to changing regulatory
requirements, low carbon homes and increasing
pressure on power generation and distribution
during the net zero transition.
The proportion of business activities vulnerable
to physical risks varies by impact. For example,
any site could be impacted by windstorms and
we estimate that around 42% of our plots are
built in areas of high water stress, based on
the WRI Water Risk Atlas tool, Aqueduct. Our
approach to mitigating physical risks is explained
on page 72.
The nature of our business means that our main
investment is in land. Our business model and
financial forecasts take account of the latest
regulatory requirements, including those directly
linked to reducing the impact of climate change,
to satisfy these regulations. While we do not
separately disclose the quantum of this
investment, it is embedded within our build costs
and land values reported in the financial
statements and included within the annual
budget and forecasting process. We believe
this incorporates all known significant
investments relating to the potential impacts
of climate change.
We do not currently set an internal carbon price.
Emissions data is included on page 75, 76 and
79 and information on remuneration on pages
150 and 151.
Industry-based metrics
In our Sustainability Summary, we report against
the criteria and metrics established by the
Sustainability Accounting Standards Board
(SASB) Standard for the Home Builders sector
(which are also included in the Industry-based
Guidance on Implementing IFRS S2).
We are active participants in the FHH, an industry
collaboration for the UK new homes sector, that
is working to deliver the targets established in
the Future Homes Delivery Plan – the UK
homebuilding sector’s climate and environment
plan. In 2024, our Sustainability Director chaired
the working group established to develop a
shared set of metrics on climate change and
sustainability performance for the industry.
Performance against targets is summarised
on pages 75 and 76 with more detail in
our Sustainability Summary 2024.
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Annual Report and Accounts 2024
74
Task Force on Climate-related Financial Disclosures continued
Progress against climate targets
Our climate targets
Progress
Link to TCFD
risks and opportunities
By 2045 we will reach net zero greenhouse gas emissions (scopes 1, 2 and 3)
across our value chain on a 2019 base year (comprising at least a 90% reduction
and neutralising residual emissions).
Our total footprint, including scope 3 emissions was 1,813,618 tCO
2
e (2023:
1,993,750). The reduction since 2023 reflects factors including sourcing of renewable
electricity, reduced use of diesel, the roll out of homes built to our latest specification,
a reduction in waste volumes, improvements in our methodology and changes to
some of the emissions factors used to calculate emissions. Absolute emissions were
41.0% lower than in 2019, however this also reflects the lower number of completions
in 2024 (around a third less than in 2019).
This target has been approved by the SBTi.
Policy and legal
Technology
Market and reputation
Physical
Operational emissions (scope 1 and 2)
36% reduction in operational carbon emissions intensity by 2025 from a 2019 baseline
(based on a reduction of 25.8% in absolute emissions against the base year) and reach
net zero emissions by 2035.
We have reduced operational carbon emissions intensity (scope 1 and 2) by 21.1%
against our baseline (2023: 5.0%) and absolute operational emissions by 47.1%
(2023: 35.3%). This reflects fewer completions in 2024 compared with 2019 as well
as the impact of carbon reduction measures such as our sourcing of renewable
electricity and a reduction in the use of diesel due to roll out of hybrid generators
and use of HVO.
This is one of the performance targets in our Revolving Credit Facility
(SLL – Sustainability Linked Loan) and is integrated into our performance
share plan and medium term incentive plan.
The emissions reduction element of this target has been approved by the SBTi.
Policy and legal
Technology
Market and reputation
Physical
SLL and incentive schemes
32% reduction in operational energy intensity for UK building sites by 2025.
Operational energy use intensity on UK building sites has increased by 11.3%
against our 2019 baseline (2023: 17.5%). This reflects the lower number of
completions compared with 2019 but continued energy use needed to run our
sites. Energy use intensity decreased year on year reflecting our focus on energy
efficiency. Absolute energy use reduced from 98,000 MWh in 2019 to 71,500 MWh
in 2024 (2023: 77,200 MWh).
Policy and legal
Technology
Purchase 100% REGO-backed green electricity for all new sites.
We purchased 100% REGO-backed renewable electricity for new sites during
construction, offices, show homes, sales areas and plots before sale. This equates
to 85% of purchased electricity in 2024 (2023: 79%).
Policy and legal
Technology
Market and reputation
50% reduction in car and grey fleet emissions by 2025.
We have reduced car and grey fleet emissions by 28.2% since 2019 (2023: 21.1%).
88% of vehicles in our fleet are now electric or hybrid (2023: 72%).
Policy and legal
Technology
Homes in use and supply chain emissions (scope 3)
By 2030 all our homes will be zero carbon ready (becoming truly net zero on
decarbonisation of the electricity grid).
We are rolling out homes built to our new specification in line with the updates to
Building Regulations Parts L and F. In England, these are, on average, 31% more
carbon efficient in use compared to our previous specification, with similar reductions
in Scotland and Wales. We will move towards zero carbon ready homes in England
and Wales following the introduction of the Future Homes Standard (expected later in
2025) and the New Build Heat Standard in Scotland (rolling out from 2024).
Policy and legal
Technology
Market and reputation
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Our climate targets
Progress
Link to TCFD
risks and opportunities
Reduce scope 3 emissions by 52.8% per 100 sqm of completed floor area from
a 2019 base year (based on a reduction of 46.2% in absolute emissions against the base year).
We have reduced scope 3 carbon emissions intensity by 7.6% compared with
2023 and by 12.0% against our baseline. Absolute scope 3 emissions decreased by
9.0% compared with 2023 and by 41.0% against our baseline. This reflects
improvements in the carbon efficiency of the homes we build, wider grid and supply
chain decarbonization, and improvements in our footprinting methodology.
This target has been approved by the SBTi.
Policy and legal
Technology
21% reduction in embodied carbon per home by 2030.
We are in the process of obtaining embodied carbon data from suppliers. This will
enable us to calculate an overall embodied carbon figure for a sample of our current
standard house types which will be used to inform future decision-making on
materials use and supplier engagement. The data we obtain will help us to report
progress against this target in future years.
Policy and legal
Technology
75% reduction in emissions from customer homes in use by 2030.
We are developing our measurement systems to enable us to report progress
against this target. Emissions from scope 3 category 11 (use of sold products)
reduced by 16.9% compared with 2023, which reflects the roll out of homes built to
our latest specification which is more carbon efficient.
Policy and legal
Technology
Market and reputation
SLL
Adaptation and beyond our value chain
Make it easier for 40,000 customers to work from home and enable more sustainable transport
choices through 36,000 EV charging points and 3,000 additional bike stands by the mid 2020s.
We have installed over 7,500 EV charging points since 2021 (2023: c.4,000).
Around 3,400 homes have included a study in their floorplan since 2021.
Technology
Market and reputation
Cut our waste intensity by 15% by 2025 and use more recycled materials
1
.
Our waste intensity has reduced by 14.4% against our 2019 baseline, and 22.1%
compared with 2023. Total waste volumes decreased year-on-year and by 44.7%
against our baseline. The decrease year-on-year reflects work to engage our site
teams on waste and to encourage reuse of inert waste on site. The decrease since
2019 also reflects the lower number of completions in 2024 compared with our
baseline year. 98% of construction waste was diverted from landfill (2023: 98%).
At the time of publication, our waste data and diversion from landfill figure was
undergoing verification by the Carbon Trust. We will publish the final audited
figures on our website on completion of this process which could differ from those
reported here.
Policy and legal
SLL
Reduce operational mains water intensity by 10% from a 2019 baseline by 2025.
Water consumption has reduced by 31% since 2019 (2023: 28%); however, water
intensity has increased by 7% over the same period (2023: 9%). We believe the
increase in intensity reflects the lower number of completions relative to 2019.
While we completed fewer homes we continued to use water for activities such
as dust suppression and in our offices and site compounds.
Physical
1
This target previously included a commitment to publish a ‘towards zero waste’ strategy for our sites by 2022. We met this part of the target in 2023 and therefore no longer report progress against it.
Task Force on Climate-related Financial Disclosures continued
Taylor Wimpey plc
Annual Report and Accounts 2024
76
Task Force on Climate-related Financial Disclosures continued
Implementing the TCFD recommendations – progress to date
TCFD recommendation
Progress to date
Next steps
Governance
Disclose the organisation’s
governance around climate-
related risks and opportunities.
Describe the board’s oversight of
climate-related risks and opportunities.
We have established and disclosed responsibility for climate risks at Board level. Principal and
emerging risks, including those related to climate change, are reviewed and approved twice
a year by the Audit Committee and Board and inform strategic planning and business decision
making. Read more on pages 82 to 84.
To further embed climate risks into
business planning and decision
making processes.
Describe management’s role in assessing
and managing climate-related risks
and opportunities.
We have established and disclosed responsibility for climate risks at Executive, Director and
operational level, pages 67 and 68. A carbon reduction target was included in the incentive plans
for senior management and regional management in 2024, page 149. Climate change is included
in the Principal Risk ‘Natural resources and climate change’. Read more on page 89.
A carbon reduction target will be included
in senior and regional management
incentive plans again in 2025. We keep our
governance and operationalisation of our
climate-related risks and opportunities
under review and update them as needed.
Strategy
Disclose the actual and potential
impacts of climate-related risks
and opportunities on the
organisation’s businesses,
strategy, and financial planning
where such information
is material.
Describe the climate-related risks and
opportunities the organisation has
identified over the short, medium,
and long term.
The tables on pages 69 to 72 include the risks and opportunities we have identified including
through our climate scenario analysis. Transition risks were assessed in the short and medium
term in a 1.5°C scenario and physical risks in the medium and long term.
There remains considerable uncertainty
about the physical and transition impacts
of climate change so we will undertake
regular scenario analysis.
Describe the impact of climate-related
risks and opportunities on the
organisation’s businesses, strategy,
and financial planning.
We used the findings of our scenario analysis, summarised on pages 66, to enhance
our understanding of the impact of climate risks on financial planning and business strategy.
We have quantified some potential impacts and the costs of our net zero commitment to support
our financial planning though we do not currently disclose these figures.
We will undertake further analysis to
quantify the potential impacts of climate
change on the business, strategy and
financial planning and look to increase
our disclosure in this area.
Describe the resilience of the
organisation’s strategy, taking into
consideration different climate-related
scenarios, including a 2°C or
lower scenario.
Our scenario analysis explored the resilience of our strategy to a 1.5°C scenario (transition risks)
and 1.5°C and 4°C scenarios (physical risks). The findings are summarised on pages 66.
Our Net Zero Transition Plan outlines how we will decarbonise our business up to 2045, page 61.
We aim to update our Net Zero Transition
Plan every three years. We will undertake
regular scenario analysis.
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Task Force on Climate-related Financial Disclosures continued
TCFD recommendation
Progress to date
Next steps
Risk management
Disclose how the organisation
identifies, assesses, and
manages climate-related risks.
Describe the organisation’s processes
for identifying and assessing climate-
related risks.
This process is outlined in risk management on pages 67 and 68 and in Principal Risks and
uncertainties on page 89. We have linked our climate targets to the risks and opportunities set out
by TCFD, pages 75 and 76. The top-down review of key, Principal and emerging risks by our GMT
considers their relative significance to the business, including climate-related risks.
We will continue to further strengthen
our risk processes in relation to
climate change.
Describe the organisation’s processes
for managing climate-related risks.
This process is outlined in risk management on pages 67 and 68 and in Principal Risks and
uncertainties on page 89. We have linked our climate targets to the risks and opportunities
as set out by TCFD on pages 75 and 76. Planned key actions are outlined in our Net Zero
Transition Plan.
Continue to further strengthen our risk
processes in relation to climate change.
Describe how processes for identifying,
assessing, and managing climate-related
risks are integrated into the organisation’s
overall risk management.
Climate change is fully integrated into our top-down and bottom-up risk management process.
It is included within the Principal Risk ‘Natural resources and climate change’ which is monitored
by the Audit Committee and senior management, to assess its impact on the Group’s strategic
objectives and ensure appropriate mitigations. Read more on pages 67, 68 and 89. Our scenario
analysis findings were used to develop our transition plan which informs our business strategy.
We will continue to monitor and evaluate
climate risks and further enhance our
approach as appropriate.
Metrics and targets
Disclose the metrics and targets
used to assess and manage
relevant climate-related risks
and opportunities where such
information is material.
Disclose the metrics used by the
organisation to assess climate-related risks
and opportunities in line with its strategy
and risk management process.
We publish a range of performance data and performance measures to support our Environment
Strategy and Net Zero Transition Plan, including our targets on page 61 and 75 to 76. We report
against several of the cross-industry metric categories recommended by TCFD, page. Industry
specific metrics are included in the SASB Index in our Sustainability Summary.
We keep our climate reporting under
review and will develop additional metrics
where needed to support disclosure to
investors and other stakeholders. We will
review the potential for including financial
metrics in future reports.
Disclose Scope 1, Scope 2, and, if
appropriate, Scope 3 greenhouse gas
(GHG) emissions, and the related risks.
We disclose emissions data for scopes 1, 2 and 3 on page 79.
We are committed to continuous
improvement in our data processes and
data quality.
Describe the targets used by the
organisation to manage climate-related
risks and opportunities and performance
against targets.
Our net zero target (2045), scope 1 and 2 target (2025) and scope 3 target (2030) are all
SBTi-validated. We have supporting targets in areas such as energy and resource-efficiency, the
carbon performance of our homes in use and embodied carbon. Read more on pages 75 and 76.
We disclose progress against targets
yearly. We keep our climate targets under
review and update our SBTi validated
targets at least every five years in line with
SBTi requirements.
For our SASB disclosure please see our Sustainability Summary 2024.
Taylor Wimpey plc
Annual Report and Accounts 2024
78
Task Force on Climate-related Financial Disclosures continued
Greenhouse gas emissions (tonnes of CO
2
e) and energy use (MWh)
2024
2023
2022
2021
2019 baseline
Scope 1 and 2 emissions
Scope 1 GHG emissions – combustion of fuel
tonnes CO
2
e
11,787
14,275
15,975
17,464
21,018
Scope 2 GHG emissions – market based
tonnes CO
2
e
1,218
1,628
2,331
2,272
3,563
Scope 2 GHG emissions – location based
tonnes CO
2
e
5,078
4,649
4,279
5,406
6,172
Total scopes 1 and 2 – market based
tonnes CO
2
e
13,005
15,902
18,306
19,736
24,581
Emissions per 100 sqm completed homes (scope 1 and 2)
tonnes CO
2
e/100 sqm
1.27
1.53
1.37
1.41
1.62
Total scope 3 emissions**
tonnes CO
2
e
1,800,612
1,977,848
§
2,519,102
2,383,398
3,051,378
Purchased goods and services
tonnes CO
2
e
884,166
908,238
§
1,309,017
1,122,678
1,400,568
Waste generated in operations
tonnes CO
2
e
11,911
18,294
15,089
15,446
17,550
Business travel
tonnes CO
2
e
2,023
2,087
1,553
1,438
2,647
Fuel and energy related activities
tonnes CO
2
e
4,440
4,591
4,886
5,802
5,677
Downstream leased assets
tonnes CO
2
e
6,816
7,008
6,399
6,592
2,656
Use of sold products
tonnes CO
2
e
760,145
914,417
1,044,293
1,106,062
1,404,544
Upstream transport and distribution
tonnes CO
2
e
53,434
46,064
34,351
31,044
62,283
End of life treatment of sold products
tonnes CO
2
e
20,366
24,627
29,166
29,210
33,798
Employee commuting
tonnes CO
2
e
57,312
52,521
74,348
65,125
121,655
Emissions per 100 sqm completed homes (scope 1, 2 and 3)
tonnes CO
2
e/100 sqm
178
192
§
190
172
202
Total scope 3 emissions (previous methodology)**
tonnes CO
2
e
–
–
–
2,632,421
3,869,583
Energy use
Operational energy use (fuel and electricity consumption from sites, offices and fleet)
MWh
79,904
85,741
92,312
104,870
116,207
Operational energy intensity (site and office fuel and electricity intensity – MWh/100 sqm)
MWh/100 sqm
7.83
8.27
6.9
7.5
7.6
Our carbon and energy use data is externally assured by Carbon Trust Assurance to a limited assurance level. Our scope 1 and 2
footprint, and three selected scope 3 categories (Purchased Goods and Services, Fuel and Energy-related Activities and Use of
Sold Products) are verified to ISO 14064.
Data is provided as tonnes of carbon dioxide equivalent (tCO
2
e) for all operations. Scopes 1 and 2 emissions are from our sites, offices,
show homes and sales areas, plots before sale, car fleet, logistics and manufacturing facilities and other infrastructure such as feeder
stations and streetlights where these have remained unadopted. We have used the GHG Protocol Corporate Accounting and Reporting
Standard (revised edition) for data gathered to fulfil our requirements under the Mandatory Carbon Reporting (MCR) requirements, and
emission factors from the Government’s GHG Conversion Factors for our corporate reporting. We use the market-based method of the
revised version of the GHG Protocol scope 2 Guidance for calculating our scope 2 emissions. We also disclose scope 2 emissions
calculated using the location-based method. This reporting meets the SECR (Streamlined Energy and Carbon Reporting) requirements.
We have reported on the emissions sources required under the Companies Act 2006 (Strategic Report and Directors’ Reports)
Regulations 2013 apart from the exclusions noted below. The reported sources fall within our Consolidated Financial Statements and
are for emissions over which we have financial control. We do not have responsibility for any emissions sources that are not included
in our consolidated statement. The following sources of emissions were excluded or part-excluded from this report:
1. Fugitive emissions (refrigerant gases): excluded on the basis of expected immateriality and difficulty in acquiring data.
2. Gas and electricity of part-exchange properties: excluded on the basis of immateriality due to very few completions of this type.
3. Certain emissions from District Heating Schemes: where we are receiving a rebate from customers prior to handover to
the long term operator.
Biogenic emissions from our use of HVO are outside our scope 1, 2 and 3 footprint. These accounted for an additional
316.67 tCO
2
e in 2024.
For more detail on our footprint, see our Carbon Reporting Methodology Statement at
www.taylorwimpey.co.uk/corporate/sustainability/our-planet/climate-change-and-net-zero for more detail.
**
Scope 3 emissions
We report on nine of the 15 scope 3 categories identified in the GHG Protocol. The remaining six categories are not material to our
business. In 2022, we developed a more accurate methodology for measuring scope 3 supply chain emissions (Purchased Goods
and Services), using a combination of quantity-based data (drawing on data on the quantity of materials purchased and emissions
data from environmental product declarations) as well as spend data. Our previous methodology relied on spend data only. We have
updated our baseline 2019 scope 3 footprint using the new methodology. For transparency, we continue to report scope 3 emissions
prior to 2021 using our previous methodology. Our scope 3 methodology is published on our website at www.taylorwimpey.co.uk/
corporate/sustainability/our-planet/climate-change-and-net-zero.
§
This figure has been restated to reflect a change to the methodology used to calculate emissions from purchased goods and services.
This relates to the conversion factors used to calculate emissions from concrete, which was updated based on advice from the
Carbon Trust.
Energy data and energy efficiency measures
The energy consumption figure in the table is a Group figure. 98.1% of this total energy consumption is from the UK and offshore areas
and 1.9% from Spain. 97.6% of total scope 1 and scope 2 emissions are from the UK and offshore areas and 2.4% from Spain.
During the last year, we have worked to reduce energy and emissions. Actions include: mandating hybrid generators on new sites
from April 2024; our purchase of green tariff electricity for sites during construction; using our Energy Dos and Don’ts Guide; setting
energy use targets for each regional business and integrating carbon reduction targets into our PSP and MTIP schemes; and our
Sustainability Champions working with Site Managers to increase the use of natural ventilation methods for drying out homes and
checking thermostats in show homes to ensure heating is only used when necessary.
Based on advice from the Carbon Trust we updated our methodology for calculating emissions in relation to some joint ventures,
joint projects and central London sites from 2023 onwards. Under the previous methodology the operational intensity figure for
2023 would be 1.56 tonnes CO
2
e/100 sqm completed build.
79
Strategic report
Directors’ report
Financial statements
Shareholder information
Non-financial and sustainability information statement
The following table constitutes our Non-Financial and Sustainability Information Statement in compliance with Sections 414CA and 414CB of the Companies Act 2006. The information listed is included by
cross-reference. Further non-financial Information is available in our Sustainability Summary and on our website.
Reporting requirement and
key performance information
Relevant policies
Read more on pages
Environmental matters
• 47% reduction in direct carbon emissions
since 2019 (2023: 35%)
• 98% of construction waste diverted from landfill
(2023: 98%)
• 5.5k wildlife enhancements installed on our sites
since 2021 (2023: 3.5k)
• 1,624
A
homes built using timber frame in 2024
(2023: 1,661)
Environment Policy –
Outlines our commitment to the environment and incorporates our policies on
climate change, nature, waste and resources, sustainable timber and water
Health Safety and Environmental (HSE) Policy –
Outlines our ongoing commitment to continual
improvement of our HSE performance
Supply Chain Policy –
Sets out our commitment to work with trusted partners and ensure our homes
are built using carefully sourced materials
More information can be found within:
Performance against our strategic
cornerstones – Sustainability
45 to 47
Our commitment to the environment
60 to 62
TCFD
63 to 79
Related Principal Risks:
H: Natural resources and climate change
G: Health, safety and environment
Climate-related financial disclosures
• Reported against the recommendations of the
Task Force on Climate-related Financial Disclosures
(TCFD) and IFRS Sustainability Disclosure
Standard 2 criteria
Environment Policy
More information can be found within:
TCFD
63 to 79
Related Principal Risks:
H: Natural resources and climate change
Employees
• 26%
A
female representation in GMT and
direct reports (2023: 28%)
• 6.9%
A
ethnic representation in GMT and
direct reports (2023: 6.9%)
• 96% of employees feel proud to work for
Taylor Wimpey (2023: 96%)
•
96% of employees feel that they can be themselves
at work (2023: 95%)
Equality, Diversity and Inclusion Policy –
Outlines our commitment to create an inclusive
workplace and a workforce that reflects the diversity of the communities in which we operate
Grievance and Harassment Policy –
Ensures that any reports are investigated and
addressed appropriately
More information can be found within:
Building for our people
55 to 57
Stakeholder engagement and
Section 172 (1) statement
98
Engaging with our employees
113 to 114
Related Principal Risks:
D: Attract and retain high-calibre employees
Human rights
• Continue to train employees to identify signs
of modern slavery and human trafficking for
which we operate a zero tolerance policy
Anti-Slavery, Human Trafficking and Human Rights Policy –
The measures we uphold to
safeguard against modern slavery
Supplier Code of Conduct –
The principles that our suppliers, contractors and business partners are
required to adhere to in ensuring human rights are respected and modern slavery is not taking place
Supply Chain Policy
More information can be found within:
Building for our people
55 to 57
Stakeholder engagement and
Section 172 (1) statement
98
Related Principal Risks:
A: Government policies, regulations and planning
C: Availability and costs of materials and subcontractors
A
This metric was subject to external independent limited assurance by PricewaterhouseCoopers LLP (‘PwC’). For further information please see page 58.
Taylor Wimpey plc
Annual Report and Accounts 2024
80
Non-financial and sustainability information statement continued
Reporting requirement and
key performance information
Relevant policies
Read more on pages
Social matters
• Contributed £345 million to communities via our
planning obligations (2023: £405m)
• In 2024, around 22% of our UK completions
were designated affordable (2023: 23%)
Community Policy –
Outlines our commitment to be a responsible homebuilder, building homes and
communities that enhance the local area to meet the needs of new and existing residents
Donations Policy –
Our approach to making charitable donations and our policy not to make
political donations
Charity and Community Support Policy –
Our commitment to supporting charities and local
community groups in the areas we operate
More information can be found within:
Building for our customers
52 to 54
Stakeholder engagement and
Section 172 (1) statement
97
Related Principal Risks:
B: Mortgage availability and housing demand
Anti-bribery and anti-corruption
• Continue to train our employees and raise
awareness of the procedures in place
• Strict rules in relation to recording, giving or
receiving of gifts
Anti-Corruption Policy –
Our approach to combat risks of bribery, including the key principles
employees should follow
Fraud Mitigation and Response Policy –
This policy formalises the Company’s attitude to fraud and
its response to instances, or allegations, of fraud against its employees or third parties
Whistleblowing Protected Disclosure Policy –
Includes the procedures to be followed in making
a disclosure of wrongdoing within the Company or related to its business
More information can be found within:
Board leadership
117
Related Principal Risks:
A: Government policies, regulations and planning
Business model
• c.10.1k new homes completed for customers
in the UK in 2024, including joint ventures
(2023: c.10.4k)
• Strong short term landbank of c.79k plots,
as at 31 December 2024 (2023: c.80k)
Community Policy
Environment Policy
Customer Service Policy –
Our approach and commitments to provide excellent customer service
More information can be found within:
Business model
20 to 29
Related Principal Risks:
E: Land availability
Non-financial KPIs
•
Achieved a recommend score of 96% in the HBF
8-week survey which equates to a five-star rating
(2023: 92%)
• Our Annual Injury Incidence Rate (per 100,000
employees and contractors) was 212
A
in 2024
(2023: 151)
Customer Service Policy
Health Safety and Environmental Policy
Communications and Investor Relations Policy –
Sets out our commitment to conduct clear,
open and accurate communication with all of the Company’s stakeholder groups
More information can be found within:
Performance against our
strategic cornerstones
39 to 47
Stakeholder engagement and
Section 172 (1) statement
97 to 99
Monitoring our culture
115
Related Principal Risks:
F: Quality and reputation
G: Health, safety and environment
A
This metric was subject to external independent limited assurance by PricewaterhouseCoopers LLP (‘PwC’). For further information please see page 58.
81
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Financial statements
Shareholder information
Governance
The Board has overall responsibility for risk
oversight, for maintaining a robust risk
management and internal control system,
and for determining the Group’s appetite and
tolerance for exposure to the Principal Risks
to the achievement of its strategy.
The Audit Committee supports the Board in
the management of risk and is responsible
for reviewing the effectiveness of the risk
management and internal control processes
during the year.
The Board recognises the importance of
identifying and actively monitoring our strategic,
reputational, financial and operational risks,
and other longer term threats, trends and
challenges facing the business.
The Board takes a proactive approach to the
management of these and regularly reviews
both internal and external factors to identify
and assess the impact on the business and
in turn identify the Principal Risks that would
impact delivery of the Group strategy.
The Chief Executive is primarily responsible for
the management of the risks, with the support of
the Group Management Team (GMT) and other
senior managers located in the business. In line
with the 2018 UK Corporate Governance Code,
the Board holds formal risk reviews, at least half
yearly, and routinely considers risk at each Board
meeting as appropriate.
The formal assessment includes a robust
consideration of the Principal Risks, to ensure
they remain appropriate, a review of the key risks
identified by the business, their risk profiles and
mitigating factors, and an annual review of the
established risk appetite and tolerance levels.
At the Board meeting in February 2025, the
Board completed its annual assessment of risks.
This followed the Audit Committee’s formal
assessment of risks in December 2024, which
was supported by a detailed risk assessment by
the GMT and its review of the effectiveness of
internal controls in mitigating the risks. The
diagram on page 83 illustrates our approach
to risk management.
Identification of risks
Our risk management and internal control
frameworks define the procedures to manage
and mitigate risks facing the business, rather than
eliminate risk altogether, and can only provide
reasonable and not absolute assurance against
material misstatement or loss.
Identifying risks is a continual process and risk
registers are maintained throughout the Group at
an individual site level, at the regional business
level and at Group-wide functional levels.
The regional business and functional registers are
reviewed twice a year as part of our formal risk
assessment process. In determining the risk,
consideration is given to both internal and
external factors.
The registers document both the inherent
risks before consideration of any mitigations
and residual risks after consideration of
effective mitigations.
A consolidated view of the risk environment,
including potential emerging risks, is discussed,
challenged and approved by the GMT and
Audit Committee before being presented to the
Board. This ensures all significant risks known
to the Group are being actively monitored and
appropriate mitigations/actions are in place to
ensure each risk falls within the tolerance set by
the Board.
As with any business,
Taylor Wimpey faces
risks and uncertainties
in the course of
its operations.
It is only by timely
identification, effective
management and
monitoring of these
risks that we are able
to deliver our strategy.
Taylor Wimpey plc
Annual Report and Accounts 2024
82
Risk management
Risk management process
Our risk management approach involves a top-down review of risks by senior management and
the Board, combined with a bottom-up review by each Group function and regional business.
•
Sets the ‘tone from the top’, defining our risk awareness, culture and appetite and overseeing
processes designed to ensure compliance
•
Responsible for ensuring sound risk management and internal control systems are in place and
ongoing monitoring of suitability and performance
•
Approves the bi-annual risk assessment of the key, Principal and emerging risks
•
Prepares and reviews individual regional business unit and Group functions risk submissions,
in accordance with the risk management process
•
Ensures that appropriate resources have been assigned to meet the requirements, and that roles
and responsibilities have been clearly defined
•
Defines the level of residual risk acceptable to the regional business unit or Group function
•
Ensures that appropriate monitoring is in place to provide an early warning mechanism for
increasing risk levels
•
Ensures that appropriate action plans are defined and reviewed to reduce risk to the target levels
• Reviews the risk management and internal control systems
•
Reviews and approves the statements to be included in the Annual Report and Accounts
concerning internal control and risk management
•
Reviews the bi-annual risk assessment output and the key, Principal and emerging risks
•
At least bi-annually reviews and debates the consolidated risk management output
• Reviews the key, Principal and emerging risks
•
Takes appropriate action to improve the management of risk
Board
Regional businesses and Group functions
Audit Committee
GMT
Top Down
Bottom Up
Risk management continued
Evaluation of risks
A risk scoring matrix is used to ensure risks are
evaluated on a consistent basis. Our matrix
considers likelihood based on probability of
occurrence and impact based on financial,
reputational, customer, health and safety,
employees, environmental, operational, legal and
regulatory and IT perspectives, to help determine
those risks that are considered to be key in
delivering our strategy. Key risks are defined as
those with a residual score equal to or greater
than 12 and these are reviewed and monitored
by the Board as part of our bi-annual risk
assessment process.
Each risk is evaluated at the inherent and residual
levels, with consideration given to the target risk
based on our risk appetite and tolerance levels.
All identified risks are aligned to our Principal
Risks to help validate the continuance of such or
the identification of potential new Principal Risks.
Report
Monitor
Mitigate
Assess
Identify
83
Strategic report
Directors’ report
Financial statements
Shareholder information
Risk management continued
Management of risks
Ownership and management of the Principal,
key and emerging risks is assigned to members
of the GMT or senior management as
appropriate. They are responsible for reviewing
the operating effectiveness of the internal control
systems, for considering and implementing risk
mitigation plans and for the ongoing review and
monitoring of the identified risk. This includes
the monitoring of progress against agreed
KPIs as an integral part of the business process
and core activities.
Risk appetite and tolerance
The risk appetite and tolerance levels for the
Group are set by the Board. In setting these,
the Board has considered the expectations of
its shareholders and other stakeholders and
recognises the distinction between those risks
we can actively manage, for example around our
landbank, and those against which the Group
would need to be responsive as and when
they became known, for example transitional
arrangements for changes to building regulations.
As part of the risk management process, the risk
appetite and tolerance levels were reviewed and
approved by the Board in December 2024 to
ensure they were still appropriate in the current
operating climate. The conclusion was reached
that no changes were required and that they
represented an appropriate level of risk
acceptance for the Group.
Approved risk appetite levels for each of our
Principal Risks are detailed in the Principal Risk
tables on pages 86 to 90. The residual risk
ratings of all our Principal Risks continue to
be within their respective established risk
tolerance levels.
Emerging risks
Emerging risks are defined as those where
the extent and implications are not yet fully
understood, with consideration given to the
potential time frame of occurrence and velocity
of impact that these could have on the Group.
As part of our risk management process, these
are identified, monitored and reviewed on an
ongoing basis and discussed with and agreed
by the Board.
Our emerging risks are grouped into the
categories listed in the table below, which also
contains some narrative description against
each category indicating example focus areas
into which the identified emerging risks fall.
Specific risk areas other
than Principal Risks
The Group considers other specific risk areas,
recognising the increasing complexity of the
industry in which it operates, and which are
in addition to its identified Principal Risks.
We continue to monitor and mitigate the impacts
on our supply chain and labour force and the
overall economic market impacting mortgage
availability and demand.
Housing and fire safety still remain high on
the agendas of the Government and the main
political parties, with the sector continuing to
face scrutiny and pressure from social media and
pressure groups, together with greater oversight
from the Government through a single New
Homes Ombudsman. We endeavour to deliver
both the letter and the spirit of regulations and
maintain this same ethos in our relationships
with our customers.
Emerging risks
Category
Example focus area
Environmental/climate
Unpredictable weather patterns
Operational/build
Adaptation of building methodologies
Political/economic
Geopolitical uncertainty
Social
Customer demographics and preferences
Governmental
Changing Government policies
AI and the future
The rapidly increasing use and availability of
AI presents both significant opportunities and
threats. As we embrace it, we remain conscious
of the need to proactively manage both these
elements, in order to realise benefits, while effectively
managing any risks.
AI and its applications are now at the forefront of our
technological roadmap. A series of workshops on
AI were held throughout 2024 to obtain input from
across the Group, covering all functions and with
senior management engagement. These included a
Group function-wide ‘envisioning’ workshop looking
at potential opportunities to improve or simplify our
processes, identify innovative solutions and enhance
our customer experience and a GMT workshop,
beginning to look at AI from a strategic standpoint.
Recognising both the benefits and threats AI
can bring, it will continue to have a high focus
throughout 2025, as we look to deploy in areas
that will deliver the biggest benefits to us,
ensuring alignment to our strategic cornerstones.
To help achieve this, further engagements and
workshops will be held.
Taylor Wimpey plc
Annual Report and Accounts 2024
84
Principal Risks overview
The table to the right summarises the Group’s
Principal Risks and uncertainties, showing how
each links to our corporate values, strategic
cornerstones and our material impacts, which are
detailed on page 59. Control of each of these
Principal Risks is critical to the ongoing success
of the business. As such, their management is
primarily the responsibility of the Chief Executive
and the GMT, together with the roles noted in
the Principal Risks tables on pages 86 to 90.
During the year, one of our Principal Risks
(‘Mortgage availability and housing demand’) saw
an increase in its inherent and residual profiles,
primarily due to a new key risk being identified
around availability of funding for affordable
housing, impacting demand.
In addition, the previously named ‘Cyber security’
Principal Risk has been renamed ‘IT environment
and security’, although there is no change to
the coverage of the risk.
The Board has finalised its assessment of these
risks and of any changes to the residual risk
profile during the year.
Category
Risk change in year
Our values
Strategic
cornerstones
Material
impacts
Inherent
risk change
in year
Residual
risk change
in year
A
Government policies, regulations and planning
B
Mortgage availability and housing demand
C
Availability and costs of materials and subcontractors
D
Attract and retain high-calibre employees
E
Land availability
F
Quality and reputation
G
Health, safety and environment
H
Natural resources and climate change
I
IT environment and security
Principal Risks heat map
The heat map opposite illustrates the
relative inherent and residual positioning
of our Principal Risks from an impact
and likelihood perspective. Further
information on our Principal Risks is
detailed in the Principal Risk tables
on pages 86 to 90.
Key
Inherent
Residual
Key to our values
Respectful and fair
Take responsibility
Better tomorrow
Be proud
Key to our strategic
cornerstones
Land
Operational
excellence
Sustainability
Capital allocation
Key to risk change
Increased risk
No change
Decreased risk
Key to material
impacts
Our homes
and places
Our people
and suppliers
Our planet
Responsible and
resilient business
Low
Likelihood
High
Low
Impact
High
C
H
I
A
B
F
D
G
E
H
A
I
C
F
B
E
D
G
Principal Risks and uncertainties
85
Strategic report
Directors’ report
Financial statements
Shareholder information
Key to our strategic cornerstones
Land
Operational excellence
Sustainability
Capital allocation
Key to our values
Respectful and fair
Take responsibility
Better tomorrow
Be proud
Key to risk change
Increased risk
No change
Decreased risk
Description
Key mitigations
Example risk indicators
Opportunities
Link to material
impacts
Accountability
A
Government policies, regulations and planning
The industry in which we operate is becoming
increasingly regulated. Failure to adhere to
government regulations could impact our
operational performance and our ability to
meet our strategic objectives.
Changes to the planning system or planning
delays could result in missed opportunities to
optimise our landbank, affecting profitability
and production delivery.
Inherent risk
change in year
Residual risk
change in year
Residual rating
Moderate
Risk appetite
Low
Link to values
Link to strategic
cornerstones
• Research conducted to update technical
specification of our new house type range, in
preparation for the Future Homes Standard (FHS),
including a trial of five FHS-compliant plots
• Consultation with government agencies
• Cladding fire safety remediation and signing of the
Government’s Building Safety Pledge for Developers
• Engagement with national and local government
• Working with HBF and other stakeholders
• Member of Future Homes Hub
• New government
regulations (e.g. around
planning and climate)
• Delays in planning
• Sentiment towards the
industry (e.g. cladding fire
safety remediation)
• To build enhanced
collaborative networks
with stakeholders
and peers, to monitor
the implications of
regulatory change
• Lead the business in
addressing pressing
environmental issues,
including reducing our
carbon footprint and
targeting biodiversity
Our planet
Responsible and
resilient business
• Group Technical Director
• Director of Planning
• Regional Managing
Directors
B
Mortgage availability and housing demand
A decline in the economic environment,
driven by sustained growth in interest rates,
increased cost of living, low wage inflation
or increasing levels of unemployment, could
result in tightened mortgage availability and
challenge mortgage affordability for our
customers, resulting in a direct impact on
our volume targets.
Inherent risk
change in year
Residual risk
change in year
Residual rating
Moderate
Risk appetite
Low
Link to values
Link to strategic
cornerstones
• Increase outlets to provide greater customer
choice and flexibility to respond quickly to changing
market conditions
• Review of pricing and incentives offered
• Monitor external market data (e.g. HBF and
mortgage lenders)
• Strong relationships with mainstream lenders
• Work with financial services industry to ensure
customers receive appropriate advice on
mortgage products
• Interest rate increases
• Levels of unemployment
• Volume of enquiries/people
visiting our developments
• UK household spending/
levels of disposable income
• Loan to value metrics
• Number and value of
bids from affordable
housing providers
• To continue to develop
strong working
relationships with
established mainstream
lenders and those wishing
to increase volume in
the new build market
Our homes
and places
Responsible and
resilient business
• UK Sales and
Marketing Director
• Regional Sales and
Marketing Directors
Principal Risks and uncertainties continued
Taylor Wimpey plc
Annual Report and Accounts 2024
86
Description
Key mitigations
Example risk indicators
Opportunities
Link to material
impacts
Accountability
C
Availability and costs of materials and subcontractors
Increase in housing demand and production
or a breakdown within the supply chain
may further strain the availability of skilled
subcontractors and materials and put pressure
on utility firms to keep up with the pace of
installation, resulting in increased costs
and construction delays.
Inherent risk
change in year
Residual risk
change in year
Residual rating
Moderate
Risk appetite
Low-moderate
Link to values
Link to strategic
cornerstones
• Central procurement and key supplier agreements
• Supplier and subcontractor relationships
• Disaster recovery and business continuity plans
with all key suppliers
• Buffer stock with key suppliers
• Contingency plans for critical path products
• Direct trade and apprenticeship programmes
• Key commodity risk assessment matrix
• Regular checks on all key suppliers
• Monitoring of the supply chain
• Material and trade
shortages
• Material and trade
price increases
• Level of build quality and
waste produced from sites
• Longer build times
• Number of skilled trades
• To develop and implement
different build methods
as alternatives to
conventional brick
and block
Our people
and suppliers
• Supply Chain Director
• Procurement Director
• Group Commercial
Director
D
Attract and retain high-calibre employees
An inability to attract, develop, motivate
and retain high-calibre employees, together
with a failure to consider the retention and
succession of key management, could result
in a failure to deliver our strategic objectives,
a loss of corporate knowledge and a loss
of competitive advantage.
Inherent risk
change in year
Residual risk
change in year
Residual rating
Low
Risk appetite
Moderate
Link to values
Link to strategic
cornerstones
• Production Academy and Production Manager
succession development programme
• Schools outreach strategy
• Collaboration with major organisations on
a sector skills plan
• Graduate and apprenticeship programmes
• Management training
• Enhanced remote working procedures
• Educational masterclasses
• Salary benchmarking
• Employee engagement
score
• Number of, and time
to fill, vacancies
• Employee turnover levels
• To further develop
in-house capability,
expertise and knowledge
Our people
and suppliers
• Group HR Director
• Every employee
managing people
Principal Risks and uncertainties continued
Key to our strategic cornerstones
Land
Operational excellence
Sustainability
Capital allocation
Key to our values
Respectful and fair
Take responsibility
Better tomorrow
Be proud
Key to risk change
Increased risk
No change
Decreased risk
87
Strategic report
Directors’ report
Financial statements
Shareholder information
Description
Key mitigations
Example risk indicators
Opportunities
Link to material
impacts
Accountability
E
Land availability
An inability to secure land at an appropriate
cost, the purchase of land of poor quality or
in the wrong location, or the incorrect timing
of land purchases in relation to the economic
cycle could impact future profitability.
Inherent risk
change in year
Residual risk
change in year
Residual rating
Low
Risk appetite
Moderate
Link to values
Link to strategic
cornerstones
• Critically assess opportunities
• Land quality framework
• Engagement with national and local government
• Review of land portfolio
• Obtaining specialist environmental and legal advice
• Movement in landbank years
• Number of land approvals
• Timing of conversions from
strategically sourced land
• A strong balance sheet
allows us to invest when
land market conditions
are attractive
Our homes
and places
• Divisional Chairs
• Group Land Director
• Regional Managing
Directors
• Regional Land and
Planning Directors
• Managing Director
Group Strategic Land
F
Quality and reputation
The quality of our products is key to our
strategic objective of being a customer-focused
business and in ensuring that we do things
right first time.
If the Group fails to deliver against these
standards and its wider development
obligations, it could be exposed to reputational
damage, as well as reduced sales and
increased costs.
Inherent risk
change in year
Residual risk
change in year
Residual rating
Moderate
Risk appetite
Low
Link to values
Link to strategic
cornerstones
• Customer-ready Home Quality Inspection
• Consistent Quality Approach
• Quality Managers in the business
• Customer-driven strategy
• Enhanced data analytics
• Ombudsman readiness
• Customer satisfaction
scores (8-week and
9-month)
• Number of NHBC claims
• Construction Quality
Review (CQR) scores
• Average reportable items
per inspection found
during NHBC inspections
at key stages of the build
• To better understand the
needs of our customers,
enabling increased
transparency of our
build profile
• To lead the industry in
quality standards (our
CQR score) and reduce
the number of reportable
items identified through
monitoring defects at
every stage of build
Our homes
and places
Responsible and
resilient business
• Customer Director
• UK Head of Production
• Director of Design
Principal Risks and uncertainties continued
Key to our strategic cornerstones
Land
Operational excellence
Sustainability
Capital allocation
Key to our values
Respectful and fair
Take responsibility
Better tomorrow
Be proud
Key to risk change
Increased risk
No change
Decreased risk
Taylor Wimpey plc
Annual Report and Accounts 2024
88
Description
Key mitigations
Example risk indicators
Opportunities
Link to material
impacts
Accountability
G
Health, safety and environment
The health and safety of all our employees,
subcontractors, visitors and customers is of
paramount importance. Failure to implement
and monitor our stringent health, safety and
environment (HSE) procedures and policies
across all parts of the business could lead to
accidents or site-related incidents, resulting in
serious injury or loss of life.
Inherent risk
change in year
Residual risk
change in year
Residual rating
Low
Risk appetite
Low
Link to values
Link to strategic
cornerstones
• Embedded HSE system
• HSE training and inductions
• Mental health training and support for all employees
• Robust monitoring and reporting procedures
• Utilisation of certified operatives
• Identification, review and evaluation of the impact
of new construction methods and materials
• Increase in near misses
and fatalities
• Health and safety
audit outcomes
• Number of reportable
health and safety incidents
• To lead the industry in
health and safety and to
reduce the amount and
level of incidents
Our people
and suppliers
Our planet
Responsible and
resilient business
• Head of Health, Safety
and Environment
• Regional Managing
Directors
H
Natural resources and climate change
An inability to reduce our environmental
footprint, the challenges of a degraded
environment including the impacts of climate
change, nature loss and water scarcity on
our business, supply chain scarcity due to
environmental change and the increasing
desire of our customers to live more sustainably
could impact our reputation, ability to attract
investment and obtain planning permission
and the delivery of our strategic targets.
Inherent risk
change in year
Residual risk
change in year
Residual rating
Moderate
Risk appetite
Low
Link to values
Link to strategic
cornerstones
• Net Zero Transition Plan
• Published Environment Strategy
• Adopted and verified science-based targets
• Climate change governance, including LEAF
Committee and sustainability champions
• Achievement of Carbon Trust Standard
• HBF and investor liaison
• Training and development in-house and in our
supply chain
• External benchmarking
• Collection and interpretation of data to drive
relevant actions
• Energy use and
greenhouse gas emissions
• Biodiversity net gain %
• Construction waste
generation and waste
to landfill
• Sustainable homes and
developments attractive
to customers
• A sustainable business
of choice for investors
• Advantageous
planning positions
Our homes
and places
Our planet
• Director of Sustainability
• Regional Managing
Directors
Principal Risks and uncertainties continued
Key to our strategic cornerstones
Land
Operational excellence
Sustainability
Capital allocation
Key to our values
Respectful and fair
Take responsibility
Better tomorrow
Be proud
Key to risk change
Increased risk
No change
Decreased risk
89
Strategic report
Directors’ report
Financial statements
Shareholder information
Description
Key mitigations
Example risk indicators
Opportunities
Link to material
impacts
Accountability
I
IT environment and security
The Group places increasing reliance on IT to
conduct its operations and the requirement to
maintain the accuracy and confidentiality of its
information systems and the data contained
therein. A cyber attack leading to the
corruption, loss or theft of data could result
in reputational and operational damage.
Inherent risk
change in year
Residual risk
change in year
Residual rating
Moderate
Risk appetite
Low-moderate
Link to values
Link to strategic
cornerstones
• Complex passwords policy and multi-factor
authentication for remote access
• Regular security patching and penetration testing
• Risky logins check
• Intrusion detection and prevention systems
• Suspected phishing emails process
• Mandated cyber training for all staff
• Cyber insurance
• Dedicated Head of Cyber Security
• Cyber security KPIs
• Enhanced end-point protection software
implemented across the IT estate
• Blocked traffic originating from countries
deemed a threat to the UK
• Number of devices with
critical and high open
vulnerabilities
• Number of devices without
latest patching in place
• Phishing test results
• Cyber training
completion statistics
• Number of users with
administrative privileges
to critical systems
• Together with our service
partners, provide a level
of security to reinforce
our reputation as
a trusted partner
Responsible and
resilient business
• IT Director
Our focus remains on
optimising value
across
all areas of the business
while investing in our
long term success.”
Jennie Daly
Chief Executive
Principal Risks and uncertainties continued
Key to our strategic cornerstones
Land
Operational excellence
Sustainability
Capital allocation
Key to our values
Respectful and fair
Take responsibility
Better tomorrow
Be proud
Key to risk change
Increased risk
No change
Decreased risk
Taylor Wimpey plc
Annual Report and Accounts 2024
90
This year we have
demonstrated our
ongoing focus and
commitment to
financial discipline
,
whilst positioning ourselves
to deliver future growth.”
Chris Carney
Group Finance Director
Income statement
Group revenue was £3,401.2 million in 2024
(2023: £3,514.5 million), with Group completions,
excluding joint ventures, being 2.7% lower at
10,476 (2023: 10,766). The UK average selling
price on private completions decreased by 3.8%
to £356k (2023: £370k), due to both underlying
price deflation and mix. Partially offsetting this,
the UK average selling price on affordable
housing increased to £186k (2023: £168k),
with a slightly lower proportion of affordable
housing in 2024 (22%) than the prior year (2023:
23%). This resulted in the total UK average selling
price being 1.5% lower at £319k (2023: £324k).
Group gross profit decreased to £648.7 million
(2023: £716.5 million), with build cost inflation
and house price deflation partially offset by a
higher profit generated from land sales in the
period, resulting in a gross margin of 19.1%
(2023: 20.4%).
Net operating expenses were £314.8 million
(2023: £248.7 million), which includes
£68.9 million of exceptional costs relating to
the cladding fire safety provision, as described
on page 14, and £13.6 million loss on disposal
of the Winstanley and York Road joint venture,
arising from the difference between proceeds
on disposal and the Group’s net investment
in the joint venture, with no such amounts in
the prior year.
Excluding exceptional costs, the net
operating expenses were £232.3 million
(2023: £248.7 million), which was predominantly
made up of administrative costs of £242.0 million
(2023: £232.7 million) that increased due to
cost inflation and investment in our timber frame
facility and IT infrastructure. This resulted in
a profit on ordinary activities before financing
of £333.9 million (2023: £467.8 million),
£416.4 million (2023: £467.8 million) excluding
exceptional items.
Value distributed during 2024
Contributions to
local communities
via planning obligations
£345.1m
(2023: £405.2m)
Employment
£275.2m
(2023: £270.7m)
Dividends paid in year
£339.4m
(2023: £337.9m)
2024 Group results
UK
Spain
Group
Completions including joint ventures
10,089
504
10,593
Revenue (£m)
3,214.6
186.6
3,401.2
Operating profit* (£m)
368.8
47.4
416.2
Operating profit margin* (%)
11.5
25.4
12.2
Profit before tax and exceptional items (£m)
418.5
Profit for the year (£m)
219.6
Basic earnings per share (p)
6.2
Adjusted basic earnings per share* (p)
8.4
Group financial review
91
Strategic report
Directors’ report
Financial statements
Shareholder information
Pension contributions
£22.1m
(2023: £22.2m)
Taxes
£132.1m
(2023: £155.9m)
Completions from joint ventures in the year
were 117 (2023: 82). The Group’s share of joint
ventures’ results in the year, excluding exceptional
items, was a £0.2 million loss (2023: £2.4 million
profit). The loss arose from operating costs of
the Winstanley and York Road joint venture
now disposed of and on joint ventures that
are between phases of developments. One of
the Group’s joint ventures has recognised an
exceptional expense for building remediation
works on buildings it constructed. The Group
had previously provided for its share of the costs
in its central provision held for cladding fire safety,
which has been released in the year as noted
above. Including exceptional items the Group’s
share of joint ventures’ results, after tax, was a
£15.9 million loss (2023: £2.4 million profit).
When including the share of joint ventures’
results in the profit on ordinary activities before
financing and exceptional items, the resulting
operating profit was £416.2 million (2023:
£470.2 million), delivering an operating profit
margin of 12.2% (2023: 13.4%). The total order
book value of joint ventures as at 31 December
2024 increased to £28 million (31 December
2023: £6 million), representing 104 homes
(31 December 2023: nine).
The net finance income of £2.3 million
(2023: £3.6 million) reflects that interest
earned on deposits continued to more than
offset the imputed interest on land acquired
on deferred terms, bank interest and interest
on the pension scheme.
Profit on ordinary activities before tax decreased
to £320.3 million (2023: £473.8 million). The total
tax charge for the period was £100.7 million
(2023: £124.8 million), a rate of 31.4% (2023:
26.3%); the current year includes a credit of
£20.2 million in respect of the exceptional charge
recognised. The pre-exceptional tax charge was
£120.9 million (2023: £124.8 million), representing
an underlying tax rate of 28.9% (2023: 26.3%).
As a result, profit for the year was £219.6 million
(2023: £349.0 million).
Basic earnings per share was 6.2 pence
(2023: 9.9 pence). The adjusted basic earnings
per share was 8.4 pence (2023: 9.9 pence).
Spain
Our Spanish business primarily sells second
homes to European and other international
customers, with a small proportion of sales
being primary homes for Spanish occupiers.
The business completed 504 homes (2023: 410)
with the average selling price increasing to €440k
(2023: €400k), due to regional mix and to a lesser
extent mix of house types sold. The total order
book as at 31 December 2024 was consistent at
491 homes (31 December 2023: 490 homes).
Gross margin was 28.2% (2023: 28.1%),
this flowed through to an operating profit of
£47.4 million (2023: £35.3 million) and an
operating profit margin of 25.4% (2023: 24.7%).
The total plots in the landbank stood at 3,214
(31 December 2023: 2,755), with net operating
assets* of £89.5 million (31 December 2023:
£94.0 million).
Balance sheet
Net assets at 31 December 2024 decreased
to £4,405.2 million (31 December 2023:
£4,523.4 million), with net operating assets*
decreasing marginally by £6.7 million (0.2)%,
to £3,817.0 million (31 December 2023:
£3,823.7 million). Return on net operating assets*
decreased to 10.9% (31 December 2023: 12.6%)
due primarily to the reduction in Group operating
profit. Group net operating asset turn* was
0.89 times (31 December 2023: 0.94), reflecting
both the decreased revenue and slightly higher
average net operating assets.
Land
Land as at 31 December 2024 increased by
£118.0 million in the period to £3,387.5 million
due to being active and opportunistic in reviewing
land opportunities, resulting in land creditors
increasing to £627.9 million (31 December 2023:
£516.1 million). Included within the gross land
creditor balance is £39.9 million of UK land
overage commitments (31 December 2023:
£44.9 million). £355.9 million of the land creditors
is expected to be paid within 12 months and
£272.0 million thereafter (31 December 2023:
£301.2 million and £214.9 million).
Group financial review continued
Taylor Wimpey plc
Annual Report and Accounts 2024
92
As at 31 December 2024, the UK short term
landbank comprised 78,626 plots (31 December
2023: 80,323), with a net book value of
£2.9 billion (31 December 2023: £2.8 billion).
Short term owned land had a net book value
of £2.9 billion (31 December 2023: £2.7 billion),
representing 65,521 plots (31 December
2023: 61,190). The controlled short term
landbank represented 13,105 plots
(31 December 2023: 19,133).
The value of strategic owned land decreased to
£180 million (31 December 2023: £242 million),
representing 31,764 plots (31 December 2023:
34,319), with a further total controlled strategic
pipeline of 104,375 plots (31 December 2023:
107,676). Total potential revenue in the owned
and controlled landbank was £60 billion
(31 December 2023: £61 billion).
Work in progress (WIP)
Total WIP investment, excluding part exchange
and other, increased to £1,949.3 million
(31 December 2023: £1,871.0 million), due to
build cost inflation and preparing for volume
growth in 2025 and beyond, including new
site infrastructure. Average WIP per UK outlet
also increased as a result to £8.9 million
(31 December 2023: £7.6 million).
Provisions and deferred tax
Provisions increased to £306.7 million
(31 December 2023: £286.7 million) due to the
£88.0 million increase in the first half of the year
in the cladding fire safety provision, which in the
second half of the year was reduced by
£19.1 million as a joint venture recognised
a provision for those works directly. This net
£68.9 million increase was partly offset by
utilisation of that provision (£28.5 million)
as works have been carried out, as well as
utilisation in other provisions which largely relate
to remedial works on a limited number of sites
around the Group.
The net deferred tax asset of £20.6 million
(31 December 2023: £23.4 million) relates
to the pension deficit and UK and Spanish
provisions that are tax deductible when the
expenditure is incurred.
Pensions
During 2023, the Group engaged with the
Trustee of the Taylor Wimpey Pension Scheme
(TWPS) on the triennial valuation of the Scheme
with a reference date of 31 December 2022.
The valuation was concluded in March 2024
and showed that the TWPS had a surplus of
£55 million on its Technical Provisions funding
basis and a funding level of 103%. As a result,
no deficit contributions were required to be
paid to the TWPS or to the escrow account
established following the 2019 valuation.
The escrow account will remain in place until
30 June 2028, at which point a funding test
will be conducted and funds will either be paid
to TWPS or returned to the Group.
In March 2024, the Group also reached
agreement with the Trustee to restructure the
Group’s Pension Funding Partnership (PFP).
The restructure retained the existing contributions
payable until 2029 but replaced the payment of
up to £100 million that may have been due in
2029, with seven annual payments of up to
£12.5 million each from 2029 to 2035. These
are only payable if the TWPS has a deficit on its
Technical Provisions funding basis at the prior
31 December.
The Group continues to provide a contribution for
Scheme expenses (£2.0 million per year) and also
makes contributions via the PFP (£5.1 million per
year). Total Scheme contributions and expenses
in the period were £7.1 million (2023: £7.1 million)
with no further amounts paid into the escrow
account (2023: nil). At 31 December 2024, the
IAS 19 valuation of the Scheme was a surplus of
£90.2 million (31 December 2023: £76.7 million).
Due to the rules of the TWPS, any surplus cannot
be recovered by the Group and therefore a deficit
has been recognised on the balance sheet under
IFRIC 14. The deficit is equal to the present value
of the remaining committed payments and any
forecasted distributions from the PFP.
Retirement benefit obligations of £22.2 million
at 31 December 2024 (31 December 2023:
£26.5 million) comprise a defined benefit pension
liability of £22.0 million (31 December 2023:
£26.3 million) and a post-retirement healthcare
liability of £0.2 million (31 December 2023:
£0.2 million).
The Group continues to work closely with the
Trustee in managing pension risks, including
management of interest rate, inflation and
longevity risks.
As at 31 December
2024, the UK short term
owned landbank
comprised
65,521 plots,
with a
net book value
of £2.9 billion
.”
Chris Carney
Group Finance Director
Group financial review continued
93
Strategic report
Directors’ report
Financial statements
Shareholder information
Net cash and financing position
Net cash decreased to £564.8 million at
31 December 2024 from £677.9 million at
31 December 2023, due primarily to the
increased investment in WIP. Average net cash
for the year was £494.5 million (31 December
2023: £606.6 million).
Despite the decrease in completions in the
period, management of land and WIP spend
has resulted in a cash conversion* of 74.9% of
operating profit for the year ended 31 December
2024 (2023: 61.4%).
Net cash, combined with land creditors, resulted
in an adjusted gearing* of 1.4% (31 December
2023: (3.6)%).
At 31 December 2024, our committed borrowing
facilities were £683 million, of which the
£600 million revolving credit facility was undrawn
throughout the period. The weighted average
maturity of the committed borrowing facilities at
31 December 2024 was 4.6 years (31 December
2023: 4.8 years). During the year an extension of
one year to 2029 was agreed for the revolving
credit facility. The revolving credit facility includes
three sustainability-linked performance measures
to be assessed and verified annually, which can
have a minor impact on the margin. The three
performance measures are: reductions in scope
1 and 2 GHG emissions; reductions in waste;
and reductions in carbon emissions of the homes
we build. These measures align with our
environment strategy, Building a Better World.
Dividends
Subject to shareholder approval at the AGM
scheduled for 30 April 2025, the 2024 final
ordinary dividend of 4.66 pence per share will
be paid on 9 May 2025 to shareholders on the
register at the close of business on 28 March
2025 (2023 final dividend: 4.79 pence per share).
In combination with the 2024 interim dividend of
4.80 pence per share this gives total ordinary
dividends for the year of 9.46 pence per share
(2023 ordinary dividend: 9.58 pence per share).
The dividend will be paid as a cash dividend, and
shareholders have the option to reinvest all of
their dividend under the Dividend Re-Investment
Plan (DRIP), details of which are available on our
website: www.taylorwimpey.co.uk/corporate.
Going concern
The Directors remain of the view that the Group’s
financing arrangements and balance sheet
strength provide both the necessary liquidity
and covenant headroom to enable the Group
to conduct its business for at least the next
12 months from the date of signature of the 2024
financial statements. Accordingly, the financial
statements are prepared on a going concern
basis, see Note 1 of the financial statements for
further details of the assessment performed.
Definitions of APMs
• Operating profit is defined as profit on
ordinary activities before financing,
exceptional items and tax, after share
of results of joint ventures.
• Operating profit margin is defined as
operating profit divided by revenue.
• Return on net operating assets
(RONOA) is defined as rolling
12 months’ operating profit divided by
the average of the opening and closing
net operating assets of the 12-month
period, which is defined as net assets
less net cash, excluding net taxation
balances and accrued dividends.
• Tangible net assets per share is
defined as net assets before any
accrued dividends, excluding
intangible assets, divided by the
number of ordinary shares in issue
at the end of the period.
• Adjusted basic earnings per share
represents earnings attributed to the
shareholders of the parent, excluding
exceptional items and tax on
exceptional items, divided by the
weighted average number of shares
in issue during the period.
• Net operating asset turn is defined
as 12 months’ rolling total revenue
divided by the average of opening
and closing net operating assets of
the 12-month period.
• Net cash is defined as total cash less
total borrowings.
• Cash conversion is defined as
operating cash flow divided by
operating profit on a rolling 12-month
basis, with operating cash flow defined
as cash generated from operations
(which is before income taxes paid,
interest paid and payments related to
exceptional charges).
• Adjusted gearing is defined as
adjusted net debt divided by net
assets. Adjusted net debt is defined
as net cash less land creditors.
A reconciliation of Alternative Performance
Measures to statutory measures is disclosed
in Note 32 of the financial statements.
Group financial review continued
*
Definitions and reconciliations of our APMs to the equivalent statutory measures are included in Note 32 of the
financial statements.
Taylor Wimpey plc
Annual Report and Accounts 2024
94
Viability disclosure
In accordance with the 2018 UK Corporate
Governance Code, the Directors and the senior
management team have assessed the prospects
and financial viability of the Group for a period
longer than the 12 months required for the
purpose of the ‘going concern’ assessment.
Time period
The Directors have assessed the viability of the
Group over a five-year period, taking account of
the Group’s current financial position, current
market circumstances and the potential impact
of the Principal and emerging risks facing the
Group. The Directors have determined this as
an appropriate period over which to assess the
viability based on the following:
• It is aligned with the Group’s bottom-up
five-year budgeting and forecasting cycle
• Five years represents a reasonable estimate
of the typical time between purchasing land,
its progression through the planning cycle,
building out the development and selling
homes to customers from it
Five years is also a reasonable period for
consideration given the following broader
external trends:
• The cyclical nature of the market in which the
Group operates, which tends to follow the
economic cycle
• Consideration of the impact of government
policy, planning regulations and the
mortgage market
• Long term supply of land, which is
supported by our strategic land pipeline
• Changes in technology and
customer expectations
Assessment of prospects
We consider the long term prospects of the
Group in light of our business model. Our strategy
to deliver sustainable value is achieved through
delivering high-quality homes for our customers,
in the locations where people want to live, whilst
carefully managing our cost base and the Group’s
balance sheet.
In assessing the Group’s prospects and long term
viability, due consideration is given to:
• The Group’s current performance and the
Group’s financing arrangements
• The wider economic environment and
mortgage market, as well as changes to
government policies and regulations, including
those influenced by sustainability, climate
change and the environment, that could
impact the Group’s business model
• Strategy and business model flexibility,
including customer dynamics and approach
to land investment
• Principal Risks associated with the Group’s
strategy and business model, including those
which have the most impact on our ability to
remain in operation and meet our liabilities as
they fall due
Principal Risks
The Principal Risks, to which the Group is
subject, have undergone a comprehensive review
by the GMT and Board in the current year.
Consideration is given to the risk likelihood based
on the probability of occurrence and potential
impact on our business, together with the
effectiveness of mitigations.
The Directors identified the Principal Risks
that have the most impact on the longer term
prospects and viability of the Group, and as such
these have been used in the modelling of
a severe but plausible downside scenario, as:
• Government policies, regulations
and planning (A)
• Mortgage availability and housing demand (B)
• Availability and costs of materials and
subcontractors (C)
• Quality and reputation (F)
• IT environment and security (I)
A range of sensitivity analyses for these risks
together with likely mitigating actions that would
be adopted in response to these circumstances
were modelled, including a severe but plausible
downside scenario in which the impacts were
aggregated together.
The impact from ‘Natural resources and climate
change’ (H) is not deemed to be material within
the five-year forecast period, as costs associated
with the regulatory changes have been included
in the modelling.
Assessment of viability
The Group adopts a disciplined annual business
planning process involving the management
teams of the UK regional businesses and Spain,
and the Group’s senior management, and is built
on a bottom-up basis. This planning process
covers a five-year period comprising a detailed
budget for the next financial year, together
with a forecast for the following four financial
years (‘forecast’).
Viability statement
95
Strategic report
Directors’ report
Financial statements
Shareholder information
The financial planning process considers the
Group’s profitability and Income Statement,
Balance Sheet including landbank, gearing
and debt covenants, cash flows and other
key financial metrics over the forecast period.
These financial forecasts are based on a number
of key assumptions, the most important of
which include:
• Timing and volume of legal completions of new
homes sold, which includes annual production
volumes and sales rates over the life of the
individual developments
• Average selling prices achieved
• Build costs and cost of land acquisitions
• Working capital requirements
• Capital repayment plan, where we have
assumed the payment of the ordinary dividend
in line with the current policy, which is
a minimum of £250 million or 7.5% of the
Group’s net assets per annum, throughout
the period
Stress testing our
risk resilience
The assessment considers sensitivity analysis on
a series of realistically possible, but severe and
prolonged, changes to principal assumptions.
In determining these we have included
macroeconomic and industry-wide projections
as well as matters specific to the Group.
The severe but plausible downside scenario
reflects the aggregated impact of sensitivities,
taking account of a further decline in customer
confidence, disposable incomes and mortgage
availability. To arrive at our stress test we have
drawn on experience gained from managing the
business through previous economic downturns.
We have applied the market dynamics
encountered at those times, as well as the
mitigations adopted, to our 2025 expectations
in order to test the resilience of our business.
As a result, we have stress tested our business
against the following severe but plausible
downside scenario, which can be attributed back
to the Group’s Principal Risks that have been
identified as having the most impact on the
longer term prospects and viability of the Group.
Volume
(Principal Risk: A, B, C, F) – a further
decline in total volumes of 10% in 2025 from
2024 levels, before recovering back to 2024
levels by 2027.
Price
(Principal Risk: B) – a reduction to current
selling prices of 5%, remaining at these levels
across 2025 and 2026 before recovering to
current levels by 2027.
One-off costs
(Principal Risk: A, F, I) – a one-off
exceptional charge and cash cost of £150 million
for an unanticipated event, change in government
regulations or financial penalty has been included
in 2025.
Within the scenario, current build costs are
forecast to increase by 2% in 2025 but further
cost increases will be minimised due to lower
volumes reducing demand for materials and
resources. Land cost also remains broadly flat,
as the possible increase in availability due to
lower volumes is offset by a restriction in supply.
The mitigating actions considered in the
model include a reduction in land investment,
a reduction in the level of production and work in
progress held and further reducing our overhead
base to reflect the lower volumes.
If this scenario were to occur, the Directors also
have a range of additional options to maintain
financial strength, including: a more severe
reduction in land spend and work in progress,
the sale of assets, reducing the dividend and/or
raising debt.
At 31 December 2024, the Group had
a cash balance of £647 million and access
to £600 million from a fully undrawn revolving
credit facility, together totalling £1,247 million.
The combination of both of these is sufficient to
absorb the financial impact of each of the risks
modelled in the stress and sensitivity analysis,
individually and in aggregate.
Confirmation of viability
Based on the results of this analysis, the Directors
have a reasonable expectation that the Group
will be able to continue in operation and meet its
liabilities as they fall due over the five-year period
of their assessment.
Viability statement continued
Taylor Wimpey plc
Annual Report and Accounts 2024
96
Stakeholder engagement and Section 172 (1) statement
Our customers
Buying a home is likely to be the biggest and most
personal purchase any of us ever make.
Customer engagement, at all stages of the journey,
is very important to ensure we are delivering the
high-quality product and service our customers expect.
While we strive to deliver excellent customer service,
we know we don’t always get it right. Feedback is
key to ensure we continue to improve.
How we engage
• We engage with customers throughout the customer
journey – at our developments, over the phone,
via email, letters, our customer portal (Touchpoint)
and through social media
• We have a dedicated Customer Hub
• We monitor customer views through focus groups,
satisfaction surveys, Trustpilot reviews and customer
research on specific issues
•
We have a clear complaint process and are fully
signed up to the New Homes Ombudsman
• Our website is updated with relevant information
and ‘how to’ videos
• All customers receive a full ‘From House to
Home’ pack with information on their home
and contact details
How the Board directly engages
• Visits to regional businesses and sites enable
the Directors to see the homes that we build
for our customers
How the Board indirectly engages
• Updates on customer matters included in each
Chief Executive report, including progress against
customer service KPIs
• Customer Director provides an update on customer
initiatives and feedback from focus groups once
a year
Key challenges
• Maintaining high levels of customer satisfaction
• Increasing longer term customer satisfaction
Engagement performance metrics
and highlights in 2024
• Significantly increased customer satisfaction scores
in both 8-week and 9-month customer surveys
• Continued to increase construction quality scores
• Updated our sales communication toolkit which
is aligned to our Customer Journey key principles
• Customer research into views of FHS
and implications
Priorities for 2025
• Continuing to embed a consistent sales journey
communication plan
• Maintaining 8-week customer satisfaction scores
• Continuing to make progress on 9-month customer
satisfaction scores
• Maintaining high construction quality scores
Material impacts
Our homes and places
Our planet
Responsible and resilient business
Relevant KPIs
• Customer satisfaction 8-week score
‘Would you recommend?’
• Customer satisfaction 9-month score
‘Would you recommend?’
• Construction Quality Review
• Average reportable items per inspection
Strategic cornerstones
Land
Operational excellence
Sustainability
We believe
engaging with
all our stakeholders and
hearing their feedback
will make us a better business.
During 2024, we continued to engage
with our stakeholders, seeking their views,
listening to and responding to their feedback.
Read more about stakeholder engagement
and climate change on
page 65
97
Strategic report
Directors’ report
Financial statements
Shareholder information
Stakeholder engagement and Section 172 (1) statement continued
Our partners
Our employees are key to our success and we strive
to ensure all our employees have a voice, and feel
supported and valued.
How we engage
• Annual employee survey
• Company-wide emails
• Regular Q&A Teams meetings with Chief Executive
and senior management
• Dedicated employee helpline available to
all employees
• National Employee Forum, Local Employee Forums,
Young Persons Forum
• System of six employee networks sponsored by
senior management to support employees and
actively promote diversity and we have a system of
dedicated champions across the business including
charity and mental wellbeing
How the Board directly engages
• The Employee Champion directly engages with
our employees and keeps the Board apprised of
any matters relating to the workforce
• Non Executive Directors engage with employees
during visits to regional businesses and sites
• Employee-shareholders have the opportunity to
meet the Board and submit questions at the AGM
How the Board indirectly engages
• Reports from the Chief Executive, Group HR Director
and Divisional Chairs on employee engagement
activities are tabled at each Board meeting
• The Board considers employee survey results
and steps taken to respond to feedback received
Key challenges
• Ensuring all employees across the business
feel heard
• Attracting, retaining and progressing the best
people in the industry
• Driving high engagement with site-based employees
• Increasing diversity
Engagement performance metrics
and highlights in 2024
• Maintained high employee engagement score of 93%
(2023: 93%)
• Low voluntary turnover of 12.1% (2023:14.2%)
•
62 Pride in the Job Quality Awards (2023: 51),
16 Seals of Excellence (2023: 13), two Regional Awards
and awarded the Supreme Award for Large Builder
• Increased engagement and communication channels
including introducing monthly newsletter for all
employees and a site-specific quarterly newsletter
• Implementation of new HR payroll system
• Launched compelling employee value proposition
• Rolled out new social media guidelines for employees
Priorities for 2025
• Continued commitment to diversity
• Maintain momentum in embedding our employee
value proposition
• Make Taylor Wimpey a Home: Deliver on our
commitment and position Taylor Wimpey as the
employer of choice internally and externally
• Pilot and embed development support for our
Female successors
• Enhance the career paths and development available,
in particular for our site management
• Make accessibility of learning easier with the launch
of a Learning Management System
• Enhance the digital capability of our leaders
Material impacts
Our people and suppliers
Responsible and resilient business
Relevant KPIs
• Annual Injury Incidence Rate
• Employee engagement
Strategic cornerstones
Operational excellence
Sustainability
We value collaboration with our partners and seek
to support them.
How we engage
• Supply Chain Sustainability School
• Letters, emails, calls, meetings, conferences,
site visits
• Training sessions
• Supporting our local and national charities,
overseen by our Charity Committee
• Through membership of industry organisations
such as HBF and the British Property Federation
• Working with local authorities and registered provider
partners (housing associations) to integrate
high-quality social housing on our developments
How the Board indirectly engages
• The Chief Executive provides an update on key
supply chain matters at each Board meeting
Key challenges
• Understanding and highlighting risk across whole
supply chain
Engagement performance metrics
and highlights in 2024
• Donated and fundraised c.£1m for national
and local charities (2023: c.£1m)
• National employee Christmas charity campaign
collecting over 3,000 washbags for the homeless
•
Raised over £157k for charity in 2024 via our tenth
annual Taylor Wimpey Challenge (2023: £146k)
Priorities for 2025
• Further improve health and safety and
environmental protection
• Continue to support suppliers and subcontractors
including with new regulation
• Continue to engage with local and
national stakeholders
• Continue to engage with national stakeholders
including government and across political parties
and with industry bodies across key areas
• Introduction of quarterly and national supply
chain awards
Material impacts
Our homes and places
Our people and suppliers
Our planet
Responsible and resilient business
Relevant KPIs
• Annual Injury Incidence Rate
• Reduction in operational carbon emissions intensity
Strategic cornerstones
Land
Operational excellence
Sustainability
Our employees
Taylor Wimpey plc
Annual Report and Accounts 2024
98
Stakeholder engagement and Section 172 (1) statement continued
Our investors
Our communities
Housebuilding can be disruptive but brings huge
benefits to existing communities. Engaging with new
and existing communities throughout the life cycle of
a development enables us to hear their aspirations,
concerns and, where possible, incorporate their
feedback in our plans.
How we engage
• Meetings, exhibitions, workshops
• Newsletters, information boards
• Surveys
• Social media
How the Board indirectly engages
• During site visits, Non Executive Directors
see first-hand how the investments we make
positively impact the communities that we build
Key challenges
• Ensuring communities understand the value
that Taylor Wimpey can bring to their local area
Engagement performance metrics
and highlights in 2024
• Invested £345 million in local communities
via planning obligations (2023: £405 million)
• Continued to support local community organisations
Priorities for 2025
• Continued commitment to local engagement
• Remain focused on strong placemaking
Material impacts
Our homes and places
Our people and suppliers
Our planet
Responsible and resilient business
Relevant KPIs
• Customer satisfaction 8-week score
‘Would you recommend?’
• Customer satisfaction 9-month score
‘Would you recommend?’
• Reduction in operational carbon emissions intensity
Strategic cornerstones
Land
Sustainability
Engaging with investors at regular intervals ensures
they are well informed and have access to accurate
information. We aim to be accessible and transparent.
How we engage
• Results presentations, meetings, roadshows,
conferences
• Emails, calls and video conferences
• Site visits
• Website
• Benchmarks and disclosure initiatives
How the Board engages
• The Chief Executive and Group Finance Director
meet with investors at organised investor roadshows
throughout the year. During 2024, the Chief
Executive and Group Finance Director conducted
a US investor roadshow
•
The Chair met with institutional shareholders during 2024
• The AGM continues to provide an important
opportunity to engage with all shareholders,
particularly our retail shareholders
How the Board indirectly engages
• Annual presentations from the Company’s brokers
on their views of the shareholder base
Key challenges
• Ensuring investors understand the investment
proposition and what differentiates Taylor Wimpey
Engagement performance metrics
and highlights in 2024
• Received Highly Commended Award for the
Annual Report
• In 2024, we increased the number of ESG
metrics that were subject to independent limited
assurance procedures
•
In addition to UK, we completed a North American
roadshow with management and a European
roadshow with Investor Relations
Priorities for 2025
• Continued commitment to best practice disclosure
• Continue to regularly engage with existing and
prospective investors and analysts
Material impacts
Our homes and places
Our people and suppliers
Our planet
Responsible and resilient business
Relevant KPIs
•
Land cost as % of average selling price on approvals
• Landbank years
• % of completions from strategically sourced land
• Customer satisfaction 8-week score
‘Would you recommend?’
• Customer satisfaction 9-month score
‘Would you recommend?’
• Employee engagement
• Construction Quality Review
• Average reportable items per inspection
• Reduction in operational carbon emissions intensity
• Annual Injury Incidence Rate
Strategic cornerstones
Land
Operational excellence
Sustainability
Capital allocation
99
Strategic report
Directors’ report
Financial statements
Shareholder information
Stakeholder engagement and Section 172 (1) statement continued
A.
The likely consequences of
any decision in the long term
B.
The interests of the
company’s employees
C.
The need to foster the
company’s business
relationships with suppliers,
customers and others
D.
The impact of the
company’s operations
on the community and
the environment
E.
The desirability of the
company maintaining
a reputation for high standards
of business conduct
F.
The need to act fairly
as between members
of the company
Our business model
pages 20 to 29
Performance against our
strategic cornerstones
pages 39 to 49
Our commitment to the environment
pages 60 to 62
Our business model
pages 20 to 29
Performance against our
strategic cornerstones
pages 39 to 49
Building for our people
pages 55 to 57
Stakeholder engagement and
Section 172 (1) statement
pages 97 to 101
Our business model
pages 20 to 29
Market trends, opportunities
and risks
pages 37 and 38
Performance against our
strategic cornerstones
pages 39 to 49
Building for our customers
pages 52 to 54
Stakeholder engagement and
Section 172 (1) statement
pages 97 to 101
Our business model
pages 20 to 29
Performance against our
strategic cornerstones
pages 39 to 49
Our commitment to the environment
pages 60 to 62
Task Force on Climate-related
Financial Disclosures
pages 63 to 79
Stakeholder engagement and
Section 172 (1) statement
pages 97 to 101
Our business model
pages 20 to 29
Task Force on Climate-related
Financial Disclosures
pages 63 to 79
Non-financial and sustainability
information statement
pages 80 and 81
Risk management
pages 82 to 84
Audit Committee report
pages 126 to 135
Our business model
pages 20 to 29
Stakeholder engagement and
Section 172 (1) statement
pages 97 to 101
Understanding shareholder views
page 112
Remuneration Committee report
pages 136 to 159
In performing their duties during our 2024 financial year, the Directors have
had regard to the matters set out in Section 172 (1) of the Companies Act
2006 as appropriate, with the principles underpinning the Board’s general
approach to decision-making. Each Director of the Board confirms that,
during the year, they have acted in the way they consider, in good faith,
would be most likely to promote the success of the company for the
benefit of its members as a whole, and in doing so, have had regard
(among other matters) to the Section 172 (1) matters.
Taylor Wimpey plc
Annual Report and Accounts 2024
100
Stakeholder engagement and Section 172 (1) statement continued
Decision making process
•
During the year the Board considered and approved two proposals to
pay a dividend, in line with the Group’s established Ordinary Dividend
Policy to pay out 7.5% of net assets or at least £250 million annually
throughout the cycle.
•
As the Company’s Ordinary Dividend policy seeks to provide investors
with visibility of the income stream they can expect to receive throughout
the cycle, the Board considered the views and expectations of investors
in light of the business’ need to retain flexibility to invest and grow in
the future. To support the Board in its decision making, the dividend
proposals were subject to comprehensive stress testing and the Board
considered various downside scenarios so as to ensure the Board
was striking the right balance between approving short term returns to
investors and protecting the long term interests of the Company and its
stakeholders. The Board ensured that payment of the dividends would
not impede the Group’s ability to maintain high standards of business
conduct and serve its customers, employees and communities.
•
In line with legal requirements, the Board also considered the Pensions
Regulator and the impact of declaring a dividend upon Taylor Wimpey
UK Limited, which is the sponsoring employer of the Taylor Wimpey
Pension Scheme (the Scheme) and the Scheme itself. The Board
satisfied itself that payment of the dividends would be in line with
legal and regulatory requirements.
Further information can be found on
pages 94 and 111
Decision making process
•
In December 2024, the Board considered the Budget for 2025 and the
Group’s Business Plan for 2026-2029; robust challenge of both by the
Board ensures that Taylor Wimpey’s resources are appropriately deployed
and that the business is positioned for long term, sustainable success.
When taking its decision to approve the Budget and Business Plan,
the Board took into account the perspectives of the Group’s customers,
investors and partners.
•
The Board considered employment rates, wage growth, levels of
disposable income and mortgage rates and how such factors impact
customer affordability and customer demand. The Board also considered
how the Group’s operations needed to be resourced to ensure that high
levels of customer service and build quality were maintained and that
customers continued to be supported throughout their buying journey.
•
As well as considering how best to deploy capital, consideration was also
given to scenario analysis relating to the macroeconomic and political
environment to ascertain the risks and potential mitigating actions that
could proactively be taken to protect the Group’s financial performance
and returns to shareholders. The Board also acknowledged the impact
of the Government’s budget announcement on partners and how this
would translate into increased costs in the supply chain which needed
to be reflected in the Group’s Budget and Business Plan.
•
The Board’s discussions resulted in the approval of a Budget and
Business Plan which seeks to drive operational efficiencies and maximise
value for all stakeholders whilst at the same time investing in areas crucial
to the long term efficiency and sustainability of the business.
Further information can be found on
page 117
Decision making process
•
During 2024, the Board reviewed and approved the appointment
of Martyn Coffey as an Independent Non Executive Director; the
appointment of Scilla Grimble as Chair of the Audit Committee; and the
appointment of Lord Jitesh Gadhia as Senior Independent Director.
•
In the search for a new Independent Non Executive Director, the
Nomination and Governance Committee developed a role profile
which included the key requirements for a successful candidate,
considerations around diversity and the required time commitments.
Potential candidates were evaluated against the role profile and their
ability to support Management in the delivery of long term value to
shareholders and maintaining high standards of business conduct.
The Board considered that Martyn Coffey brings a wealth of experience
in manufacturing for the building industry and of supply chains. The Board
also considered that Martyn’s expertise will add to the Board’s existing
skill set, particularly by bringing additional perspective around our supply
chain and partners.
•
The Board continually assesses succession plans at Board-level for all
roles, including the role of Committee Chairs. As part of this assessment,
the Board considers succession requirements for the Board, the length
of tenure of all Non Executive Directors and independence requirements.
The Board recognises the importance of ensuring an orderly transition
for all key roles in order to maintain high standards of business conduct.
•
The Board considers that these appointments are in the best interests of
the Company and its stakeholders; and ensures that there are the correct
balance of skills and expertise on the Board.
Further information can be found on
pages 119 and 121
2025 budget approval
Dividend approval
Board composition and succession planning
Approval of the Strategic report
This Strategic report on pages 1 to 101 was approved by
the Board of Directors and signed on its behalf by
Jennie Daly
Chief Executive
A summary of the Board’s major decisions and activities during 2024 can be found below along with how the Section 172 (1) factors were considered as part of those decisions. This, combined with our
key engagement activities on pages 97 to 99, makes up our Section 172 (1) statement.
101
Strategic report
Directors’ report
Financial statements
Shareholder information
Directors’
report
103
Governance at a glance
104
Board of Directors
107
Group Management Team
108
Chair’s introduction to the Directors’ report
109
The Board’s year
112
Understanding shareholder views
113
Engaging with our employees
115
Monitoring our culture
116
Our governance structure
117
Board leadership
118
Division of responsibilities
119
Nomination and Governance Committee report
125
Diversity
126
Audit Committee report
136
Remuneration Committee report
160
UK Corporate Governance Code
compliance statement
163
Statutory, regulatory and other information
Taylor Wimpey plc
Annual Report and Accounts 2024
102
Fully compliant
In 2024, we complied with all of the principles
and provisions set out in the 2018 UK Corporate
Governance Code (the Code), published by
the Financial Reporting Council on its website,
which sets out standards of good practice for
listed companies such as Taylor Wimpey.
Read more on
pages 160 to 162
Data in these charts is as at 26 February 2025.
1
Chair
2
Executive Directors
6
Non Executive Directors
2
Executive Directors
5
Independent
Non Executive Directors
1
Non-independent
Non Executive Director
1
0–2 years
4
2–4 years
2
4–6 years
2
40–50
5
51–60
2
61–70
4
Female
5
Male
Board overview
Governance at a glance
Board and Committee meeting attendance
Board
Audit
Committee
Nomination and
Governance
Committee
Remuneration
Committee
Robert Noel
9/9
–
4/4
4/4
Jennie Daly
9/9
–
–
–
Chris Carney
9/9
–
–
–
Mark Castle
9/9
3/3
4/4
4/4
Martyn Coffey (appointed 1 December 2024)
1/1
1/1
–
–
Irene Dorner
9/9
–
4/4
–
Jitesh Gadhia
9/9
–
4/4
4/4
Scilla Grimble
9/9
3/3
4/4
–
Clodagh Moriarty
9/9
–
4/4
4/4
Humphrey Singer (stood down on 31 December 2024)
9/9
2/2
4/4
–
There was full attendance at all scheduled Board and Committee meetings. In addition to the above scheduled
meetings, an additional Nomination and Governance Committee meeting and Board meeting were held on
22 November 2024 to approve the appointments of Martyn Coffey as an independent Non Executive Director
and Jitesh Gadhia as the Senior Independent Director, with effect from 1 December 2024.
Board roles
Independence (excluding the Chair)
Chair and Non Executive Director Tenure
Board age diversity
Board skills
Board gender diversity
Operational
Financial
Property
Customer service
Economics
Public sector
Risk
IT
ESG
Strategy
Construction
Supply chain and
manufacturing
9
7
6
4
2
2
7
3
9
9
4
2
103
Financial statements
Shareholder information
Strategic report
Directors’ report
Robert Noel
Chair
N
R
Chair
Date of appointment
Appointed as a Non Executive Director on
1 October 2019. Appointed as Chair on 27 April 2023
Board tenure
5 years
Skills and attributes which support strategy and
long term success
• A former commercial business leader with
a long track record in the property sector and
operating in a cyclical environment
•
Experience of chairing a FTSE 250 company
• Ability to challenge while working collegially
and developing strong relationships among
key stakeholder groups
Career and experience
Robert was Chief Executive of Land Securities Group
PLC from 2012 to 2020 and was previously Property
Director at Great Portland Estates plc and a Director of
Nelson Bakewell, the property services group. He is
a former President of The British Property Federation.
External appointments
• Chair at Hammerson plc
• Trustee of the Natural History Museum
•
Non Executive Director at GMS Estates Limited
Jennie Daly CBE
Chief Executive
Executive Director
Date of appointment
Appointed as Group Operations Director on
20 April 2018. Appointed as Chief Executive
on 26 April 2022
Board tenure
6 years
Skills and attributes which support strategy and
long term success
•
Exceptional leadership and a razor-sharp focus on
operations and strategy execution
•
Broad knowledge of the housebuilding and land
and planning sectors
• Proactive approach to stakeholders and their
key priorities with extensive customer and
people-focused skills
Career and experience
Before becoming Chief Executive, Jennie had been
Group Operations Director since 2018. Jennie joined
the Company from Redrow plc in 2014 as UK Planning
Director, progressing to UK Land Director in 2015.
Jennie’s previous roles include Managing Director of
Harrow Estates Plc and strategic land oversight at
Westbury plc. Following her appointment as Chief
Executive on 26 April 2022, Jennie has full day to day
responsibility for delivering the Company’s strategy
in a profitable, safe and environmentally responsible
manner. Jennie was previously a Non Executive Director
of the Peabody Trust.
External appointments
•
Member of the Board at the Home Builders Federation
•
Non Executive Director at New Homes Quality
Board Limited
Chris Carney
Group Finance Director
Executive Director
Date of appointment
20 April 2018
Board tenure
6 years
Skills and attributes which support strategy and
long term success
•
A wealth of experience in the housebuilding industry
• Extensive knowledge of the Company’s operational
affairs, including treasury, pensions, information
technology and tax matters
•
In-depth insight into the Company’s risk environment
Career and experience
Chris is a Chartered Accountant and has worked
in private practice with Deloitte and in-house for
Associated British Foods plc. Since joining in 2006,
he has successively held the roles of Group Financial
Controller, Finance Director of Taylor Wimpey UK,
Managing Director of the Company’s South Thames
regional business, and Divisional Chair for the London
and South East Division.
As Group Finance Director, Chris has operational
responsibility for managing the Company’s finances
and also oversees the information technology and
pension functions.
External appointments
None
Key
A
Audit Committee
R
Remuneration Committee
N
Nomination and Governance Committee
Committee Chair
A diverse set
of skills and
relevant
industry
experience
Board of Directors
Taylor Wimpey plc
Annual Report and Accounts 2024
104
Mark Castle
Independent Non Executive Director
A
N
R
Independent Non Executive Director
Date of appointment
Appointed as a Non Executive Director on 1 June 2022.
Appointed as the Board’s Employee Champion on
27 April 2023
Board tenure
2 years
Skills and attributes which support strategy and
long term success
•
Extensive operational insight and knowledge of the
construction sector, with particular focus on supply
chain, production and innovation
Career and experience
Mark was Chief Operating Officer of Mace Group and
previously held executive roles at Structuretone Inc and
Wates Group Ltd. In addition, Mark was Chair of Build
UK from 2017 to 2019.
External appointments
• Chair of Eleco plc
• Chair of Triangle Group
Martyn Coffey
Independent Non Executive Director
A
N
Independent Non Executive Director
Date of appointment
1 December 2024
Board tenure
Less than 1 year
Skills and attributes which support strategy and
long term success
•
Valuable knowledge of the building industry, with
a particular focus on building products manufacturing
and distribution
Career and experience
Martyn was the CEO of Marshalls plc for over 10 years
and prior to this he was the Divisional CEO of Baxi
Group and Group CEO of BDR Thermea. In addition,
Martyn was a Non-Executive Director of Eurocell Plc
for eight years.
External appointments
• None
Irene Dorner
Non-independent Non Executive Director
N
Non-independent Non Executive Director
Date of appointment
Appointed as a Non Executive Director on 1 December
2019. Appointed as Chair on 26 February 2020.
Stepped down as Chair and appointed as a non-
independent Non Executive Director on 27 April 2023
Board tenure
5 years
Skills and attributes which support strategy and
long term success
• Extensive experience of operating in highly
regulated industries
• Strong communicator and ability to manage
and develop stakeholder relations
Career and experience
Irene has held a number of senior positions at
HSBC including CEO of HSBC Malaysia, CEO and
President of HSBC in the United States, Group
Managing Director of HSBC Holdings and member of
the Group Management Board. Irene was Chairman
of Virgin Money (UK) plc for seven months prior to its
acquisition in 2018 and was also a Non Executive
Director of AXA SA and Rolls Royce Holdings plc
(and Chair of its Remuneration Committee).
External appointments
•
Honorary Fellow of St Anne’s College, Oxford
•
Trustee of the South East Asia Rainforest
Research Partnership
•
Chair of the Trustees for the Hampstead Theatre
•
Member of the Council of Chatham House
Lord Jitesh Gadhia
Senior Independent Director
N
R
Senior Independent Director
Date of appointment
Appointed as a Non Executive Director on 1 March 2021.
Appointed as Senior Independent Director on
1 December 2024
Board tenure
4 years
Skills and attributes which support strategy and
long term success
•
Extensive involvement in public affairs and corporate
governance, following his executive career in finance
Career and experience
Jitesh has over 20 years’ executive experience,
principally in banking and private equity, having held
senior roles at Blackstone, Barclays Capital and ABN
AMRO. He previously supported the Letwin Review
of the build out rate of residential homes, and was a
Non Executive Director at UK Financial Investments
Limited, Senior Independent Director of Calisen plc and
a Member of the Board of UK Government Investments
Limited. Jitesh also has extensive remuneration
committee experience, across both public and
private companies.
External appointments
•
Member of the House of Lords since 2016
•
Non Executive Director of the Court of Directors of
the Bank of England
•
Non Executive Director at Compare The Market Limited
•
Non Executive Director at Rolls-Royce Holdings plc
• Director at Accord Healthcare Limited
•
Chair and Trustee of the British Asian Trust
•
Non Executive Director at Bard Topco Limited
Board of Directors continued
105
Financial statements
Shareholder information
Strategic report
Directors’ report
Scilla Grimble
Independent Non Executive Director
A
N
Independent Non Executive Director
Date of appointment
1 March 2021
Board tenure
4 years
Skills and attributes which support strategy and
long term success
• Valuable knowledge and executive experience
in corporate finance, property and retail
Career and experience
Scilla has significant finance, risk and technology related
experience in customer facing environments, having
been Chief Financial Officer at Moneysupermarket.com
Group plc and held senior roles at UBS, Tesco plc and
Marks and Spencer Group plc.
External appointments
• Chief Financial Officer at Deliveroo plc
Clodagh Moriarty
Independent Non Executive Director
N
R
Independent Non Executive Director
Date of appointment
1 June 2022
Board tenure
2 years
Skills and attributes which support strategy and
long term success
• Strategic, digital and customer-focused executive
experience with a focus on delivering an enhanced
customer experience
Career and experience
Clodagh started her career at Bain & Company, Inc and
has since held a range of positions at J Sainsbury PLC,
including Head of Strategy and Chief Digital Officer.
Clodagh was also a Non Executive Director of
Sainsbury’s Bank.
External appointments
• Chief Retail and Technology Officer at
J Sainsbury PLC
Ishaq Kayani
Group General Counsel and Company Secretary
Date of appointment
21 February 2023
Skills and attributes which support strategy and
long term success
•
Deep knowledge of the operational and legal framework
of the Company and the housebuilding industry
Career and experience
Ishaq, a solicitor, joined the Company in 2009 as the
Group’s Dispute Resolution Solicitor and over the
past 14 years has taken on additional responsibilities
including legal and regulatory compliance, commercial
legal matters and legal operations. In 2021, Ishaq was
appointed as UK Legal Director and became Interim
General Counsel in 2022. Ishaq was previously a partner
at one of the country’s leading homebuilder law firms.
External appointments
None
Board of Directors continued
Key
A
Audit Committee
R
Remuneration Committee
N
Nomination and Governance Committee
Committee Chair
Taylor Wimpey plc
Annual Report and Accounts 2024
106
Group Management Team
The strength and depth of our management team
positions us well for the future. With a combined total
of over 155 years’ experience at Taylor Wimpey
and longer in the housebuilding and construction
sector, our Group Management Team has extensive
experience of managing across a wide range of
market conditions.
Jennie Daly
Chief Executive
Jennie was appointed Chief
Executive in 2022, having been
with the business for eight years
and with over 30 years’ experience
in land, planning and housing.
Previous roles within Taylor Wimpey
have included Land and Planning
Director, Group Operations Director
and Divisional Chair. As head of
the GMT, Jennie’s responsibilities
include key strategic and
operational decisions, sustainability,
customer service and health
and safety.
Chris Carney
Group Finance Director
Since joining in 2006, Chris has held
a number of roles in the Company,
including Group Financial Controller,
Managing Director and Divisional
Chair. As Group Finance Director,
Chris’s role covers all areas of
finance, including tax, treasury and
managing the Group’s defined
benefit pension scheme, as well
as overall responsibility for our
information technology function.
Chris is also Chair of our Treasury
Committee and sponsor of our
Race and Ethnicity network.
Anne Billson-Ross
Group Human Resources Director
Anne joined Taylor Wimpey in 2014
and has over 30 years’ experience
within Human Resources. Anne has
responsibility for all areas of human
resources, driving a clear employee
value proposition, which focuses
on culture, skill acquisition, pay, total
reward, benefits, talent identification
and development, succession
planning, wellbeing, driving high
performance and employee
engagement. Anne also oversees the
implementation of the Company’s
Diversity, Equality and Inclusion
Strategy and the charitable aims
of the business and is the sponsor of
our Embracing the Change network.
Ishaq Kayani
Group General Counsel
and Company Secretary
Ishaq was appointed as Group
General Counsel and Company
Secretary in February 2023. In this
role, lshaq oversees legal compliance,
regulatory obligations and manages
the Company’s Legal and Secretariat
departments. lshaq joined the
business in 2009 as the Group’s
Dispute Resolution Solicitor, having
spent 12 years with a leading UK
law firm. Ishaq is a member of the
IT Steering Committee and the
Treasury Committee, and is the
sponsor of our enAble Network.
Ingrid Osborne
Divisional Chair, London
and South East
Ingrid has been with the business
for 24 years and was previously
Managing Director for our Central
London business and also Divisional
Managing Director. As a Divisional
Chair Ingrid oversees our North
Thames, South East, South
Thames, London and West London
regional businesses. Ingrid is a
member of the Treasury Committee
and is the sponsor of the Working
Parents Network.
Novraj Sidhu
Divisional Chair, Central
and South West
Novraj joined the Company over
seven years ago and has held
a number of roles in the business
including Finance Director and
Managing Director of two regional
businesses. As a Divisional
Chair Novraj oversees our Bristol,
East Anglia, Exeter, South Midlands
and Southern Counties regional
businesses.
Shaun White
Divisional Chair, Midlands
and Wales
Shaun joined the Company over
24 years ago and has held a
number of roles in the business
including Finance Director, Land
and Planning Director and
Managing Director. As a Divisional
Chair Shaun oversees our Midlands,
North Midlands, West Midlands,
East Midlands and South Wales
regional businesses. Shaun is also
a member of our IT Steering
Committee and sponsor of
our Proud2B network.
Ian Drummond
Divisional Chair, Scotland,
North East and North Yorkshire
Ian joined the business as Land
Director in 2013, and has also
held the roles of Managing Director
and Divisional Managing Director.
As Divisional Chair, Ian oversees
our East Scotland, West Scotland,
North East and North Yorkshire
regional businesses. Ian is also
Chair of our LEAF Committee
and sponsor of our Women in
Construction network.
Lee Bishop
Group Managing Director,
Strategic Land and
Divisional Chair, North West
and Yorkshire
Lee joined the business in 1984 and
has held Managing Director and
Divisional Managing Director roles.
Lee now oversees our divisional
North and South Strategic Land
teams and is Divisional Chair
overseeing our Manchester,
North West and Yorkshire regional
businesses. Lee is also Chair
of our Equality, Diversity and
Inclusion Committee.
A highly experienced
and dedicated
management team
107
Financial statements
Shareholder information
Strategic report
Directors’ report
We remained
focused on
overseeing
the execution
of our strategy
.”
Robert Noel
Chair
Dear shareholder,
I am pleased to present the Directors’ report for
2024 (the Report), on behalf of your Board and
in accordance with the Code.
The theme for this year is ‘Fit for the future’
and this Report outlines how our established
corporate governance structure and practices
have continued to promote the long term
sustainable success of Taylor Wimpey and
generate returns for all stakeholders. It also
provides a summary of the key activities
undertaken by the Board and its Committees
during the year, and the oversight we provided
to ensure we are positioned for future growth
and prepared to optimally respond to
market conditions.
In 2024, we remained focused on overseeing
the execution of our strategy. We have a clear
strategy which is focused on our strategic
cornerstones of land, operational excellence,
sustainability and capital allocation. Throughout
the year we received regular updates from
Management on various initiatives linked to our
strategic cornerstones and we were able to
support and provide constructive challenge
where appropriate. You can read more about
a selection of these updates and how they
were linked to our strategic cornerstones
on pages 110 and 111.
We remain committed to engaging with our
stakeholders as we believe that this ensures that
we are fully aware of how the decisions we make
impact them. Through a combination of direct
and indirect engagement we remain informed of
material issues and priorities. Further details on
our engagement can be found in our stakeholder
engagement and Section 172 (1) statement on
pages 97 to 101. Board members continue to
regularly visit our regional businesses and sites,
which is a great way for us as a Board to see
Taylor Wimpey’s culture in action and how it is
embedded throughout the organisation.
This year’s AGM will take place at the Crowne
Plaza Hotel in Gerrards Cross on Wednesday
30 April at 10.30am. We look forward to meeting
shareholders, hearing your views and responding
to any questions you may have. Given the very
low number of shareholders using the audiocast
facility that we have provided in recent years, we
have made the decision not to offer an audiocast
facility. As has become our usual practice,
shareholders are invited to submit questions in
advance of the meeting by email. Further details
on the AGM can be found on pages 238 to 249.
The outcome of the Board’s internally facilitated
evaluation is set out on page 124 and evidences
that the Board continues to function well with
strong levels of governance. During 2024 we
sought external input on key topics to provoke
collective discussion and hear opposing views.
We will be implementing more of these teach-in
sessions throughout 2025.
As detailed in my Chair’s statement on pages
11 and 12, after just over nine years’ service,
Humphrey Singer stepped down from the Board
on 31 December 2024. The Nomination and
Governance Committee oversaw the recruitment
and appointment of Martyn Coffey and
considered who should succeed Humphrey
as the Audit Committee Chair and Senior
Independent Director. As part of this process,
the Nomination and Governance Committee
carefully assessed the composition of the Board,
including each individual’s skills, the depth and
breadth of expertise of the Board as a whole and
equality, diversity and inclusion considerations.
Further details on this process can be found
on page 121.
We were fully compliant with the 2018 Code
during the year, and the Board welcomed the
Financial Reporting Council’s publication of the
2024 Code. With the assistance of the Audit
Committee and the Nomination and Governance
Committee we have undertaken a full review of
our governance structure in light of the updated
2024 Code to ensure that all recommendations
were addressed in a timely manner to enable
full compliance ahead of it coming into force.
I would like to thank all of our stakeholders for
their continued support during the year, especially
to our employees for all of their hard work
delivering our 2024 performance whilst
maintaining our high-quality build and
customer service standards.
Robert Noel
Chair
Chair’s introduction to the Directors’ report
Taylor Wimpey plc
Annual Report and Accounts 2024
108
The Board’s year
In 2024, the Board held nine scheduled
meetings and Director attendance at
these meetings is set out on page 103.
There was full attendance at all scheduled
Board and Committee meetings. An annual
Board plan is in place, which sets out those
items to be reviewed on an annual basis at
scheduled Board meetings throughout the
year. The following year’s annual plan is
reviewed and approved by the Board prior
to the start of the year. The Chair, Chief
Executive and Company Secretary meet
in advance of each Board meeting to
discuss and agree on the agenda ahead
of the meeting.
The Board’s oversight of
our strategy
The Board is responsible for establishing and approving our
strategy and oversees it’s delivery by the Chief Executive
supported by the Group Management Team. During 2024,
the Board considered the following topics at each Board
meeting, which include updates on progress against our
strategic cornerstones:
• Health, safety and environment reports
• Chief Executive reports
• Group Finance Director reports
• Governance and legal reports
• Employee engagement feedback
• Reports from each operating division, HR and
customer service
The Board held an offsite visit at our new manufacturing facility
in Peterborough. The Board toured the facility to gain a greater
understanding of the processes involved in manufacturing
timber frame kits and received a presentation which provided
an overview of how our manufacturing and supply teams are
aligned with our overall strategy. In addition, the Board received
updates on progress towards implementing our employee
value proposition, Innovate
TW
and a planning update.
Building on
our
Board
leadership
109
Financial statements
Shareholder information
Strategic report
Directors’ report
The Board’s year continued
Oversight of land
Our high-quality landbank together with our
excellent strategic land pipeline provides
optionality throughout the cycle and is one of
our key differentiators. In recognition of this,
the Board undertakes an annual review of both
the short term landbank and strategic pipeline;
and consider the shape of the landbank by
division, the movements from prior year and
the number of strategic land conversions.
Additionally, the Board receives an update at
each meeting from the Chief Executive on the
short term landbank position, the planning
environment and the number of Land Purchase
Exercises (LPEs) approved year to date.
Our land strategy is dynamic depending on
market conditions and the Board recognises the
importance of making the right land investments
at the right price. Each land investment requires
an LPE which is reviewed and challenged,
if necessary, by the Chief Executive and, if over
a certain monetary threshold, the Board.
Strategic cornerstone:
Land
Innovate
TW
The Board recognises that rapid growth in
technology presents both risks and opportunities
for Taylor Wimpey. The Board is keen to leverage
technology to improve productivity and drive
efficiencies and better ways of working within
the business and this has led to the creation of
Innovate
TW
; a Group-wide project aiming to
make Taylor Wimpey the first fully digital UK
homebuilder. Further information on Innovate
TW
can be found on page 44.
A dedicated session was held with the Board to
provide an overview of how the business plans
to make use of new technologies, develop the IT
team so it can better serve the business and its
stakeholders, and explore new ways of working
across the business. The Board considered the
project’s framework, working principles and the
roadmap of key transformational projects.
One key aspect of the project was the transition
to a new IT service provider. Given the potential
for operational disruption during the transition,
this was a key area of focus for the Audit
Committee in 2024. The Audit Committee gained
assurance that the transition was appropriately
managed and received updates at each meeting,
whilst also ensuring that the project remained
strategically aligned and appropriately resourced.
Further information can be found on page 128.
Board oversight of
health and safety matters
The health and safety of our colleagues,
contractors, and anyone else who works or visits
a Taylor Wimpey site, is the Board’s top priority
and is the first item on each and every Board and
management meeting agenda. The Board monitors
health and safety metrics closely to ensure all
activities carried out by the Group meet or exceed
all applicable HSE legislation, regulations and any
other requirements to which we subscribe.
The Board conducted a deep dive into
Taylor Wimpey’s health and safety activities
during the year, including our overall health and
safety performance in 2024, team development
and how we are supporting our supply chain.
Strategic cornerstone:
Operational excellence
The below case studies are not exhaustive but demonstrate some of the topics considered by the Board to further understand how the strategy is being implemented.
Taylor Wimpey plc
Annual Report and Accounts 2024
110
The Board’s year continued
Strategic cornerstone:
Capital allocation
Strategic cornerstone:
Sustainability
Amendment to customer
service measurement in
variable incentive
arrangements
The variable incentive arrangements available
at Taylor Wimpey have, for a number of years,
included a customer service measure. This has
previously been aligned to the HBF star builder
status which was based solely on the NHBC
survey ‘Would you recommend?’ question.
Following the HBF’s announcement of the new
5 star rating scheme, whereby the new rating
will be based on questions relating to quality
and service after questions from both the 8-week
and 9-month surveys, the Remuneration
Committee considered how this would impact
the customer service metric in our variable
incentive arrangements.
It was agreed that the customer service measure
would be based on the new star rating measure
and would be aggregated, where necessary,
over the performance period. The Committee
also carefully considered the proposed targets.
The Remuneration Committee agreed that they
remain challenging and would ensure that the
Company is progressing towards one of our key
sustainability-related key performance indicators.
Read more about the new star rating scheme on
page 47. Read more about our variable incentive
arrangements on pages 150 and 151.
Limited assurance
over ESG metrics
Following a detailed review of the ESG metrics
we disclose externally, the Audit Committee
approved the appointment of the external
Auditors to subject four selected ESG metrics,
across health and safety, diversity and inclusion
and the number of homes built using timber
frames, to independent limited assurance
procedures. Read more on page 58.
Dividend approval
Our clear and disciplined capital allocation
framework seeks to balance long term
investment in our future with sustainable
dividends and cash returns for investors in
the near term at the appropriate time in the
cycle. Our Ordinary Dividend Policy is to pay
out 7.5% of net assets or at least £250 million
annually throughout the cycle.
During the year, the Board considered and
approved two dividend proposals, taking into
account the perspectives of customers,
employees, investors and regulators.
The Board also considered scenario analysis
related to the macroeconomic and geopolitical
environment to ascertain the risks – and potential
mitigating actions – to ensure that payment of the
dividends would not disrupt Taylor Wimpey’s
strategic and investment plans or future financial
performance and capital returns. Read more
about our dividend policy on page 94.
Read more about our strategic cornerstones on
pages 39 to
49
111
Financial statements
Shareholder information
Strategic report
Directors’ report
Understanding shareholder views
The Board actively seeks and encourages
engagement with investors, including its major
institutional shareholders and shareholder
representative bodies. During 2024, the
Company has continued to engage with
shareholders in a proactive manner.
The chart below sets out the number of meetings
held with shareholders by the Chair, Executive
Directors, the GMT and our Investor Relations
team. These meetings include one-to-one
meetings, group and conference meetings.
Number of shareholder
meetings in 2024
1
Chair
72
Executive Directors
8
GMT and Directors
38
Investor Relations
Investor relations programme
We operate a structured investor relations
programme, based around formal
announcements and publication of the full year
and half year results. The Board is kept regularly
apprised of the investor relations programme
and receives a detailed report at each meeting,
including specific consideration of investor
feedback following key engagements.
Our corporate brokers also attend Board
meetings as required to give their perspective
on institutional shareholder sentiment.
Annual General Meeting (AGM)
We look forward to engaging with our retail
shareholders at the AGM, which will be held
in person. Shareholders are invited to submit
questions via email in advance of the AGM,
which will be answered during the meeting itself.
Further details on the 2025 AGM can be found
in the Notice of Meeting on pages 238 to 249.
Percentage of the share
register met in 2024
Chair
Executive*
GMT and Directors*
Investor Relations
5.0%
45.1%
16.0%
7.1%
*
Investor Relations also attended.
North American Roadshow
In 2024, the Executive Directors and the Director of
Investor Relations, Communications and Strategy
undertook a North American Roadshow and met with
investors in New York, Boston, Toronto and Montreal to
increase visibility and awareness of Taylor Wimpey.
The Executive Directors met with 23 investors and
provided the Board with a detailed overview of the
meetings held; including the positive feedback received
on our strategy and equity story. Management will look
to undertake the trip on an annual basis to further
establish relationships in North America.
Taylor Wimpey plc
Annual Report and Accounts 2024
112
Engaging with our employees
The Board recognises the importance of
engaging with the workforce and has therefore
adopted two of the methods set out in Provision
5 of the Code: a designated Non Executive
Director and a formal workforce advisory panel.
The diagram opposite shows how both these
methods feed into boardroom discussions
along with other reporting into the Board.
Employee Champion
The Employee Champion is responsible
for championing the ‘employee voice’ in the
boardroom and strengthening the link between
the Board and employees. The key activities
of the Employee Champion are set out in the
Company’s Division of Responsibilities document.
The Board’s Employee Champion is Mark Castle,
who regularly engages with the workforce to
gather their views through a variety of formal and
informal channels (as set out in the diagram on
the right). Mark works with the Chief Executive
and Group HR Director to review identified
concerns and feedback trends, keeping the
Board informed on workforce-related matters.
Mark provided seven updates to the Board
on employee matters during the year.
National Employee Forum
and Local Employee Forums
The National Employee Forum (NEF) members
represent all parts of the business. The NEF is
chaired by a regional Managing Director and
the Employee Champion attends each meeting.
In 2024, the NEF met four times and considered
topics such as the employee value proposition,
Project 141 (an initiative to improve mental health
support on site) and Innovate
TW
.
Lord Jitesh Gadhia, Chair of the Remuneration
Committee, attended a NEF meeting in February
2024 to provide an overview of the Committee’s
role in ensuring that the Executive Directors’
remuneration is aligned to our strategic objectives
and culture.
Each regional business also has its own Local
Employee Forum (LEF), which comprises
members from each function and department
or a representative for groupings of smaller
departments. Each LEF is responsible for
communicating feedback from the NEF to
their regional business and to feed any areas
of concern up to the NEF.
During 2024, membership of the NEF was
reviewed and updated to realign with our current
business structure. The communication channels
between the NEF and LEFs were enhanced by
the introduction of a quarterly NEF and LEF
update process, to capture feedback both ways
and improve communications.
Informal engagement sessions
The Employee Champion meets with small
groups of junior to mid-level employees to
gather feedback directly from employees outside
of the NEF in an informal setting and without
Senior Management being present, to further
encourage openness.
Engagement in practice
plc Board
Employee
Champion
National
Employee
Forum
Employee
Survey
Regional
business
and site visit
programme
Local
Employee
Forums
Informal
engagement
session
Reports from
the GMT
Mark Castle
Employee Champion
The Employee Champion is
responsible for
championing
the ‘employee voice’ in
the boardroom
.
113
Financial statements
Shareholder information
Strategic report
Directors’ report
Engaging with our employees continued
Parental leave
Improved access to IT equipment
NEF and LEF communication enhancements
When
January 2024
April 2024
July 2024
Matter raised
The NEF provided feedback indicating that our parental leave
offering was not as competitive as our peers and others in the
FTSE 100
The NEF members reported that they had received feedback
regarding IT hardware and the availability of new laptops and
spare parts
The NEF identified a disconnect in how feedback was communicated
between the NEF and LEFs; and that there were inconsistencies
in the number of LEF meetings held across the business and the
topics discussed
Action taken
A comprehensive review of the Company’s maternity and
paternity policies (including allowances) was conducted
and benchmarked against other FTSE 100 companies
A review was conducted regarding hardware, highlighting
the importance of having the necessary equipment to
perform roles
The NEF and LEF frameworks were refreshed and guidance was
provided on the format of meetings and attendance to ensure that
LEFs are aligned across the business. A new NEF Chair was appointed,
and LEF members were re-elected to the NEF
Impact/Outcome
We announced changes to our parental leave offering which
included higher maternity pay and longer paid paternity leave
In 2025, a new equipment rollout is taking place to replace
older equipment and improve the availability of spare parts
The enhancements to the NEF and LEF framework will ensure
consistent messaging and feedback across the business and allow
Management to share important updates from a local and national
perspective and get feedback from our employees
Engagement activities throughout the year
Employee Champion
updates to the Board
7
(2023: 5)
Chair and Non Executive
Director regional
business and site visits
25
(2023: 30)
Chief Executive
Teams Q&A
4
(2023: 5)
Taylor Wimpey plc
Annual Report and Accounts 2024
114
Monitoring our culture
In addition, the Board undertook the following actions to assess how the culture was embedded into the organisation:
•
The Board and GMT continued to consider employee
feedback resulting from the various employee engagement
methods as set out on pages 98 and 113 and monitored
actions taken as a result.
•
Board members undertook a programme of regional business
and site visits during 2024, at which they engaged with
employees at all levels of the business or site; seeking their
views on the Company, its performance, and their contribution
to its success. During 2024, 25 Non Executive Director
regional business and site visits took place (2023: 30).
These visits will continue during 2025.
•
The Board and GMT considered feedback from the
Employee Survey and oversaw action plans designed
to address matters raised.
•
Received people updates at every meeting from each
Divisional Chair and from the Group HR Director.
•
Received regular updates on matters raised via the
Group’s whistleblowing policy.
•
The Board also provided input into the development of our
employee value proposition (EVP) to ensure that our EVP
attributes are aligned to our purpose, values and culture.
Our purpose
To build great homes and
create thriving communities
Values
Our strong culture of ‘doing
the right thing’
is a key strength
of our business; and is
underpinned by our values.
The Board is responsible for defining and
setting the culture from the top, and the Board
and GMT as a whole are responsible for leading
by example. Our culture needs to be inclusive in
order to create an environment where everyone
feels valued and empowered to contribute
their best.
212
A
Annual Injury Incidence
Rate (per 100,000
employees and
contractors)
(2023: 151)
98%
of employees agreed
that Taylor Wimpey takes
health and safety in the
workplace seriously
(2023: 98%)
44%
of our Board
are female
(2023: 44%)
26%
A
female representation in
GMT and direct reports (%)
(2023: 28%)
6.9%
A
ethnic representation in
GMT and direct reports (%)
(2023: 6.9%)
93%
overall employee
engagement score
(2023: 93%)
96%
customer satisfaction
8-week score ‘Would you
recommend?’
(2023: 92%)
96%
of employees are proud to
work for Taylor Wimpey
(2023: 96%)
12.1%
voluntary employee
turnover
(2023: 14.2%)
97%
of employees agreed
that Taylor Wimpey is
committed to supporting
charities connected to our
business and surrounding
communities
(2023: 95%)
Culture
The Board assesses and monitors our culture of doing the right thing through the lens of our stakeholders.
The Board reviewed a number of cultural indicators in 2024, which included the following:
Inclusive
Friendly
Supportive
As part of the employee survey, employees
were asked to describe the culture at
Taylor Wimpey in three words, and the
three most frequently used words were:
Respectful
and fair
Better
tomorrow
Take
responsibility
Be
proud
A
This metric was subject to external independent limited
assurance by PricewaterhouseCoopers LLP (‘PwC’).
For further information please see page 58.
115
Financial statements
Shareholder information
Strategic report
Directors’ report
Our governance structure
Shareholders
The Board
Our shareholders are the ultimate owners of the Company and play an important role in the governance structure.
The Board is collectively responsible for promoting the long term sustainable success of the Company and generating value for all stakeholders.
The Company’s Executive Committee, the GMT, is responsible for the day to day management of the Company’s key strategic and operational activities.
The GMT is led by the Chief Executive and comprises the Group Finance Director, Group HR Director, Group General Counsel and Company Secretary,
Group Managing Director Strategic Land and the Divisional Chairs.
Audit
Committee
The objective of the Audit Committee is
to assist the Board in fulfilling its corporate
governance responsibilities relating to the
Group’s financial reporting, risk and internal
control framework and any other matters
referred to it by the Board.
Reporting to The Board
• Treasury Committee
• Disclosure Committee
Reporting to the GMT
• Operational Management Team
• IT Steering Committee
• Land Strategy Committee
• Legacy, Engagement and Action
for the Future (LEAF) Committee
Nomination and
Governance Committee
The objective of the Nomination and Governance
Committee is to ensure that there shall be a
formal, rigorous and transparent procedure for
the appointment of new Directors to the Board,
its Committees and other Senior Management
in the Company; to keep the Board’s corporate
governance arrangements under review; and to
ensure that both the Company and the Board
operate in a manner consistent with corporate
governance best practice.
Remuneration
Committee
The objective of the Remuneration Committee is
to establish and maintain formal and transparent
procedures for developing our policy on
executive remuneration; to set, monitor and
report on the remuneration packages of individual
Directors and Senior Management; and to review
wider workforce remuneration and other policies
in accordance with the Code.
A clear
governance
structure that
enables effective
decision-making
and is
future-ready
Our governance structure ensures that
the Board and its Committees, the GMT
and Senior Management are able to make
decisions effectively.
The Board’s Committees
GMT
Supporting Committees
Read more on
pages 126 to 135
Read more on
pages 119 to 124
Read more on
pages 136 to 159
Reporting
Reporting
Reporting
Informing
Informing
Informing
Taylor Wimpey plc
Annual Report and Accounts 2024
116
Board leadership
We firmly believe that good corporate governance
is essential to enable us to deliver our purpose for
all of our stakeholders and remains a top priority
for the Board.
Our governance structure is set out on the
previous page and has been designed to ensure
the long term success of the Company. The
Schedule of Matters Reserved for the Board sets
out the matters which must be considered by the
Board and those which have been delegated to
one of the Board’s Committees. Each Committee
has its own terms of reference which sets out its
agreed roles and responsibilities. This governance
structure supports decision making and oversight
at Taylor Wimpey.
The Board set the strategic direction of the
Company, agree the annual budget and ensure
that the necessary resources are available to
achieve sufficient progress towards the strategy.
Further information on how the Board oversaw
the strategy during the year can be found on
pages 109 to 111.
The Board conducts regular reviews of actual
results and future projections with comparisons
against budget and prior year performance.
There is a framework of delegated authorities,
approved by the Board, within which individual
responsibilities of senior executives of Group
companies are identified and can be monitored.
The Board also receives regular reports and
minutes from the Company’s Treasury Committee
which is chaired by the Group Finance Director.
Policies and procedures
Conflicts of interest
Directors are required to notify the Group General
Counsel and Company Secretary of any potential
or actual conflicts of interest and these will be
reported to the Board for consideration and,
if appropriate, approval. The Nomination and
Governance Committee, on behalf of the Board,
is responsible for monitoring the content of the
Conflicts of Interest Register annually. During
2024, one proposed external appointment was
considered by the Board. In this case, it was
agreed that there was no evidence of a conflict.
Whistleblowing
The Board maintains overall responsibility for
the Company’s Whistleblowing Policy (the Policy).
The Policy is well communicated to employees
both in regional businesses and on site. It
provides a clear procedure for employees to
report concerns either to their line manager
or through a third party whistleblowing hotline
(the Hotline). The Hotline is also available for use
by suppliers, subcontractors, customers and
members of the public, for reporting any matters
of concern to the Company.
All whistleblowing cases are investigated by
the Head of Internal Audit, Group HR Director
and/or the Group General Counsel and
Company Secretary depending on the nature
of the concern, and (where appropriate)
the Head of Health, Safety and Environment.
The Board receives half-yearly updates which set
out any whistleblowing issues raised during the
period and interim updates on significant matters.
The updates provided are anonymous and
summarise the result of any investigation.
The Board is satisfied that the Policy, the Hotline,
and their administration remain effective.
Anti-bribery and anti-corruption
The Company has written policies on its
zero-tolerance approach to bribery and
corruption. The risks associated with bribery
and corruption are mitigated by training for
senior managers and by issuing an annual
reminder, which includes the current version of
the policies, to all regional businesses and key
departments. This annual exercise requires
written confirmation of continuing compliance
and a completed copy of the relevant gifts and
hospitality register. A training video on anti-bribery
and anti-corruption is also circulated to all relevant
employees. The Company also has a dedicated
page on its intranet that provides employees with
an overview of competition law obligations that
must be complied with.
ESG
ESG is an important part of working for
Taylor Wimpey and how we do business,
and the Board is responsible for overseeing
our ESG initiatives.
The implementation of ESG initiatives across
the Group is led by the Chief Executive
and the GMT. Social and governance aspects
of ESG are considered ‘business as usual’
and this is evident in our key performance
indicators and stakeholder interactions.
During the year, the Audit Committee agreed
that the external Auditors would be engaged
to perform limited assurance procedures
on four select ESG metrics, demonstrating
confidence in the control and management
across these key disclosure areas of ESG.
Further information on these can be found
on page 58.
117
Financial statements
Shareholder information
Strategic report
Directors’ report
Non Executive Directors
Executive Directors
Chief Executive
Jennie Daly
• Ensure effective leadership and day to day
running of the Group
• Lead the GMT and oversee key functions
• Develop and implement the Group’s strategy,
strategic plan and related annual budget
• Review the organisational structure, including
development and succession planning
• Manage the Group’s risk profile and establish
effective internal controls
• Agree the Group’s annual budget proposal,
prior to formal agreement with the Board
• Ensure the Chair and Board are advised and
updated regarding any key matters
• Maintain relationships with stakeholders and
advise the Board accordingly
• Overall responsibility for sustainability
Group Finance Director
Chris Carney
• Manage the Group’s finances, including treasury
and tax matters
• Lead the finance, tax, treasury, IT, internal audit
and pensions functions
• Oversee the Group’s risk profile, in conjunction
with the GMT
• Agree the Group’s annual budget proposal,
prior to formal agreement with the Chief Executive
and the Board
Group General Counsel
and Company Secretary
Ishaq Kayani
• Provide advice and support to the Board,
its Committees and individual Directors on
matters of corporate governance, compliance
and legal matters
• Ensure that the Board has the policies,
processes, information, time and resources it
needs in order to function effectively and efficiently
• Support the Chair to set meeting agendas and
ensure Directors receive accurate, timely and
clear information
• Responsible for all legal and compliance matters
relating to the Group
•
Oversee the Group’s Legal and Secretariat functions
Employee Champion
Mark Castle
• Champion the ‘employee voice’ in the boardroom
and ensure employee views are taken into
account by the Board, particularly when decisions
are being made that could affect employees
• Strengthen the link between the Board
and employees
• Regularly gather the views of employees through
a variety of formal and informal channels and
identify any areas of concern
• Liaise with Senior Management on a regular
basis on matters of employee engagement
and culture
• Oversee Senior Management’s feedback to
employees on steps taken to address concerns
In line with the Code, the Company’s Division of Responsibilities document was reviewed in 2024. The Division of Responsibilities document is available on our website. In addition, the roles of the Board
members have been defined in more detail, as set out below.
Chair
Robert Noel
• Lead and ensure the effectiveness of the Board
in directing the Group
• Chair Board and Nomination and Governance
Committee meetings, set meeting agendas and
ensure Directors receive accurate, timely and
clear information
• Promote high standards of corporate governance
• Build a well-balanced and highly effective Board
with a culture of openness and debate to
encourage constructive challenge
• Facilitate and promote constructive relations
between Board members and the effective
contribution of all Non Executive Directors
• Lead the annual review of the Board’s effectiveness
• Engage with the Group’s stakeholders and maintain
an appropriate balance between the interests of
all stakeholders
• Demonstrate objective judgement
Senior Independent Director
Lord Jitesh Gadhia
• Act as a sounding board for the Chair
• Act as an intermediary for the other Directors,
when necessary
• Be available to shareholders who wish to discuss
matters which cannot be resolved through the
usual channels
•
Chair Board meetings in the absence of the Chair
• Lead the Board’s evaluation of the
Chair’s performance
• Lead the Nomination and Governance Committee
in the search for a new Chair, if appropriate
Non Executive Directors
Mark Castle, Martyn Coffey, Irene Dorner,
Scilla Grimble, Clodagh Moriarty
• Provide constructive challenge to the
Executive Directors
• Provide strategic guidance to the Group
• Offer specialist advice
• Serve on the Board’s Committees
• Scrutinise and hold to account the performance
of the Executive Directors against agreed
performance objectives
• Devote sufficient time to the Group to meet
their responsibilities
Division of responsibilities
Taylor Wimpey plc
Annual Report and Accounts 2024
118
Quick links to governance documents
The below governance related documents
can be found on our website:
• Articles of Association
• Matters Reserved for the Board
• Division of Responsibilities
• Terms of Reference for the
Board Committees
• Board mandated policies
Committee members
Meeting attendance
(a)
1. Robert Noel (Chair)
4/4
2. Mark Castle
4/4
3. Martyn Coffey
(b)
–
4. Irene Dorner
4/4
5. Jitesh Gadhia
4/4
6. Scilla Grimble
4/4
7. Clodagh Moriarty
4/4
8. Humphrey Singer
(c)
4/4
(a) An additional Nomination and Governance Committee
meeting was held outside the usual meeting schedule
to recommend the appointment of Martyn Coffey as an
independent Non Executive Director and the appointment
of Jitesh Gadhia as the Senior Independent Director.
(b) Martyn Coffey was appointed to the Committee on
1 December 2024.
(c) Humphrey Singer stood down from the Committee on
31 December 2024.
Committee meetings were also attended, by
invitation, by the Chief Executive, Group HR Director,
Group General Counsel and Company Secretary,
members of the Company Secretariat team, Head of
Talent, Head of HR, Chair of the National Employee
Forum and Chair of the ED&I Committee.
We remain focused on
ensuring that there are
strong succession pipelines
into our various
senior
leadership roles
.”
Robert Noel
Chair of the Nomination and
Governance Committee
Key activities and
areas of focus
• Oversaw the recruitment of Martyn Coffey and
recommended his appointment to the Board
• Recommended that Jitesh Gadhia and Scilla
Grimble be appointed as the Company’s
Senior Independent Director and Chair of the
Audit Committee respectively
• Approved the process for the internally
facilitated Board evaluation
• Reviewed the Board, Group Management
Team, Heads of Functions and wider workforce
talent and succession plans
• Received updates on the Company’s equality,
diversity and inclusion activities and progress
against targets
Dear shareholder,
As Chair, I am pleased to present the 2024
report of the Nomination and Governance
Committee (the Committee) on behalf of
the Board. This report sets out the work
undertaken by the Committee during the year.
Ahead of Humphrey Singer reaching his
nine-year term, the Committee oversaw the
recruitment and appointment process for a new
Non Executive Director, Martyn Coffey. Further
details on the recruitment process and factors
considered in Martyn’s appointment can be
found on page 121. The Committee also
made a recommendation to the Board that
Jitesh Gadhia and Scilla Grimble should succeed
Humphrey as the Company’s Senior Independent
Director and Audit Committee Chair respectively.
Looking forward, we will continue to review
the composition of the Board to ensure that
we continue to have the required skills
and membership.
The Committee also plays a crucial role in
planning effectively for senior management
succession and we remain focused on ensuring
that there are strong succession pipelines into
our various senior leadership roles. A strong
leadership team equipped with the right skills,
experience and knowledge is crucial in ensuring
that, as an organisation, we are fit for the future.
Nomination and Governance Committee report
119
Financial statements
Shareholder information
Strategic report
Directors’ report
During the year, we received detailed updates
from management on the succession plans
in place and were invited to provide input into
the senior level learning and development
programmes on offer across the business.
These programmes continue to strengthen the
talent pipeline and provide clear succession
pathways for high potential individuals at all levels.
The programmes are a key part of our employee
value proposition and employees welcome the
development on offer and recognise the success
we have in progressing employees. Read more
about our succession plans on pages 121
and 122.
Our focus on equality, diversity and inclusion
remains unchanged, at both Board and at
a wider organisational level. As at 31 December
2024, the Board comprised of 44% women and
one Director from an ethnic minority background.
A key area of discussion was agreeing a target
for ethnic minority representation for Senior
Management by 2027. A level of 9.7%
was endorsed by the Committee and was
subsequently published in the Company’s
Diversity and Inclusion Report. Further details
on our diversity and inclusion progress, including
our initiatives, can be read on page 125 and also
in our Diversity and Inclusion Report which can
be found on our website.
Our responsibilities as a Committee also
include oversight of the Company’s corporate
governance practices and we have continued
to develop our processes to ensure corporate
governance best practice is complied with at all
levels of the organisation. In light of the 2024
Code which applies to us from 1 January 2025,
the Committee reviewed and updated its Terms
of Reference, the Matters Reserved for the Board
and Division of Responsibilities document to
ensure that they meet the requirements.
Finally, we approved the process for the internally
facilitated Board evaluation and received updates
on the progress made against the actions
identified in the 2023 externally facilitated Board
evaluation. Further details can be found on
pages 123 and 124 of this report.
Robert Noel
Chair of the Nomination
and Governance Committee
26 February 2025
Committee purpose
and responsibilities
The main objectives of the Committee are to
ensure that there are formal, rigorous and
transparent procedures for the appointment
and induction of new Directors to the Board,
its Committees and other senior positions in
the Company. The Committee is also responsible
for keeping the Board’s corporate governance
arrangements under review and to ensure that
both the Company and the Board operate in
a manner consistent with corporate governance
best practice.
More information about the Committee’s purpose
and responsibilities can be found in the
Committee’s Terms of Reference which
are available on our website.
Governance
During 2024, the Committee oversaw a number
of governance matters, which included:
• Approving the 2024 Notice of Annual
General Meeting
• Confirming compliance with the Committee’s
Terms of Reference during 2024
• Reviewing the key corporate governance
documents against the 2024 Code. The
proposed amendments were considered by
the Committee at its February 2025 meeting
• Recommending the annual approval of the
Directors’ Conflicts of Interest Register to
the Board
• Approving the 2024 internally facilitated
Board evaluation process
• Approving the Committee’s annual plan
for 2025
Nomination and Governance Committee report continued
Taylor Wimpey plc
Annual Report and Accounts 2024
120
Board balance and skills
During 2024, the Committee considered the
structure, size, and diversity of the Board, as well
as the skills, knowledge and experience of each
Board member.
The Committee concluded that the balance, as at
31 December 2024, of the Chair, two Executive
Directors and six Non Executive Directors
remains appropriate. This balance will be kept
under review during 2025. In addition, the skills of
each member of the Board, as set out on pages
103 to 106, along with the balance of Executive
and Non Executive Directors is considered to be
appropriate to provide constructive challenge as
well as guidance and support in order to continue
to deliver the Company’s strategy.
Independence review
Each Director is required to seek election or
re-election, as appropriate, at each year’s
AGM. As part of this election and re-election
process, the Committee has assessed each
Non Executive Director’s independence and is
satisfied that five of the seven Non Executive
Directors remain independent in nature and there
were no circumstances identified that are likely
to impair, or could impair their independence.
In addition, the Committee is satisfied that the
Chair was independent in accordance with the
Code, when he became Chair of the Board.
Nomination and Governance Committee report continued
Non Executive Director appointment and induction process
During the year, the Committee led the
recruitment and appointment process for
a new Non Executive Director in preparation
for Humphrey Singer reaching the end of his
nine-year term. All Board appointments are
subject to formal, rigorous and transparent
procedures, are based on merit and objective
criteria and promote diversity of gender, social
and ethnic background, and cognitive and
personal strengths.
The Committee developed a role profile
for this appointment and Egon Zhender
was appointed to assist with the process.
Egon Zhender confirmed it had no other
connection to the Company or any Director
other than as appointed by the Company
to assist with executive and non executive
search and appointment processes. Egon
Zhender is also a signatory to the voluntary
enhanced code of conduct for executive
search firms. Egon Zhender conducted
an internal and external market-scanning
exercise and produced a diverse long list of
candidates for consideration against the role
profile. Following consideration of the long
list of potential candidates against the role
profile, the Committee produced a shortlist of
preferred candidates to proceed to interview.
The shortlisted candidates were then
interviewed by the Chair, the Executive
Directors and a number of the Non Executive
Directors. Following a proposal from the
Committee, the Board approved the
appointment of Martyn Coffey as an
independent Non Executive Director.
Martyn brings a wealth of experience in the
area of manufacturing for the building industry
and of supply chains, having previously been
the CEO of Marshalls Plc for over 10 years
and a Non Executive Director of Eurocell Plc
for eight years.
Following his appointment,
Martyn undertook an in-depth
induction. This included:
• Provision of a comprehensive pack of documents
setting out key information about the Company
and the Board, including broker reports, key
governance documents and information on
directors’ duties.
• One-to-one meetings with a number of key
internal individuals, including the Chair, Executive
Directors, Non Executive Directors, members
of the GMT and Heads of Functions.
• One-to-one meetings with the Company’s
solicitors, brokers, corporate communications
agency and external Auditors.
•
Martyn will also take part in the Non Executive
Directors’ regional business office and site visit
programme throughout 2025.
121
Financial statements
Shareholder information
Strategic report
Directors’ report
Nomination and Governance Committee report continued
Irene Dorner, having stepped down as Chair
of the Board in 2023, is now considered a
non-independent Non Executive Director.
The Committee considers the balance of
independent and non-independent Directors
appropriate and will keep this under review.
The Directors are required to notify the Company
of any changes to their external commitments
so that these roles can be considered in relation
to the potential for a conflict of interest to arise.
These external roles are considered by the
Committee and during 2024, it has been
concluded that no conflicts of interest have
arisen. In addition, the Committee also considers
that each Director is able to allocate sufficient
time to the Company to discharge their duties
effectively. This not only included Board and
Committee meeting attendance, but also
preparation time, site visits and other additional
time commitments required during the year.
Accordingly, at the 2025 AGM each Director,
irrespective of their appointment date,
will be submitted for election or re-election
as appropriate. More information can be
found on pages 239 and 242 to 244.
Succession planning
The Committee reviews the effectiveness and
adequacy of succession planning processes and
the succession plans for the Board, the GMT and
Heads of Functions, as well as wider workforce
planning for certain roles including regional
managing directors. Consideration is given to
the length of tenure of each incumbent with the
aim to proactively anticipate potential changes
and address vacancies proactively to ensure
smooth succession.
The Committee has visibility of a range of
employees who have been identified as potential
succession candidates in the short, medium and
long term. The Committee plays an important
role in overseeing the development of potential
successors and reviews their development
programmes to ensure they continue to develop
in line with the succession plan.
The Committee received a detailed overview
of the development support offered to senior
employees across the business, and provided
input into the development programmes which
have been established to enable individuals who
have been identified as potential successors to
accelerate their development.
One aspect of a senior individual’s development
plan is for those below Board-level to be given
the opportunity to attend Board meetings to
present on specialist topics, project work and
divisional performance. This process not only
provides valuable exposure to the Board but it
also allows the Board and Committee to assess
the strength and depth of the succession plans in
place. During 2024, a number of individuals were
invited to present to the Board on topics including
customer service, sales and marketing, supply
chain and employee engagement.
At Taylor Wimpey we have clearly defined career
paths and development programmes which
enable career advancement for all. The
Committee has oversight of the development
programmes on offer across the business,
which includes our functional academies,
successor to director development programmes
across all functions and aspiring managing
director programme.
The Committee is supported in its work by
divisional talent meetings which regularly review
succession plans and related development
requirements across roles within the Company.
Contingency planning
During 2024, the Committee reviewed the
Company’s contingency cover to ensure that
the Company can respond to the unforeseen
unavailability of any member of the Board,
GMT or other senior roles, without impacting
the current and long term performance of the
Company. Following this review, the Committee
was confident that all key roles have an
appropriate contingency plan in place.
Taylor Wimpey plc
Annual Report and Accounts 2024
122
Nomination and Governance Committee report continued
Board evaluation
The Board undertakes a formal and rigorous
evaluation of the performance of the Board,
its Committees, the Chair and individual Directors
on an annual basis. It provides an opportunity
to consider and reflect on the effectiveness
and quality of the Board’s decision making;
and for individual Directors to consider their
own performance and contribution.
In accordance with the Code, the Board has adopted a three year cycle,
whereby the evaluation is externally facilitated at least every three years.
Year 1 – 2023
Externally facilitated
Year 3 – 2025
Internally
facilitated
Year 2 – 2024
Internally
facilitated
The Board evaluation was last facilitated externally in 2023 by Manchester Square Partners.
The Committee is satisfied with the progress made against the actions identified as part of last year’s
review. Further information can be found in the table below.
2023 recommendations
Actions taken in 2024
Additional external input
on key topics to provoke
collective discussion and
hear opposing views
Three teach-in sessions were delivered by external speakers during the year;
which covered the political environment, capital market reforms and an overview
of the housing market outlook. The teach-in sessions will continue in 2025.
Further enhance
discussions at Board
and Committee meetings
An executive summary is now included in all presentation pre-reads along with key
questions Management would like the Board members to consider ahead of the
meeting to enhance discussions at the meetings themselves. Additionally, a brief
biography of each presenter is circulated to the Board ahead of each meeting.
Development of an
employee value
proposition
Throughout 2024 the Board received regular updates on, and contributed to,
the development of the employee value proposition (the EVP). Further details on
the EVP can be found on page 56.
123
Financial statements
Shareholder information
Strategic report
Directors’ report
Nomination and Governance Committee report continued
The Board evaluation conducted in 2024 was
internally facilitated by the Chair and the diagram
on the left is an outline of the process.
The scope of the questionnaire focused on the
following themes:
•
The Board:
leadership, strategic oversight,
culture, Board composition and succession
planning, Senior Management succession
planning, stakeholder engagement and
Board support
•
The Committees:
effectiveness of the
Committees and their Chairs
•
The Chair:
relationships and communication,
stakeholder engagement and the management
of meetings
•
Individuals:
individual performance, time
commitment, relationships and contribution
Board evaluation insights
Overall, the evaluation concluded that the Board
continues to function well and governance
remains strong at Taylor Wimpey.
The Chair and the Chief Executive both foster
a culture of trust and empowerment and there
is regular open dialogue between them.
All Directors confirmed that the Board and
its Committees operate well as a team,
with adequate discussion, challenge and levels
of engagement. It also confirmed that the
Committees have the requisite skills, knowledge
and experience and the respective Chairs were
effective. There was a consensus that the culture
at Taylor Wimpey is strong and no concerns were
raised, but it was suggested that culture remains
at the centre of all ongoing workstreams such
as the EVP and Innovate
TW
.
The Directors confirmed that they have
a clear view of the concerns and expectations
of stakeholders, and that each stakeholder
group was appropriately considered during
Board discussions.
The findings of the evaluation also confirmed
that Non Executive Directors are committed,
knowledgeable and well prepared; and bring
strong diverse perspectives and experiences.
Some areas for further enhancements were
identified and the Board developed an action plan
designed to address these and drive continuous
improvement; and the plan will be actioned in
2025. Further information can be found in the
table below.
2024 recommendations
Initial progress
Agenda structures to be reviewed to ensure
there is the right balance of routine and
forward-looking items
This was considered by the Board when agreeing the
2025 annual plans for the Board and its Committees.
It will also be kept under review throughout the year by
the Chair, the Chief Executive and the Group General
Counsel and Company Secretary.
Management and the Board to be aligned on
the topics which require early and reasonably
full discussion
The Non Executive Directors to advise ahead of meetings
the questions they would like presenters to address and
if there is a topic they would like to discuss in depth.
Offer institutional shareholders the opportunity
to meet with the Chair
The Chair is to conduct an institutional investor roadshow
in March 2025.
Stage 3: Findings and actions
• The Group General Counsel and Company
Secretary submitted a proposal to the
Committee to undertake the Board
evaluation by way of a questionnaire and an
opportunity to meet with the Group General
Counsel and Company Secretary to provide
additional feedback if required.
Stage 1: Board evaluation scope
Stage 2: Board evaluation methodology
• The questionnaire, which sought feedback
on four areas of focus, was sent to
each Director.
• A separate questionnaire was sent to a
number of senior employees who regularly
engage with the Board and its Committees.
• The Group General Counsel and Company
Secretary collated the feedback and
anonymised the data.
• The Senior Independent Director led
a discussion on the Chair’s performance,
based on the feedback provided on the
Chair, without the Chair present.
• The non-attributable feedback, other than
feedback relating to the Chair, was shared
with the Chair who led a discussion at the
October Board meeting.
• Through a discussion at the Board’s
December meeting, an action plan
was agreed.
Taylor Wimpey plc
Annual Report and Accounts 2024
124
Board and senior
management diversity
As at 31 December 2024, our chosen reference
date, Taylor Wimpey confirms it has met the
targets set out in UK Listing Rule 6.6.6R (9).
In accordance with UK Listing Rule 6.6.6R (10),
the composition of the Board and GMT, the most
senior executive committee at Taylor Wimpey,
is set out in the table above. As at the date of this
Annual Report and Accounts, there have been no
changes to the Board since the reference date.
Diversity at Board-level is supported by the Board
Diversity Policy which specifically applies to the
Board and its Committees and supports the
Company’s wider approach to diversity.
This Policy is available on our website.
The Board fully supports the FTSE Women
Leaders Review target of 40% female
representation on the Board and the leadership
team by 2025. The definition of leadership team
includes our Group Management Team and
their direct reports, excluding administrative staff,
so differs from the data included in the table
above. While we are pleased to report that we
have exceeded this target in relation to our
Board membership, we recognise that further
progress needs to be made in relation to female
representation in our leadership team which
was 26% as at 31 December 2024. To improve
representation at this level we are focusing on
broader recruitment channels, diverse candidate
long lists, a tailored development programme to
support our females to progress and our reverse
mentoring programme.
Diversity
PwC has been engaged to perform limited
assurance procedures on four select ESG metrics
for the year, including female representation
in GMT and direct reports, and ethnic
representation in GMT and direct reports. Further
information on this can be found on page 58.
The Board also fully supports the Parker Review’s
recommendation to have at least one ethnic
minority director on the Board and is pleased to
confirm compliance with this recommendation.
Diversity remains a key consideration during
recruitment and will continue to be referenced
in all search and recruitment processes at
Board-level. Further information on how this
is considered during Board recruitment and
appointment processes can be found on
page 121.
Equality, diversity
and inclusion (ED&I)
ED&I remains a key priority for the Board, and
across the Company as a whole. Our ED&I strategy
continues to be focused on three key areas:
• 21st century leadership – Ensure that line
managers understand their role in developing a
more diverse and inclusive culture and have the
relevant training and support to achieve this.
• Employer of choice – Ensure that our working
environment, policies, procedures and
development and progression opportunities
support greater diversity and inclusion.
This includes wellbeing.
• Expanding our reach – Develop broader
recruitment channels, understand and embrace
the diversity of our customers and workplace
and improve our engagement with them.
The Nomination and Governance Committee
received two ED&I updates during the year which
provided an overview of our key ED&I initiatives
in the year, including our reverse mentoring
programme, coaching for exceptional talent
and our updated and improved family friendly
provisions. The Nomination and Governance
Committee also reviewed progress against
our published aspirational targets and were
pleased to note that all regional businesses have
developed a diversity action plan to make further
progress against our aspirational targets that are
published in our Diversity and Inclusion Report.
The Board reviewed and approved our
second Diversity and Inclusion Report in 2025
which will shortly be available on our website.
This contains detailed information about the
Company’s employee diversity policies,
practices and progress.
Diversity data collection
Our diversity data is collated through our HR
management system. We encourage all to
self-report information such as gender, gender
identity, ethnicity, age, sexual orientation and
disability, and include the option to ‘prefer not
to say’.
Gender and ethnicity representation as at 31 December 2024
Gender diversity
Number of
Board
members
Percentage of
the Board
Number of
senior positions
on the Board
Number
in executive
management
(a)
Percentage
of executive
management
Men
5
55.6%
3
6
66.7%
Women
4
44.4%
1
3
33.3%
Other categories
–
–
–
–
–
Not disclosed/prefer not to disclose
–
–
–
–
–
Ethnic diversity
Number of
Board
members
Percentage of
the Board
Number of
senior positions
on the Board
Number in
executive
management
Percentage of
executive
management
White British or other white
8
88.9%
3
7
77.8%
Mixed/multiple ethnic groups
–
–
–
–
–
Asian/Asian British
1
11.1%
1
2
22.2%
Black/African/Caribbean/Black British
–
–
–
–
–
Other ethnic group including Arab
–
–
–
–
–
Not specified/prefer not to say
–
–
–
–
–
(a) The most senior executive committee at Taylor Wimpey is the GMT.
The figures in the table above are stated as at 31 December 2024 and do not include Humphrey Singer as he stood down from
the Board on this date.
26%
A
female representation in
GMT and direct reports (%)
6.9%
A
ethnic representation in
GMT and direct reports (%)
33%
female representation in early
entry talent – graduates (%)
29%
ethnic representation in early
entry talent – graduates (%)
A
This metric was subject to external independent limited assurance by PricewaterhouseCoopers LLP (‘PwC’).
For further information please see page 58.
125
Financial statements
Shareholder information
Strategic report
Directors’ report
Committee members
Meeting attendance
1. Scilla Grimble (Chair)
(a)
3/3
2. Mark Castle
3/3
3. Martyn Coffey
(b)
1/1
4. Humphrey Singer
(c)
2/2
(a) Appointed as Chair of the Committee on
1 September 2024.
(b) Appointed to the Committee on 1 December 2024.
(c) Stood down as Chair of the Committee on 1 September
2024 and from the Committee on 1 December 2024.
Committee meetings were also attended, by
invitation, by the Chair, Chief Executive, Group
Finance Director, other Non Executive Directors,
Group General Counsel and Company Secretary,
members of the Company Secretariat team,
Group Financial Controller, Head of Internal
Audit, Head of Tax, Head of Group Reporting,
IT Director and the external Auditors.
Key activities of the
Audit Committee in 2024
• Made progress against the Committee’s Areas
of Focus in 2024, including overseeing the
development of the changes required in
response to the 2024 Code. Read more
on pages 128 and 129
• Ensured business performance was fairly
presented in financial reporting
• Approved the appointment of PwC to perform
limited assurance procedures on four select
ESG metrics. Read more on pages 58 and 133
• Considered the significant matters related to
the financial statements and evaluated how
they have been addressed
Dear shareholder,
I am pleased to present my first Audit Committee
(the Committee) report (the Report), having
succeeded Humphrey Singer as Chair of the
Committee on 1 September 2024. I would like
to thank Humphrey for his support during the
transition period and his outstanding service
to the Company as Chair of the Committee.
This Report details the work undertaken by the
Committee in 2024, including the processes
involved in enhancing assurance provided to the
Committee and the Board, how the Committee
has reviewed and monitored the Company’s
internal control framework and risk management
processes and the work undertaken to assure the
integrity of the Annual Report and Accounts 2024
(the Annual Report).
We received regular updates at each meeting
on the progress made against each of the
Committee’s areas of focus for 2024. I am pleased
to confirm that all areas of focus were addressed
to the Committee’s satisfaction during the year
and further details on the outcomes can be found
on pages 128 and 129 alongside agreed areas
of focus for 2025.
I am pleased to confirm
that
all areas of focus
were addressed to the
Committee’s satisfaction
during the year.”
Scilla Grimble
Chair of the Audit Committee
Audit Committee report
Taylor Wimpey plc
Annual Report and Accounts 2024
126
Audit Committee report continued
During the year, the UK Corporate Governance
steering committee, consisting of the Group
Finance Director, the Group General Counsel
and Company Secretary, the Group Financial
Controller, Head of Group Reporting, IT Director
and Head of Internal Audit, continued to meet
with the Head of Risk to ensure that the Board
will be able to make the required disclosures on
the Company’s risk management and internal
control framework in the Company’s Annual
Report and Accounts for the year ending
31 December 2026, in relation to provision 29
of the 2024 Code. Further information on the
work undertaken during the year can be found
on page 129. The Committee also received an
update from the Head of Internal Audit on the
work undertaken to ensure compliance with the
2024 Code more generally.
As a Committee, we have also overseen the
preparatory work undertaken in respect of the
reporting requirements set out in the Corporate
Sustainability Reporting Directive and European
Sustainability Reporting Standards, to ensure
that the Spanish business will comply with
these requirements for the financial year ending
31 December 2025. Work is ongoing which will
conclude with a gap assessment and action plan,
with implementation required through 2025 to
ensure compliance, although this remains subject
to potential change, pending the publication of
the ‘omnibus package’ expected at the end of
February 2025.
Additionally, following an internal review of the
metrics the Company reports and assures
against external requirements, and considering
our peers’ performance, PwC has been engaged
to perform limited assurance procedures on four
select ESG metrics for this financial year, across
health and safety, diversity and inclusion and the
number of homes built using timber frame.
We continue to hold individual meetings with
the external Auditors and Head of Internal Audit,
independent of Management, to discuss matters
within our remit and any issues arising from both
the internal and external audits. The Committee
considered the effectiveness of the external
Auditors and Internal Audit during the year and
remains satisfied with the effectiveness of both.
Further information on how these assessments
were undertaken can be found on pages 130,
132 and 133.
The internally facilitated Board evaluation, which
is described in more detail on pages 123 and
124, included an appraisal of the performance of
the Committee and individually of its Chair and
members. The outcome was that the Committee
was considered to continue to operate effectively,
with the necessary level of expertise, and is
chaired effectively and in a way that ensures
a good level of debate and positive challenge.
The Board is satisfied that the Committee
members bring a wide range of financial
experience across various industries and have
competence relevant to the sector. Further
information about each Committee member
is contained in their individual biographies,
which can be found on pages 104 to 106.
We reviewed our Terms of Reference in February
2025 and approved some minor amendments
to ensure that they are compliant with the 2024
Code. We also reviewed our activities in 2024
against the Terms of Reference in place during
2024 and I am pleased to report that we
discharged our responsibilities in accordance
with them.
Throughout the year we met the FRC guidance
on Audit Committees which was incorporated
into the Code. The aim of the guidance is to
further improve good governance around
the Committee’s competence, induction for
new members, audit rotation, independent
assessment of areas of judgement and
sufficiency of resourcing; all with the aim of
ensuring that it is able to perform its primary
function of protecting shareholders’ interests
in relation to the Company’s financial reporting
and internal control.
Finally, I would like to welcome Martyn Coffey
who joined as a Committee member on
1 December 2024. Further details on
Martyn’s skills and experience can be found
on pages 105 and 121.
Scilla Grimble
Chair of the Audit Committee
26 February 2025
127
Financial statements
Shareholder information
Strategic report
Directors’ report
Audit Committee report continued
Committee purpose
and responsibilities
The main objective of the Committee is to assist
the Board in fulfilling its corporate governance
responsibilities relating to the Group’s financial
reporting, internal and external auditing, risk,
and internal control framework, and any other
matters referred to it by the Board.
The Committee’s Terms of Reference can be
found on our website and are reviewed each year
to ensure that they remain appropriate. The
Committee reviewed our activities in 2024 against
the Terms of Reference in place during 2024 and
discharged our responsibilities in accordance with
them. The Committee’s Terms of Reference have
been reviewed against the 2024 Code and best
practice; with minor amendments approved by
the Committee at its February 2025 meeting.
Committee meetings and
Committee membership
The Committee considers that three meetings
per year remains appropriate and sufficient
to effectively discharge the Committee’s
responsibilities. There are processes in place
for the Committee to meet on additional
occasions when necessary.
At the end of each meeting, the Committee
members hold private discussions with the
Head of Internal Audit and the external Auditors
separately, without Management present.
The Chair of the Committee regularly holds
separate one-to-one meetings with the Group
Finance Director, the Head of Internal Audit
and the external Auditor outside of scheduled
meetings to better understand any issues or
areas for concern.
All members of the Committee are independent
Non Executive Directors as required by the
Code. The Board has determined that Scilla
Grimble, Chair of the Committee, has recent
and relevant financial experience as required
by the Code as is evidenced by her biography
on page 106. The Committee believes that its
members collectively have the necessary
competence relevant for the housebuilding
sector and that its composition, balance, and
expertise can give shareholders confidence
that the financial reporting, internal and external
auditing, risk, and control processes of the
Group are subjected to the appropriate level of
independent, robust and challenging oversight.
The Committee’s
Key Areas of Focus
Update on the 2024 key areas of focus
Each year the Committee identifies additional
key areas of focus in addition to its recognised
objectives set out in its Terms of Reference.
This enables the Committee to monitor the
steps being taken to strengthen the control
framework across the Group. The Committee’s
key areas of focus during 2024 were addressed
as follows:
Gain assurance that the transition to
a new IT service provider is appropriately
managed, minimising operational
disruption and associated risks
Following a comprehensive tender process,
the Company appointed a new IT service
provider, HCLTech, in April 2024. This was
identified as one of the Committee’s key areas
of focus as the Committee considered that
a poorly managed transition process could
lead to significant operational disruption.
The Committee gained assurance from the
establishment of an internal committee which
oversaw the governance of the transition
and wider project (the IT Programme Board).
The IT Programme Board is chaired by the
Group Finance Director, and its members include
a Divisional Chair, the IT Director, the Group
General Counsel and Company Secretary and
the Head of Internal Audit. In addition, KPMG
provided an advisory role to the programme
and independent assurance was provided by
The Berkeley Partnership LLP.
At its July and December meetings, the
Committee received detailed updates from the
IT Director on the transition from the incumbent
service provider to HCLTech, which included
progress against the detailed transition plan and
an overview of the execution of the primary and
secondary data centre moves. The Committee
considers that the transition was executed well
and was appropriately managed, which ensured
that there was limited operational disruption.
Taylor Wimpey plc
Annual Report and Accounts 2024
128
1.
To monitor the Group’s preparedness
to comply with any new reporting
requirements as a result of the Corporate
Sustainability Reporting Directive,
and other future ESG related
disclosure requirements.
3.
Gain assurance that Innovate
TW
projects are progressed through
a robust framework.
2.
To oversee the implementation of
agreed enhancements in response
to the 2024 Code.
Audit Committee report continued
Oversee the development of the changes
required in response to the 2024 Code
The Committee continued to support the Board
with its preparation for compliance with the
2024 Code changes, in particular Provision 29,
which is applicable for the Group’s financial year
commencing 1 January 2026.
A well-established project is in place, supported
by a strong governance process, to ensure we
remain on plan to meet the 1 January 2026
implementation date for Provision 29. Regular
project updates were provided to the Committee
during the year, ensuring transparency of
progress, with appropriate challenge and
guidance offered by the Committee.
As we progress through 2025 and the project
implementation plan is delivered, the Committee
will regularly review progress to monitor and
assess the preparedness of the business.
Gain assurance that the new HR and
payroll system is implemented with
a robust framework
The Company’s HR and payroll system was
replaced during 2024. The Committee sought
and received assurance from Management,
the Group HR Director and the IT Director
that a robust framework existed during the
implementation phase.
A programme board was established which
was chaired by the Group HR Director, and its
members included a Divisional Chair, the IT
Director and the Head of Internal Audit (the HR
and Payroll Programme Board). The HR and
Payroll Programme Board was responsible for
overseeing the implementation of the project. The
Head of Internal Audit reviewed user acceptance
testing, comparison testing and delegation
activities in detail, and updated the Committee.
The Group HR Director provided an update to
Committee members as part of a presentation
to all Board members in May 2024. The update
summarised the key deliverables, key changes,
risks and mitigations. A further update was
provided by the IT Director to the Audit
Committee at its July 2024 meeting, where it
was reported that the implementation had been
well executed.
Key areas of focus in 2025
129
Financial statements
Shareholder information
Strategic report
Directors’ report
Internal controls and
risk management
The Committee has delegated responsibility
from the Board for reviewing the effectiveness
of the Group’s systems of internal control,
which includes financial, operational and
compliance controls and risk management
systems. This section of the Report sets
out the additional oversight provided by the
Committee on the Group’s risk management
and internal control systems.
Internal Audit
Internal Audit’s primary role is to provide
independent and objective assurance over
the Group’s risk management, governance and
internal control processes, designed to add
value and improve the organisation’s operations.
The function is led by the Head of Internal Audit
who directly reports to the Chair of the Audit
Committee with a secondary reporting line to
the Group Finance Director. The reporting line to
the Chair of the Audit Committee protects the
function’s independence. The Head of Internal
Audit has regular direct contact with the Chair
of the Board, the Chief Executive and other
Senior Management, as required.
The purpose, scope and authority of Internal
Audit is defined in its charter, which is approved
each year by the Committee and is available
on our website. Internal Audit’s mandate is
Group-wide and their reviews during 2024
have considered financial, operational and
compliance controls.
An independent evaluation of Internal Audit’s
independence and performance was carried out
in 2021 which found that Internal Audit remains
fit for purpose, and operates effectively and
efficiently, and in line with good practice. The
Internal Audit team has reviewed the new Global
Internal Audit Standards and the updated UK
Code of Practice for Internal Audit published
during 2024. The Head of Internal Audit was a
member of the independent steering committee
responsible for the update to the UK Code of
Practice for Internal Audit. As a result, we have
made some minor enhancements to our
practices. Following our annual internal quality
assessment, the Head of Internal Audit confirmed
that we continue to conform with these
standards. The next independent evaluation of
internal audit practices will take place in 2026.
The Committee conducts an annual review of
the effectiveness of Internal Audit, which includes
assessing its conformance with the Chartered
Institute of Internal Auditors’ (IIA) International
Professional Practice Framework. The review
concluded that Internal Audit generally conforms
to the IIA standards, with no areas identified as
partially or non-conforming.
• Relating to the operation of the main
functions of the Group
• Support the Operating Framework at a
more granular level of detail
• Consider and, if appropriate, approve
matters requiring prior approval under
the Operating Framework
• Monitor adherence to the Operating
Framework and detailed process manuals
•
The plc Board is supported by the Audit Committee, which makes recommendations on
delegated matters related to financial reporting, risk management, and internal control.
The plc Board retains responsibility for monitoring whistleblowing matters
•
The Audit Committee oversees the plc Board’s formal arrangements regarding the integrity
of financial and narrative reporting for the Group, the independence and effectiveness of
internal and external audit functions, and the effectiveness of internal controls and the risk
management framework
• Independently assess appropriateness
of, and compliance with the Operating
Framework and detailed process manuals
Operating Framework
Detailed process manuals
GMT
Internal Audit
Audit Committee
The Board
• Primary source of the Group’s system of
internal control for business operations
• Gives wider assurance over the financial
and non-financial information produced
around the Group
• Approved by the GMT
• Subject to regular review by the GMT and
updates to ensure it remains appropriate,
with any significant proposed amendments
independently assessed by Internal Audit
• Available on our intranet for all employees
• Includes clear levels of delegated authority,
responsibility and accountability
Internal control framework
The overall structure of the Group’s internal controls and assurance processes
are as set out below:
Audit Committee report continued
• Relating to the operation of the main
functions of the Group
• Support the Operating Framework at
a more granular level of detail
Taylor Wimpey plc
Annual Report and Accounts 2024
130
Audit Committee report continued
Internal Audit workplan
The Committee approves the Internal Audit
workplan and monitors progress against it at
each meeting. The workplan philosophy is to
deliver a balanced set of reviews that are
responsive to known risks and priorities across
the Group and provide the appropriate level of
assurance to allow conclusions to be reached
on the strength of the Group’s overall control
framework. In establishing the workplan, Internal
Audit undertakes a half-yearly risk assessment.
This considers key business risks including
financial, commercial, people and customer
risk indicators.
Following each review, an Internal Audit report is
provided to the management team responsible
for the area reviewed, the GMT and the external
Auditors. These reports outline Internal Audit’s
opinion of the management control framework
in place, together with actions agreed where
improvements are identified. A summary of all
Internal Audit reviews and other key activities is
provided to the Committee at each meeting.
The Head of Internal Audit will also confirm
whether there are any issues or findings of
significance to the Group as a whole. The Chief
Executive, the GMT and Senior Management
are responsible for ensuring that improvements
are made as agreed. A database of the agreed
actions is maintained by Internal Audit and
there are established follow-up and escalation
processes which ensures that actions are
completed in a timely manner.
The Committee is satisfied that Internal Audit has
the appropriate resources to deliver the workplan.
Group assurance map
Additionally, a Group assurance map is in place
to provide a summary of the three lines of
assurance, being management, oversight
function and Internal Audit, to the Audit
Committee and the Board. Assurance is mapped
against our recognised key risks and is based on
a comprehensive and shared view as discussed
with appointed risk owners, together with Heads
of Function and others who have key oversight
responsibilities. This then enables the GMT,
the Audit Committee and the Board to identify
and confirm their assurance needs and any
actions required to fulfil those needs. The Head
of Internal Audit coordinates this process and
updates the Audit Committee at its July and
December meetings.
Risk management
The Committee’s accountability for overseeing
the effectiveness of our risk management
process, includes recommending the Group’s
risk appetite for Board approval and monitoring
how each regional business and key function is
actively managing its risks and mitigations in
accordance with the Board’s risk appetite. Details
of the Group’s risk management process can be
found in the Strategic Report on pages 82 to 90.
The Committee’s objectives in relation to risk are:
• To ensure the Group’s risk profile remains
within its agreed risk appetite and tolerance
levels and is adequately monitored and
reviewed as appropriate to reflect external
and internal changes
• To comply with the revisions to the Code in
respect of strengthening the reporting on
internal controls over financial, operational
and compliance reporting
• To continue to develop the Group’s risk
processes in light of evolving best practice
• To consider emerging risks that could impact
on the Group’s longer term strategy
Cyber security
Recognising the evolving threat landscape, we
have strategically allocated resources to further
strengthen our cyber defences and resilience.
Advanced threat detection and incident response
capabilities have now been implemented across
the Taylor Wimpey technology estate. As part of
our overall IT Service changes we have expanded
and improved the monitoring and analysis of
security events across the TW estate. There is
a continuing focus on employee training and
awareness on the threats in this area as we
recognise the important role of our employees
in helping to identify and report potential cyber
breaches. Training completion is regularly
checked by Internal Audit and we are seeing the
benefits of Internal Audit’s support and our cyber
awareness programmes as completion rates
continue to improve year on year.
Cyber resilience
A Principal Risk area identified by the Board is the
potential vulnerability of the Group’s IT systems to
the various forms of cyber attack and a key area
of focus for the Committee during 2024 was
continuing to ensure that the IT operating
environment remained robust, supporting the
business needs in a year of planned changes to
core systems and also that key systems were
protected against cyber and other threats.
The Committee continues to review and monitor
the enhancements to the Group’s cyber resilience
and assure itself that they are appropriate
and could reasonably be expected to deliver
enhanced protection to the Group’s key
operating systems.
131
Financial statements
Shareholder information
Strategic report
Directors’ report
Audit Committee report continued
Internal Audit is represented on key project teams
in the business, including the Head of Internal
Audit attending the IT Steering Committee
meetings. Internal Audit is now responsible for
the business continuity process and has delivered
the first phase of the business continuity
improvement programme, and will continue
to improve response planning to a business
impacting level incident in 2025. Where
assurance is required around the business
continuity process, an approach will be agreed
with the Committee that ensures objectivity
and independence.
In 2024, we changed our IT Service provider
and a new payroll system was introduced.
Other improvements included:
• Increased resources and improved approach
to working with projects to ensure security
is embedded by design with our new
service provider
• Extending our security controls to cover
a wider range of IT services
• Further improvements in monitoring
vulnerabilities and remediating them promptly
• Improving our monitoring of key suppliers
cyber security ratings on a continuous basis
Plans for further enhancements to cyber
resilience during 2025 include:
• Further development of our business
continuity improvement plan, being
undertaken by Internal Audit
• Enhancement of our core security service to
further extend security coverage across the
technology estate
• Reviewing and enhancing our network
security architecture
External Auditors
External audit process and effectiveness
Following a comprehensive tender process,
PwC was appointed by shareholders as Taylor
Wimpey’s external Auditors at the 2021 AGM.
PwC has continued to serve as our external
Auditors following their re-appointment by
shareholders at the 2024 AGM. The Audit Partner
is Sonia Copeland, who has held the role since
PwC was appointed as external Auditors.
The Committee considers that the relationship
with PwC is well established and is satisfied with
the effectiveness of the overall external audit
process. PwC’s performance has been kept
under regular review by the Committee and
reported to the Board as appropriate.
The Committee received a comprehensive audit
plan from the external Auditors setting out the
proposed scope and key audit matters, as well
as their assessment of the key areas of risk.
In particular, the Committee noted during the
course of the audit that the external Auditors
challenged Management’s judgements and
assertions on the following matters:
• Margin recognition and site forecasting
• Cladding fire safety provision
In relation to each of these judgements the
external Auditors confirmed that the approach
adopted by Management in accounting for these
in the financial statements was appropriate.
As in previous years, a full evaluation of PwC’s
performance in relation to the audit of the full year
results for 2023 was performed. The process
followed was as set out on the right.
Overall, the results of the evaluation confirmed
that the external audit process is effective and the
quality and sufficiency of resources provided by
the audit engagement team remains appropriate.
The Committee welcome the clear reporting at
each meeting and the audit team demonstrate a
strong understanding of the business. No issues
were raised with regard to PwC’s independence
and objectivity.
Based on this evaluation, the Committee
recommended to the Board, which in turn is
recommending to shareholders in resolution 12
at the 2025 AGM (in the Notice of AGM on
page 244), that PwC should continue as
external Auditors to the Company.
A questionnaire was distributed
to the Board and key
stakeholders in the audit
process to evaluate the
effectiveness of the external
audit process.
The Committee considered
whether PwC had appropriately
challenged Management’s
estimates and judgements.
The Committee considered the
nature and extent of the
non-audit work performed
by PwC during the year.
Taylor Wimpey plc
Annual Report and Accounts 2024
132
Audit Committee report continued
The Company will of course keep the matter
under regular review, taking into account the
annual performance review to be conducted
by the Committee in 2025.
The recommendation of PwC was free from
influence by a third party and no contractual
term of the kind mentioned in Article 16(6) of
the Audit Regulation has been imposed on the
Company whereby there would be a restriction
on the choice to certain categories or lists of
audit firms in the Company’s selection of its
external Auditors.
Independence and objectivity
In addition to the annual review of the
effectiveness of the external Auditors, the
Committee considered and monitored their
independence and objectivity through reviewing
PwC’s annual independence letter; regular
meetings held directly between the external
Auditors and the Committee; and ongoing review
of the Group’s External Auditors Non-Audit
Services Policy, and any services provided by
PwC in connection with that policy.
Non-audit services
The Committee has a formal policy, reviewed on
a regular basis, as to whether the Company’s
external Auditors should be employed to provide
services other than audit services. In line with the
Code, the Committee has regard to the relevant
ethical guidance regarding the provision of
non-audit services by PwC.
The Committee reviewed the policy during the
year against the Revised Ethical Standard 2024
issued in January 2024 by the FRC and no
significant changes were required.
The policy limits the payment for non-audit
services to no more than 70% of the average fee
paid in the last three consecutive financial years
for the Group audit. The Audit Committee is
responsible for considering and, if appropriate,
approving all non-audit services provided by the
Auditor. The Committee monitors compliance
against the policy at each meeting by receiving
reports detailing all approved non-audit services.
PwC undertook non-audit services in the year in
relation to:
• Assurance work carried out in connection with
the review of the interim statements
• Non-audit limited assurance procedures over
four select ESG metrics
• Making available access to its subscription
service providing online technical resources
such as factual updates and changes to
applicable law, regulation, and accounting
and auditing standards
• Providing a report for the Spanish authorities,
which was required to come from the
subsidiary’s external Auditors, to support an
application for property taxes available for
land under development
Total non-audit fees for 2024 were £0.2 million
(2023: £0.1 million), representing 17% (2023: 9%)
of the annual audit fee. Further details of the audit
and non-audit fees incurred by the Group can be
found in Note 6 on page 194.
Going concern
The Group has prepared forecasts, including
various sensitivities, and has taken account of the
Principal Risks and uncertainties identified on
pages 85 to 90. The Committee reviewed the
forecasts and the Directors’ expectations based
thereon; questioned Management as to the
source; robustness; and efficacy of them;
and agreed that they were reasonable. In
consequence, the Committee advised the Board
that in its view they appropriately supported an
assessment that the Company remains a going
concern. Having independently considered these
forecasts and the advice thereon from the
Committee, the Directors remain of the view that
the Group’s financing arrangements and capital
structure provide both the necessary facilities
and covenant headroom to enable the Group
to conduct its business for at least 12 months
from the date of this report. Accordingly, the
consolidated financial statements have been
prepared on a going concern basis. Read more
about our Principal Risks on pages 85 to 90.
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Shareholder information
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Directors’ report
Audit Committee report continued
Viability statement
The viability statement is designed to be a longer
term view of the sustainability of the Group’s
strategy and business model and related
resourcing, in light of projected wider economic
and market developments. The Committee
considered the methodology, the outputs and
whether there should be any change to the
five-year period chosen for the statement.
The Committee also reviewed the Executive
Directors’ expectations, the criteria upon which
they were based and the sensitivities applied,
including how these linked to the Principal Risks
faced by the business; and agreed that they were
reasonable. The outcome of this assessment
was that the Committee advised the Board that
in their view, the Company can give the viability
statement incorporated into this Annual Report
and Accounts, and that the five-year period over
which it applied, continued to be appropriate,
taking into account the balance sheet strength
and confirmation from the Executive Directors
that this period continues to broadly align to the
development cycle for new land. The statement
appears on pages 95 and 96 together with
details of the processes, assumptions and
testing which underpin it.
Exceptional items
The Committee considered the disclosure of
items as exceptional in the year and noted that
the amounts recognised by the Group in respect
of cladding fire safety in exceptional items is
consistent with the recognition of such costs
since the provision was first recognised. The
Group’s share of a joint venture loss arising from
its recognition of a provision for remediation
costs on buildings it built is considered to be
an exceptional item consistent with the Group
recognition noted above. The disclosure of the
loss on disposal of a joint venture was also
reviewed by the Committee and due to its
non-recurring nature and being outside the
normal operations of the Group, the Committee
agreed it was appropriate to be recognised
as an exceptional item.
Significant matters considered and addressed in
relation to the financial statements
The issues considered by the Committee to be the most significant (due to their potential impact on
the performance of the Group’s activities) in relation to the financial statements during the financial year
are set out below.
Significant matter
How the matter was addressed by the Committee
Margin recognition
and site forecasting
The cost allocation framework used
across the Group controls the way
in which the inventory is costed and
allocated across each development.
It also ensures that any costs in
excess of the original budget are
recognised appropriately as the
site progresses.
The Committee reviewed reports and recommendations from the
GMT in relation to areas of the business recognising cost excesses,
and also reviewed the work undertaken by the external Auditor’s
which included testing of the Group-wide controls to monitor cost
allocation. The Committee carefully considered the judgements and
assumptions involved, challenging Management where appropriate.
Following these reviews, together with enquiries of the GMT
and the external Auditors, the Committee concluded that there
continued to be appropriate systems and internal controls in
place, which ensured that consistent principles were applied;
the treatment and presentation on the income statement of the
costs incurred by the business were appropriate; and that the
external Auditors agreed with the conclusions reached.
Valuation of cladding fire
safety provision
The Company has entered into legally
binding agreements in relation to
defined remediation commitments.
Under these agreements, the
Company pledged to bring all
Taylor Wimpey apartment buildings
built since 1992 up to the standard
required by the PAS9980 guidance.
The Committee reviewed and challenged Management’s
assessment of the costs to comply with these obligations.
The Committee also reviewed updates on the progress of the
rectification of buildings, together with utilisation and estimates
of the remaining provision. The external Auditors also provided
their view on the utilisation and estimations of the provision.
The Committee was satisfied that the provision represented
Management’s best estimate of the expected remediation costs.
Statement of compliance
The Company has complied throughout the reporting year with the provisions of The Statutory Audit
Services for Large Companies Market Investigation (Mandatory Use of Competitive Tender Processes
and Audit Committee Responsibilities) Order 2014.
Taylor Wimpey plc
Annual Report and Accounts 2024
134
Fair, balanced and understandable
The Committee considered whether, in its opinion, the Annual Report and Accounts 2024,
taken as a whole, is fair, balanced and understandable, and that it includes the information
necessary for shareholders to assess the Group’s position, performance, business model
and strategy. The following actions were taken:
• The Chair, Chief Executive and Group
Finance Director provided input on key
elements of the Annual Report which set
the tone and balance of the Report.
• A detailed assessment of the collaborative
process of drafting the Annual Report was
undertaken, which involves the Company’s
Investor Relations; Company Secretariat;
and Finance functions, with guidance and
input from other relevant functions and
external advisers, to ensure messaging
is consistent, easy for the reader to
understand and reflective of the information
being presented in the financial statements.
• The external Auditors reviewed the Annual
Report and reported to the Committee that
there were no material inconsistencies.
• The Committee challenges any significant
financial judgements and estimates made
by Management and the external Auditors’
review them.
• The Committee monitors the integrity
of the Group’s reporting process and
financial management and the work of
the external Auditors.
• The Committee reviewed with Management
the overall presentation of Alternative
Performance Measures (APMs), which the
Company uses as important financial
performance indicators to assess the
underlying performance of the Group,
to ensure the APMs are not given undue
prominence and that any adjustments are
explained clearly.
The Committee reviewed the Annual Report
and were satisfied that the Annual Report
presented a consistent message throughout
and accurately reflected the Group’s position,
performance, business model and strategy.
The outcome of the above process, together
with the views presented by the external
Auditors, PwC, was that the Committee
recommended to the Board that it could give
the confirmation on page 166, that the Annual
Report and Accounts 2024, taken as a whole,
is fair, balanced and understandable.
Audit Committee report continued
135
Financial statements
Shareholder information
Strategic report
Directors’ report
Committee members
Meeting attendance
1. Lord Jitesh Gadhia (Chair)
4/4
2. Robert Noel
4/4
3. Mark Castle
4/4
4. Clodagh Moriarty
4/4
Key activities of the
Remuneration Committee
in 2024
• Implemented the Directors’ Remuneration
Policy (the Policy) following shareholder
approval at the 2023 AGM
• Determined the 2024 salary levels for the
Chief Executive and Group Finance Director
• Agreed the targets applicable to the 2024
Executive Incentive Scheme (EIS) and 2024
Performance Share Plan (PSP) Awards
• Reviewed base salary levels for
Senior Management
• Considered wider workforce
remuneration arrangements
• Considered how the Policy should
be applied in 2025
The Committee is satisfied that
the
performance measures
drive behaviours
that are
consistent with our purpose,
values, culture and strategy
.”
Lord Jitesh Gadhia
Chair of the Remuneration Committee
Dear shareholder,
As Chair of the Remuneration Committee
(the Committee), I am pleased to present our
2024 Directors’ Remuneration Report on
behalf of the Board.
Remuneration Policy
Our current Policy was approved by shareholders
at the 2023 AGM with over 91% of shareholders
voting in favour. The Committee has monitored
the implementation of the Policy throughout 2024
and considers that it remains appropriate and
should therefore continue to operate in the same
manner during 2025.
As we are in the final year of the current Policy
period, the Committee will review the Policy
ahead of seeking shareholder approval for
a new Policy at the 2026 AGM. As part of
the review, we will engage with our major
shareholders and listen to their views, to help
develop the proposed new Policy.
Executive Director
remuneration decisions
and outcomes
Variable incentive schemes
In 2024, the business achieved legal completions
at the top end of the guidance range set at the
start of the year, and through strong cost
discipline delivered full year operating profit in line
with market expectations. Alongside delivering
good financial results in 2024 the business
achieved a 21% increase in sales rate, 97%
build quality score (the highest score of listed
peers in the sector), and achieved the highest
construction scores and customer scores ever
recorded at Taylor Wimpey, whilst maintaining
the employee engagement score at 93%.
Furthermore, in the Strategic Report we show
that 2024 has seen the business position itself
to prepare for growth in 2025 and beyond, with
the private orderbook up 25% year on year.
Based on the performance assessment set out
on pages 147 and 148, the 2024 EIS outcome
was 94% of maximum. The Committee is
satisfied that the EIS payout achieved is
representative of the strong performance of
the Executive team in 2024.
In line with the policy one third of the 2024 EIS will
be deferred into shares which must be held for
three years.
Remuneration Committee report
Quick links
139
Remuneration at a glance
141
Summary of the Remuneration Policy
146
Implementation in 2024
150
Approach to remuneration in 2025
156
Wider workforce remuneration
Taylor Wimpey plc
Annual Report and Accounts 2024
136
Remuneration Committee report continued
The PSP awarded in 2022, measuring
performance in the 2022 to 2024 period, will vest
at 54.3% of maximum. Taylor Wimpey’s total
shareholder return (TSR) of +9.5% placed the
Company in the top quartile of the housebuilding
peer group and so the TSR element paid out in
full. The Company did not meet the threshold
performance level for the stretching targets set
in relation to return on net operating assets
(RONOA) and operating profit margin, but we
delivered strong customer service and so the
payout under this element was 14.3% out of
20%. The shares vesting will be subject to
a two year post-vesting holding period.
At the end of the year, the Committee assessed
the formula driven outturn of the EIS and PSP
and determined that the overall level of payout
across both schemes was appropriate, taking
into account the Group performance over the
one year and three year performance period of
each incentive scheme. In particular, the positive
shareholder experience over the three years
of the PSP, underpinned by a differentiated
dividend policy.
Accordingly, the Committee did not exercise any
discretion to adjust the formula driven outturn
under either scheme.
Further details on both the EIS and PSP outcomes
can be found on
pages 147 to 149
Looking ahead to 2025
Salary
Following a benchmarking exercise, the
Committee has approved a 3% salary increase
for Chris Carney with effect from 1 April 2025,
in line with the Company-wide average
salary increase.
In line with our Company-wide pay philosophy,
Jennie Daly’s salary was positioned consciously
below that of her predecessor and at a position
below the mid-market level on her appointment,
to allow the salary to progress with experience
and dependent on performance. The Committee
reviewed the salary level for the Chief Executive
in light of her strong development in role and
performance and determined that the salary
should increase by a further 3.8% on top of the
Company-wide average increase of 3%, which
she would otherwise ordinarily have received. On
this basis her salary will increase from £795,675
to £850,000 from 1 April 2025. This provides a
mid-market salary, which the Committee believes
is more reflective of her experience and skills. It is
anticipated that future salary increases will be in
line with average workforce salary increases.
The review of Jennie’s package also highlighted
that the incentive opportunities for both the
Chief Executive and Group Finance Director have
slipped behind a mid-market level for the sector
and the FTSE more generally. The Committee
believes it is important for incentive opportunities
to be positioned appropriately against the market
to ensure that our Executive Directors are
incentivised to execute the Company’s strategic
goals and deliver long-term sustainable returns
for shareholders, so the quantum of such will
be considered as part of the review of the
remuneration Policy this year.
EIS
Executive Directors will continue to be able to
earn up to 150% of salary under the 2025 EIS.
The EIS performance measures for 2025 remain
unchanged from 2024, with 70% of the outcome
to be determined against financial metrics, and
the remainder against build quality and customer
satisfaction assessments.
The measures are set out on page 150 together
with the strategic rationale. We consider the
target ranges carefully each year, ensuring an
appropriate balance between achievability and
stretch. Detailed retrospective disclosure of the
weightings, targets and performance against
them will be provided next year in the usual way.
PSP
The PSP will operate in accordance with the
Policy and it is expected that Executive Directors
will be granted awards to the value of 200%
of salary.
In line with the 2024 Award, the measures for the
2025 Award will be based on relative TSR versus
a sector peer group, operating profit margin,
RONOA, customer service and carbon emissions
reductions. The measures and targets are set out
on page 151 together with the strategic rationale.
To the extent the awards vest, any shares will be
subject to a two year holding period.
Malus and clawback provisions
The malus and clawback provisions of the
variable incentive plans have been reviewed and
updated to ensure they reflect best practice and
are aligned with the 2024 Code.
Chair and Non Executive Director fees
The Committee reviewed the Chair’s fee and
recommended an increase of 3% which the
Board subsequently considered and approved.
The Board, excluding the Non Executive Directors
who were conflicted, also reviewed the fees
payable to the Non Executive Directors and
agreed the same increase of 3% with effect
from 1 April 2025. Further information on the
Chair and Non Executive Director fees is set
out on pages 142 and 153.
137
Financial statements
Shareholder information
Strategic report
Directors’ report
Remuneration Committee report continued
Wider workforce remuneration
We continue to review the remuneration
arrangements for the wider workforce and
take these into account when considering
remuneration arrangements for the Executive
Directors and Senior Management. We reviewed
the performance measures in the various annual
bonus schemes available across the business
and we are confident that they drive behaviours
that are consistent with our purpose, values,
culture and strategy.
In the past two years, the Committee approved
a tiered approach to the salary review process,
ensuring that lower paid employees receive
a higher percentage increase. For 2025,
with inflation having eased, the Committee
determined that the approach should revert
to our long-standing policy of increases being
consistent across the workforce. The variable
incentive arrangements available for the wider
workforce are aligned to the incentive
arrangements for Senior Management,
including the Executive Directors.
For more information on our approach to wider
workforce remuneration, see
pages 156 to 158
Discretion applied in relation to the
application of the policy to a former
Executive Director
During the year discretion was applied in
relation to application of the post-employment
shareholding policy for the former Chief
Executive, Pete Redfern.
In connection with his leaving arrangements
on departure from the business on 8 December
2022, Pete Redfern was subject to a requirement
to hold shares to a value of 200% of salary for
a period of two years. The two year period ended
on 8 December 2024. In October 2024, the
Committee agreed to a request from Pete that
the share price to be used to calculate the
200% of salary shareholding threshold could be
changed from the price on the date he ceased
employment (102.75 pence) to the share price
at the time of any share sale. If, on sale, the share
price was higher than 102.75 pence, this would
mean that Pete could sell a higher number
of shares, while still maintaining a residual
shareholding to the value of at least 200% of
salary. In agreeing to his request, the Committee
noted, amongst other factors, that there were
a few weeks until the end of the two year holding
period at which time he could sell many more
shares; and Pete still had significant further
shares subject to holding periods that extended
out beyond 8 December 2024, as far as March
2026, thereby ensuring significant longer term
alignment of interest with shareholders.
The Committee has not used any other discretion
during the year.
Stakeholder engagement
The Employee Champion, Mark Castle (who is
also a member of the Committee), engaged
with the workforce via the National Employee
Forum (NEF) through the year and brought this
perspective into the Committee discussions.
I also attended the January 2024 NEF meeting to
discuss the Committee’s approach to reviewing
remuneration, related policies and the alignment
of incentives and rewards with culture.
Closing remarks
On behalf of the Committee, I would like to thank
shareholders for their continuing support.
Lord Jitesh Gadhia
Chair of the Remuneration Committee
26 February 2025
The 2024 Remuneration Committee
report includes disclosures which reflect
in full the Regulations (as defined below)
on remuneration reporting. The report
follows the annual statement from the
Committee Chair, and is divided into
the following sections:
• Remuneration Policy: a summary
of the Policy that was approved by
shareholders at the 2023 AGM,
describing the framework within which
the Company remunerates its Directors
• Directors’ Remuneration Report: this
sets out how the current Policy was
applied during 2024 and how the Policy
will operate during 2025
The Policy and these remuneration reports
have been prepared in accordance with
the relevant provisions of the Companies
Act 2006 and on the basis prescribed in
the Large and Medium-sized Companies
and Groups (Accounts and Reports)
Regulations (Amendment) 2008
(the Regulations). Where required,
data has been audited by PwC and
this is indicated.
Taylor Wimpey plc
Annual Report and Accounts 2024
138
1. Attraction
Attracting talent to our
Company through a competitive
compensation package
2. Engagement
Incentivising, motivating,
and recognising success
3. Retention
Remaining agile to employee
needs and market changes
Remuneration Committee report continued
Overview of key elements included in the Directors’ Remuneration Policy
Fixed pay
Remuneration element
Element timeline (years)
Implementation in 2024
Base salary
Recruit and reward executives of a suitable calibre for
the role and duties required.
Pensions
Executive Director pension contributions are in line
with the wider workforce.
Benefits
Competitive package to assist with recruitment
and retention.
0
1
2
3
4
5
Base salary
3%
Salary increase for the Executive
Directors effective 1 April 2024
Variable pay
Element timeline (years)
Implementation in 2024
EIS
Rewards the achievement of stretching financial
performance targets and other objectives that
support the Company’s annual and strategic goals.
Maximum: 150% of salary
Deferral: One third deferred into shares for
three years
0
1
2
3
4
5
Two thirds cash
One third deferred into shares for three years
2024 EIS outcome
26%
20%
18%
15%
Operating profit
Maximum potential
Actual outcome
Operating profit margin
Cash conversion
Build quality
Customer service 8-week
15%
PSP
Assists with retention, incentivisation and motivation
to achieve long term sustainable returns for
shareholders.
Maximum: 200% of salary
Performance period: Three years
Holding period: Two year holding period post-vesting
0
1
2
3
4
5
Three year performance period
Two year holding period post-vesting
2022 PSP Award outcome
TSR vs peer group
Operating profit margin
RONOA
Customer service 9-month
Maximum potential
Actual outcome
40%
14.3%
Remuneration at a glance
Our remuneration strategy
Our remuneration strategy
is centred around three
core objectives:
139
Financial statements
Shareholder information
Strategic report
Directors’ report
Remuneration Committee report continued
Proposed application of the Policy in 2025
Measure
Rationale
Link to strategic
cornerstone
Link to Group
financial target
Link to Group
KPI/APM
Link to
stakeholder
EIS
Operating profit
Maximise aggregate profit
Operating profit margin
Optimise sales prices and improve
cost discipline
Cash conversion
Maximise the generation of cash flow
from profits
Build quality
Deliver high-quality homes with the need
for less remediation
Customer service
(HBF star rating)
Maintain customer trust and endorse
Company reputation
PSP
TSR v peer group
Align the rewards received by executives
with the returns received by shareholders
Operating profit margin
Optimise sales prices and improve
cost discipline
RONOA
Maintain focus on driving increased
capital efficiency
Customer service
(HBF star rating)
Maintain customer trust and endorse
Company reputation
Carbon emissions reduction
Support the Company’s strategy on carbon
emissions reductions across our operations
Read more about our strategic cornerstones and KPIs on
pages 39 to 49
; our APMs on
page 94
; and our stakeholders on
pages 97 to 99
Key to our strategic cornerstones
Land
Operational excellence
Sustainability
Capital allocation
Key wider workforce
highlights in 2024:
60%
of employees are either shareholders
or participate in an all-employee
share plan (2023: 59%)
5%
average salary increase awarded in 2024
Real Living
Wage employer
accreditation
Taylor Wimpey plc
Annual Report and Accounts 2024
140
Remuneration Committee report continued
Summary of the
Remuneration Policy
The current Policy was approved by 91.7%
of shareholders at the 27 April 2023 AGM.
The Policy is designed to ensure that the
remuneration framework will support and drive
forward the Taylor Wimpey strategy by both
challenging and motivating the Executive
Directors and Senior Management to deliver
it, and this will in turn drive value for our
shareholders whilst having due regard to
our other stakeholders.
A summary of the Policy is set out in this report
with the full version, as approved by shareholders,
available to view on the Remuneration Committee
page under the Governance section of the
Company’s website, and in the 2022 Annual
Report and Accounts.
When the Committee designed the Policy and its
operation, it considered the factors in Provision
40 of the Code. Full details on how clarity,
simplicity, risk, predictability, proportionality
and alignment to culture are addressed can
be found on page 145.
Policy overview
A key part of the Committee’s role is to ensure
that the remuneration of Executive Directors and
Senior Management is aligned to the Company’s
strategic objectives. It is key that the Company is
able to attract and retain leaders who are focused
and also appropriately incentivised to deliver
the Company’s strategic objectives, within
a framework that is aligned with the long term
interests of the Company’s shareholders.
This alignment is achieved through
a combination of:
• Performance measures for the EIS and
PSP aligned with KPIs, the Company’s
strategic objectives and measures of
sustainable performance
• Deferral into shares of a percentage of the EIS
• A two year retention period for vested
PSP Awards
• Share ownership guidelines which
require executives to build up holdings of
Taylor Wimpey shares, either directly or by
retaining vested PSP Awards and deferred
EIS amounts
• A post-employment shareholding requirement
• Robust malus and clawback provisions
These requirements ensure that a significant
percentage of the overall remuneration package
of our Executive Directors and Senior
Management is subject to performance and
delivered in shares which must be held long term.
With all packages for our Executive Directors
substantially geared towards meeting challenging
targets set under the EIS and PSP, the
Committee believes that the pay and benefits of
its Executive Directors and Senior Management
adequately balance reward and risk.
In line with best practice, the Committee
structures the incentives for Executive Directors
and Senior Management in a way that ensures
they will not raise ESG risks by inadvertently
motivating irresponsible behaviour. More
generally, the Committee under its Terms of
Reference may, where it considers appropriate,
take ESG matters into account when considering
the overall remuneration structure and as part
of its overall discretion.
141
Financial statements
Shareholder information
Strategic report
Directors’ report
Remuneration Committee report continued
Element
Purpose and link to strategy
Operation
Maximum
Performance targets
Salary
To recruit and reward
Executive Directors of
a suitable calibre for the
role and duties required.
Salaries are normally reviewed annually to ensure that they remain positioned
appropriately. There is no automatic entitlement to an increase each year.
Salary level and increases take into account the following:
•
The performance, role, and responsibility of each individual Executive Director;
•
The economic climate, general market conditions and the performance of
the Company;
•
The level of pay awards across the rest of the business; and
•
Salary levels in comparably-sized companies and other major homebuilders.
The maximum annual salary increase will not normally
exceed the average increase which applies across the
wider workforce.
However, larger increases may be awarded in certain
circumstances including but not limited to:
• Increase in scope or responsibilities of the role.
• To apply salary progression for a newly/recently appointed
Executive Director.
• Where the Director’s salary has fallen below the
market positioning.
Company and individual
performance are factors
considered when
reviewing salaries.
Chair of the
Board and
Non
Executive
Director fees
The Chair and Non Executive
Directors’ fees should be
structured in line with
recognised best practice
and be sufficient to attract
and retain high calibre
non executives.
Fees consist of a single consolidated fee for the Chair, an annual fee for the other
Non Executive Directors and additional fees for roles such as the Chair of the
Audit Committee, Chair of the Remuneration Committee, Senior Independent
Director and Employee Champion.
Set by reference to the responsibilities undertaken by the non executive, taking into
account that each Non Executive Director is expected to be a member of the
Nomination and Governance Committee and / or the Audit Committee and/or
the Remuneration Committee.
Reviewed periodically but generally annually and at least every other year. Takes into
account levels in comparably-sized companies and other major homebuilders.
Non Executive Directors do not participate in any incentive, share scheme, employee
benefits or pension arrangements.
Any reasonable expenses incurred in carrying out duties will be fully reimbursed
including any personal taxation associated with such expenses.
Aggregate annual limit of £1 million imposed by the
Company’s Articles of Association.
N/A
Other
benefits,
including
benefits-in-
kind
Provides a competitive
package of benefits to
assist with recruitment and
retention of high calibre
Executive Directors.
Benefits normally include, but are not limited to:
• Company-provided car or a cash allowance;
• Healthcare;
• Life assurance; and
•
A 5% discount on the price of a new home acquired from the Group.
Benefits offered to the wider workforce may also be offered to Executive Directors.
Other market competitive benefits may also be offered by the Committee should it
deem it appropriate to secure the appointment of a new Executive Director or retain
an Executive Director (including legacy benefits) and to ensure that the benefits
package for existing Executive Directors remains competitive in the market.
There is no formal maximum. The level of a benefit provided
will be aligned to the wider workforce but may vary
depending on seniority. Benefits are provided based
on market rates.
For home purchases, the price discount is calculated at the
plot release price less the average discount to third party
buyers for that house type on that development, less a further
5% employee discount. No more than one home per annum
can be acquired at a discount under the scheme; and no
more than three homes can be acquired in a five-year period.
The maximum discount over a five-year period is £100,000.
N/A
Taylor Wimpey plc
Annual Report and Accounts 2024
142
Remuneration Committee report continued
Element
Purpose and link to strategy
Operation
Maximum
Performance targets
Executive
Incentive
Scheme
(EIS)
Rewards the achievement
of stretching financial
performance targets and
other objectives that support
the Company’s annual and
strategic goals.
Compulsory deferral in
shares further aligns the
interests of Executive
Directors with shareholders.
EIS awards are normally determined by the Committee after the year end, based on
annual performance against targets set at the beginning of each year.
One-third (net) of any EIS is payable in shares which are held in trust for three years.
The Committee has the ability to adjust the amount of a bonus if the formulaic outcome
is not considered reflective of individual or business performance or the broader
shareholder experience.
A malus and clawback mechanism applies to all participants. The discovery period for
the event that would give rise to the clawback is three years from the date of payment.
The maximum EIS opportunity for Executive Directors is
150% of salary. Target is 75% of salary.
If an entry level of performance is achieved up to 10% of
maximum is payable under each metric.
The EIS measures are
based on a scorecard of
designated key annual
financial, operational and
environmental, social, or
governance measures.
Performance
Share Plan
(PSP)
Annual grants of
share-based long term
incentives assist with
retention, incentivisation
and motivation of Executive
Directors to achieve long
term sustainable returns for
shareholders. A post-vesting
holding period helps align
the interests of Executive
Directors with those of the
Company’s shareholders.
Executive Directors can receive PSP Awards, granted annually.
Performance is normally measured over three financial years.
The value of dividends or other distributions will accrue during the performance and
holding periods and will be received with any shares that vest. Value of accrued
dividends will normally be accrued and paid in shares.
The Committee has the ability to adjust the awards if the formulaic outcome is not
considered reflective of individual or business performance or the broader shareholder
experience.
A malus and clawback mechanism applies to all participants. The discovery period for
the event that would give rise to the clawback is three years from the date of payment.
The maximum award is normally over shares with a face value
of 200% of salary. In exceptional circumstances this can be
increased up to 300% of salary.
Awards vest at 25% for threshold performance.
The performance
conditions are aligned
to the long term
business strategy.
The Committee may vary
the measures that are
included in the plan and
the weightings between
the measures from year
to year.
Pension
The Company aims to
provide competitive
retirement benefits.
Pension benefits are provided through one or more of the following arrangements:
• Personal Choice Plan; or
• As a cash allowance.
Company contributions to any pension scheme, or any
amount paid as a cash allowance, in respect of current
Executive Directors or a new Executive Director will be in
line with the pension contribution rate applying to the majority
of the workforce, currently 10% of salary.
N/A
143
Financial statements
Shareholder information
Strategic report
Directors’ report
Remuneration Committee report continued
Element
Purpose and link to strategy
Operation
Maximum
Performance targets
All-employee
share plans
All employees including
Executive Directors are
encouraged to become
shareholders through the
operation of all-employee
share plans such as the
HMRC tax-advantaged
Sharesave plan and a Share
Incentive Plan (SIP).
The Sharesave plan and SIP have standard terms under which all UK employees with
at least three months’ service can participate.
Sharesave: Employees can elect for a savings contract of
either three or five years, with a maximum monthly saving.
Options can be exercised during the six months following
the end of the contract.
SIP: Employees can elect to contribute an amount per month
or by one or more lump sums per tax year.
The maximum saving or contribution level for the Sharesave
and SIP are approved by the Remuneration Committee and
the Board within the limits prescribed by legislation or
Government from time to time.
N/A
Shareholding
guidelines
Encourages greater levels of
shareholding and aligns
employees’ interests with
those of shareholders.
Executive Directors are expected to achieve and maintain a holding of the Company’s
shares at least equal to 200% of salary and until this level is achieved, are required to
retain no less than 50% of the value of any vested EIS, deferred bonus shares or PSP
Awards, after tax.
A post-employment shareholding requirement will require Executive Directors to hold
200% of salary, or their shareholding level at the time of cessation if their 200%
shareholding requirement has not yet been met, for at least two years. This
requirement may be reduced by the Committee in exceptional circumstances,
such as serious ill-health.
Executive Directors: 200% of salary.
N/A
The Committee may amend this shareholder approved Policy to take account of changes to legislation, taxation and other supplemental and administrative matters without the necessity to seek shareholder
approval for those changes.
Service contracts and letters of appointment
The tables below set out the dates of each of the Executive Directors’ service contracts and the dates
of the Non Executive Directors’ letters of appointment. Directors are required to retire at each AGM and
seek election or re-election by shareholders.
Service contracts for each Executive Director and letters of appointment for each Non Executive
Director are available for inspection at the Company’s registered office during normal business hours
and at the AGM.
Executive Director
Service contract
commencement date
Unexpired term
(months)
Jennie Daly
(a)
26 April 2022
12
Chris Carney
20 April 2018
12
Non Executive Director
Date of appointment
Notice period by
Company and
Director (months)
Robert Noel
(b)
15 December 2022
6
Mark Castle
1 June 2022
6
Martyn Coffey
1 December 2024
6
Irene Dorner
1 December 2019
6
Jitesh Gadhia
1 March 2021
6
Scilla Grimble
1 March 2021
6
Clodagh Moriarty
1 June 2022
6
Humphrey Singer
(c)
9 December 2015
6
(a) Jennie Daly signed a new service contract when she was appointed as Chief Executive that superseded her original service
contract dated 20 April 2018.
(b) Robert Noel signed a new letter of appointment when he was appointed as Chair that superseded his original letter of
appointment dated 1 October 2019.
(c) Humphrey Singer stood down from the Board of Directors on 31 December 2024.
Taylor Wimpey plc
Annual Report and Accounts 2024
144
Remuneration Committee report continued
Directors’ Remuneration Report
This section sets out how the Policy was applied for the year ended 31 December 2024. The Directors’ Remuneration Report will be put to an advisory
shareholder vote at the AGM on 30 April 2025. Details of the resolution are set out in the Notice of Meeting on page 241.
During the year, the Policy (as approved by shareholders at the 2023 AGM), operated as intended providing a robust link between Company performance
and remuneration. The Committee used discretion in respect of the former Chief Executive’s post-employment shareholding requirement, but has not used
any other discretion to adjust performance measures or the respective targets during the year.
Complying with the Code in 2024
Clarity
– remuneration arrangements should be transparent
and promote effective engagement with shareholders and
the workforce.
•
A consistent approach to Directors’ remuneration has operated over many years and our disclosures
in the Directors’ Remuneration Reports are set out in a transparent manner.
•
There is a proactive and open approach to engaging with shareholders and the wider workforce,
as described on page 138.
Simplicity
– remuneration structures should avoid complexity
and their rationale and operation should be easy to understand.
•
Executive Director remuneration arrangements have been designed to be as simple as possible.
•
The tables on pages 139 and 140 show the different elements of Executive Director remuneration and
how the performance measures are linked to our strategic cornerstones, KPIs and stakeholders.
Risk
– remuneration arrangements should ensure reputational
and other risks from excessive rewards, and behavioural
risks that can arise from target-based plans, are identified
and mitigated.
•
Risk is mitigated through careful plan design, including long term performance measurement, deferral,
shareholding requirements (including post cessation of employment requirements), discretion and
clawback mechanisms.
•
The performance measures and targets used for the incentive plans do not encourage the Executive
Directors to take reputational or behavioural risks.
Predictability
– the range of possible values of rewards to
individual Directors and any other limits or discretions should
be identified and explained at the time of approving the policy.
•
The range of likely performance outcomes is considered when setting performance target ranges and
discretion is used where necessary.
Proportionality
– the link between individual awards, the
delivery of strategy and the long term performance of the
Company should be clear. Outcomes should not reward
poor performance.
•
Incentive plans are determined based on a proportion of base salary so there is a sensible balance
between fixed pay and performance-linked elements.
•
Performance conditions are aligned to the business strategy and shareholder experience.
•
There are provisions to override the formula-driven outcome of incentive arrangements, as well as
deferral and clawback mechanisms to ensure that poor performance is not rewarded.
Alignment to culture
– incentive arrangements should
drive behaviours consistent with Company purpose, values
and strategy.
•
Our overall reward framework embeds our purpose and values. Decisions on executive pay are taken
in the context of the wider stakeholder experience.
145
Financial statements
Shareholder information
Strategic report
Directors’ report
Remuneration Committee report continued
Implementation in 2024
Total remuneration received (£000) (audited)
The chart below compares the 2024 single figure total remuneration for each of the Executive Directors
with the equivalent figure for 2023.
Jennie Daly
Chief Executive
Chris Carney
Group Finance Director
39%
48% 13%
29%
36%
35%
2024
2023
£0
£000
£500
£1,000 £1,500
£3,000
£2,000
£3,500
£2,500
£2,208
£3,066
36%
44% 20%
29%
37%
34%
2024
2023
£1,616
£2,052
Fixed pay
EIS
PSP
Single total figure of remuneration for
Executive Directors (audited)
The table below sets out the single total figure of remuneration received by each Executive Director for
their service and performance in 2024 and 2023.
£000
Jennie Daly
Chris Carney
2024
2023
2024
2023
Base salary
790
767
532
516
Benefits
(a)
11
13
13
13
Pension
(b)
79
77
53
52
Total fixed pay
880
857
598
581
EIS
(c)
1,122
1,054
755
710
PSP
(d)
1,064
297
699
325
Total variable pay
2,186
1,351
1,454
1,035
Total pay
3,066
2,208
2,052
1,616
(a) Benefits – corresponds to the value of taxable benefits in respect of the year ended 31 December 2024, as set out in the
table on page 147.
(b) Pension – these figures represent pension contributions up to the amount permissible under HMRC rules and cash
allowances beyond that level.
(c) EIS – the 2024 EIS outcome was 94% of maximum and further details can be found on pages 147 and 148. The 2023 EIS
outcome was 91%. For both years, one third of the Executive Directors’ bonus is deferred into shares which are subject
to a three year holding period. These shares will not be subject to any further performance or non-performance measures.
(d) PSP – the outcomes of the 2021 and 2022 PSP Awards included in the 2023 and 2024 columns can be found on pages
148 and 149. Both figures include the value of dividends accrued during the performance period and are payable in shares.
There is a compulsory two year holding period for any vested PSP shares and the dividend shares will also be subject to
this holding period. The 2023 figure has been restated to reflect the share price on the date the Award vested, which was
133.85 pence. The 2024 figure has been calculated using a share price of 140.00 pence as this was the average share price
for the dealing days in the last three months of the financial year. The share price used to calculate the 2022 PSP Award
was 131.40 pence for Jennie Daly and 130.72 pence for Chris Carney, being the average closing share price the three days
preceding the grant. Therefore a proportion of value is attributable to share price appreciation in the period, further details are
provided in the table on 149.
Taylor Wimpey plc
Annual Report and Accounts 2024
146
Remuneration Committee report continued
Salaries in 2024 (audited)
The Committee awarded Jennie Daly and Chris Carney a 3% salary increase, with effect from
1 April 2024, which was lower than the average 5% increase for the general workforce.
Benefits (audited)
£000
Benefits in 2024
Jennie Daly
Chris Carney
Car
2
2
Healthcare
3
6
Life assurance
4
3
All-employee share schemes
(a)
2
2
Total
11
13
(a) These figures represent the value of matching shares under the Share Incentive Plan. The Executive Directors did not exercise
any Sharesave options during the year.
Directors’ pension entitlements (audited)
The Executive Directors’ pension contributions are 10%, which is the same rate available to the
majority of the workforce and as such, the Company is compliant with Provision 38 of the Code.
The value of Company pension contributions in 2024 for Jennie Daly and Chris Carney was:
Director
2024 (£)
2023 (£)
Jennie Daly
10,002
8,500
Chris Carney
10,002
8,500
Jennie and Chris also received pension allowances of £68,987 (2023: £68,183) and £43,153 (2023:
£43,103) respectively in lieu of Company pension contributions over the Tapered Annual Allowance
limit introduced in April 2016. No additional benefit is accrued if an Executive Director retires early.
EIS in 2024 (audited)
At the start of the year, the Committee carefully considered the approach to target setting for the
2024 EIS, in light of changing market conditions.
As noted in last year’s Directors’ Remuneration Report, recognising that the uncertain market
conditions required an enhanced focus on financial performance, the proportion based on financial
measures remained at 70% of the overall EIS opportunity. It was also noted that the finalisation
of the precise weightings and targets would be delayed slightly until after the publication of the
2023 Annual Report and Accounts to maximise the data points available to the Committee.
The Committee finalised the weightings and targets in early April 2024. Within the 70% financial
element, the balance between operating profit, operating profit margin and cash conversion remained
the same as for the 2023 EIS. The timing of the target-setting process enabled more appropriate target
ranges to be set for the financial measures, which were higher than the ranges that would otherwise
have been set around the original business plan numbers at the start of the year, with the target level
of performance set ahead of the budget level.
At the end of the year the Committee assessed the formula-driven outturn and determined that
the level of payout across the EIS measures was appropriate. Due to the cyclical nature of the
housebuilding sector, the performance achieved and respective payout from the 2024 EIS should be
considered in the context of the overall sector, macro dynamics and delivery against expectations.
The business started the year with a lower orderbook and suffered a combination of house price
deflation and build cost inflation through 2024 that negatively impacted its profit margin. Despite these
market conditions, the business achieved legal completions at the top end of the guidance range set
at the start of the year, and through strong cost discipline delivered full year operating profit in line with
market expectations. Alongside delivering financial results in line with market expectations, in 2024 the
business achieved a 21% increase in sales rate, 97% build quality score (the highest score of listed
peers in the sector), and achieved the highest construction scores and customer scores ever recorded
at Taylor Wimpey, whilst maintaining the employee engagement score at 93%. Furthermore, 2024 has
seen the business position and prepare for growth in 2025 and beyond with the private orderbook
up 25% year-on-year, which will support delivery of the volume growth included in the 2025 market
guidance. The Annual Report and Accounts further sets out work undertaken to position the business
for future growth: Fit for the future – the business has made excellent progress with a quality landbank
ready to deliver, the capacity built to sustainably grow, a business focused on operational excellence
to drive value and an agile strategy with proven strategic cornerstones to manage the cycle.
147
Financial statements
Shareholder information
Strategic report
Directors’ report
Remuneration Committee report continued
EIS in 2024 (audited) continued
The Committee also considered shareholder and broader stakeholder experience over the year.
The Taylor Wimpey dividend policy pays out 7.5% of net assets or at least £250m annually throughout
the cycle – this is a differentiated policy and provides a sector-leading dividend yield, approximately
double the average yield of its sector peers. Whilst the headline Profit for the year shows a year-on-year
decline, this was largely driven by macro market conditions (noting the timing lag between sales and
completions) as seen by many of the housebuilding peers, and the exceptional costs incurred in year
(fire safety cladding provision and disposal of a joint venture). The Committee is therefore satisfied that
the EIS payout achieved is representative of the strong performance of the Executive team in 2024;
accordingly, the Committee did not exercise any discretion to adjust any formula driven outturns in
relation to the EIS.
The Executive Directors receive two thirds of their EIS as cash; the remaining third will be paid in shares
and will be retained in the Company’s Employee Benefit Trust for three years. These shares will not be
subject to any further performance or non-performance measures.
The outcome of the 2024 EIS is 94% of the maximum and the chart below shows the performance
against the targets set and the payout level under each element.
Performance
measure
Weighting
Summary of targets
Entry
(10%)
Target
(50%)
Stretch
(100%)
Result
Payout (%
of bonus)
Operating profit
30%
£390m
£420m
£405m
11.5%
180%
94.5%
91.5%
12.0%
200%
96.0%
92.5%
11.0%
160%
93.0%
91.0%
£416.2m
26%
Operating
profit margin
20%
12.2%
20%
Cash conversion
20%
195.4%
18%
Build quality
(a)
15%
97.0%
95.7%
15%
Customer service
8-week
(b)
15%
15%
94%
Total
100%
(a) Build quality is measured externally through the NHBC Construction Quality Reviews (CQR).
(b) Percentage of customers who would recommend Taylor Wimpey to a friend from the independently measured
NHBC 8-week survey.
PSP in 2024 (audited)
2022 PSP Award outcome
The PSP awarded in 2022, measuring performance in the 2022 to 2024 period, will vest at 54.3% of
maximum. Taylor Wimpey’s total shareholder return (TSR) of +9.5% placed the Company in the top
quartile of the housebuilding peer group and so the TSR element paid out in full. The Company did not
meet the threshold performance level for the stretching targets set in relation to RONOA and operating
profit margin, but delivered strong customer service and so the payout under this element is 14.3% out
of 20%. The shares vesting will be subject to a two year post-vesting holding period. The Committee
has the discretion to adjust the number of shares vesting from each PSP award if it considers that
the vesting outcome is not sufficiently reflective of the underlying performance of the Company and to
mitigate against any potential windfall gains; the Committee determined that the outcome of the 2022
Award was not inflated by windfall gains.
The 2022 Award was granted using a share price of 131.40 pence for Jennie Daly and 130.72 pence
for Chris Carney. The grant price was calculated using the average closing share price the three days
leading up to the grant and the different grant prices are due to the 2022 Award to Jennie Daly being
deferred until her appointment as Chief Executive on 26 April 2022.
Performance
measure
Weighting
Threshold
(20% vesting)
Maximum
(100% vesting)
Result
Payout (%
of bonus)
TSR v
peer group
(a)
40%
Median
Upper quartile
25.0%
21.0%
81.0%
23.0%
19.0%
78.0%
TW: 9.5%
Upper quartile: -1.0%
40.0%
RONOA
(b)
20%
16.6%
0.0%
Operating
profit margin
(b)
20%
15.5%
0.0%
Customer service
9-month
(c)
20%
79.9%
14.3%
54.3%
Total
100%
(a) The peer group is comprised of Barratt Developments, Bellway, Berkeley Homes, Countryside Partnerships (formerly
Countryside Properties), Crest Nicholson, Persimmon, Redrow and Vistry Group. Countryside Partnerships was acquired by
Vistry Group in November 2022 and Barratt Developments merged with Redrow in August 2024. For the purpose of assessing
the TSR performance of Countryside Partnerships, its performance has been tracked forward using the performance of Vistry
Group (the acquirer) from the date Countryside Partnership shares were de-listed and cancelled (11 November 2022). For the
purpose of assessing the TSR performance of Redrow, its performance has been tracked using the performance of Barratt
Developments (the acquirer) from the date Redrow shares were de-listed and cancelled (23 August 2024)
(b) The target ranges for RONOA and operating profit margin are based on the average annual performance over the three-year
performance period.
(c) The customer service measure is based on the single question ‘Would you recommend your builder to a friend?’ from the
independently measured NHBC 9-month survey.
Taylor Wimpey plc
Annual Report and Accounts 2024
148
Remuneration Committee report continued
PSP Awards included in the 2023 and 2024 single total figure of remuneration table
The table below sets out the number of shares each Executive Director received after the vesting of the 2021 and 2022 PSP Awards.
Name
Number of
shares granted
Value of award
at grant
(£000)
End of
performance
period
% of award
vesting
Number of
shares vesting
Number of
dividend
equivalent
shares
Total number
of shares
Vesting date
Value
attributable to
share price
increase (£000)
Value of
proportion of
PSP
(single figure)
(£000)
2024
(a)
Jennie Daly
1,141,552
1,500
31/12/2024
54.3
619,862
140,267
760,129
27/02/2025
65
1,064
Chris Carney
749,713
980
31/12/2024
54.3
407,094
92,121
499,215
27/02/2025
46
699
2023
(b)
Jennie Daly
459,726
800
31/12/2023
40.0
183,890
37,898
221,788
28/02/2024
–
297
Chris Carney
503,400
877
31/12/2023
40.0
201,360
41,499
242,859
28/02/2024
–
325
(a) The 2022 PSP Award is included in the 2024 single total remuneration figure. The performance against each of the performance measures is noted in the graph on page 148. A share price of 140.00 pence was used to calculate the value of the Award vesting
on 27 February 2025 as this was the average share price for the dealing days in the last three months of the financial year; based on the share price of 140.00 pence, a proportion of the value is attributable to share price increase, as the share price used to
calculate the 2022 PSP Award was 131.40 pence for Jennie Daly and 130.72 pence for Chris Carney, being the average closing share price the three days preceding the grant. The value of the 2022 Award will be recalculated in the Annual Report and
Accounts 2025 to reflect the share price on the date the Award vests. Dividend equivalents will be paid in shares.
(b) The 2021 PSP Award is included in the 2023 single total remuneration figure. The overall performance of the Award can be seen on page 142 of the Annual Report and Accounts 2023. The closing share price on the date the Award vested (133.85 pence)
has been used to recalculate the Award. Dividend equivalents were paid in shares.
PSP Awards granted during 2024
The tables below set out the PSP Awards granted during the year and the corresponding performance measures. The Committee considers that the measures provide a good overall balance in assessing
our longer term performance against the business strategy. The targets were reviewed to reflect current market conditions and business forecasts for the Group. The rationale for the measures and targets
approved for the 2024 PSP Awards can be found on page 145 in the 2023 Annual Report and Accounts.
Executive Director
Award type
% of salary
Grant date
Face value of
award at
maximum
vesting
Number of
shares granted
% of award
vesting if
threshold
performance
achieved
End of
performance
period
Jennie Daly
(a)
Nil-cost option
200
06/03/2024
£1,545,000
1,107,659
25
31/12/2026
Chris Carney
(a)
Nil-cost option
200
06/03/2024
£1,039,682
745,380
25
31/12/2026
(a) The share price (139.48 pence) used to calculate the number of shares awarded to Jennie and Chris was based on the average closing share price over the three business days prior to grant (1, 4 and 5 March 2024).
149
Financial statements
Shareholder information
Strategic report
Directors’ report
Remuneration Committee report continued
Performance measure
Weighting
Threshold (25%)
Maximum (100%)
TSR v peer group
(a)
40%
Median
Upper quartile
Operating profit margin in 2026
15%
13%
17%
RONOA in 2026
15%
14%
19%
Customer service in 2026
(b)
15%
78.5%
81.5%
Carbon reduction in 2026 (from a 2019 baseline)
(c)
15%
-34%
-40%
(a) The peer group comprises Barratt Developments, Bellway, Berkeley Homes, Crest Nicholson, Persimmon, Redrow and Vistry
Group. Barratt Developments merged with Redrow in August 2024 and, for the purpose of assessing the TSR performance
of Redrow, its performance is tracked using the performance of Barratt Developments (the acquirer) from the date Redrow
shares were de-listed and cancelled (23 August 2024).
(b) This will be based on the single question ‘Would you recommend your builder to a friend?’ from the independently measured
NHBC 9-month survey, rather than the customer service measure used in the 2023 EIS, which is based on the percentage
of customers who would recommend Taylor Wimpey to a friend from the independently measured NHBC 8-week survey.
(c) This will be based on a reduction in absolute scope 1 and 2 carbon emissions based compared to the 2019 baseline and
the target range takes into account the higher anticipated volumes in 2026.
Payments for loss of office and payments to former
Directors (audited)
No payments were made for loss of office during 2024.
In connection with his leaving arrangements on departure from the business on 8 December 2022,
Pete Redfern, former Chief Executive, was subject to a post-employment shareholding requirement
to hold shares to a value of 200% of salary for a period of two years. The two year period ended on
8 December 2024. In October 2024, the Committee agreed to a request from Pete that the share
price to be used to calculate the 200% of salary shareholding threshold could be changed from the
price on the date he ceased employment (102.75 pence) to the share price at the time of any share
sale. If, on sale, the share price was higher than 102.75 pence, this would mean that Pete could sell
a higher number of shares, whilst still maintaining a residual shareholding to the value of at least 200%
of salary. In agreeing to his request the Committee noted, amongst other factors, that there were
a few weeks remaining until the end of the two year holding period at which time he could sell many
more shares; and Pete still had significant further shares subject to holding periods that extended out
beyond 8 December 2024, as far as March 2026, thereby ensuring significant longer-term alignment
of interest with shareholders.
Approach to remuneration in 2025
2025 salary review
The Committee undertook a benchmarking exercise for the Executive Director roles which
demonstrated that the salary for the Chief Executive had fallen below the FTSE median and
the salary for the Group Finance Director was broadly at the median. As such, Chris Carney’s salary
will be increased by 3% with effect from 1 April 2025 which is in line with the Company-wide average
salary increase.
As outlined in the Remuneration Committee Chair’s letter, the Committee has approved a 6.8%
increase to Jennie Daly’s salary in light of her strong development and performance in role.
Executive Director
As at 1 April
2024
As at 1 April
2025
Change
Jennie Daly
£795,675
£850,000
6.8%
Chris Carney
£535,436
£551,499
3%
2025 EIS
Directors will be able to earn up to 150% of salary under the 2025 EIS. The EIS performance measures
for 2025 remain in line with those used in 2024, with a 70% weighting on financial performance
recognising the importance in changing market conditions. The measures are set out below together
with the strategic rationale. We carefully consider the target ranges each year, ensuring an appropriate
balance between achievability and stretch. As the weightings and targets are not due to be approved
until after this report is published, detailed retrospective disclosure of the weightings, targets and
performance against them will be provided next year in the usual way.
Performance measure
Weighting
Rationale
Operating profit
30%
Maximise aggregate profit
Operating profit margin
20%
Optimise sales prices and improving cost discipline
Cash conversion
20%
Maximise the generation of cash flow from profits
Build quality
(a)
15%
Deliver high-quality homes with the need for less remediation
Customer service
(b)
15%
Maintain customer trust and endorse the Company’s reputation
(a) Build quality is measured externally through the NHBC CQR.
(b) This will be based on the independently verified NHBC weighted customer satisfaction scores for Build Quality and Service
After taken from the 8-week and 9-month surveys, with 50% equal contribution.
Taylor Wimpey plc
Annual Report and Accounts 2024
150
Remuneration Committee report continued
2025 PSP Awards
The 2025 PSP Awards will operate in accordance with the Policy as set out on page 143. In line with normal practice, it is expected that Directors will be granted awards to the value of 200% of salary.
The measures and weightings will be in line with those used for the 2024 PSP Awards. As noted elsewhere in this Annual Report and Accounts, due to the cyclical nature of the housebuilding sector, 2024 saw
a reduction in industry wide volumes. The business also suffered in 2024 from the combination of house price deflation and build cost inflation, due to the timing lag between sales and completions. Whilst the
business has been set up for future growth in 2025 and beyond, sell-side research analysts have reduced their expectations for margin and returns in 2025 due to the aforementioned market conditions. The
Committee therefore set the target ranges for operating profit margin and RONOA lower than the 2024 PSP Award, taking into account the current and foreseeable market conditions, providing the appropriate
balance between setting targets that are stretching yet achievable. The target ranges for all measures are, in the view of the Committee, equivalently challenging to the ranges set in prior years. The Committee
believes that the measures chosen provide a balanced approach to assessing long term performance including financial, shareholder and customer metrics.
Performance measure
Rationale
Weighting
Threshold (25%)
Maximum (100%)
TSR v peer group
(a)
Align the rewards received by executives with the returns received by shareholders
40%
Median
Upper quartile
Operating profit margin (2027)
(b)
Optimise sales prices and improving cost discipline
15%
12%
15%
RONOA (2027)
Maintain focus on driving increased capital efficiency
15%
12%
15%
Customer service (2025-2027)
(c)
Maintain customer trust and endorse Company reputation
15%
12.55
12.58
Carbon reduction (from a 2019 baseline) (2027)
(d)
Support the Board’s strategy on carbon emissions reductions across our operations
15%
-36%
-44%
(a) The peer group comprises Barratt Developments, Bellway, Berkeley Homes, Crest Nicholson, MJ Gleeson, Persimmon, and Vistry Group. Following the acquisition of Redrow by Barratt Developments, Redrow has been removed from the peer group and
MJ Gleeson has been added. The measurement approach for the 2025 PSP Award is to be on a straight-line basis between the median TSR and upper quartile TSR.
(b) An operating profit margin measure will also operate in both the EIS and PSP in 2025. As there continues to be uncertainty in relation to the housing market, this is a critical measure at both an operational level for the EIS and for the longer term for the
PSP (where margin will be assessed at the end of the three year performance period). This will ensure that our priority remains delivering our sustained profitability with an unremitting focus on long term decisions with cost and process discipline to drive
shareholder returns over the medium term.
(c) The score out of 5 will be the average of the customer satisfaction scores for Build Quality and Service After, taken from the independently verified NHBC 8-week and 9-month surveys, with 50% equal contribution. The 2025 PSP and EIS customer service
measures will therefore be on the same basis however, to avoid doubling up of reward for the same performance, this measure will be assessed on the aggregate of the annual scores over the relevant performance period and not the final year. Customer
Service continues to be an extremely important area of focus for the Company and we are comfortable that this should be incorporated in both the EIS and PSP. The NHBC’s new star rating combines customers’ service before and moving in experience via
the 8-week surveys, as well as service after and customers’ experience of living longer term in one of our developments, via the 9-month survey. By including the new star rating we are ensuring that customer experience over both timeframes is still measured.
(d) This will be based on a reduction in absolute scope 1 and 2 carbon emissions and the target range takes into account the anticipated higher volumes in 2027.
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Shareholder information
Strategic report
Directors’ report
Remuneration Committee report continued
Executive Directors’ interests in the Company’s share schemes (audited)
Details of the options and conditional awards over shares held by the Executive Directors who served during the year are as follows:
Maximum
potential shares as
at 01/01/2024
Additional
maximum potential
shares awarded
during the year
Exercised/released
during the year
Lapsed during
the year
Maximum
potential shares as
at 31/12/2024
(a)
Jennie Daly
PSP
(b)
2,808,521
1,107,659
183,890
275,836
3,456,454
Sharesave plan
(c)
36,057
–
–
–
36,057
Total
2,844,578
1,107,659
183,890
275,836
3,492,511
Chris Carney
PSP
(b)
2,065,507
745,380
201,360
302,040
2,307,487
Sharesave plan
(c)
36,057
–
–
–
36,057
Total
2,101,564
745,380
201,360
302,040
2,343,544
(a) All outstanding awards are options. The Directors do not hold any vested but unexercised share options.
(b) The Executive Directors exercised their 2021 PSP Award on 28 February 2024 when the share price was 133.89 pence. These shares were awarded on 9 March 2021 using a share price of 174.02 pence to calculate the Award. The Award price was
calculated using the average closing share price the three days leading up to the Award.
(c) Jennie Daly and Chris Carney each hold 36,057 Sharesave options which were granted on 3 October 2022 at an option price of 83.20 pence, which offered a 20% discount to the share price at the start of the invitation window. The face value of these
options on the date of grant for Jennie and Chris was £32,603 each. The Sharesave options are not subject to any performance conditions.
The vesting of the PSP is subject to the achievement of performance conditions and for 2023 Awards onwards, 25% of maximum is receivable if threshold performance is achieved (2022 Awards and prior,
20% of maximum is receivable if threshold performance is achieved). There have been no variations to the terms and conditions or performance criteria for outstanding share awards during the financial year.
The closing share price on 31 December 2024 was 122.1 pence and the range during the year was 120.6 pence to 168.9 pence.
Taylor Wimpey plc
Annual Report and Accounts 2024
152
Remuneration Committee report continued
Single total figure of remuneration for the Chair and
Non Executive Directors (audited)
Total fees (£000)
2024
2023
Robert Noel
(a)
343
257
Mark Castle
(a)
77
72
Martyn Coffey
(b)
6
–
Irene Dorner
(a)
66
152
Jitesh Gadhia
(c)
86
83
Scilla Grimble
(d)
72
65
Clodagh Moriarty
66
65
Humphrey Singer
(e)
95
94
(a) On 27 April 2023, Irene Dorner stood down as Chair; Robert Noel became Chair and stood down as the Senior Independent
Director and Employee Champion; Humphrey Singer became the Senior Independent Director and Mark Castle became the
Employee Champion.
(b) Martyn Coffey joined the Board on 1 December 2024.
(c) Jitesh Gadhia became Senior Independent Director with effect from 1 December 2024 and therefore received the additional
Senior Independent Director fee for the remainder of the year.
(d) Scilla Grimble was appointed as Chair of the Audit Committee with effect from 1 September 2024 and therefore received the
additional Audit Committee Chair fee for the remainder of the year.
(e) Humphrey Singer stood down as Chair of the Audit Committee on 1 September 2024 and stood down as a member of the
Audit Committee and as Senior Independent Director on 1 December 2024; his fees were reduced accordingly. Humphrey
stood down from the Board with effect from 31 December 2024.
Chair and Non Executive Director fees
The Committee reviewed the Chair’s fee and agreed an increase of 3%, in line with the increase
provided to the Executive Directors. The Board, excluding the Non Executive Directors who were
conflicted, also reviewed the fees payable to the Non Executive Directors and agreed the same
increase of 3%. The 3% increase will also be applied to the additional fees for the roles of Chair of
the Audit Committee, Chair of the Remuneration Committee, Senior Independent Director and
Employee Champion.
Role
As at 1 April
2024
As at 1 April
2025
Change
Chair of the Board
£345,050
£355,400
3%
Independent Non Executive Director
£66,950
£68,960
3%
Senior Independent Director
£18,025
£18,570
3%
Audit/Remuneration Committee Chair
£18,025
£18,570
3%
Employee Champion
£10,300
£10,610
3%
153
Financial statements
Shareholder information
Strategic report
Directors’ report
Remuneration Committee report continued
Statement of Directors’ shareholdings and share interests (audited)
In line with the Policy, the Executive Directors’ shareholding requirement is to hold 200% of their base salary. Further details on how this element of the Policy is operated can be found on page 144. In addition,
a post-employment shareholding guideline requires Executive Directors to retain shares worth 200% of their base salary for at least two years post-employment. Or, if this 200% shareholding requirement has
not yet been met, Executive Directors must retain their shareholding at the time of employment cessation for at least a further two years.
The Chair and the Non Executive Directors are also encouraged to hold shares in the Company in order to align their interests with those of shareholders.
Director
Beneficially owned
Outstanding interests in share schemes
Value of beneficially
owned shares as at
31/12/2024
(c)
Share interests
expressed as a % of
shareholding
requirement
(d)
at 01/01/2024
at 31/12/2024
(a)
PSP
(b)
Sharesave
Robert Noel
311,187
332,872
–
–
–
–
Jennie Daly
(e)
679,767
965,700
3,456,454
36,057
£1,179,119
148
Chris Carney
(e)
870,153
1,120,985
2,307,487
36,057
£1,368,722
255
Mark Castle
44,711
47,934
–
–
–
–
Martyn Coffey
–
31,500
–
–
–
–
Irene Dorner
164,952
164,952
–
–
–
–
Jitesh Gadhia
100,000
100,000
–
–
–
–
Scilla Grimble
15,000
15,000
–
–
–
–
Clodagh Moriarty
25,025
25,025
–
–
–
–
Humphrey Singer
31,896
31,896
–
–
–
–
(a) Shares owned outright includes the net-of-tax shares received by the Executive Directors in March 2023 and March 2024 following the one third deferral of the EIS paid in respect of 2022 and 2023 performance. The EIS deferred shares are not subject to
further performance conditions.
(b) Vesting is subject to the achievement of performance conditions.
(c) This has been calculated on the basis of beneficially owned shares. The share price on 31 December 2024 (122.1 pence) has been used to calculate Jennie Daly and Chris Carney’s share interest expressed as a percentage of salary as at 31 December 2024.
(d) In April 2022 Jennie Daly was promoted from Group Operations Director to Chief Executive and her salary increased from £408,000 to £750,000. In line with the Policy, Jennie will continue to retain no less than 50% of the value of the deferred bonus shares
or vested PSP awards until she achieves her 200% shareholding requirement. Jennie’s shareholding will continue to be monitored, noting that it is sensitive to fluctuations in share price.
(e) A proportion of shares are held by a connected person.
The only changes to the Directors’ interests as set out above during the period between 31 December 2024 and 26 February 2025 were the regular monthly purchases of shares and 1:1 matching by the
Company under the Share Incentive Plan by Jennie Daly and Chris Carney who both acquired 520 shares each.
Taylor Wimpey plc
Annual Report and Accounts 2024
154
Remuneration Committee report continued
Historic TSR performance and Chief Executive historic remuneration
The graph below shows Taylor Wimpey’s TSR performance against the performance of the FTSE 350 and the average of the Housebuilders Index. These benchmarks have been chosen as Taylor Wimpey
is a constituent of both.
0
50
100
150
200
250
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
31/12/2014
31/12/2015
31/12/2016
31/12/2017
31/12/2018
31/12/2019
31/12/2020
31/12/2021
31/12/2022
31/12/2023
31/12/2024
TSR – Value (£) (rebased)
Chief Executive Total Remuneration (£000)
Taylor Wimpey
FTSE350
Housebuilders Index
Chief Executive
Total Remuneration
The graph also shows the Chief Executive’s single total figure of remuneration over the same ten-year period.
TSR versus Chief Executive total single figure
Single total figure (£000)
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
Jennie Daly
–
–
–
–
–
–
–
–
1,175
(a)
2,208
(b)
3,066
Pete Redfern
6,250
6,888
4,072
3,697
3,272
3,247
1,120
2,710
925
–
–
EIS (% of maximum)
Jennie Daly
–
–
–
–
–
–
–
–
76
91
94
Pete Redfern
90
78
80
66
96
50.6
–
95
76
–
–
PSP (% of maximum)
Jennie Daly
–
–
–
–
–
–
–
–
32.3
40
54.3
Pete Redfern
94
100
81
78
50
62.8
6.6
22.1
32.3
–
–
(a) Relates to the period Jennie Daly was Chief Executive from 26 April 2022.
(b) The 2023 figure has been restated to reflect the share price on the date the 2021 PSP Award vested, which was 133.85 pence.
155
Financial statements
Shareholder information
Strategic report
Directors’ report
Remuneration Committee report continued
Wider workforce remuneration in 2024
The Committee regularly monitors and reviews the Company-wide remuneration arrangements to ensure the Executive Directors’ remuneration is aligned to incentives and rewards across the Company.
During 2024, the Committee reviewed by employee level, the different elements of pay and benefits across the Company. The Committee considers that all employees receive a reward package that is aligned
to the Company’s purpose and culture; and is market competitive, transparent and fair. A summary of the remuneration arrangements across the workforce can be found below. In addition, when considering
the performance measures for variable incentive schemes, the Committee ensures that there is a clear link between the performance measures in the various variable incentive schemes.
Executive Directors, GMT and senior managers
Wider workforce
Increases of 3% approved by the Committee
Salary
Increases of 3% to 6% approved by the Committee
All employees eligible for a bonus. Performance measures aligned
with strategy
Bonus
All employees eligible for a bonus. Performance measures aligned
with strategy
Executive Directors and GMT members defer one third of any
annual bonus paid for three years
Deferred shares
Many employees can elect to take their bonus payment in shares
(and benefit from a 20% uplift) and are required to retain the shares
for one year
Eligible to participate in a long term incentive plan, SIP and Sharesave.
Shareholding requirements are in place
Share based incentive schemes
Eligible for SIP and Sharesave
10% pension contribution
Pension
10% pension contribution available to the majority of the workforce
All employees eligible to receive private medical healthcare
Private healthcare
All employees eligible to receive private medical healthcare
Taylor Wimpey plc
Annual Report and Accounts 2024
156
Remuneration Committee report continued
Wider workforce salary review
In recognition of the high levels of inflation that have created the cost of living crisis impacting
lower paid employees most, the Committee also approved a tiered approach to the salary reviews
in 2023 and 2024, to ensure that those that are impacted most receive higher levels of support.
CEO pay ratio
Year
Method
CEO single figure
(a)
Lower quartile
Median
Upper quartile
2024
(b)
Option B
£3,065,841
Ratio
81:1
59:1
39:1
Salary
£33,855
£41,800
£64,518
Total pay and
benefits
£37,820
£52,072
£77,723
2023
Option B
£2,185,041
Ratio
68:1
42:1
32:1
2022
Option B
£2,100,044
Ratio
62:1
41:1
26:1
2021
Option B
£2,764,290
Ratio
87:1
60:1
40:1
2020
Option B
£1,120,451
Ratio
39:1
26:1
20:1
2019
Option B
£3,023,654
Ratio
93:1
73:1
48:1
2018
Option B
£3,151,748
Ratio
103:1
77:1
41:1
(a) The previous CEO single figures in this table have not been restated to reflect the share price on the date the relevant PSP
Award vested. We have chosen to do this for transparency purposes so that we are comparing the ratios disclosed in
previous reports.
(b) The three representative employees were determined on 31 December 2024.
Under Option B, using the hourly rate from our 2024 gender pay gap data, three employees have
been identified as the best equivalents of our lower quartile, median and upper quartile. Option B
provides a clear methodology involving fewer adjustments to calculate full-time equivalent earnings
and is likely to produce more robust reporting year on year. The Company believes that the median
pay ratio for the year ending 31 December 2024 is consistent with the pay and reward policies for
UK employees taken as a whole.
The Committee has reviewed the results of the calculations and is satisfied that they continue to
be representative of the respective quartiles. Total pay and benefit figures, not including temporary
allowances, paid during the financial year ending 31 December 2024, have been calculated for the
employee at each quartile and for employees either side of the identified employees, to ensure that
the employees selected are a reasonable representative based on their full year’s remuneration.
Due to an increase in the CEO single figure for 2024, all three ratios have increased. The increase in
the CEO single figure was predominately a result of a higher PSP payout in 2024 (£1,064,181) versus
2023 (£274,000). This was due to the 2022 Award being based upon Jennie Daly’s salary as CEO,
following her appointment as CEO on 26 April 2022, whereas the 2021 Award was based upon her
Group Operations Director salary.
Gender pay gap
As part of its review of wider workforce remuneration, and in line with the Gender Pay Gap regulations,
the Committee also considers our gender pay gap. The nature of our industry means many of the high
headcount roles (Sales and Production) are heavily male or female weighted which can impact our pay
gap results if there are changes to these populations.
Our mean pay gap, excluding Executive Directors, is 8% which means that the mean pay is 8% higher
for males than females. The shift in our pay gap this year reflects a number of factors, including
a reduction in the overall size of our workforce and a reduction in commission due to market conditions
which affects our sales function, which is 81% women, and pay increases which were weighted
towards lower paid employees, who are predominantly male.
Further information can be found in our Diversity and Inclusion Report which is available on our website.
8%
Gender pay gap excluding
Executive Directors (mean)
(2023: 6%)
6%
Gender pay gap excluding
Executive Directors
(median) (2023: 2%)
157
Financial statements
Shareholder information
Strategic report
Directors’ report
Remuneration Committee report continued
Annual percentage change in remuneration of Directors and employees
The table below shows the percentage change in salary or fee, taxable benefits and annual bonus of each current Director and the average Taylor Wimpey employee in respect of the periods from 2020 to 2024.
Salary/fee
(a)
Benefits
Annual bonus scheme
(a)
2024
2023
2022
2021
2020
2024
2023
2022
2021
2020
2024
2023
2022
2021
2020
Average pay of a Taylor Wimpey employee
(b)
6%
8%
4%
6%
–
9%
4%
3%
3%
–
15%
10%
(10)%
163%
(46)%
Jennie Daly
(c)
3%
19%
58%
13%
(10)%
(15)%
(32)%
(55)%
12%
(6)%
6%
44%
26%
n/a
n/a
Chris Carney
(c)
3%
3%
7%
18%
(10)%
0%
8%
(40)%
(11)%
(55)%
6%
23%
(14)%
n/a
n/a
Robert Noel
(d)
33%
189%
11%
23%
n/a
–
–
–
–
–
–
–
–
–
–
Irene Dorner
(e)
(57)%
(55)%
2%
32%
n/a
–
–
–
–
–
–
–
–
–
–
Mark Castle
(f)
7%
n/a
n/a
n/a
n/a
–
–
–
–
–
–
–
–
–
–
Martyn Coffey
(g)
n/a
n/a
n/a
n/a
n/a
–
–
–
–
–
–
–
–
–
–
Jitesh Gadhia
(h)
4%
8%
n/a
n/a
n/a
–
–
–
–
–
–
–
–
–
–
Scilla Grimble
(i)
11%
n/a
n/a
n/a
n/a
–
–
–
–
–
–
–
–
–
–
Clodagh Moriarty
(j)
2%
n/a
n/a
n/a
n/a
–
–
–
–
–
–
–
–
–
–
Humphrey Singer
(k)
1%
13%
4%
14%
(10)%
–
–
–
–
–
–
–
–
–
–
(a) In light of the COVID-19 pandemic the Executive and Non Executive Directors took a voluntary 30% reduction in base salary and fees from 1 April 2020 to 31 July 2020. The Executive Directors’ 2020 EIS was also cancelled.
(b) Taylor Wimpey plc does not have any employees so the figures shown are in relation to Taylor Wimpey UK Limited employees.
(c) Jennie Daly was appointed as Chief Executive with effect from 26 April 2022 and Chris Carney received a salary increase on 1 July 2021.
(d) Robert Noel was appointed in October 2019 and subsequently appointed as the Senior Independent Director on 20 April 2020 and Employee Champion on 26 April 2022. Robert was then appointed Chair of the Board and stood down as the
Senior Independent Director and Employee Champion on 27 April 2023.
(e) Irene Dorner was appointed in December 2019 and received a fee increase on 1 July 2021. Irene stood down as Chair and became a Non Executive Director on 27 April 2023.
(f) Mark Castle was appointed to the Board on 1 June 2022. Mark was appointed Employee Champion on 27 April 2023.
(g) Martyn Coffey was appointed to the Board on 1 December 2024.
(h) Jitesh Gadhia was appointed to the Board on 1 March 2021. Jitesh was appointed Chair of the Remuneration Committee on 26 April 2022 and as the Senior Independent Director on 1 December 2024.
(i)
Scilla Grimble was appointed to the Board on 1 March 2021. Scilla was appointed as Chair of the Audit Committee on 1 September 2024.
(j) Clodagh Moriarty was appointed to the Board on 1 June 2022.
(k) Humphrey Singer was appointed as the Senior Independent Director on 27 April 2023. He stood down as Chair of the Audit Committee on 1 September 2024 and then as Senior Independent Director on 1 December 2024.
Relative importance of spend on pay
Change in Company performance relative to change in remuneration
2024
2023
Change
Operating profit
(a)
£416.2m
£470.2m
(11.5)%
Distributions to shareholders
Aggregate dividends paid during the year
£339.4m
£337.9m
0.4%
Employee pay in aggregate
(b)
£290.2m
£285.8m
1.5%
Employee pay average per employee
(b)
£65,096
£60,564
7.5%
(a) Operating profit is defined as profit on ordinary activities before financing, exceptional items and tax, after share of results of joint ventures. Operating profit has been chosen as it is one of the Company’s primary measures of performance.
(b) See Note 7 to the financial statements on page 194.
Taylor Wimpey plc
Annual Report and Accounts 2024
158
Remuneration Committee report continued
The Remuneration Committee
The Remuneration Committee members in 2024
There were four Committee meetings during 2024 and all Committee members attended all four
meetings. The Committee met the Code requirement to have three independent Non Executive
Directors as members of the Committee.
Name
Title
Jitesh Gadhia
Committee Chair and Independent Non Executive Director
Mark Castle
Independent Non Executive Director
Clodagh Moriarty
Independent Non Executive Director
Robert Noel
Chair of the Board
Internal attendees consisted of the Chief Executive, Group Finance Director, Group HR Director,
Head of Reward, Sustainability Manager and members of the Company Secretariat team. These
attendees provided important information to the Committee and were not involved in any decisions
relating to their own remuneration.
Main activities during 2024
Over the course of the year since the last Annual Report and Accounts, the Committee has:
• Determined the 2023 EIS and 2021 PSP outcomes
• Determined the 2024 salary levels for the Chief Executive and Group Finance Director
• Agreed the targets applicable to the 2024 EIS scheme and 2024 PSP Awards
• Reviewed base salary levels for Senior Management
• Considered wider workforce remuneration arrangements
• Considered how the Policy should be applied in 2024 and 2025
Committee’s performance
The Committee reviewed its activities in 2024 against the Terms of Reference in place during 2024 and
discharged its responsibilities in accordance with them. The Committee’s Terms of Reference have
been reviewed against the 2024 Code and best practice; with minor amendments approved by the
Committee at its February 2025 meeting.
The results of the 2024 internal Board Evaluation concluded that the Committee was fulfilling its
Terms of Reference effectively and the Committee Chair was effective.
Advice to the Committee in 2024
The Committee keeps itself fully informed on developments and best practice in the field of
remuneration and seeks advice from external advisers when appropriate.
The Committee appoints its own independent remuneration advisers and during the year it continued
to retain the services of Korn Ferry. Korn Ferry is a member of the Remuneration Consultants Group
and signatory to its Code of Conduct. Korn Ferry was appointed following a comprehensive tender
process. Korn Ferry does not have any connection with the Company or any of the individual Directors.
The Committee has considered the advice provided by Korn Ferry during the year and is comfortable
that the advice has been objective and independent.
The fees paid to Korn Ferry in 2024 were £149,988 (including VAT) on a time and materials basis
(2023: £120,197). No fees were paid to Slaughter and May in 2024 in respect of advice to the
Committee (2023: £27,000).
Shareholding voting
The table below sets out the voting by shareholders in respect of Directors’ remuneration resolutions.
Resolution
For
Against
Total votes cast
Withheld
Directors’ Remuneration Report
for 2023 (2024 AGM)
2,251,430,976
80,074,447
2,331,505,423
11,763,071
(96.57)%
(3.43)%
Directors’ Remuneration Policy
(2023 AGM)
2,155,740,993
195,311,797
2,351,052,790
453,054
(91.69)%
(8.31)%
Lord Jitesh Gadhia
Chair of the Remuneration Committee
26 February 2025
159
Financial statements
Shareholder information
Strategic report
Directors’ report
UK Corporate Governance Code compliance statement
The 2018 UK Corporate Governance Code (the Code), which is available to view on the Financial Reporting Council’s website, is the standard against which we have measured ourselves for the year ended
31 December 2024. We confirm that throughout the year, the Company has complied with all principles and provisions of the Code. This compliance statement sets out how the principles of the Code have
been applied.
Principle
Application
Read more on pages
1
Board leadership and Company purpose
A
Effective Board
The primary role of the Board is to lead Taylor Wimpey in a way that ensures sustainable long term success of the business for the mutual benefit
of all of our stakeholders. The Board does this by providing strategic and entrepreneurial leadership within a framework of strong governance and
effective controls.
Our governance framework ensures that the Board and its Committees, the GMT and Senior Management are able to make decisions effectively
for the benefit of all of our stakeholders.
116 to 118
B
Purpose, culture, values
and strategy
The Board sets our purpose, values, strategy and culture and ensures that they are aligned. Our purpose is to build great homes and create thriving
communities and this is underpinned by our strategy to build a stronger and more resilient business and deliver superior returns.
7, 10 and 115
C
Governance framework,
resources and controls
At each Board meeting, the Board receives papers from each GMT member, along with key Heads of Functions which provide updates on key
stakeholder groups, performance in the period and employee matters. The Board also receive regular reports and minutes from the Company’s
Treasury Committee, which is chaired by the Group Finance Director.
There is a framework of delegated authority approved by the Board, within which the individual responsibilities of Senior Management are identified
and can be monitored.
109 to 111 and 116
D
Stakeholder engagement
The Board actively seeks and encourages regular engagement with all of our stakeholders and believes that responding to feedback supports the
long term sustainability of our business.
97 to 101
E
Workplace policies and practices
We have a number of workforce policies and practices which are available on our website and are regularly reviewed by the Board to ensure that
they are consistent with our values and support our long term sustainable success.
The Whistleblowing Policy provides a clear procedure for employees to report concerns either to their line manager or through a third party
whistleblowing hotline if they wish to remain anonymous. The Board receives half-yearly whistleblowing updates which set out any issues raised
during the period and interim updates on significant matters. These updates support the Board’s assessment of the continued and effective
operation of these arrangements.
117
Taylor Wimpey plc
Annual Report and Accounts 2024
160
UK Corporate Governance Code compliance statement continued
Principle
Application
Read more on pages
2
Division of responsibilities
F
Role of the Chair
The Chair promotes a culture of openness and debate during Board meetings, which was highlighted during the 2024 Board evaluation.
To support the effective discharge of the Board’s responsibilities, the Chair and Chief Executive maintain regular dialogue outside of the boardroom
to ensure an effective and ongoing flow of information.
Time is set aside at the end of every Board meeting for the Non Executive Directors to discuss matters with the Chair without the Executive
Directors present.
118
G
Board composition,
independence and division
of responsibilities
The Board consists of nine Directors, including the Chair, two Executive Directors, five independent Non Executive Directors and one non
independent Non Executive Director. The Board considers this balance to remain appropriate and will continue to keep this under review during
2025. The Board roles are separate, clearly defined in the Division of Responsibilities document and reviewed annually.
103 to 106, 118 and 121
H
Non Executive Directors’ role
and time commitment
The expected time commitment of the Chair and Non Executive Directors is agreed and set out in writing in the Letter of Appointment for the
respective roles. Any changes to external commitments must be considered and approved by the Board. Senior Management and Heads of
Functions attend Board meetings to give updates and Non Executive Directors are encouraged to visit our regional businesses and sites on
a regular basis. This ensures that the Non Executive Directors are able to constructively challenge and hold Management to account.
109, 122 and 144
I
Company Secretary and access
to information
The Board and individual Directors are supported by the Group General Counsel and Company Secretary, to whom they have access at all times.
The Directors receive information one week before meetings take place to allow sufficient time for a detailed review of the documentation.
118
3
Composition, succession and evaluation
J
Appointments and
succession planning
All Board appointments are subject to formal, rigorous and transparent procedures, are based on merit and objective criteria and promote diversity
of gender, social and ethnic background, and cognitive and personal strengths. During the year the Nomination and Governance Committee
oversaw the formal recruitment process which led to the appointment of Martyn Coffey. A formal role profile was developed so that shortlisted
candidates could be assessed against objective criteria.
The Nomination and Governance Committee considers the succession plans for the Board, GMT and Heads of Functions, as well as wider
workforce planning for certain roles including our regional businesses’ managing directors.
121 and 122
K
Skills, experience and knowledge
The Board members’ skills, experience and knowledge are considered to be varied and appropriately balanced. When developing the role profile
for the Non Executive Director vacancy, the Board’s current skillset was considered.
The Nomination and Governance Committee consider the tenure of Non Executive Directors and are conscious that the Code does not consider
them to be independent after they have served on the Board for nine years.
121
L
Board performance
The Board undertakes a formal and rigorous evaluation of the performance of the Board, its Committees, the Chair and individual Directors on an
annual basis. At least every three years, this process is externally facilitated, most recently for the 2023 Board evaluation. In 2024, the evaluation
was internally facilitated by the Group General Counsel and Company Secretary.
123 and 124
161
Financial statements
Shareholder information
Strategic report
Directors’ report
UK Corporate Governance Code compliance statement continued
Principle
Application
Read more on pages
4
Audit, risk and internal control
M
Internal and external audit
The Audit Committee evaluated the performance of the external Auditor and concluded that the audit process continues to be effective; that the
quality and sufficiency of PwC’s engagement team remains appropriate; that PwC remain independent; and that there continue to be effective
and independent reporting lines available to the external Auditors direct to the Committee and its Chair.
The Head of Internal Audit reports directly to the Chair of the Audit Committee, with a secondary reporting line to the Group Finance Director,
which protects the function’s independence. The most recent independent evaluation of Internal Audit’s independence and performance was
carried out during 2021, as described in the Annual Report and Accounts 2021, and found that Internal Audit continues to operate effectively,
with no areas of non-conformance with recommended practice as set out in the International Professional Practice Framework.
130 to 132
N
Fair, balanced and
understandable assessment
The Audit Committee considered whether, in its opinion, the Annual Report and Accounts 2024, taken as a whole is fair, balanced and
understandable, and that it includes the information necessary for shareholders to assess the Group’s position, performance, business model
and strategy. Following a comprehensive review, the Audit Committee recommended the approval of the Annual Report and Accounts 2024 to
the Board.
135 and 166
O
Risk management
The Company has an established ongoing process of risk management and the Audit Committee monitors the risk management and internal
control systems, including their effectiveness, on behalf of the Board and provides advice to the Board in connection with the Board’s own
risk review.
82 to 90
130 to 132
5
Remuneration
P
Remuneration policies and
practices
The Remuneration Committee ensures that the remuneration of Executive Directors and Senior Management is aligned to the Company’s strategic
objectives. It is key that the Company is able to attract and retain leaders who are focused and also appropriately incentivised to deliver the
Company’s strategic objectives, within a framework that is aligned to the long term interests of the Company’s stakeholders.
139 and 140
Q
Developing executive
remuneration policy
The Remuneration Committee regularly reviews the Remuneration Policy (the Policy) and it is put to a shareholder vote at least every three years.
The Committee considers that the Policy aligns with market practice, the Code requirements and investor guidelines.
No Director or Senior Management is involved in any decisions about their own remuneration.
141 to 144
159
R
Remuneration outcomes and
independent judgement
The Remuneration Committee recognises that the exercise of discretion must be undertaken in a careful and considered way, as it is an area that
will rightly come under scrutiny from shareholders and other stakeholders. The Committee confirms that any exercise of discretion would be within
the available discretions set out in the Policy and that the maximum levels available under any relevant plans would not be exceeded. There would
be full disclosure in the Directors’ Remuneration Report for that financial year and major shareholders would be consulted, if appropriate.
138
150
The Board welcomes the publication of the 2024 Code by the Financial Reporting Council. With the assistance of the Audit Committee and Nomination and Governance Committee we have undertaken
a full review of our governance structure in light of the updated 2024 Code to ensure that all recommendations are addressed in a timely manner to enable full compliance for the Group’s financial year
commencing 1 January 2025, with the exception of Provision 29, which is applicable for the Group’s financial year commencing 1 January 2026. All governance documents have been reviewed and updated
to reflect the 2024 Code, including the Matters Reserved for the Board, the Terms of Reference for each Committee and the Division of Responsibilities document.
Taylor Wimpey plc
Annual Report and Accounts 2024
162
Statutory, regulatory and other information
Introduction
This section contains the remaining matters on which the Directors are required to report on each
year which are not included elsewhere in this Annual Report and Accounts. Certain matters which
are required to be reported on appear in other sections of this Annual Report and Accounts,
as set out below:
Matter
Page(s) in this
Annual Report
Strategic report, specifically:
1 to 101
– Likely future developments in the business of the Company
1 to 101
– Carbon footprint reporting
63 to 79
– Greenhouse gas emissions reporting
79
– Stakeholder engagement
97 to 101
– A description of the Company’s employee engagement practices
98 and 113
– A statement of the Company’s engagement with employees in relation to
financial and economic factors that affect the performance of the Company
98
– Charitable donations
18 and 98
– Research and development activities
29
– Viability statement
95 and 96
2018 UK Corporate Governance Code compliance statement
160 to 162
Directors
104 to 106
A description of how the Board assesses and monitors culture
115
Retirement and re-election of Directors
122
Remuneration Committee report
136 to 159
Profit before taxation and profit after taxation
178
Changes in asset values
180
Statement on the Group’s treasury management and funding, including information
on the exposure of the Company in relation to the use of financial instruments
203 to 206
Subsidiaries and associated undertakings, including branches outside the UK
229 to 236
Directors’ dividend recommendation
238
Web communications with shareholders
250
Registrar
252
Specific disclosures required under Listing Rule 6.6.1 as appropriate to the Company:
Details of the Company’s long term incentive schemes
136 to 159
Shareholder waiver of future dividends
164
Articles of Association
The Company’s Articles of Association (the Articles) were adopted on 22 April 2021. The Articles may
only be amended by a special resolution of the shareholders in a general meeting.
Appointment and replacement of Directors
The Company’s Articles, the Code and the Companies Act 2006 govern the appointment and
retirement of Directors. Directors follow the Code and stand for re-election annually, as described
on pages 242 to 244. Board membership and biographical details of the Directors are provided
on pages 104 to 106.
Qualifying third party indemnity
In accordance with Section 234 of the Companies Act 2006 and following advice from Slaughter and
May, the Company has granted an indemnity in favour of its Directors and officers and those of its
Group companies, including the Trustee Directors of its Pension Trustee Company, for this financial
year and at the date of this report. The indemnity is against the financial exposure that they may
incur in the course of their professional duties as Directors and officers of the Company and/or its
subsidiaries/affiliates.
Audit and Auditors
Each Director has, at the date of approval of this Annual Report and Accounts, formally confirmed that:
• To the best of their knowledge, there is no relevant audit information of which the Company’s
external Auditors are unaware
• They have taken all the steps they ought to have taken to make themselves aware of any relevant
audit information and to establish that the Company’s external Auditors are aware of that information
This confirmation is given and should be interpreted in accordance with the provisions of Section 418
of the Companies Act 2006. Read more on page 166.
Annual General Meeting
The Annual General Meeting (AGM) will be held at 10:30 am on 30 April 2025 in the Gerrards Suite at
the Crowne Plaza Gerrards Cross, Oxford Road, Beaconsfield, HP9 2XE.
Formal notice of the AGM is set out on pages 238 to 249 and on the Company’s website.
163
Financial statements
Shareholder information
Strategic report
Directors’ report
Statutory, regulatory and other information continued
Capital structure
Details of the Company’s issued share capital, together with information on movements in the
Company’s issued share capital during the year, are shown in Note 23 on page 213.
The Company has two classes of shares:
• Ordinary Shares of 1 pence, each of which carries the right to one vote at general meetings
of the Company and other such rights and obligations, as are set out in the Company’s Articles
• Deferred Shares, which carry no voting rights
The powers of the Company’s Directors in relation to issuing or buying back the Company’s shares
are limited to those approved at the AGM.
As reported in the Annual Report and Accounts 2022, the Company retained 25 million shares bought
back during 2022, as Treasury Shares. The Treasury Shares are being used to meet obligations of the
Company in respect of its employee share schemes.
During 2024, the Company re-issued 4,496,718 Treasury Shares for that purpose and to the latest
practicable date prior to finalising this Annual Report and Accounts, a further 30,529 Treasury Shares
had been re-issued during 2025. The Company currently holds 16,923,924 shares in Treasury.
The Company has no current intention of exercising its authority to make market purchases of its own
shares but will nevertheless be seeking the usual renewal of this authority at the AGM, and the Board
will continue to keep the position under regular review.
There are no specific restrictions on the size of a holding, the exercise of voting rights, or the transfer
of shares, which are governed by the Company’s Articles of Association and prevailing legislation.
The Directors are not aware of any agreement or agreements between holders of the Company’s
shares that may result in restrictions on the transfer of securities or voting rights.
The Employee Share Ownership Trust (ESOT), which holds shares on trust for employees under the
Company’s various share schemes, generally abstains from voting at shareholder general meetings
in respect of shares held by it.
No person has any special rights of control over the Company’s share capital and all issued shares
are fully paid.
Substantial interests
The persons set out in the table below have notified the Company pursuant to Rule 5.1 of the
Disclosure Guidance and Transparency Rules of their interests in the ordinary share capital of
the Company.
As at 20 February 2025, BlackRock Inc notified the Company of a change in their interest which is
reflected in the table below. According to the Register of Members, no other shareholder, other than
those noted in the table below, have a disclosable holding of the Company’s issued share capital.
As at 31 December 2024
As at 20 February 2025
Number of
shares held
(millions)
Percentage of
issued voting
share capital
Number of
shares held
(millions)
Percentage of
issued voting
share capital
BlackRock Inc
414.4
11.69%
425.8
12.00%
Legal & General Group Plc
98.5
3.02%
98.5
3.02%
Standard Life Investments Limited
96.4
3.02%
96.4
3.02%
Directors’ interests in the Company’s shares are shown in the Remuneration Committee report
on page 154.
Dividend
The 2023 final ordinary dividend of 4.79 pence per share was paid to shareholders on 10 May 2024
and the 2024 interim ordinary dividend of 4.80 pence per share was paid to shareholders on
15 November 2024.
Subject to shareholder approval at the 2025 AGM, the 2024 final ordinary dividend of 4.66 pence
per share will be paid on 9 May 2025 to shareholders on the register at the close of business on
28 March 2025. More information can be found on page 242. The Company will be operating
a DRIP for shareholders in the United Kingdom and more information can be found on page 242.
The right to receive any dividend has been waived in part by the Trustees of the Company’s ESOT
over that Trust’s combined holding of 3,644,044 shares, as at 20 February 2025. More information
about the ESOT can be found in Note 26 on page 215.
Taylor Wimpey plc
Annual Report and Accounts 2024
164
Statutory, regulatory and other information continued
Important post-balance sheet events since the year end
There have been no important post-balance sheet events affecting the Company or any of its
subsidiary undertakings since 31 December 2024.
Political donations
The Company has a policy of not making donations to political parties, has not made any during 2024,
and does not intend to do so going forward. More information can be found on page 246.
Agreements
The Company’s borrowing and bank facilities contain the usual change of control provisions,
which could potentially lead to prepayment and cancellation by the other party upon a change of
control of the Company. There are no other significant contracts or agreements which take effect,
alter or terminate upon a change of control of the Company.
Modern Slavery Act
The Company welcomes the aims and objectives of the Modern Slavery Act 2015 (MSA) and
continues to take its responsibilities under the latest MSA with the seriousness it deserves and requires.
The Company will shortly be publishing its statement under the MSA, which will be available on the
Company’s website.
Employee share ownership
The Company promotes employee share ownership as widely as possible across the Company.
The Company has two all-employee share plans, the Save As You Earn share option plan and the
Share Incentive Plan, which are offered to all UK-based employees once they have worked for the
Company for three months.
The Company also offers employees who do not participate in the Executive Incentive Scheme
(cash bonus scheme) the opportunity to exchange their cash bonus for shares in the Company,
including a 20% enhancement to the value of their bonus. The scheme has operated since 2012
and in 2024 resulted in 521,299 shares (2023: 481,837) being acquired by 197 employees
(2023: 184).
Details of how these plans operate appear in the Remuneration Committee report on pages 136
to 159.
The percentage of our employees who hold shares in the Company, either through the all-employee
and other share plans, the cash bonus exchange scheme, or any other method is 60% (2023: 59%).
Employment of people with disabilities
We foster a culture of inclusion and value diversity positively, which creates a better workplace and
delivers stronger outcomes. We commit to treating all our job applicants and employees fairly and
with respect, irrespective of background, disability or any other protected characteristic. We offer any
employee assistance with regards to reasonable adjustments during the application process or with
their working conditions or environment, and are proud to confirm that we remained a Level 2 Disability
Confident Employer during 2024.
The Company’s Equality, Diversity and Inclusion Policy, which is available on our website, sets out
specific policies on continuing the employment of, and arranging training for, employees who have
become disabled; and the training, career development and promotion of disabled persons.
Statement of Directors’ responsibilities in respect of the financial statements
The Directors are responsible for preparing the Annual Report and Accounts and the financial
statements in accordance with applicable law and regulation.
Company law requires the Directors to prepare financial statements for each financial year. Under that
law the Directors have prepared the Group financial statements in accordance with UK-adopted
international accounting standards and the Company financial statements in accordance with
United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards,
comprising FRS 101 “Reduced Disclosure Framework”, and applicable law).
Under company law, Directors must not approve the financial statements unless they are satisfied
that they give a true and fair view of the state of affairs of the Group and Company and of the profit or
loss of the Group for that period. In preparing the financial statements, the Directors are required to:
• select suitable accounting policies and then apply them consistently;
• state whether applicable UK-adopted international accounting standards have been followed for the
Group financial statements and United Kingdom Accounting Standards, comprising FRS 101 have
been followed for the Company financial statements, subject to any material departures disclosed
and explained in the financial statements;
• make judgements and accounting estimates that are reasonable and prudent; and
• prepare the financial statements on the going concern basis unless it is inappropriate to presume
that the Group and Company will continue in business.
165
Financial statements
Shareholder information
Strategic report
Directors’ report
Statutory, regulatory and other information continued
The Directors are responsible for safeguarding the assets of the Group and Company and hence
for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Directors are also responsible for keeping adequate accounting records that are sufficient to show
and explain the Group’s and Company’s transactions and disclose with reasonable accuracy at any
time the financial position of the Group and Company and enable them to ensure that the financial
statements and the Directors’ Remuneration Report comply with the Companies Act 2006.
The Directors are responsible for the maintenance and integrity of the Company’s website. Legislation
in the United Kingdom governing the preparation and dissemination of financial statements may differ
from legislation in other jurisdictions.
Annual Report and Accounts 2024 – Fair, balanced and understandable
The outcome of the process undertaken by the Audit Committee and described on page 135,
was that the Board confirmed that the Annual Report and Accounts 2024, taken as a whole,
is fair, balanced and understandable, and provides the necessary information for shareholders
to assess the Company’s position, performance, business model and strategy.
More detail on how the Board and the Audit Committee have addressed the assessment, control
and mitigation of risk, and the oversight of the internal and external audit functions, appear in the
Audit Committee report on pages 126 to 135.
Directors’ confirmations
Each of the Directors, whose names and functions are listed in the Board of Directors biographies,
on pages 104 to 106, confirm that, to the best of their knowledge:
• The Group financial statements, which have been prepared in accordance with UK-adopted
international accounting standards, give a true and fair view of the assets, liabilities, financial position
and profit of the Group
• The Company financial statements, which have been prepared in accordance with United Kingdom
Accounting Standards, comprising FRS 101, give a true and fair view of the assets, liabilities and
financial position of the Company
• The Strategic report includes a fair review of the development and performance of the business and
the position of the Group and Company, together with a description of the principal risks and
uncertainties that it faces
This Directors’ report and responsibility statement was approved by the Board of Directors on
26 February 2025 and is signed on its behalf by:
Ishaq Kayani
Group General Counsel and Company Secretary
26 February 2025
Taylor Wimpey plc
Annual Report and Accounts 2024
166
167
Shareholder information
Strategic report
Directors’ report
Financial statements
Financial
statements
168
Independent auditors’ report
178
Consolidated income statement
179
Consolidated statement of comprehensive income
180
Consolidated balance sheet
181
Consolidated statement of changes in equity
182
Consolidated cash flow statement
183
Notes to the consolidated financial statements
221
Company balance sheet
222
Company statement of changes in equity
223
Notes to the Company financial statements
229
Particulars of subsidiaries, associates
and joint ventures
237
Five year review
Taylor Wimpey plc
Annual Report and Accounts 2024
168
Independent auditors’ report to the members of Taylor Wimpey plc
Report on the audit of the financial statements
Opinion
In our opinion:
• Taylor Wimpey plc’s Group financial statements and Company financial statements (the “financial
statements”) give a true and fair view of the state of the Group’s and of the Company’s affairs as at
31 December 2024 and of the Group’s profit and the Group’s cash flows for the year then ended;
• the Group financial statements have been properly prepared in accordance with UK-adopted
international accounting standards as applied in accordance with the provisions of the
Companies Act 2006;
• the Company financial statements have been properly prepared in accordance with United Kingdom
Generally Accepted Accounting Practice (United Kingdom Accounting Standards, including
FRS 101 “Reduced Disclosure Framework”, and applicable law); and
• the financial statements have been prepared in accordance with the requirements of the
Companies Act 2006.
We have audited the financial statements, included within the Annual Report and Accounts
(the “Annual Report”), which comprise: the Consolidated and Company balance sheet as at
31 December 2024; the Consolidated income statement, the Consolidated statement of
comprehensive income, the Consolidated and Company statement of changes in equity, and
the Consolidated cash flow statement for the year then ended; and the notes to the financial
statements, comprising material accounting policy information and other explanatory information.
Our opinion is consistent with our reporting to the Audit Committee.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”)
and applicable law. Our responsibilities under ISAs (UK) are further described in the Auditors’
responsibilities for the audit of the financial statements section of our report. We believe that the
audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Independence
We remained independent of the Group in accordance with the ethical requirements that are relevant
to our audit of the financial statements in the UK, which includes the FRC’s Ethical Standard,
as applicable to listed public interest entities, and we have fulfilled our other ethical responsibilities
in accordance with these requirements.
To the best of our knowledge and belief, we declare that non-audit services prohibited by the
FRC’s Ethical Standard were not provided.
Other than those disclosed in Note 6, we have provided no non-audit services to the Company
or its controlled undertakings in the period under audit.
Our audit approach
Context
Taylor Wimpey is a listed housebuilder, predominantly operating in the UK, also with a presence in
Spain. The Group focuses on the sale of private dwellings, which comprised 87% of total revenue in
2024, with the majority of the remaining revenue generated through delivery of Partnership Housing
contracts. The Group’s consolidated financial statements are primarily an aggregation of 22 UK
Business Units, which represented the regional UK house building businesses in Taylor Wimpey
UK Limited, consolidated with the Group’s Spanish operations, Taylor Wimpey de España S.A.U.,
Taylor Wimpey plc (the “Company”), and the share of the Group’s interests in joint ventures. For the
purposes of our audit, we considered Taylor Wimpey UK Limited, Taylor Wimpey de España S.A.U.,
the Company and consolidation adjustments to be separate components. We performed process
walkthroughs to understand and evaluate the key financial processes and controls across the Group.
Following this, we performed a significant amount of audit procedures in advance of the year end.
The objective of this audit work was:
• to perform initial testing in relation to the design and operating effectiveness of the Group’s controls
we planned to place reliance on;
169
Shareholder information
Strategic report
Directors’ report
Financial statements
• to perform initial substantive testing, particularly where larger samples were required, or where there
had been significant one-off transactions;
• to enable early consideration of the key sources of estimation uncertainty before the year-end.
As we undertook each phase of the audit, we regularly reconsidered our risk assessment to reflect
the audit findings, including our assessment of the Group’s control environment and the impact
on our planned audit approach; and
• to ensure that we had a clear plan as to what testing needed to be performed when and where
at year-end.
In terms of risk assessment:
• given the nature of the Group’s operations and the methodology for recognising margin on units
sold, we considered margin recognition and site forecasting to be a significant audit area and
therefore have included this as a key audit matter; and
• we considered current Government legislation and announcements, particularly in relation to
the cladding fire safety provision, and hence also included a key audit matter in relation to this.
Overview
Audit scope
• Our Group audit included full scope audits of Taylor Wimpey UK Limited (which included the
Group’s 22 UK Business Units), Taylor Wimpey plc (the “Company”) and the consolidation,
including consolidation adjustments. Taken together, the above procedures included operations
covering over 93% of revenue, over 78% of profit before tax and over 94% of net assets.
• We also performed audit procedures over the cash and cash equivalents balance in Taylor Wimpey
de España S.A.U., as well as audit procedures over specified balances and transactions in a number
of the Group’s joint ventures.
Key audit matters
• Margin recognition and site forecasting (Group)
• Cladding fire safety provision (Group)
• Valuation of investments in Group undertakings and amounts due from Group undertakings (Company)
Materiality
• Overall Group materiality: £30.0 million (2023: £36.4 million) based on 5% of a 3 year average
of profit before tax and exceptional items.
• Overall Company materiality: £27.0 million (2023: £32.7 million) based on 1% of net assets
but capped at 90% of overall Group materiality.
• Performance materiality: £22.5 million (2023: £27.3 million) (Group) and £20.3 million
(2023: £24.5 million) (Company).
The scope of our audit
As part of designing our audit, we determined materiality and assessed the risks of material
misstatement in the financial statements.
Key audit matters
Key audit matters are those matters that, in the auditors’ professional judgement, were of most
significance in the audit of the financial statements of the current period and include the most
significant assessed risks of material misstatement (whether or not due to fraud) identified by the
auditors, including those which had the greatest effect on: the overall audit strategy; the allocation
of resources in the audit; and directing the efforts of the engagement team. These matters, and any
comments we make on the results of our procedures thereon, were addressed in the context of
our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not
provide a separate opinion on these matters.
This is not a complete list of all risks identified by our audit.
The key audit matters below are consistent with last year.
Independent auditors’ report to the members of Taylor Wimpey plc continued
Taylor Wimpey plc
Annual Report and Accounts 2024
170
Independent auditors’ report to the members of Taylor Wimpey plc continued
Key audit matter
How our audit addressed the key audit matter
Margin recognition and site forecasting (Group)
Refer to page 134 (Audit Committee report) and page 191 (Critical accounting judgements and key sources of
estimation uncertainty) in the Group’s consolidated financial statements.
As at 31 December 2024 the Group’s inventory balance is £5,376.6 million (31 December 2023: £5,169.6 million)
and is the most significant asset on the Consolidated balance sheet.
The Group’s margin recognition policy is based on the margin forecast for each site. These margins reflect
actual sales prices and costs to date, as well as estimated sales prices and forecast costs for each site. This is
a method of allocating the total forecast costs, representing land, infrastructure and build costs, of a site to each
individual unit.
There is a risk that the margin forecast for the site, and consequently the margin recognised on each unit sold,
is not appropriate or reflective of the actual final margin that will be recognised on a site. As a result, excess
profit margins could be recognised earlier, to the detriment of reduced margins on units sold at the end of the
site, or vice versa. The risk is due to the high level of management estimation involved in ensuring the accuracy
and completeness of an individual site forecast, and the monitoring of these estimates over time.
Future sales prices and build costs are inherently uncertain, as they are influenced by changes in external market
factors, such as the availability and affordability of mortgages, changes in customer demand due to market
uncertainty, build cost inflation or regulatory factors. There is higher uncertainty when a site is scheduled to be
completed over a longer timeframe.
Management has implemented and operates internal controls to assess site acquisition and initial forecasts to
assist financial appraisal processes, and further controls to monitor the ongoing costs and sales prices within these
forecasts. There is a risk that these controls do not operate effectively in ensuring the accuracy and completeness
of the forecasts, which feed into the margin calculation.
We consider the accuracy of margin recognition and site forecasting, including the completeness and accuracy
of costs to be a significant financial reporting risk, and hence significant audit risk, for the Group.
To address the significant risk over margin recognition and site forecasting, our procedures included, but were not
limited to:
•
We tested a number of key controls within the build cycle, such as:
–
management’s review meetings, where the performance to date and expected outturn are updated,
reviewed and challenged for each site on a bi-monthly basis;
–
management’s review, approval and recognition of cost variations against the original site budgets; and
–
surveyor valuations assessing the stage of completion of individual plots across all sites.
•
We assessed management’s historical forecasting accuracy on all active sites in 2024, through comparison
to historical forecasts from 2023, as well as the initial site budget. We investigated significant differences or
trends to understand whether they were driven by items that could reasonably have been foreseen or predicted,
rather than items outside of management’s control, such as uncontracted build cost inflation;
•
We tested a sample of forecast costs to third party evidence, such as tender documents, or other appropriate
support, and validated that these were allocated to the correct site;
•
We tested a sample of forecast sales prices to the actual sales prices attained on similar properties, as well
as comparing prices achieved on actual sales this year to those which were forecast last year for a sample
of properties;
•
We verified a sample of risks and opportunities identified in relation to selected sites, to ensure completeness
of known costs within the site forecasts;
•
We tested a sample of actual costs incurred to third party evidence, as well as testing the allocation of costs
to the correct sites;
•
For all material revenue streams, we tested a sample of actual revenue recognised in the period to third party
contracts and completion statements. For the private dwelling revenue and land sales revenue streams
the revenue recognised has also been agreed to cash receipt in the bank statements;
•
We verified, by recalculating the margins, that management’s accounting system correctly recalculates the
margin following each cost or sales price amendment made by management; and
•
We tested that management’s accounting system appropriately allocates the cost of sales associated with
each plot when a sale is made.
Based on the procedures performed, we did not identify any material misstatements within revenue and cost of
sales, and therefore the margin recognised. We also assessed the disclosures in respect of margin recognition
and site forecasting and considered these to be appropriate.
171
Shareholder information
Strategic report
Directors’ report
Financial statements
Key audit matter
How our audit addressed the key audit matter
Cladding fire safety provision (Group)
Refer to page 134 (Audit Committee report) and page 191 (Critical accounting judgements and key sources of
estimation uncertainty) in the Group’s financial statements.
In March 2021, the Group announced its commitment to support owners of apartment buildings it had
constructed in the past 20 years, including those under 18 metres high, to achieve RICS EWS1 certification
for cladding fire safety. In April 2022, the Group signed up to the UK Government’s Building Safety Pledge
for Developers (“the Pledge”), which extended the period covered to 30 years, and committed the Group to
reimbursing the Government for any funds allocated to buildings it built from the Building Safety Fund (‘BSF’),
with no further applications permitted. In 2023 the Group signed the long-form legal contracts for the remediation
of buildings in England and Wales in March and April respectively. The equivalent for Scotland is expected to
be signed in 2025.
During 2024, the Group reassessed the expected costs of these remedial works based on recent tenders received
from its subcontractors. Based on this updated information and enhanced cost appraisal, the expected
remediation costs increased by £88.0 million, which was recognised by management in the first half of 2024.
In the second half of the year there was a release of £19.1 million in respect of 10 buildings built by one
of the Group’s joint ventures. As a result, and after utilisation, the closing provision was £232.3 million as at
31 December 2024 (31 December 2023: £191.9 million).
The cladding fire safety provision is identified as a source of estimation uncertainty as there are several factors that
could drive changes to the level of financial support, and the associated remediation costs, required to be given in
future periods. The key assumptions are the number of buildings requiring remedial work, and the cost of these
remediation works for each relevant building, as at the balance sheet date.
Future industry guidance or regulation could also potentially change the obligation, which may further impact the
level of the financial support required and the associated remedial costs.
Management continues to assess the appropriateness of the provision, and as more subcontractor tenders are
received, there is greater clarity on how the buildings will be remediated and the associated cost. Therefore the
level of estimation uncertainty will reduce over time as more information becomes available. However, there are still
a significant number of buildings for which tenders have not been received, and therefore a high level of estimation
uncertainty remains given that the actual costs could differ from management’s current best estimate. Given the
estimation uncertainty and the stakeholder focus on what is an industry wide issue, we identified the valuation of
the cladding fire safety provision as a significant audit risk.
To address the significant risk over the valuation of the cladding fire safety provision, our audit procedures included,
but were not limited to, the following:
•
We recalculated and checked the integrity of management’s provision calculation, to assess the
mathematical accuracy;
•
We tested that newly identified buildings in the year have been correctly included in management’s list of
properties that require remedial works, by agreeing them to the Land Registry database, to validate that they
were built by Taylor Wimpey (or Taylor Wimpey acquired companies);
•
We tested that management’s decision to release 10 buildings, associated with one of the Group’s joint
ventures, from the provision was appropriate. Following the execution of a third party agreement, the joint
venture is now responsible for these remedial works, so has recognised the provision for the remedial works
in their own financial statements. We obtained the signed third party agreement, and have validated that the
provision previously held by the Group in respect of these buildings was released;
•
For buildings classified by management as not requiring remediation, we sampled and reviewed third-party
surveyor assessments and publicly available information, as well as obtaining EWS1 forms where available,
to verify that no provision was required;
•
We tested the valuation of a sample of remediation costs included within the provision back to third party
evidence, to corroborate the inputs into the provision calculation. Examples of audit evidence included quantity
surveyor assessments, tenders received and support for actual costs incurred;
•
We tested the project delivery administration element in management’s calculation of the provision (primarily
comprising staff costs, various overheads, and legal fees) by obtaining management’s most recent budget,
assessed the appropriateness of the projected timeline and agreed key inputs back to supporting third
party documentation;
•
We have obtained management’s assessment following receipt of newly available information, including external
tenders received, and understood the basis of the revised estimates that resulted in the additional provision
being recorded in the year;
•
We assessed management’s ability to forecast remedial costs accurately based on the best available
information, by comparing the provision recognised with the actual amounts incurred for tendered, contracted,
or completed works on fully remediated buildings;
•
We reviewed recent Government guidance and media articles to confirm that management’s assumptions and
interpretations were appropriate; and
•
We reviewed the disclosures included in the financial statements, including those on estimation uncertainty
required by IAS 1 ‘Presentation of financial statements’ and those required by IAS 37 ‘Provisions, contingent
liabilities and contingent assets’.
Overall, we found that, based on the audit evidence that we obtained, management’s provision of £232.3 million
was appropriate given the commitment made and the conditions that existed at the balance sheet date. We also
considered the disclosures made in the financial statements to be appropriate.
Independent auditors’ report to the members of Taylor Wimpey plc continued
Taylor Wimpey plc
Annual Report and Accounts 2024
172
Independent auditors’ report to the members of Taylor Wimpey plc continued
Key audit matter
How our audit addressed the key audit matter
Valuation of investments in Group undertakings and amounts due from Group
undertakings (Company)
Refer to page 225 (Investments in Group undertakings and Trade and other receivables notes) in the Company
financial statements.
The carrying value of the investments in Group undertakings and amounts due from Group undertakings in
the Company accounts are £4,518.7m (2023: £4,509.5m) and £920.3m (2023: £747.0m), respectively.
The key estimate is whether the carrying values of the investments and amounts due from Group undertakings
are supported by the net asset position and/or forecast future cash flows of the underlying Group undertakings.
Consequently, it was this area where we applied the most audit effort in respect of the audit of the Company,
and hence why it was identified as a key audit matter.
To address this key audit matter, our audit procedures included, but were not limited to, the following:
•
We assessed the aggregate net assets of the underlying investments to confirm that they were in excess of the
carrying value of the Company’s investment in Group undertakings;
•
We confirmed that the market capitalisation of the Group as at 31 December 2024 exceeded the carrying value
of the investment in Group undertakings as at that date and confirmed that there were no impairment triggers
in the year;
•
We verified that future cash flows (which were audited as part of our procedures over going concern) supported
the recoverability of amounts due from Group undertakings, and that no impairment was required; and
•
We verified that the aggregate net current assets of subsidiary undertakings were sufficient to support the
amounts due from Group undertakings, and therefore no expected credit loss was required under IFRS 9.
We have no exceptions to report in respect of the procedures performed over this key audit matter.
173
Shareholder information
Strategic report
Directors’ report
Financial statements
How we tailored the audit scope
We tailored the scope of our audit to ensure that we performed enough work to be able to give an
opinion on the financial statements as a whole, taking into account the structure of the Group and
the Company, the accounting processes and controls, and the industry in which they operate.
The Group’s 2024 consolidated financial statements are primarily an aggregation of the 22 UK
Business Units, which represented the regional UK housebuilding businesses, consolidated with
the Group’s Spanish operations, Taylor Wimpey de España S.A.U., the Company and the share of
the Group’s interest in joint ventures.
The 22 UK Business Units operated under a common control environment, underpinned by the
Group’s Operating Framework. The Group engagement team’s testing focused on the effectiveness
and consistency of the design and implementation of the controls and processes, and based on this,
we determined that the aggregated Business Units could be treated as one homogeneous population
for our controls and substantive testing. In addition, we performed detailed audit work over the
consolidation journals, the cash balance within Taylor Wimpey de España S.A.U. and specific financial
statement line items within a number of the Group’s joint ventures.
Our work covered over 93% of Group revenue, over 78% of Group profit before tax and over 94% of
Group net assets.
We also performed a full scope audit of the Company financial statements, which was considered
a separate component for the purposes of our audit.
The impact of climate risk on our audit
As part of our audit we made enquiries of management to understand the process adopted to assess
the extent of the potential impact of climate risk on the Group’s financial statements, and to support
the disclosures made in the section headed ‘Impact on financial statements’ on page 67.
In 2024, the Group continued to work towards its target to be Net Zero by 2045, which was previously
announced in 2023.
Management considers that the impact of climate change, including the Group’s Net Zero target, does
not give rise to a material financial statement impact in the current year, and we used our knowledge of
the Group and the industry to evaluate management’s assessment. We particularly considered the
potential impact on forecast build costs, and therefore margins, of climate related regulations, such as
the Future Homes Standard and other future buildings regulations. Our procedures did not identify
any material impact in the context of our audit of the financial statements as a whole, or our key audit
matters for the year ended 31 December 2024.
We also considered the consistency of the disclosures in relation to climate change (including the
disclosures in the Task Force on Climate-related Financial Disclosures (TCFD) section) within the
Annual Report, with the financial statements, and our knowledge obtained from our audit.
Materiality
The scope of our audit was influenced by our application of materiality. We set certain quantitative
thresholds for materiality. These, together with qualitative considerations, helped us to determine the
scope of our audit and the nature, timing and extent of our audit procedures on the individual financial
statement line items and disclosures and in evaluating the effect of misstatements, both individually
and in aggregate on the financial statements as a whole.
Based on our professional judgement, we determined materiality for the financial statements as a
whole as follows:
Financial statements – Group
Financial statements – Company
Overall materiality
£30.0 million (2023: £36.4 million).
£27.0 million (2023: £32.7 million).
How we determined it
5% of a 3 year average of profit before tax
and exceptional items.
1% of net assets but capped at
90% of overall Group materiality.
Rationale for
benchmark applied
Profit before tax is a generally accepted
auditing benchmark. On the basis that
exceptional items are not reflective of
the operating performance of the Group,
and are excluded from key alternative
performance measures, we have excluded
them from the benchmark amount on
which our materiality was calculated. In
2024 we have assessed materiality based
on a 3 year average of profit before tax
and exceptional items given the volatility
in the market has driven a decline in the
Group’s volumes and profitability without
any fundamental changes in the balance
sheet or operating model.
We believe that net assets is the
primary measure used by the
shareholders in assessing the
performance of the Company,
which acts solely as a holding
company. This is a generally
accepted auditing benchmark
for entities where profits or
revenues are not the key indicators
of financial performance.
For each component in the scope of our Group audit, we allocated a materiality that is less than our
overall Group materiality. The range of materiality allocated across components was £20.0 million to
£27.0 million. Certain components were audited to a local statutory audit materiality that was also
less than our overall Group materiality.
Independent auditors’ report to the members of Taylor Wimpey plc continued
Taylor Wimpey plc
Annual Report and Accounts 2024
174
Independent auditors’ report to the members of Taylor Wimpey plc continued
We use performance materiality to reduce to an appropriately low level the probability that the
aggregate of uncorrected and undetected misstatements exceeds overall materiality. Specifically,
we use performance materiality in determining the scope of our audit and the nature and extent
of our testing of account balances, classes of transactions and disclosures, for example in
determining sample sizes. Our performance materiality was 75% (2023: 75%) of overall materiality,
amounting to £22.5 million (2023: £27.3 million) for the Group financial statements and £20.3 million
(2023: £24.5 million) for the Company financial statements.
In determining the performance materiality, we considered a number of factors – the history of
misstatements, risk assessment and aggregation risk and the effectiveness of controls – and
concluded that an amount at the upper end of our normal range was appropriate.
We agreed with the Audit Committee that we would report to them misstatements identified during
our audit above £1.5m (Group audit) (2023: £1.8m) and £1.4m (Company audit) (2023: £1.6m) as well
as misstatements below those amounts that, in our view, warranted reporting for qualitative reasons.
Conclusions relating to going concern
Our evaluation of the Directors’ assessment of the Group’s and the Company’s ability to continue
to adopt the going concern basis of accounting included:
• We tested the accuracy and integrity of the underlying model used by management in
developing their going concern forecasts, and validated the approval of the forecasts by the
Board. We agreed that the model demonstrated sufficient liquidity and headroom during the
going concern assessment period;
• We tested the key assumptions used in the model, including comparison to third party market
information where appropriate, reviewing management’s sources of liquidity, and checking that the
assumptions used in the “severe but plausible” scenario was sufficiently severe to model potential
future economic downturn, in line with those observed recently, which management consider to
represent this severe but plausible scenario;
• We considered the historical accuracy of management forecasting by comparing previously
budgeted results to actual performance;
• We reviewed the covenants applicable to the Group’s borrowings and facility, and checked that the
forecasts supported ongoing compliance with the covenants during the going concern assessment
period; and
• We reviewed the disclosures relating to going concern in the financial statements, with these
considered to be consistent with the assessment prepared by management and the procedures
we performed.
Based on the work we have performed, we have not identified any material uncertainties relating to
events or conditions that, individually or collectively, may cast significant doubt on the Group’s and the
Company’s ability to continue as a going concern for a period of at least twelve months from when the
financial statements are authorised for issue.
In auditing the financial statements, we have concluded that the Directors’ use of the going concern
basis of accounting in the preparation of the financial statements is appropriate.
However, because not all future events or conditions can be predicted, this conclusion is not
a guarantee as to the Group’s and the Company’s ability to continue as a going concern.
In relation to the Directors’ reporting on how they have applied the UK Corporate Governance Code,
we have nothing material to add or draw attention to in relation to the Directors’ statement in the
financial statements about whether the Directors considered it appropriate to adopt the going concern
basis of accounting.
Our responsibilities and the responsibilities of the Directors with respect to going concern are described
in the relevant sections of this report.
Reporting on other information
The other information comprises all of the information in the Annual Report other than the financial
statements and our auditors’ report thereon. The Directors are responsible for the other information.
Our opinion on the financial statements does not cover the other information and, accordingly, we do
not express an audit opinion or, except to the extent otherwise explicitly stated in this report, any form
of assurance thereon.
In connection with our audit of the financial statements, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent with
the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially
misstated. If we identify an apparent material inconsistency or material misstatement, we are required
to perform procedures to conclude whether there is a material misstatement of the financial statements
or a material misstatement of the other information. If, based on the work we have performed,
we conclude that there is a material misstatement of this other information, we are required to
report that fact. We have nothing to report based on these responsibilities.
With respect to the Strategic report and Directors’ report, we also considered whether the disclosures
required by the UK Companies Act 2006 have been included.
Based on our work undertaken in the course of the audit, the Companies Act 2006 requires us also
to report certain opinions and matters as described below.
175
Shareholder information
Strategic report
Directors’ report
Financial statements
Strategic report and Directors’ report
In our opinion, based on the work undertaken in the course of the audit, the information given in the
Strategic report and Directors’ report for the year ended 31 December 2024 is consistent with the
financial statements and has been prepared in accordance with applicable legal requirements.
In light of the knowledge and understanding of the Group and Company and their environment
obtained in the course of the audit, we did not identify any material misstatements in the
Strategic report and Directors’ report.
Directors’ Remuneration
In our opinion, the part of the Remuneration Committee report to be audited has been properly
prepared in accordance with the Companies Act 2006.
Corporate governance statement
The Listing Rules require us to review the Directors’ statements in relation to going concern,
longer-term viability and that part of the corporate governance statement relating to the Company’s
compliance with the provisions of the UK Corporate Governance Code specified for our review.
Our additional responsibilities with respect to the corporate governance statement as other information
are described in the Reporting on other information section of this report.
Based on the work undertaken as part of our audit, we have concluded that each of the following
elements of the corporate governance statement is materially consistent with the financial statements
and our knowledge obtained during the audit, and we have nothing material to add or draw attention
to in relation to:
• The Directors’ confirmation that they have carried out a robust assessment of the emerging and
Principal Risks;
• The disclosures in the Annual Report and Accounts that describe those Principal Risks, what
procedures are in place to identify emerging risks and an explanation of how these are being
managed or mitigated;
• The Directors’ statement in the financial statements about whether they considered it appropriate
to adopt the going concern basis of accounting in preparing them, and their identification of any
material uncertainties to the Group’s and Company’s ability to continue to do so over a period
of at least twelve months from the date of approval of the financial statements;
• The Directors’ explanation as to their assessment of the Group’s and Company’s prospects,
the period this assessment covers and why the period is appropriate; and
• The Directors’ statement as to whether they have a reasonable expectation that the Company
will be able to continue in operation and meet its liabilities as they fall due over the period of its
assessment, including any related disclosures drawing attention to any necessary qualifications
or assumptions.
Our review of the Directors’ statement regarding the longer-term viability of the Group was substantially
less in scope than an audit and only consisted of making inquiries and considering the Directors’
process supporting their statement; checking that the statement is in alignment with the relevant
provisions of the UK Corporate Governance Code; and considering whether the statement is
consistent with the financial statements and our knowledge and understanding of the Group
and its environment obtained in the course of the audit.
In addition, based on the work undertaken as part of our audit, we have concluded that each of the
following elements of the corporate governance statement is materially consistent with the financial
statements and our knowledge obtained during the audit:
• The Directors’ statement that they consider the Annual Report, taken as a whole, is fair, balanced
and understandable, and provides the information necessary for the members to assess the
Group’s and Company’s position, performance, business model and strategy;
• The section of the Annual Report that describes the review of effectiveness of risk management
and internal control systems; and
• The section of the Annual Report describing the work of the Audit Committee.
We have nothing to report in respect of our responsibility to report when the Directors’ statement
relating to the Company’s compliance with the Code does not properly disclose a departure from
a relevant provision of the Code specified under the Listing Rules for review by the auditors.
Responsibilities for the financial statements and the audit
Responsibilities of the Directors for the financial statements
As explained more fully in the Statement of Directors’ responsibilities in respect of the financial
statements, the Directors are responsible for the preparation of the financial statements in accordance
with the applicable framework and for being satisfied that they give a true and fair view. The Directors
are also responsible for such internal control as they determine is necessary to enable the preparation
of financial statements that are free from material misstatement, whether due to fraud or error.
Independent auditors’ report to the members of Taylor Wimpey plc continued
Taylor Wimpey plc
Annual Report and Accounts 2024
176
Independent auditors’ report to the members of Taylor Wimpey plc continued
In preparing the financial statements, the Directors are responsible for assessing the Group’s and the
Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless the Directors either intend to liquidate
the Group or the Company or to cease operations, or have no realistic alternative but to do so.
Auditors’ responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that
an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on
the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design
procedures in line with our responsibilities, outlined above, to detect material misstatements in respect
of irregularities, including fraud. The extent to which our procedures are capable of detecting
irregularities, including fraud, is detailed below.
Based on our understanding of the Group and industry, we identified that the principal risks of
non-compliance with laws and regulations related to building regulations, including fire and building
safety legislation, health and safety legislation, environmental regulation and employment law, and
we considered the extent to which non-compliance might have a material effect on the financial
statements. We also considered those laws and regulations that have a direct impact on the financial
statements such as tax and pension legislation, the Listing Rules and the Companies Act 2006.
We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial
statements (including the risk of override of controls), and determined that the principal risks were
related to artificial inflation of reported results via the posting of fraudulent journals, primarily as part
of the consolidation process at a Group level, and bias in the assumptions underpinning significant
provisions. Audit procedures performed by the engagement team included:
• discussions with the Group Management Team, Business Unit management, Internal Audit and
the Audit Committee;
• review of board and committee meetings minutes, as well as internal audit reports, and
consideration of known or suspected instances of non-compliance with laws and regulation
and fraud;
• evaluation and testing of the operating effectiveness of management’s controls designed to prevent
and detect irregularities, in particular certain of the Group’s controls around margin recognition and
site forecasting;
• challenging the assumptions and judgements made by management in determining their significant
accounting estimates, in particular in relation to margin recognition and site forecasting, and
certain provisions;
• identifying and testing journal entries, in particular any journal entries posted with unusual account
combinations, including unusual or unexpected journal postings to the Consolidated income
statement; and
• performance of unpredictable procedures to address the identified fraud risks for the Group.
There are inherent limitations in the audit procedures described above. We are less likely to become
aware of instances of non-compliance with laws and regulations that are not closely related to
events and transactions reflected in the financial statements. Also, the risk of not detecting a material
misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud
may involve deliberate concealment by, for example, forgery or intentional misrepresentations,
or through collusion.
Our audit testing might include testing complete populations of certain transactions and balances,
possibly using data auditing techniques. However, it typically involves selecting a limited number of
items for testing, rather than testing complete populations. We will often seek to target particular items
for testing based on their size or risk characteristics. In other cases, we will use audit sampling to
enable us to draw a conclusion about the population from which the sample is selected.
A further description of our responsibilities for the audit of the financial statements is located on
the FRC’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our
auditors’ report.
Use of this report
This report, including the opinions, has been prepared for and only for the Company’s members as
a body in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and for no other purpose.
We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any
other person to whom this report is shown or into whose hands it may come save where expressly
agreed by our prior consent in writing.
177
Shareholder information
Strategic report
Directors’ report
Financial statements
Other required reporting
Companies Act 2006 exception reporting
Under the Companies Act 2006 we are required to report to you if, in our opinion:
• we have not obtained all the information and explanations we require for our audit; or
• adequate accounting records have not been kept by the Company, or returns adequate for our
audit have not been received from branches not visited by us; or
• certain disclosures of Directors’ remuneration specified by law are not made; or
• the Company financial statements and the part of the Remuneration Committee report to be audited
are not in agreement with the accounting records and returns.
We have no exceptions to report arising from this responsibility.
Appointment
Following the recommendation of the Audit Committee, we were appointed by the members on
22 April 2021 to audit the financial statements for the year ended 31 December 2021 and subsequent
financial periods. The period of total uninterrupted engagement is 4 years, covering the years ended
31 December 2021 to 31 December 2024.
Other matter
The Company is required by the Financial Conduct Authority Disclosure Guidance and Transparency
Rules to include these financial statements in an annual financial report prepared under the structured
digital format required by DTR 4.1.15R – 4.1.18R and filed on the National Storage Mechanism of the
Financial Conduct Authority. This auditors’ report provides no assurance over whether the structured
digital format annual financial report has been prepared in accordance with those requirements.
Sonia Copeland (Senior Statutory Auditor)
for and on behalf of PricewaterhouseCoopers LLP
Chartered Accountants and Statutory Auditors
London
26 February 2025
Independent auditors’ report to the members of Taylor Wimpey plc continued
Taylor Wimpey plc
Annual Report and Accounts 2024
178
Note
Before
exceptional
items
2024
£m
Exceptional
items
2024
£m
Total
2024
£m
Before
exceptional
items
2023
£m
Exceptional
items
2023
£m
Total
2023
£m
Continuing operations
Revenue
4
Cost of sales
(2,752.5 )
(2,752.5 )
(2,798.0 )
(2,798.0 )
Gross profit
Net operating expenses
6
(232.3 )
(82.5 )
(314.8 )
(248.7 )
(248.7 )
Profit on ordinary activities before financing
(82.5 )
Finance income
8
Finance costs
8
(27.4 )
(27.4 )
(25.9 )
(25.9 )
Share of results of joint ventures
13
(0.2 )
(15.7 )
(15.9 )
Profit before taxation
(98.2 )
Taxation (charge)/credit
9
(120.9 )
(100.7 )
(124.8 )
(124.8 )
Profit for the year
(78.0 )
Note
2024
2023
Basic earnings per share
10
Diluted earnings per share
10
Adjusted basic earnings per share
10
Adjusted diluted earnings per share
10
All of the profit for the year is attributable to the equity holders of the Parent Company.
Consolidated income statement
for the year to 31 December 2024
179
Shareholder information
Strategic report
Directors’ report
Financial statements
Note
2024
£m
2023
£m
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translation of foreign operations
25
(8.8 )
(2.4 )
Movement in fair value of hedging instruments
25
Items that will not be reclassified subsequently to profit or loss:
Actuarial gain on defined benefit pension schemes
21
Tax charge on items taken directly to other comprehensive income
14
(0.4 )
(0.2 )
Other comprehensive expense for the year
(3.9 )
(0.6 )
Profit for the year
Total comprehensive income for the year
All of the comprehensive income for the year is attributable to the equity holders of the Parent Company.
Consolidated statement of comprehensive income
for the year to 31 December 2024
Taylor Wimpey plc
Annual Report and Accounts 2024
180
Note
2024
£m
2023
£m
Non-current assets
Intangible assets
11
Property, plant and equipment
12
Right-of-use assets
19
Interests in joint ventures
13
Trade and other receivables
16
Other financial assets
21
Deferred tax assets
14
Current assets
Inventories
15
Trade and other receivables
16
Tax receivables
Cash and cash equivalents
16
Total assets
Current liabilities
Trade and other payables
18
(1,083.9 )
(992.8 )
Lease liabilities
19
(10.4 )
(8.8 )
Tax payables
(1.6 )
(1.6 )
Provisions
22
(161.7 )
(124.9 )
(1,257.6 )
(1,128.1 )
Net current assets
Non-current liabilities
Trade and other payables
18
(350.7 )
(295.8 )
Lease liabilities
19
(28.0 )
(31.0 )
Bank and other loans
17
(82.6 )
(87.0 )
Retirement benefit obligations
21
(22.2 )
(26.5 )
Provisions
22
(145.0 )
(161.8 )
(628.5 )
(602.1 )
Total liabilities
(1,886.1 )
(1,730.2 )
Net assets
Note
2024
£m
2023
£m
Equity
Share capital
23
Share premium
24
Own shares
26
(27.6 )
(29.7 )
Other reserves
25
Retained earnings
Total equity
approved by the Board of Directors and authorised for issue on 26 February 2025. They were signed
on its behalf by:
J Daly
C Carney
Director
Consolidated balance sheet
at 31 December 2024
181
Shareholder information
Strategic report
Directors’ report
Financial statements
Note
Share
capital
£m
Share
premium
£m
Own
shares
£m
Other
reserves
£m
Retained
earnings
£m
Total
£m
Total equity at 1 January 2023
(43.1 )
Other comprehensive (expense)/income for the year
(1.2 )
(0.6 )
Profit for the year
Total comprehensive (expense)/income for the year
(1.2 )
Utilisation of own shares
26
Cash cost of satisfying share options
(12.6 )
(12.6 )
Share-based payment credit
29
Tax credit on items taken directly to statement of changes in equity
14
Dividends approved and paid
31
(337.9 )
(337.9 )
Total equity at 31 December 2023
(29.7 )
Other comprehensive (expense)/income for the year
(4.9 )
(3.9 )
Profit for the year
Total comprehensive (expense)/income for the year
(4.9 )
Own shares acquired
26
(4.0 )
(4.0 )
Utilisation of own shares
26
Cash cost of satisfying share options
(5.4 )
(5.4 )
Share-based payment credit
29
Tax charge on items taken directly to statement of changes in equity
14
(0.4 )
(0.4 )
Dividends approved and paid
31
(339.4 )
(339.4 )
Total equity at 31 December 2024
(27.6 )
Consolidated statement of changes in equity
for the year to 31 December 2024
Taylor Wimpey plc
Annual Report and Accounts 2024
182
Note
2024
£m
2023
£m
Profit on ordinary activities before financing
Adjustments for:
Depreciation and amortisation
Pension contributions in excess of charge
to the income statement
(4.0 )
(3.8 )
Share-based payment charge
Loss on disposal of assets
Increase in provisions excluding
exceptional payments
Operating cash flows before movements
in working capital
Increase in inventories
(86.8 )
(148.7 )
Decrease in receivables
Decrease in payables
(27.1 )
(105.8 )
Cash generated from operations
Payments related to exceptional charges
(34.1 )
(20.8 )
Income taxes paid
(102.5 )
(126.5 )
Interest paid
(10.2 )
(12.0 )
Net cash generated from operating activities
Investing activities
Interest received
8
Dividends received from joint ventures
Proceeds on disposal of property, plant and equipment
Purchase of property, plant and equipment
12
(3.4 )
(6.8 )
Purchase of software
11
(0.1 )
Proceeds on disposal of joint venture
Amounts received from/(invested in) joint ventures
(3.8 )
Net cash generated from investing activities
Note
2024
£m
2023
£m
Financing activities
Lease capital repayments
19
(9.6 )
(7.9 )
Cash received on exercise of share options
Purchase of own shares
26
(4.0 )
Repayment of borrowings
(87.0 )
Proceeds from borrowings
Dividends paid
31
(339.4 )
(337.9 )
Net cash used in financing activities
(352.3 )
(342.8 )
Net decrease in cash and cash equivalents
(113.5 )
(185.8 )
Cash and cash equivalents at beginning
of year
Effect of foreign exchange rate changes
(4.0 )
(1.6 )
Cash and cash equivalents at end of year
27
Consolidated cash flow statement
for the year to 31 December 2024
Strategic report
Directors’ report
Financial statements
Shareholder information
183
Notes to the consolidated financial statements
Material accounting policies
The consolidated financial statements have been prepared on a going concern basis and under the
historical cost convention, except as otherwise stated below.
The material accounting policies adopted, which have been applied consistently, except as otherwise
The Group has adopted and applied the following standards and amendments in the year, which are
relevant to its operations, none of which had a material impact on the consolidated financial statements:
• IAS 1 ‘Presentation of Financial Statements’ (amendments) – classification of liabilities as current
or non-current and non-current liabilities with covenants
• IFRS 16 ‘Leases’ (amendments) – lease liability in a sale and leaseback
• IFRS 7 ‘Financial Instruments: Disclosures’ and IAS 7 ‘Statement of Cash Flows’ (amendments) –
following new or revised standards and interpretations that have been issued but are not yet effective:
• IAS 21 ‘The Effects of Changes in Foreign Exchange Rates’ (amendments) – lack of exchangeability
• IFRS 18 ‘Presentation and Disclosure in Financial Statements’
• Annual Improvements to IFRS Accounting Standards – Volume 11
• IFRS 7 ‘Financial Instruments: Disclosures’ and IFRS 9 ‘Financial Instruments’ (amendments) –
classification and measurement of financial instruments
The Directors do not expect that the adoption of the standards, amendments and interpretations
Group forecasts have been prepared that have considered the Group’s current financial position and
current market circumstances. The forecasts were subject to sensitivity analysis including, a severe but
plausible scenario together with the likely effectiveness of mitigating actions.
The assessment considered sensitivity analysis based on a number of realistically possible, but severe
and prolonged, changes to principal assumptions. In determining these, the Group included
macroeconomic and industry-wide projections, as well as matters specific to the Group.
The severe but plausible downside scenario reflects the aggregated impact of sensitivities, taking
account of a further decline in customer confidence, disposable income and mortgage availability.
To arrive at the stress test, the Group has drawn on experience gained managing the business through
previous economic downturns. As a result, the Group has stress tested the business against the
following severe but plausible downside scenario which can be attributed back to the Group’s Principal
Risks that have been identified as having the most impact on the longer term prospects and viability
of the Group.
The impact of the Principal Risk ‘Natural resources and climate change’ is not deemed to be material
within the forecast period, as costs associated with the regulatory changes have been included in
the modelling.
• Volume – a further decline in total volumes of 10% in 2025 from 2024 levels, before recovering back
to 2024 levels by 2027
• Price – a reduction to current selling prices of 5%, remaining at these levels across 2025 and 2026
before recovering to current levels by 2027
• One-off costs – a one-off exceptional charge and cash cost of £150 million for an unanticipated
event, change in government regulations or financial penalty has been included in 2025
Mitigations to this sensitivity analysis include a reduction in land investment, a reduction in the level of
production and work in progress held and optimising the overhead base to ensure it is aligned with the
scale of the operations through the cycle. If this scenario were to occur, the Directors also have a range
of additional options to maintain financial strength, including a more severe reduction in land spend and
1
Material accounting policies
continued
184
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Notes to the consolidated financial statements continued
from a fully undrawn revolving credit facility, together totalling £1,247 million. The combination of both
of these is sufficient to absorb the financial impact of each of the risks modelled in the stress and
sensitivity analysis, individually and in aggregate.
Based on these forecasts, it is considered that there are sufficient resources available for the Group to
conduct its business, and meet its liabilities as they fall due, for at least the next 12 months from the
date of these consolidated financial statements. Consequently, the consolidated financial statements
The consolidated financial statements have been prepared in accordance with UK-adopted
international accounting standards as applied in conformity with the provisions of the Companies
The consolidated financial statements incorporate the financial statements of the Company and entities
controlled by the Company (its subsidiaries) made up to 31 December each year. Control is achieved
where the Company:
• Has power over the investee;
• Governs the financial and operating policies of the investee;
• Is exposed, or has rights, to variable return from its involvement with the investee; and
• Has the ability to use its power to affect its returns.
On acquisition, the assets and liabilities and contingent liabilities of a subsidiary are measured at their
fair value at the date of acquisition. Any excess of the cost of acquisition over the fair value of the
identifiable net assets acquired is recognised as goodwill. Any deficiency of the cost of acquisition
below the fair value of the identifiable net assets acquired (i.e. discount on acquisition) is credited to
the income statement in the period of acquisition. The interest of non-controlling shareholders is stated
at the non-controlling interest’s proportion of the fair value of the assets and liabilities recognised.
Subsequently, all comprehensive income is attributed to the owners and the non-controlling interests.
The results of subsidiaries acquired or disposed of during the year are included in the consolidated
income statement from the effective date of acquisition or up to the effective date of disposal,
as appropriate. Where a subsidiary is disposed of which constituted a major line of business, it is
disclosed as a discontinued operation. Where necessary, adjustments are made to the financial
statements of subsidiaries to bring the accounting policies used into line with those used by the
Undertakings are deemed to be a joint venture when the Group has joint control of the rights and
assets of the undertaking via either voting rights or a formal agreement, which includes that unanimous
consent is required for strategic, financial and operating decisions. Joint ventures are consolidated
under the equity accounting method. Loans to joint ventures form part of the Group’s net investment,
which is assessed for recoverability on a periodic basis or when there is an indication of possible loss.
On transfer of land and/or work in progress to joint ventures, the Group recognises only its share of any
profits or losses. Joint operations arise where the Group has joint control of an operation but has rights
to only its own assets and obligations related to the operation. These assets and obligations, and the
Group’s share of revenues and costs, are included in the Group’s results.
Joint ventures and joint operations are entered into to develop specific sites. Each arrangement is site
or project specific and once the development or project is complete the arrangement is wound down.
On disposal of a joint venture, a gain or loss is recognised as the difference between proceeds received
1
Material accounting policies
continued
Strategic report
Directors’ report
Financial statements
Shareholder information
185
Notes to the consolidated financial statements continued
The Group operates in the United Kingdom and Spain. The United Kingdom is split into five
geographical operating segments, each managed by a Divisional Chair who sits on the Group
Management Team. In addition, there are central operations covering the corporate functions and
Strategic Land.
The Group aggregates the UK operations into a single reporting segment on the basis that they share
similar economic characteristics. In addition, each Division builds and delivers residential homes,
uses consistent methods of construction, sells homes to both private customers and local housing
associations, follows a single UK sales process and operating framework, is subject to the same
macroeconomic factors including mortgage availability and has the same cost of capital arising
from the utilisation of central banking and debt facilities.
As a result, the Group has the following reporting segments:
• United Kingdom
Revenue is recognised when the performance obligation associated with the sale is completed.
The transaction price comprises the fair value of the consideration received or receivable, net of value
added tax, rebates and discounts and after eliminating sales within the Group. Revenue and profit
are recognised as follows:
a. Housing and land sales
Revenue is recognised in the income statement when control is transferred to the customer.
This is deemed to be when title of the property passes to the customer on legal completion
and the performance obligation associated with the sale is completed.
Revenue in respect of the sale of residential properties, whether under the Government’s
Help to Buy scheme or not, is recognised at the fair value of the consideration received or
receivable on legal completion.
b. Long term contracts
Revenue arising on contracts which give the customer control over properties as they are constructed,
and for which the Group has a right to payments for work performed, is recognised over time. Revenue
and costs are recognised over time with reference to the stage of completion of the contract activity at
the balance sheet date where the outcome of a long term contract can be estimated reliably. This is
normally measured by surveys of work performed to date. Variations in contract work, claims and
incentive payments are included to the extent that it is highly probable that they will result in revenue
and they are capable of being reliably measured. When land is transferred at the start of a long term
contract, revenue is not recognised until control has been transferred to the customer, which includes
legal title being passed to them.
Where the outcome of a long term contract cannot be estimated reliably, contract revenue where
recoverability is probable is recognised to the extent of contract costs incurred. The costs associated
with fulfilling a contract are recognised as expenses in the period in which they are incurred. When it is
probable that total contract costs will exceed total contract revenue, the expected loss is recognised
as an expense immediately.
c. Part exchange
In certain instances, property may be accepted in part consideration for a sale of a residential property.
The fair value is established by independent surveyors, reduced for costs to sell. Proceeds generated
from the subsequent sale of part exchange properties are recorded as other income and the cost as
other expenses. The original sale is recorded in the normal way, with the fair value of the exchanged
property replacing cash receipts.
d. Cash incentives
The transaction price may include cash incentives. These are considered to be a discount from the
The Group determines the value of inventory charged to cost of sales based on the total budgeted
current cost of developing the site. Once the total expected costs of development are established,
they are allocated to individual plots to achieve a consistent margin for the site. To the extent that
additional costs or savings are identified, including experienced inflation, as the site progresses,
these are recognised over the remaining plots unless they are specific to a particular plot, in which
1
Material accounting policies
continued
186
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Annual Report and Accounts 2024
Notes to the consolidated financial statements continued
Exceptional items are defined as items of income or expenditure which, in the opinion of the Directors,
are material or unusual in nature or of such significance that they require separate disclosure on the
face of the income statement in accordance with IAS 1 ‘Presentation of Financial Statements’.
Interest income on bank deposits is recognised on an accruals basis. Also included in interest
receivable are interest and interest-related payments the Group receives on other receivables.
Borrowing costs are recognised on an effective interest rate basis and are payable on the Group’s
borrowings and lease liabilities. Also included are the amortisation of fees associated with the
arrangement of the financing.
Finance charges, including premiums payable on settlement or redemption, and direct issue costs,
are accounted for on an accruals basis in the income statement using the effective interest method
and are added to the carrying amount of the instrument to the extent that they are not settled in the
period in which they arise.
The individual financial statements of each Group company are presented in the currency of the
primary economic environment in which it operates (its functional currency). Transactions in currencies
other than the functional currency are recorded at the rates of exchange prevailing on the dates of
the transactions. At each balance sheet date, monetary assets and liabilities that are denominated
in foreign currencies other than the functional currency are retranslated at the rates prevailing at the
balance sheet date.
Non-monetary assets and liabilities carried at fair value that are denominated in foreign currencies are
translated at the rates prevailing at the date when the fair value was determined. Gains and losses
arising on retranslation are included in the net profit or loss for the period.
On consolidation, the assets and liabilities of the Group’s overseas operation are translated at
exchange rates prevailing at the balance sheet date. Income and expense items are translated at
an appropriate average rate for the year. Exchange differences arising are recognised within other
comprehensive income and transferred to the Group’s translation reserve. Such translation differences
are recognised as income or expenses in the income statement in the period in which the operation
is disposed of.
The Group uses foreign currency borrowings to hedge its net investment exposure to certain
The Group as a lessee
The Group assesses at inception whether a contract is, or contains, a lease. A lease exists if the
contract conveys the right to control the use of an identified asset for a period of time in exchange
for consideration. The Group assessment includes whether:
• The contract involves the use of an identified asset;
• The Group has the right to obtain substantially all of the economic benefits from the use of the
asset throughout the contract period; and
• The Group has the right to direct the use of the asset.
At the commencement of a lease, the Group recognises a right-of-use asset along with a
corresponding lease liability.
The lease liability is initially measured at the present value of the remaining lease payments, discounted
using the Group’s incremental borrowing rate. The lease term comprises the non-cancellable period
of the contract, together with periods covered by an option to extend the lease where the Group
is reasonably certain to exercise that option based on operational needs and contractual terms.
Subsequently, the lease liability is measured at amortised cost by increasing the carrying amount
to reflect interest on the lease liability and reducing it by the lease payments made. The lease liability
is remeasured when the Group changes its assessment of whether it will exercise an extension or
1
Material accounting policies
continued
Strategic report
Directors’ report
Financial statements
Shareholder information
187
Notes to the consolidated financial statements continued
liability adjusted for any lease payments made at or before the commencement date, estimated asset
retirement obligations, lease incentives received and initial direct costs. Subsequently, right-of-use
assets are measured at cost, less any accumulated depreciation and any accumulated impairment
losses, and are adjusted for certain remeasurements of the lease liability. Depreciation is calculated
on a straight-line basis over the length of the lease.
The Group has elected to apply exemptions for short term leases and leases for which the underlying
asset is of low value. For these leases, payments are charged to the income statement on
a straight-line basis over the term of the relevant lease.
Right-of-use assets are presented within non-current assets on the face of the balance sheet,
and lease liabilities are shown separately on the balance sheet in current liabilities and non-current
Software
Costs that are directly associated with the acquisition or production of identifiable and unique software
controlled by the Group, and that generate economic benefits beyond one year, are recognised as
intangible assets. Software development costs recognised as assets are amortised on a straight-line
basis over three to five years from the time of implementation and are stated at cost less accumulated
Land and buildings held for use in the production or supply of goods or services, or for administrative
purposes, are stated in the balance sheet at cost less accumulated depreciation and any accumulated
impairment losses. Freehold land is not depreciated. Buildings are depreciated over 50 years.
Plant and equipment is stated at cost less depreciation.
Depreciation is charged to expense the cost or valuation of assets over their estimated useful lives.
Other assets are depreciated using the straight-line method, on the following bases:
• Plant and equipment: 20-33% per annum
• Leasehold improvements: over the term of the lease
The gain or loss arising on the disposal or retirement of an asset is determined as the difference
between the sale proceeds, less any selling expenses, and the carrying amount of the asset.
At each balance sheet date, the Group reviews the carrying amounts of its tangible and intangible
assets to determine whether there is any indication that those assets have suffered an impairment loss.
If any such indication exists, the recoverable amount of the asset is estimated to determine the extent
of the impairment loss (if any). Where the asset does not generate cash flows that are independent
from other assets, the Group estimates the recoverable amount of the cash-generating unit to which
the asset belongs.
The recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value
in use, the estimated future cash flows are discounted to their present value, using a pre-tax discount
rate that reflects current market assessments and the risks specific to the asset.
If the recoverable amount of an asset or cash-generating unit is estimated to be less than its carrying
amount, the carrying amount of the asset or cash-generating unit is reduced to its recoverable amount.
An impairment loss is recognised as an expense immediately in the income statement.
Where an impairment loss subsequently reverses, due to a change in circumstances or in the
estimates used to determine the asset’s recoverable amount, the carrying amount of the asset or
cash-generating unit is increased to the revised estimate of its recoverable amount, so long as it
does not exceed the original carrying value prior to the impairment being recognised. A reversal of
Dividends are charged to retained earnings in the period of payment in respect of an interim dividend,
1
Material accounting policies
continued
188
Taylor Wimpey plc
Annual Report and Accounts 2024
Notes to the consolidated financial statements continued
Financial assets are initially recognised at fair value and subsequently classified into one of the following
measurement categories:
• Measured at amortised cost
• Measured at fair value through profit or loss (FVTPL)
• Measured at fair value through other comprehensive income (FVOCI)
The classification of financial assets depends on the Group’s business model for managing the asset
and the contractual terms of the cash flows. Assets that are held for the collection of contractual cash
flows that represent solely payments of principal and interest are measured at amortised cost, with
any interest income recognised in the income statement using the effective interest rate method.
Financial assets that do not meet the criteria to be measured at amortised cost are classified by
the Group as measured at FVTPL. Fair value gains and losses on financial assets measured at
FVTPL are recognised in the income statement and presented within net operating expenses.
Shared equity loans were provided to certain customers to facilitate a house purchase. The contractual
cash flows on shared equity loans are linked to a national house price index. Under IFRS 9, financial
assets with embedded derivatives are considered in their entirety when determining whether their
cash flows are solely payment of principal and interest. Accordingly, shared equity loans are classified
as FVTPL, with fair value gains and losses arising on the remeasurement of the loan presented in the
Cash and cash equivalents comprise cash held by the Group and short term bank deposits with an
original maturity of three months or less from inception and are subject to insignificant risk of changes
Financial liabilities are initially recognised at fair value and subsequently classified into one of the
following measurement categories:
• Measured at amortised cost
• Measured at fair value through profit or loss (FVTPL)
Non-derivative financial liabilities are measured at FVTPL when they are considered held for trading
or designated as such on initial recognition. The Group has no non-derivative financial liabilities
Borrowings are initially recognised at fair value, net of transaction costs incurred and subsequently
Trade and other payables are measured at amortised cost. When the acquisition of land has deferred
payment terms a land creditor is recognised. Payables are discounted to present value when
Customer deposits, measured at amortised cost, are recorded as a liability on receipt and released
An equity instrument is any contract that evidences a residual interest in the assets of the Group after
deducting all of its liabilities. Equity instruments issued by the Parent Company are recorded as the
1
Material accounting policies
continued
Strategic report
Directors’ report
Financial statements
Shareholder information
189
Notes to the consolidated financial statements continued
The Group uses foreign currency borrowings and derivatives to hedge its net investment exposure to
movements in exchange rates on translation of certain individual financial statements denominated in
foreign currencies other than Sterling, which is the functional currency of the Parent Company.
Derivative financial instruments are measured at fair value. Changes in the fair value of derivative
financial instruments that are designated and effective as hedges of net investments in foreign
operations are recognised directly in other comprehensive income and the ineffective portion,
if any, is recognised immediately in the income statement.
For an effective hedge of an exposure to changes in fair value, the hedged item is adjusted for changes
in fair value attributable to the risk being hedged with the corresponding entry in the consolidated
income statement. Gains or losses from remeasuring the derivative, or for non-derivatives the
foreign currency component of its carrying amount, are also recognised in the income statement.
Changes in the fair value of derivative financial instruments that do not qualify for hedge accounting
are recognised in the income statement as they arise.
Hedge accounting is discontinued if the hedged item is sold or no longer qualifies for hedge
accounting, at which point any cumulative gain or loss on the hedging instrument accumulated in
Provisions are recognised when the Group has a present legal or constructive obligation as a result of
a past event, and it is probable that the Group will be required to settle that obligation. Provisions are
measured at the Directors’ best estimate of the expenditure required to settle the obligation at the
Inventories are initially stated at cost and held at the lower of this initial amount and net realisable value.
Costs comprise direct materials and, where applicable, direct labour and those overheads that have
been incurred in bringing the inventories to their present location and condition. Net realisable value
represents the estimated selling price less all estimated costs of completion and costs to be incurred
in marketing, selling and distribution. Land is recognised in inventory when the significant risks and
rewards of ownership have been transferred to the Group.
Non-refundable land option payments are initially recognised in inventory. They are reviewed regularly
The tax charge represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit before
tax as reported in the income statement because it excludes items of income or expense that are
taxable or deductible in other years, and it further excludes items that are never taxable or deductible.
The Group’s liability for current tax is calculated using tax rates that have been enacted or substantively
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying
amounts of assets and liabilities in the financial statements and the corresponding tax bases used
in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable
temporary differences and deferred tax assets are recognised to the extent that it is probable that
taxable profits will be available against which deductible temporary differences can be utilised.
Such assets and liabilities are not recognised if the temporary difference arises from goodwill or
from the initial recognition (other than in a business combination) of other assets and liabilities in
a transaction that affects neither the taxable profit nor the accounting profit.
Deferred tax liabilities are also recognised for taxable temporary differences arising on investments
in subsidiaries and interests in joint ventures, except where the Group is able to control the reversal
of the temporary difference and it is probable that the temporary difference will not reverse in the
enacted or substantively enacted by the balance sheet date.
The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the
extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of
the asset to be recovered. Deferred tax is charged or credited to the income statement, except when
it relates to items charged or credited directly to other comprehensive income or equity, in which case
The Group issues equity-settled share-based payments to certain employees. Equity-settled
share-based payments are measured at fair value at the date of grant. The fair value is expensed
on a straight-line basis over the vesting period, based on the Group’s estimate of shares that will
For defined benefit plans, a finance charge is determined on the net defined benefit pension liability.
The operating and financing costs of such plans are recognised separately in the income statement;
past service costs are recognised as an expense at the earlier of when the plan is amended or
curtailment occurs, at the same time as which the entity will recognise related restructuring costs
or termination benefits. Certain liability management costs and financing costs are recognised in
the periods in which they arise. Actuarial gains and losses are recognised immediately in the
consolidated statement of comprehensive income.
The retirement benefit obligation recognised in the consolidated statement of financial position
represents either the net deficit position of the scheme or, should the scheme be in an IAS 19
accounting surplus, the IFRIC 14 liability equal to the present value of future committed
cash contributions.
Critical accounting judgements and key sources of
estimation uncertainty
Preparation of the consolidated financial statements requires management to make significant
judgements and estimates. Management has considered whether there are any such sources of
estimation or accounting judgements in preparing the consolidated financial statements and highlights
the following areas. In identifying these areas, management has considered the size of the associated
balance and the potential likelihood of changes due to macroeconomic factors.
Critical accounting judgements
Management has not made any individual critical accounting judgements that are material to
the Group.
Key sources of estimation uncertainty
Key sources of estimation uncertainty are those which present a significant risk of potential material
misstatement to carrying amounts of assets or liabilities within the next financial year.
Employee benefits
The value of the defined benefit plan liabilities is determined by using various assumptions, including
discount rate, future rates of inflation, growth, yields, returns on investments and mortality rates.
As actual changes in these values may differ from those assumed, this is a key source of estimation
uncertainty within the consolidated financial statements. Changes in these assumptions over time and
differences to the actual outcome will be reflected in the consolidated statement of comprehensive
income. Note 21 details the main assumptions in accounting for the Group’s defined benefit pension
1
Material accounting policies
continued
190
Taylor Wimpey plc
Annual Report and Accounts 2024
Notes to the consolidated financial statements continued
Critical accounting judgements and key sources of
2
estimation uncertainty
continued
Strategic report
Directors’ report
Financial statements
Shareholder information
191
Notes to the consolidated financial statements continued
Cost allocation
In order to determine the profit that the Group is able to recognise on its developments in a specific
period, the Group has to allocate site-wide development costs between units built in the current year
and in future years. It also has to estimate costs to complete, including those driven by climate-related
regulation, and make estimates relating to future sales prices and margins on those developments
and units. In making these assessments, there is a degree of inherent uncertainty. The Group has
developed internal controls to assess and review carrying values and the appropriateness of
estimates made.
Cladding fire safety provision
In 2018, the Group established an exceptional provision for the cost of replacing ACM on a small
number of legacy developments. The provision was increased subsequently to reflect guidance issued
as well as the Group signing, in 2022, the Government’s Building Safety Pledge for Developers which
extended the period covered to all buildings constructed by the Group since 1992. The Group
reassessed the remediation costs based on tenders received in the current year; based on this
updated information and enhanced cost appraisal, the expected costs have increased by a net of
£68.9 million (see Note 6). The Group estimates the provision based on the buildings that may require
works and the costs to carry out the identified works. In determining the total cost of works across
a number of different buildings, management initially used internal quantity surveyor estimates. These
have increasingly been supported by externally sourced quotations, where available, both of which
contain inherent estimation uncertainty. Whilst there is always the possibility for future costs to exceed
management’s best estimates, it is not currently anticipated that any reasonable possible changes
would lead to a material adjustment in the value of the provision. The scope of works may also be
General information
registered office is Taylor Wimpey plc, Gate House, Turnpike Road, High Wycombe, Buckinghamshire,
Strategic Report on pages 1 to 101.
Revenue
An analysis of the Group’s continuing revenue is as follows:
2024 | 2023 | |
£m | £m | |
Private sales | 2,960.7 | 3,103.5 |
Partnership housing | 404.1 | 395.6 |
Land and other | 36.4 | 15.4 |
3,401.2 | 3,514.5 |
Other revenue includes income from the sale of commercial properties developed as part of larger
residential developments. The Group’s revenue includes revenue from construction contracts that
are recognised over time by reference to the stage of completion of the contract with the customer.
All other revenue is recognised at a point in time once control of the property is transferred to
the customer.
2024 | 2023 | |
£m | £m | |
Recognised at a point in time | 2,935.2 | 3,101.7 |
Recognised over time | 466.0 | 412.8 |
3,401.2 | 3,514.5 |
At 31 December 2024, the aggregate amount of the transaction price allocated to unsatisfied
performance obligations on construction contracts was £819.7 million (2023: £812.4 million),
192
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Annual Report and Accounts 2024
Notes to the consolidated financial statements continued
Operating segments
The Group operates in two countries, the United Kingdom and Spain, and has two reportable
segments of those countries. Revenue in Spain arises entirely on private sales.
The accounting policies of the reportable segments are the same as the Group’s accounting policies
described in Note 1.
Segment information about these businesses is presented below:
| 2024 | 2023 | |||||
UK | Spain | Total | UK | Spain | Total | |
£m | £m | £m | £m | £m | £m | |
Revenue | ||||||
External sales | 3,214.6 | 186.6 | 3,401.2 | 3,371.7 | 142.8 | 3,514.5 |
Result | ||||||
Profit before joint ventures, | ||||||
finance income/(costs) and | ||||||
exceptional items | 369.0 | 47.4 | 416.4 | 432.5 | 35.3 | 467.8 |
Share of results of joint ventures | ||||||
before exceptional items | (0.2) | – | (0.2) | 2.4 | – | 2.4 |
Operating profit (Note 32) | 368.8 | 47.4 | 416.2 | 434.9 | 35.3 | 470.2 |
Exceptional items (Note 6) | (98.2) | – | (98.2) | – | – | – |
Profit before net finance income | 270.6 | 47.4 | 318.0 | 434.9 | 35.3 | 470.2 |
Net finance income | 2.3 | 3.6 | ||||
Profit before taxation | 320.3 | 473.8 | ||||
Taxation charge | (100.7) | (124.8) | ||||
Profit for the year | 219.6 | 349.0 | ||||
2024 | 2023 | |||||
UK | Spain | Total | UK | Spain | Total | |
£m | £m | £m | £m | £m | £m | |
Assets and liabilities | ||||||
Segment operating assets | 5,355.4 | 236.6 | 5,592.0 | 5,153.2 | 241.6 | 5,394.8 |
Joint ventures | 26.9 | – | 26.9 | 70.5 | – | 70.5 |
Segment operating liabilities | (1,654.8) | (147.1) | (1,801.9) | (1,494.0) | (147.6) | (1,641.6) |
Net operating assets | 3,727.5 | 89.5 | 3,817.0 | 3,729.7 | 94.0 | 3,823.7 |
Net current taxation | 2.8 | (1.6) | ||||
Net deferred taxation (Note 14) | 20.6 | 23.4 | ||||
Net cash (Note 27) | 564.8 | 677.9 | ||||
Net assets | 4,405.2 | 4,523.4 | ||||
2024 | 2023 | |||||
UK | Spain | Total | UK | Spain | Total | |
£m | £m | £m | £m | £m | £m | |
Other information | ||||||
Property, plant and | ||||||
equipment additions | 3.3 | 0.1 | 3.4 | 6.6 | 0.2 | 6.8 |
Right-of-use asset additions | 9.2 | 0.2 | 9.4 | 20.7 | 0.4 | 21.1 |
Software additions | – | – | – | 0.1 | – | 0.1 |
Property, plant and | ||||||
equipment depreciation | (2.4) | (0.1) | (2.5) | (1.7) | (0.1) | (1.8) |
Right-of-use asset depreciation | (10.4) | (0.3) | (10.7) | (8.9) | (0.3) | (9.2) |
Amortisation of | ||||||
intangible assets | (1.1) | – | (1.1) | (1.7) | – | (1.7) |
Net operating expenses and profit on ordinary activities
before financing
Profit on ordinary activities before financing for continuing operations has been arrived at after
charging/(crediting):
2024 | 2023 | |
£m | £m | |
Administration expenses | 242.0 | 232.7 |
Other expenses | 101.4 | 101.7 |
Other income | (111.1) | (85.7) |
Exceptional items | 82.5 | – |
Net operating expenses | 314.8 | 248.7 |
The majority of the other income and other expenses shown above relates to the income and
associated costs arising on the sale of part exchange properties. Also included in other income and
other expenses are profit/loss on the sale of property, plant and equipment, the revaluation of certain
shared equity mortgage receivables and abortive land acquisition costs.
2024 | 2023 | |
Exceptional items | £m | £m |
Provision in relation to cladding fire safety | 68.9 | – |
Loss on disposal of joint venture | 13.6 | – |
82.5 | – | |
Share of results of joint ventures | 15.7 | – |
Total exceptional items | 98.2 | – |
Cladding fire safety
In 2018, the Group established an exceptional provision for the cost of replacing ACM on a small
number of legacy developments. The provision was increased subsequently to reflect guidance issued
as well as the Group signing, in 2022, the Government’s Building Safety Pledge for Developers which
extended the period covered to all buildings constructed by the Group since 1992. The Group
has reassessed the remediation costs based on tenders received in the current year; based on
this updated information and enhanced cost appraisal, the expected costs have increased by
£88.0 million, as reported in the Group’s half year results. The increase is due to escalation of costs on
recent tenders, a small number of new buildings being added and increased project delivery administration
costs, including the funding of Building Safety Fund pre-tender costs. Given the detailed assessment
performed based on this information becoming available, the estimation uncertainty has reduced.
In addition, in the second half of the year, one of the Group’s joint ventures has recognised a provision
for remediation works on the buildings it built and as a result £19.1 million has been released from the
provision held by the Group in relation to those buildings. The net impact is a £68.9 million exceptional
expense recognised in 2024 in relation to cladding fire safety.
Loss on disposal of joint venture
During the year, the Group disposed of its interest in Winstanley and York Road Regeneration LLP
and has recognised a £13.6 million loss arising from the difference between proceeds on disposal
and the Group’s net investment in the joint venture. This expense, being non-recurring, and outside
of the normal operations of the Group, has been recognised as an exceptional item.
Share of results of joint ventures
As noted above, a joint venture of the Group has recognised in the year a provision for remediation costs
on buildings it has built (see Note 13). The Group’s share of that cost, net of tax, has been recognised
as an exceptional item in line with the recognition of the Group’s cladding fire safety provision.
Profit on ordinary activities before financing has been arrived at after charging:
2024 | 2023 | |
£m | £m | |
Cost of inventories recognised as an expense in cost of sales | 2,635.0 | 2,646.8 |
Property, plant and equipment depreciation (Note 12) | 2.5 | 1.8 |
Right-of-use asset depreciation (Note 19) | 10.7 | 9.2 |
Amortisation of intangible assets (Note 11) | 1.1 | 1.7 |
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Financial statements
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193
Notes to the consolidated financial statements continued
Net operating expenses and profit on ordinary activities
6
before financing
continued
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Annual Report and Accounts 2024
Notes to the consolidated financial statements continued
2024 | 2023 | |
£m | £m | |
Fees payable for the audit of the Company’s annual accounts | ||
and consolidated financial statements | 0.2 | 0.2 |
Fees payable to the Company’s Auditors and its associates for | ||
other services to the Group: | ||
The audit of the Company’s subsidiaries pursuant to legislation | 1.0 | 0.9 |
Total audit fees | 1.2 | 1.1 |
Other assurance services | 0.2 | 0.1 |
Total non-audit fees | 0.2 | 0.1 |
Total fees | 1.4 | 1.2 |
Non-audit services in 2024 and 2023 predominantly relate to work undertaken as a result of
PricewaterhouseCoopers LLP’s role as auditors, or work resulting from knowledge and experience
gained as part of the role. In 2024 and 2023, the fees relating to other assurance services primarily
related to the review of the interim statements and also included, in 2024, £65,000 for non-audit
assurance work relating to certain ESG metrics (2023: nil) and in both years £2,000 for a subscription
service providing factual updates and changes to applicable law, regulation or accounting and auditing
standards. In 2024, £1,000 (2023: £2,000) was also incurred for agreed upon procedures work
Staff costs
2024 | 2023 | |
Number | Number | |
Monthly average number employed | ||
United Kingdom | 4,354 | 4,618 |
Spain | 104 | 101 |
4,458 | 4,719 |
2024 | 2023 | |
£m | £m | |
Remuneration | ||
Wages and salaries | 275.2 | 270.7 |
Redundancy costs | 0.9 | 6.0 |
Social security costs | 29.6 | 29.4 |
Other pension costs | 15.0 | 15.1 |
320.7 | 321.2 |
The information relating to Director and senior management remuneration required by the Companies
Act 2006 and the Listing Rules of the Financial Conduct Authority is contained in Note 30 and pages
Finance income and finance costs
2024 | 2023 | |
Finance income | £m | £m |
Interest receivable | 29.7 | 29.5 |
29.7 | 29.5 |
2024 | 2023 | |
Finance costs | £m | £m |
Interest on bank and other loans | (8.0) | (8.3) |
Foreign exchange loss | (0.1) | (0.5) |
(8.1) | (8.8) | |
Unwinding of discount on land creditors and other items | (16.7) | (14.8) |
Interest on lease liabilities (Note 19) | (1.5) | (1.0) |
Net interest on pension liability (Note 21) | (1.1) | (1.3) |
(27.4) | (25.9) |
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195
Notes to the consolidated financial statements continued
Taxation charge
Tax (charged)/credited in the income statement is analysed as follows:
2024 | 2023 | ||
£m | £m | ||
Current tax | |||
UK: | Current year | (91.9) | (116.6) |
Adjustment in respect of prior years | 4.1 | 1.8 | |
Overseas: | Current year | (11.2) | (6.7) |
Adjustment in respect of prior years | – | 0.1 | |
(99.0) | (121.4) | ||
Deferred tax | |||
UK: | Current year | (3.8) | (2.5) |
Adjustment in respect of prior years | 2.7 | (0.2) | |
Overseas: | Current year | (0.6) | (0.7) |
Adjustment in respect of prior years | – | – | |
(1.7) | (3.4) | ||
(100.7) | (124.8) |
Corporation tax is calculated at 29.0% (2023: 27.5%) of the estimated assessable profit for the year in
the UK. This includes corporation tax at the rate of 25.0% (2023: 23.5%) for the year and residential
property developer tax at the rate of 4.0% (2023: 4.0%) on profits arising from residential property
development activities. Taxation outside the UK is calculated at the rates prevailing in the respective
jurisdictions. The tax charge for the year includes an exceptional credit of £20.2 million relating to the
cladding fire safety provision and other exceptional items (2023: £nil).
The charge for the year can be reconciled to the profit per the income statement as follows:
2024 | 2023 | |
£m | £m | |
Profit before tax | 320.3 | 473.8 |
Tax at the UK corporation tax rate of 29.0% (2023: 27.5%) | (92.9) | (130.3) |
Net over provision in respect of prior years | 6.8 | 1.7 |
Net impact of items that are not taxable or deductible | (13.7) | 0.1 |
(Derecognition)/recognition of deferred tax assets | (2.8) | 1.0 |
Other rate impacting adjustments | 1.9 | 2.7 |
Tax charge for the year | (100.7) | (124.8) |
Owing to its size and multinational operations, the Group is within the scope of the OECD Pillar
Two model rules, which are designed to ensure that large multinational groups incur a 15% minimum
effective tax rate in each jurisdiction in which they operate. Pillar Two legislation was enacted in the
UK in June 2023 and applies to periods beginning on or after 31 December 2023. The Group applies
the exception to recognising and disclosing information about deferred tax assets and liabilities related
to Pillar Two income taxes, as provided in the amendments to IAS 12 issued in May 2023.
Under the legislation, the Group is liable to pay a top-up tax for the difference between its effective
tax rate per jurisdiction and the 15% minimum rate. It is expected that the Group will meet the safe
196
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Annual Report and Accounts 2024
Notes to the consolidated financial statements continued
Earnings per share
2024 | 2023 | |
Basic earnings per share | 6.2p | 9.9p |
Diluted earnings per share | 6.2p | 9.9p |
Adjusted basic earnings per share | 8.4p | 9.9p |
Adjusted diluted earnings per share | 8.4p | 9.9p |
Weighted average number of shares for basic earnings per share – million | 3,538.5 | 3,530.4 |
Weighted average number of shares for diluted earnings per share – million | 3,551.9 | 3,537.5 |
Adjusted basic and adjusted diluted earnings per share, which exclude the impact of exceptional
items and any associated net tax amounts, are presented to provide a measure of the underlying
performance of the Group. A reconciliation of earnings attributable to equity shareholders used for
basic and diluted earnings per share to that used for adjusted earnings per share is shown below.
2024 | 2023 | |
£m | £m | |
Earnings for basic and diluted earnings per share | 219.6 | 349.0 |
Adjust for exceptional items (Note 6) | 98.2 | – |
Adjust for tax on exceptional items | (20.2) | – |
Earnings for adjusted basic and adjusted diluted earnings per share | 297.6 | 349.0 |
2024 | 2023 | |
Million | Million | |
Weighted average number of shares for basic earnings per share | 3,538.5 | 3,530.4 |
Dilution from share options | 13.4 | 7.1 |
Weighted average number of shares for diluted earnings per share | 3,551.9 | 3,537.5 |
Intangible assets
Brands | Software | Total | |
£m | £m | £m | |
Cost | |||
At 1 January 2023 | 140.2 | 23.7 | 163.9 |
Additions | – | 0.1 | 0.1 |
At 31 December 2023 | 140.2 | 23.8 | 164.0 |
Additions | – | – | – |
At 31 December 2024 | 140.2 | 23.8 | 164.0 |
Accumulated amortisation | |||
At 1 January 2023 | (140.2) | (19.5) | (159.7) |
Charge for the year | – | (1.7) | (1.7) |
At 31 December 2023 | (140.2) | (21.2) | (161.4) |
Charge for the year | – | (1.1) | (1.1) |
At 31 December 2024 | (140.2) | (22.3) | (162.5) |
Carrying amount | |||
At 31 December 2024 | – | 1.5 | 1.5 |
At 31 December 2023 | – | 2.6 | 2.6 |
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197
Notes to the consolidated financial statements continued
Property, plant and equipment
Freehold | Plant, equipment | ||
land and | and leasehold | ||
buildings | improvements | Total | |
£m | £m | £m | |
Cost | |||
At 1 January 2023 | 14.3 | 31.6 | 45.9 |
Additions | – | 6.8 | 6.8 |
Disposals | – | (1.4) | (1.4) |
Exchange movements | – | – | – |
At 31 December 2023 | 14.3 | 37.0 | 51.3 |
Additions | – | 3.4 | 3.4 |
Disposals | (0.1) | (1.3) | (1.4) |
Exchange movements | – | (0.1) | (0.1) |
At 31 December 2024 | 14.2 | 39.0 | 53.2 |
Accumulated depreciation | |||
At 1 January 2023 | (4.2) | (24.4) | (28.6) |
Charge for the year | (0.5) | (1.3) | (1.8) |
Disposals | – | 1.1 | 1.1 |
Exchange movements | – | – | – |
At 31 December 2023 | (4.7) | (24.6) | (29.3) |
Charge for the year | (0.5) | (2.0) | (2.5) |
Disposals | – | 0.4 | 0.4 |
Exchange movements | – | 0.1 | 0.1 |
At 31 December 2024 | (5.2) | (26.1) | (31.3) |
Carrying amount | |||
At 31 December 2024 | 9.0 | 12.9 | 21.9 |
At 31 December 2023 | 9.6 | 12.4 | 22.0 |
Interests in joint ventures
2024 | 2023 | |
£m | £m | |
Share of net assets | 22.8 | 35.3 |
Loans to joint ventures | 4.1 | 35.2 |
Total interests in joint ventures | 26.9 | 70.5 |
Loans to joint ventures includes nil (2023: £(9.7) million) relating to the Group’s share of losses
recognised under the equity method in excess of the investment in ordinary shares.
The Group has three (2023: four) material joint ventures whose principal activity is residential
housebuilding or development. The Group considers a joint venture to be material when it is financially or
strategically important to the Group. The Group’s interest in Winstanley and York Road Regeneration LLP
was disposed of in December 2024 and as a result is no longer considered to be a material joint venture.
The particulars of the material joint ventures for 2024 are as follows:
Interest in the | ||
Country of | issued ordinary | |
Joint venture | incorporation | share capital* |
Greenwich Millennium Village Limited | United Kingdom | 50% |
Whitehill & Bordon Development Company Phase 1a Limited | United Kingdom | 50% |
Whitehill & Bordon Regeneration Company Limited | United Kingdom | 50% |
*
Interests held by subsidiary undertakings.
The loss recognised by Greenwich Millennium Village Limited in the year reflects its recognition of an
exceptional provision for remedial works on buildings it built (see Note 6). Further information on the
13
Interests in joint ventures
continued
joint venture before intercompany eliminations.
Whitehill | |||||
& Bordon | Whitehill | ||||
Greenwich | Development | & Bordon | |||
Millennium | Company | Regeneration | Immaterial | ||
Village | Phase 1a | Company | joint ventures | Total | |
2024 | 2024 | 2024 | 2024 | 2024 | |
£m | £m | £m | £m | £m | |
Non-current assets | 3.2 | – | 62.5 | 1.7 | 67.4 |
Current assets excluding cash | 78.4 | 28.2 | 5.8 | 31.6 | 144.0 |
Cash and cash equivalents | 8.5 | 0.4 | 0.1 | 3.4 | 12.4 |
Current financial liabilities | (47.8) | (12.7) | (21.1) | (1.4) | (83.0) |
Current other liabilities | – | – | – | – | – |
Non-current financial liabilities* | (1.4) | (12.9) | (44.1) | (36.3) | (94.7) |
Net assets/(liabilities) (100%) | 40.9 | 3.0 | 3.2 | (1.0) | 46.1 |
Group share of net assets/(liabilities) | 20.5 | 1.5 | 1.6 | (0.8) | 22.8 |
Loans to joint ventures | – | – | 2.5 | 1.6 | 4.1 |
Total interests in joint ventures | 20.5 | 1.5 | 4.1 | 0.8 | 26.9 |
Revenue | 78.0 | 16.4 | 21.7 | 4.7 | 120.8 |
Interest (expense)/income | (0.1) | (1.4) | 0.4 | (7.9) | (9.0) |
Income tax credit/(expense) | 7.4 | (0.1) | 0.1 | 0.9 | 8.3 |
(Loss)/profit for the year | (22.1) | 0.4 | (0.1) | (9.8) | (31.6) |
Group share of (loss)/profit for the year | (11.1) | 0.2 | (0.1) | (4.9) | (15.9) |
*
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Annual Report and Accounts 2024
Notes to the consolidated financial statements continued
13
Interests in joint ventures
continued
Whitehill | ||||||
& Bordon | Whitehill | |||||
Greenwich | Winstanley and | Development | & Bordon | |||
Millennium | York Road | Company | Regeneration | Immaterial | ||
Village | Regeneration | Phase 1a | Company | joint ventures | Total | |
2023 | 2023 | 2023 | 2023 | 2023 | 2023 | |
£m | £m | £m | £m | £m | £m | |
Non-current assets | – | 4.5 | 0.1 | 53.3 | 0.8 | 58.7 |
Current assets excluding cash | 50.7 | 82.2 | 29.1 | 6.3 | 24.6 | 192.9 |
Cash and cash equivalents | 22.6 | 2.1 | 0.2 | – | 4.5 | 29.4 |
Current financial liabilities | (6.2) | (3.5) | (2.0) | (24.7) | (13.2) | (49.6) |
Current other liabilities | (1.3) | – | – | – | – | (1.3) |
Non-current financial liabilities* | (2.6) | (104.6) | (24.6) | (31.7) | (14.7) | (178.2) |
Net assets/(liabilities) (100%) | 63.2 | (19.3) | 2.8 | 3.2 | 2.0 | 51.9 |
Group share of net assets/(liabilities) | 31.6 | (9.7) | 1.4 | 1.6 | 0.7 | 25.6 |
Loans to joint ventures | – | 43.2 | – | 0.1 | 1.6 | 44.9 |
Total interests in joint ventures | 31.6 | 33.5 | 1.4 | 1.7 | 2.3 | 70.5 |
Revenue | 50.9 | 27.9 | 0.9 | 15.1 | 6.9 | 101.7 |
Interest expense | – | (4.9) | (0.2) | (0.3) | (1.7) | (7.1) |
Income tax (expense)/credit | (2.6) | – | 0.1 | 0.1 | 0.4 | (2.0) |
Profit/(loss) for the year | 8.6 | (2.2) | (0.2) | (0.2) | (1.1) | 4.9 |
Group share of profit/(loss) for the year | 4.3 | (1.1) | (0.1) | (0.1) | (0.6) | 2.4 |
*
Non-current financial liabilities include amounts owed to joint venture partners.
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199
Notes to the consolidated financial statements continued
Deferred tax
Temporary | Losses and other | |||||
Share-based | Capital | differences on | Retirement benefit | temporary | ||
payments | allowances | overseas provisions | obligations | differences | Total | |
£m | £m | £m | £m | £m | £m | |
At 1 January 2023 | 0.6 | 2.8 | 6.0 | 8.6 | 8.0 | 26.0 |
Credit/(charge) to income | 0.2 | (0.8) | (0.6) | (0.7) | (1.5) | (3.4) |
Charge to other comprehensive income | – | – | – | (0.2) | – | (0.2) |
Credit to statement of changes in equity | 1.1 | – | – | – | – | 1.1 |
Foreign exchange | – | – | (0.1) | – | – | (0.1) |
At 31 December 2023 | 1.9 | 2.0 | 5.3 | 7.7 | 6.5 | 23.4 |
(Charge)/credit to income | (0.2) | (2.3) | (0.6) | (0.9) | 2.3 | (1.7) |
Charge to other comprehensive income | – | – | – | (0.4) | – | (0.4) |
Charge to statement of changes in equity | (0.4) | – | – | – | – | (0.4) |
Foreign exchange | – | – | (0.3) | – | – | (0.3) |
At 31 December 2024 | 1.3 | (0.3) | 4.4 | 6.4 | 8.8 | 20.6 |
Closing deferred tax on temporary differences has been calculated at the tax rates that are expected to apply for the period when the asset is realised or liability is settled. Accordingly, deferred tax on
UK temporary differences has been calculated at 29% (31 December 2023: 29%). Deferred tax on Spanish temporary differences has been calculated at 25% (31 December 2023: 25%).
The net deferred tax balance is analysed into assets and liabilities as follows:
2024 | 2023 | |
£m | £m | |
Deferred tax assets | 21.6 | 25.0 |
Deferred tax liabilities | (1.0) | (1.6) |
20.6 | 23.4 |
The Group has not recognised temporary differences relating to tax losses carried forward and other temporary differences amounting to £15.9 million (2023: £2.0 million) in the UK and £18.4 million
(2023: £19.4 million) in Spain. The UK and Spanish temporary differences have not been recognised as insufficient certainty exists as to their future utilisation.
At the balance sheet date, the Group has unused UK capital losses of £269.7 million (2023: £269.7 million). No deferred tax asset has been recognised in respect of the capital losses at 31 December 2024
200
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Notes to the consolidated financial statements continued
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Shareholder information
201
Notes to the consolidated financial statements continued
Inventories
2024 | 2023 | |
£m | £m | |
Land | 3,387.5 | 3,269.5 |
Development and construction costs | 1,949.3 | 1,871.0 |
Part exchange and other | 39.8 | 29.1 |
5,376.6 | 5,169.6 |
The markets in our core geographies, which are the primary drivers of our business, continue to
trade positively. At 31 December 2024, the Group completed a net realisable value assessment of
inventory, considering each site individually and based on estimates of sales price, costs to complete
and costs to sell. At 31 December 2024, the provision held in the United Kingdom was £25.1 million
(2023: £26.5 million) and £28.0 million in Spain (2023: £32.4 million). The table below details the
movements on the inventory provision recorded in the year.
2024 | 2023 | |
£m | £m | |
1 January | 58.9 | 51.5 |
Net (utilised)/additions | (4.2) | 8.0 |
Foreign exchange | (1.6) | (0.6) |
31 December | 53.1 | 58.9 |
Other financial assets
Current | Non-current | |||
2024 | 2023 | 2024 | 2023 | |
£m | £m | £m | £m | |
Trade receivables | 79.7 | 82.5 | 10.1 | 21.7 |
Other receivables | 50.7 | 41.9 | 4.8 | 6.4 |
130.4 | 124.4 | 14.9 | 28.1 | |
Included within trade receivables are mortgage receivables of £5.2 million (2023: £6.3 million),
including shared equity loans which are measured at fair value through profit or loss. Included within
trade receivables is £19.0 million (2023: £33.0 million) of contract assets arising on construction
2024 | 2023 | |
£m | £m | |
Cash and cash equivalents | 647.4 | 764.9 |
£16.0 million (2023: £15.7 million) of cash and cash equivalents held in Spain from customer
deposits can only be used for development expenditure on the sites to which the deposits relate.
Bank and other loans
2024 | 2023 | |
£m | £m | |
€100.0 million 5.08% Senior Loan Notes 2030 | 82.6 | 87.0 |
82.6 | 87.0 |
2024 | 2023 | |
£m | £m | |
Amount due for settlement after one year | 82.6 | 87.0 |
82.6 | 87.0 |
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Notes to the consolidated financial statements continued
Trade and other payables
Current | Non-current | |||
2024 | 2023 | 2024 | 2023 | |
£m | £m | £m | £m | |
Trade payables | 322.7 | 299.9 | 23.1 | 21.8 |
Land creditors | 355.9 | 301.2 | 272.0 | 214.9 |
Social security and other taxes | 7.9 | 8.3 | – | – |
Customer deposits | 90.7 | 80.3 | 6.8 | 11.8 |
Accruals | 246.8 | 266.4 | 4.8 | 1.7 |
Deferred income | 16.4 | 25.5 | 36.6 | 38.1 |
Other payables | 43.5 | 11.2 | 7.4 | 7.5 |
1,083.9 | 992.8 | 350.7 | 295.8 | |
Revenue recognised in the current year that was included in the customer deposit balance brought
forward at the beginning of the period was £80.3 million (2023: £89.7 million). Other payables include
£8.1 million (2023: £9.2 million) of repayable grants and £33.0 million (2023: nil) of short term cash
transfer from a joint venture (see Note 30).
Land creditors are denominated as follows:
2024 | 2023 | |
£m | £m | |
Sterling | 587.0 | 478.2 |
Euros | 40.9 | 37.9 |
627.9 | 516.1 |
Land creditors of £608.9 million (2023: £397.4 million) are secured against land acquired for development.
Leases
The Group as a lessee
The Group’s leases consist primarily of premises and equipment.
Premises | Equipment | Total | |
Right-of-use assets | £m | £m | £m |
At 1 January 2024 | 25.7 | 12.1 | 37.8 |
At 31 December 2024 | 22.0 | 13.9 | 35.9 |
Additions during the year | 1.0 | 8.4 | 9.4 |
2024 | 2023 | |
Lease liabilities | £m | £m |
At 1 January | 39.8 | 27.0 |
Additions | 9.4 | 21.1 |
Disposals | (1.2) | (0.5) |
Interest charge | 1.5 | 1.0 |
Payments | (11.1) | (8.9) |
Foreign exchange | – | 0.1 |
At 31 December | 38.4 | 39.8 |
Current | 10.4 | 8.8 |
Non-current | 28.0 | 31.0 |
Total | 38.4 | 39.8 |
2024 | 2023 | |
Amounts recognised in the income statement | £m | £m |
Depreciation charged on right-of-use premises | 4.7 | 4.0 |
Depreciation charged on right-of-use equipment | 6.0 | 5.2 |
Interest on lease liabilities | 1.5 | 1.0 |
Total | 12.2 | 10.2 |
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Shareholder information
203
Notes to the consolidated financial statements continued
Financial instruments and fair value disclosures
The Group’s policy is to maintain a strong balance sheet and to have an appropriate funding structure.
Shareholders’ equity and term debt are used to finance non-current assets and the medium to
long term inventories. Revolving credit facilities are used to finance net current assets, including
development and construction costs. The Group’s financing facilities contain the usual financial
covenants, including minimum interest cover and maximum gearing. The Group met these
requirements throughout the year and up to the date of the approval of the consolidated financial
statements. The Ordinary Dividend Policy is to return c.7.5% of net assets to shareholders annually,
Categories of financial assets and financial liabilities are as follows:
Carrying value | Fair value | ||||
31 December | 31 December | 31 December | 31 December | ||
Fair value | 2024 | 2023 | 2024 | 2023 | |
Financial assets | hierarchy | £m | £m | £m | £m |
Cash and cash equivalents | a | 647.4 | 764.9 | 647.4 | 764.9 |
Land receivables | a | 1.8 | 2.8 | 1.8 | 2.8 |
Other financial assets | a | 10.8 | 10.3 | 10.8 | 10.3 |
Trade and other receivables | a | 98.3 | 100.1 | 98.3 | 100.1 |
Mortgage receivables | b | 5.2 | 6.3 | 5.2 | 6.3 |
763.5 | 884.4 | 763.5 | 884.4 | ||
a. The Directors consider the carrying amounts of financial assets and financial liabilities recorded at amortised cost in the
consolidated financial statements to approximate their fair value.
b. Mortgage receivables relate to sales incentives, including shared equity loans, and are measured at fair value through
profit or loss. The fair value is established based on a publicly available national house price index, being significant other
observable inputs (level 2).
Land receivables and trade and other receivables are included in the balance sheet as trade and other
receivables for current and non-current amounts. Current and non-current trade and other receivables,
as disclosed in Note 16, include £40.0 million (2023: £43.3 million) of non-financial assets.
Carrying value | Fair value | ||||
31 December | 31 December | 31 December | 31 December | ||
Fair value | 2024 | 2023 | 2024 | 2023 | |
Financial liabilities | hierarchy | £m | £m | £m | £m |
Bank and other loans | a | 82.6 | 87.0 | 84.8 | 84.6 |
Land creditors | b | 627.9 | 516.1 | 627.9 | 516.1 |
Trade and other payables | b | 648.2 | 608.4 | 648.2 | 608.4 |
Lease liabilities | b | 38.4 | 39.8 | 38.4 | 39.8 |
1,397.1 | 1,251.3 | 1,399.3 | 1,248.9 | ||
a. The fair value of the €100 million fixed rate loan notes has been determined by reference to external interest rates and the
Directors’ assessment of the margin for credit risk (level 2).
b. The Directors consider the carrying amounts of financial assets and financial liabilities recorded at amortised cost in the
consolidated financial statements to approximate their fair value.
Land creditors and trade and other payables are included in the balance sheet as trade and other
payables for current and non-current amounts. Current and non-current trade and other payables,
as disclosed in Note 18, include £158.5 million (2023: £164.1 million) of non-financial liabilities.
The Group has designated the carrying value of €100.0 million of foreign currency borrowings
(2023: €79.0 million) as a net investment hedge, equating to £82.6 million (2023: £68.7 million).
The Group has no financial instruments with fair values that are determined by reference to significant
unobservable inputs (level 3), nor have there been any transfers of assets or liabilities between levels
of the fair value hierarchy. There are no non-recurring fair value measurements.
No forward contracts were entered into at the end of the current year. At the end of 2023, contracts
were in place to offset the foreign exchange movements on intra-Group loans to buy/(sell) against
Sterling: €30.5 million, equivalent to £26.5 million. The fair value of the forward contracts was not
material as they were entered into on or near 31 December 2023 and matured less than one month
20
Financial instruments and fair value disclosures
continued
204
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Annual Report and Accounts 2024
Notes to the consolidated financial statements continued
The Group’s activities expose it to the financial risks of changes in both foreign currency exchange
rates and interest rates. The Group aims to manage the exposure to these risks using fixed or
variable rate borrowings, foreign currency borrowings and derivative financial instruments.
(a) Interest rate risk management
The Group can be exposed to interest rate risk as the Group borrows funds, when required, at variable
interest rates. The exposure to variable rate borrowings can fluctuate during the year due to the
seasonal nature of cash flows relating to housing sales and the less certain timing of land payments.
Group policy is to manage the volatility risk of interest rates on borrowings by a combination of fixed
rate borrowings and interest rate swaps such that the sensitivity to potential changes in variable rates
is within acceptable levels. Group policy does not allow the use of derivatives to speculate against
changes to future interest rates and they are only used to manage exposure to volatility. Interest rate
hedging using derivatives has not taken place in the current or previous year. This policy has not
changed during the year.
To measure the risk, variable rate borrowings and the expected interest cost for the year are forecast
monthly and compared to budget using management’s expectations of a possible change in interest
rates. Interest expense volatility remained within acceptable limits throughout the year.
Interest rate sensitivity
The effect on both income and equity, based on exposure to non-derivative floating rate instruments
and cash and cash equivalents at the balance sheet date, is shown in the table below. The Group
does not currently have any outstanding interest rate derivatives. The 0.50% (2023: 1.00%) change
represents a reasonably possible change in interest rates over the next financial year. The table
assumes all other variables remain constant in accordance with IFRS 7.
Income | Equity | Income | Equity | |
sensitivity | sensitivity | sensitivity | sensitivity | |
2024 | 2024 | 2023 | 2023 | |
£m | £m | £m | £m | |
0.50% (2023: 1.00%) increase in interest rates | 3.2 | 3.2 | 7.6 | 7.6 |
0.50% (2023: 1.00%) decrease in interest rates | (3.2) | (3.2) | (7.6) | (7.6) |
(b) Foreign currency risk management
The Group’s overseas activities expose it to the financial risks of changes in foreign currency exchange
rates. Its Spanish subsidiary is the only foreign operation of the Group.
The Group is not materially exposed to transaction risks as all Group companies conduct their
business in their respective functional currencies. Group policy requires that transaction risks are
hedged to the functional currency of the subsidiary using foreign currency borrowings or derivatives
where appropriate.
The Group is exposed to the translation risk from accounting for both the income and the net
investment held in a functional currency other than Sterling. The net investment risk may be hedged
using foreign currency borrowings and derivatives. Assets and liabilities denominated in non-functional
currencies are retranslated each month using the latest exchange rates. Income is also measured
monthly using the latest exchange rates and compared with a budget held at historical exchange rates.
Other than the natural hedge provided by foreign currency borrowings, the translation risk of income
is not hedged using derivatives. The policy is kept under periodic review and has not changed during
the year.
Hedge accounting
Hedging activities are evaluated periodically to ensure that they are in line with Group policy.
The Group has designated the carrying value of €100.0 million of foreign currency borrowings
(2023: €79.0 million) held at the balance sheet date as a net investment hedge of part of the
Group’s investment in Euro-denominated assets, equating to £82.6 million (2023: £68.7 million).
The change in the carrying value of £(3.9) million (2023: £(1.2) million) of the borrowings designated
as a net investment hedge offset the exchange movement on the foreign currency net investments
20
Financial instruments and fair value disclosures
continued
Strategic report
Directors’ report
Financial statements
Shareholder information
205
Notes to the consolidated financial statements continued
The Group is exposed to the Euro due to its Spanish operations. The following table details how the
Group’s income and equity would increase/(decrease) on a before tax basis following a 5% (2023: 5%)
change in the currency’s value against Sterling, all other variables remaining constant. The 5% change
represents a reasonably possible change in the specified Euro exchange rates in relation to Sterling.
Income | Equity | Income | Equity | |
sensitivity | sensitivity | sensitivity | sensitivity | |
2024 | 2024 | 2023 | 2023 | |
£m | £m | £m | £m | |
Euro weakens against Sterling | – | 3.9 | (0.4) | 2.9 |
Euro strengthens against Sterling | – | (4.3) | 0.5 | (3.2) |
Credit risk is the risk of financial loss where counterparties are not able to meet their obligations.
Group policy is that surplus cash, when not used to repay borrowings, is placed on deposit with
the Group’s main relationship banks and with other banks or money market funds based on a
minimum credit rating and maximum exposure. There is no significant concentration of risk to any
single counterparty.
Land receivables arise from sales of surplus land on deferred terms. If the credit risk is not acceptable,
then the deferred payment must have adequate security, either by an appropriate guarantee or
a charge over the land. The fair value of any land held as security is considered by management
to be sufficient in relation to the carrying amount of the receivable to which it relates.
Trade and other receivables comprise mainly amounts receivable from various housing associations,
other housebuilders and corporate investors. Management considers that the credit quality of
the various receivables is good in respect of the amounts outstanding and therefore credit risk
is considered to be low. There is no significant concentration of risk.
Mortgage receivables, including shared equity loans, are in connection with various historical
sales promotion schemes and are measured at fair value through profit or loss. The mortgages
are secured by a second charge over the property with a low level of experienced credit losses
due to non-payment.
The carrying amount of financial assets, as detailed above, represents the Group’s maximum exposure
Liquidity risk is the risk that the Group does not have sufficient financial resources available to meet its
obligations as they fall due. The Group manages liquidity risk by continuously monitoring forecast and
actual cash flows, matching the expected cash flow timings of financial assets and liabilities with the
use of cash and cash equivalents, borrowings, overdrafts and committed revolving credit facilities
with a minimum of 12 months to maturity. Future borrowing requirements are forecast monthly
and funding headroom is maintained above forecast peak requirements to meet unforeseen events.
At 31 December 2024, the Group’s borrowings and facilities had a range of maturities with a weighted
average life of 4.6 years (2023: 4.8 years).
In addition to the €100.0 million 5.08% senior loan notes maturing June 2030, the Group has
access to a committed £600.0 million revolving credit facility expiring July 2029, having agreed in
2024 to extend the revolving credit facility by one year. The Group has the option to request an
extension to the revolving credit facility for a further year. The borrowings and facilities contain financial
covenants based on minimum tangible net worth, maximum gearing and minimum interest cover. The
revolving credit facility contains sustainability-linked performance targets based on reducing emissions
and wastage. At the balance sheet date, the total unused committed amount was £600.0 million
20
Financial instruments and fair value disclosures
continued
206
Taylor Wimpey plc
Annual Report and Accounts 2024
Notes to the consolidated financial statements continued
relevant rate, based on the earliest date on which the Group can be required to pay financial liabilities
on an undiscounted basis, is as follows:
Trade | |||||
Bank and | Land | and other | Lease | ||
other loans | creditors | payables | liabilities | Total | |
£m | £m | £m | £m | £m | |
On demand | – | – | – | – | – |
Within one year | 4.2 | 366.5 | 613.0 | 11.8 | 995.5 |
More than one year and | |||||
less than two years | 4.2 | 158.7 | 21.0 | 10.6 | 194.5 |
More than two years and | |||||
less than five years | 12.6 | 106.8 | 10.8 | 13.5 | 143.7 |
More than five years | 84.7 | 27.9 | 3.4 | 7.1 | 123.1 |
31 December 2024 | 105.7 | 659.9 | 648.2 | 43.0 | 1,456.8 |
Trade | |||||
Bank and | Land | and other | Lease | ||
other loans | creditors | payables | liabilities | Total | |
£m | £m | £m | £m | £m | |
On demand | – | – | – | – | – |
Within one year | 4.4 | 307.7 | 577.4 | 10.1 | 899.6 |
More than one year and | |||||
less than two years | 4.4 | 139.2 | 15.2 | 9.8 | 168.6 |
More than two years and | |||||
less than five years | 13.3 | 58.1 | 12.0 | 15.4 | 98.8 |
More than five years | 93.5 | 30.5 | 3.8 | 9.7 | 137.5 |
31 December 2023 | 115.6 | 535.5 | 608.4 | 45.0 | 1,304.5 |
Retirement benefit obligations
Total retirement benefit obligations of £22.2 million (2023: £26.5 million) comprise a defined benefit
pension liability of £22.0 million (2023: £26.3 million) and a post-retirement healthcare liability of
£0.2 million (2023: £0.2 million).
The Group operates the Taylor Wimpey Pension Scheme (TWPS), a defined benefit pension scheme,
which is closed to both new members and to future accrual. The Group also operates defined
contribution pension arrangements in the UK, which are available to new and existing UK employees.
A defined contribution plan is an arrangement under which the Group pays contributions to an
independently administered fund or policy; such contributions are based on a fixed percentage of
employees’ pay. The Group has no legal or constructive obligations to pay further contributions to the
fund/policy once the contributions have been paid. Employees’ benefits are determined by the amount
of contributions paid by the Group and the employee, together with investment returns earned on the
contributions arising from the performance of each individual’s chosen investments and the type of
pension the employee chooses to buy at retirement. As a result, actuarial risk (that benefits will be
lower than expected) and investment risk (that invested assets will not perform in line with expectations)
fall on the employee.
The Group’s contributions are recognised as an employee benefit expense when they are due.
Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in
the future payments is available.
The Group’s defined contribution plan, the Taylor Wimpey Personal Choice Plan (TWPCP), is offered
to all new and existing monthly paid employees and is provided by Scottish Widows. The People’s
Pension is used for auto enrolment purposes for all weekly paid employees and those monthly
paid employees not participating in the TWPCP. The People’s Pension is provided by People’s
Partnership, one of the UK’s largest providers of financial benefits to construction industry employers
and individuals.
The Group made contributions to its defined contribution arrangements of £15.0 million in the year
21
Retirement benefit obligations
continued
Strategic report
Directors’ report
Financial statements
Shareholder information
207
Notes to the consolidated financial statements continued
The Group’s defined benefit pension scheme in the UK is the TWPS. The TWPS is a funded defined
benefit pension scheme which provides benefits to beneficiaries in the form of a guaranteed level of
pension payable for life. The level of benefits provided depends on an individual member’s length of
service and their salary in the final years leading up to retirement or date of ceasing active accrual if
earlier. Pension payments are generally increased in line with inflation subject to caps specified in
the TWPS rules. The TWPS is closed to new members and future accrual.
The Group operates the TWPS under the UK regulatory framework. Benefits are paid to members
from a Trustee-administered fund and the Trustee is responsible for ensuring that the TWPS is well
managed and that members’ benefits are secure. Scheme assets are held in trust.
The TWPS Trustee’s other duties include managing the investment of scheme assets, administration of
scheme benefits and exercising of discretionary powers. The Group works closely with the Trustee to
manage the TWPS. The Trustee of the TWPS owes fiduciary duties to the TWPS’ beneficiaries. The
appointment of the Directors to the Trustee Board is determined by the TWPS trust documentation.
The most recent triennial valuation of the TWPS was undertaken with a reference date of 31 December
2022. The table below sets out the key assumptions agreed as part of this valuation.
Assumptions | |
Discount rate | 2.35% per annum above the yield on the nominal gilt yield curve. |
(pre-retirement) | |
Discount rate | 0.50% per annum above the yield on the nominal gilt yield curve. |
(post-retirement) | |
RPI inflation | Implied inflation gilt yield curve. |
CPI inflation | Prior to 2030: RPI less 0.8%. 2030 onwards: Equal to RPI. |
Mortality | 104% of S3PxA tables, CMI_2022 improvements with 1.50% long term trend rate, |
a smoothing factor of 7 and an initial addition parameter of 0.5%, w2020, w2021 and | |
w2022 parameters set at 0%, 0% and 25% respectively. |
The result of this valuation was a Technical Provisions surplus at 31 December 2022 of £55 million.
As a result, no deficit contributions were required to be paid to the TWPS or to the escrow account
established following the 2019 valuation. On an IAS 19 accounting basis, the underlying surplus in
the TWPS at 31 December 2024 was £90.2 million (2023: £76.7 million). The terms of the TWPS are
such that the Group does not have an unconditional right to a refund of surplus. As a result, the Group
recognised an adjustment to the underlying surplus in the TWPS on an IAS 19 accounting basis of
£112.2 million (2023: £103.0 million), resulting in an IFRIC 14 deficit of £22.0 million (2023: £26.3 million),
which represented the present value of future contributions under the funding plan.
The TWPS Trustee holds a fixed charge over the escrow account, established following the 2019
valuation, that is recognised in other financial assets and at 31 December 2024 held £10.8 million
(31 December 2023: £10.3 million), with interest earned by the escrow account being retained within
the escrow account. Transfers out of the escrow account (either to the TWPS or the Group) are subject
to the 2019 triennial funding arrangement entered into between the Group and the Trustee and as
such the funds are restricted from use by the Group for other purposes and are therefore not classified
as cash or cash equivalents. The escrow account will be in place until 30 June 2028, at which point
a funding test will be conducted and funds will either be paid to the TWPS or returned to the Group.
In 2013, the Group introduced a £100.0 million Pension Funding Partnership (PFP) that utilises the
Group’s show homes, as well as six offices, in a sale and leaseback structure. This provides an
additional £5.1 million of annual funding for the TWPS. In March 2024, the Group reached agreement
with the Trustee to restructure the PFP. The restructure retained the existing contributions payable until
2029 but replaced the payment of up to £100 million that may have been due in 2029, with seven
annual payments of up to £12.5 million each from 2029 to 2035. These are only payable if the TWPS
has a deficit on its Technical Provisions funding basis at the prior 31 December. The assets held within
the PFP do not affect the IAS 19 figures (before IFRIC 14) as they remain assets of the Group, and are
not assets of the TWPS. At 31 December 2024, there was £75.1 million of property and £37.6 million
21
Retirement benefit obligations
continued
208
Taylor Wimpey plc
Annual Report and Accounts 2024
Notes to the consolidated financial statements continued
management of interest rate, inflation and longevity risks. The TWPS assets are approximately
102% (2023: 98%) hedged against changes in both interest rates and inflation expectations on
the scheme’s long term funding basis that is currently used for investment strategy purposes.
The TWPS also benefits from a bulk annuity contract which covers some of the largest liabilities
in the scheme, providing protection against interest rate, inflation and longevity risk.
The weighted average duration of the defined benefit obligation at the end of the year is approximately
11 years (2023: approximately 12 years).
In July 2024, the Court of Appeal upheld a High Court decision from June 2023 in Virgin Media Limited
v NTL Pension Trustees II Limited, which ruled that certain historic amendments made to salary-related
contracted-out pension schemes were invalid if the requirement to obtain written actuarial confirmation
(a section 37 confirmation) was not prepared for those amendments. This ruling affects amendments
made to contracted-out salary-related schemes between 6 April 1997 and 5 April 2016.
The Trustee of the TWPS has commenced a review of the Scheme’s historic amendments in light of
this ruling. The review is ongoing and it is currently not possible to assess with any certainty what,
if any, the impact would be on the Scheme.
Accounting assumptions
The assumptions used in calculating the accounting costs and obligations of the TWPS, as detailed
below, are set by the Directors after consultation with independent actuaries. The basis for these
assumptions is prescribed by IAS 19 and they do not reflect the assumptions that may be used
in future funding valuations of the TWPS.
The discount rate used to determine the present value of the obligations is set by reference to
market yields on high-quality corporate bonds with regard for the duration to the TWPS liabilities.
The assumption for RPI inflation is set by reference to the Bank of England’s implied inflation curve
with regard to the duration of the TWPS liabilities, with appropriate adjustments to reflect distortions
due to supply and demand for inflation-linked securities. CPI inflation is set by reference to RPI inflation
as no CPI-linked bonds exist to render implied CPI inflation directly observable.
The mortality assumption is based on 102% of S3PxA tables, CMI_2023 improvements with a 1%
long term trend rate, a smoothing factor of 7, an initial addition parameter of 0.25%, a w2020 and
w2021 parameter of 0% and a w2022 and w2023 parameter of 100%. The mortality assumption
used in 2023 was 102% of S3PxA tables, CMI_2022 improvements with a 1% long term trend rate,
a smoothing factor of 7, an initial addition parameter of 0.25%, a w2020 and w2021 parameter of
10% and a w2022 parameter of 35%.
Accounting valuation assumptions | 2024 | 2023 |
At 31 December: | ||
Discount rate for scheme liabilities | 5.35% | 4.60% |
General pay inflation | n/a | n/a |
Deferred pension increases | 2.30% | 2.15% |
Pension increases* | 1.95%-3.70% | 1.90%-3.70% |
*
Pension increases depend on the section of the TWPS of which each member is a part.
The current life expectancies (in years) underlying the value of the accrued liabilities for the TWPS are:
2024 | 2023 | |||
Life expectancy | Male | Female | Male | Female |
Member currently aged 65 | 86 | 89 | 86 | 89 |
Member currently aged 45 | 87 | 90 | 87 | 90 |
The table below shows the impact to the present value of scheme liabilities of movements in key
assumptions, measured using the same method as the defined benefit scheme.
Impact on | |||
scheme | |||
Impact on | liabilities | ||
Assumption | Change in assumption | scheme liabilities | (%) |
Discount rate | Decrease by 0.5% p.a. | Increase by £75m | 4.9 |
Rate of inflation* | Increase by 0.5% p.a. | Increase by £41m | 2.7 |
Life expectancy | Members live 1 year longer | Increase by £62m | 4.0 |
*
Assumed to affect deferred revaluation and pensioner increases in payment.
The sensitivity of increasing life expectancy has been reduced by the medically underwritten buy-in.
21
Retirement benefit obligations
continued
31 December 2024 | Level 1 | Level 2 | Level 3 | Total | Percentage of total |
Fair value of scheme assets of the TWPS | £m | £m | £m | £m | scheme assets |
Equity (a) | – | 29.1 | – | 29.1 | 1.9% |
Diversified growth funds (b) | – | 224.3 | – | 224.3 | 14.7% |
Multi-asset credit | 0.2 | 253.2 | – | 253.4 | 16.7% |
Direct lending | 1.0 | – | 117.4 | 118.4 | 7.8% |
Fixed income | 2.5 | 187.6 | – | 190.1 | 12.5% |
Liability driven investment (c) | 39.2 | 535.0 | – | 574.2 | 37.7% |
Insurance policies in respect of certain members | – | – | 124.0 | 124.0 | 8.1% |
Cash | 8.8 | – | – | 8.8 | 0.6% |
51.7 | 1,229.2 | 241.4 | 1,522.3 | 100.0% |
31 December 2023 | Level 1 | Level 2 | Level 3 | Total | Percentage of total |
Fair value of scheme assets of the TWPS | £m | £m | £m | £m | scheme assets |
Equity (a) | – | 76.4 | – | 76.4 | 4.6% |
Diversified growth funds (b) | – | 228.5 | – | 228.5 | 13.8% |
Multi-asset credit | 6.5 | 202.3 | – | 208.8 | 12.6% |
Direct lending | 3.9 | – | 124.5 | 128.4 | 7.8% |
Fixed income | 2.8 | 193.3 | – | 196.1 | 11.9% |
Liability driven investment (c) | 56.6 | 615.7 | – | 672.3 | 40.7% |
Insurance policies in respect of certain members | – | – | 136.0 | 136.0 | 8.2% |
Cash | 7.0 | – | – | 7.0 | 0.4% |
76.8 | 1,316.2 | 260.5 | 1,653.5 | 100.0% |
(a) This amount relates to Volatility Controlled Equities. This fund has 2.5 – 8x leverage exposure, with a target of 4x. The leverage at 31 December 2024 was 3.7x (31 December 2023: 3.5x).
(b) This amount relates to the Scheme’s Diversified Risk Premia (DRP) allocation. The net leverage on the two funds in the DRP allocation at 31 December 2024 was 0.5x (31 December 2023: 1.0x) and 0.7x (31 December 2023: 1.4x).
(c) The bespoke Liability Driven Investment (LDI) fund is designed to protect the Scheme against movements in interest rates and inflation. The overall leverage on the LDI fund at 31 December 2024 was approximately 3.0x (31 December 2023: 2.8x).
The value of the annuities held by the TWPS are set equal to the value of the liabilities which these annuities match. All other fair values are provided by the fund managers and collated by Northern Trust
as custodian, who independently price the securities from their preferred vendor sources where the data is publicly available and rely on investment manager data where this information is not available.
Where available, the fair values are quoted prices (e.g. listed equity). Unlisted investments (e.g. private equity) are included at values provided by the fund manager in accordance with relevant guidance.
Other significant assets are valued based on observable inputs.
Strategic report
Directors’ report
Financial statements
Shareholder information
209
Notes to the consolidated financial statements continued
21
Retirement benefit obligations
continued
| 2024 | 2023 | |||||
Asset/(liability) | Asset/(liability) | |||||
Present value | Fair value of | recognised on | Present value | Fair value of | recognised on | |
of obligation | scheme assets | balance sheet | of obligation | scheme assets | balance sheet | |
£m | £m | £m | £m | £m | £m | |
At 1 January | (1,679.8) | 1,653.5 | (26.3) | (1,675.9) | 1,646.3 | (29.6) |
Administration expenses | – | (3.1) | (3.1) | – | (3.3) | (3.3) |
Interest (expense)/income | (74.7) | 73.6 | (1.1) | (80.3) | 79.0 | (1.3) |
Total amount recognised in income statement | (74.7) | 70.5 | (4.2) | (80.3) | 75.7 | (4.6) |
Remeasurement (loss)/gain on scheme assets | – | (98.5) | (98.5) | – | 29.7 | 29.7 |
Change in demographic assumptions | (1.0) | – | (1.0) | 27.1 | – | 27.1 |
Change in financial assumptions | 104.1 | – | 104.1 | (34.9) | – | (34.9) |
Experience gain | 1.3 | – | 1.3 | (29.5) | – | (29.5) |
Adjustment to liabilities for IFRIC 14 | (4.5) | – | (4.5) | 8.4 | – | 8.4 |
Total remeasurements in other comprehensive income | 99.9 | (98.5) | 1.4 | (28.9) | 29.7 | 0.8 |
Employer contributions | – | 7.1 | 7.1 | – | 7.1 | 7.1 |
Employee contributions | – | – | – | – | – | – |
Benefit payments | 110.3 | (110.3) | – | 105.3 | (105.3) | – |
At 31 December | (1,544.3) | 1,522.3 | (22.0) | (1,679.8) | 1,653.5 | (26.3) |
2024 | 2023 | |
Accounting valuation | £m | £m |
Fair value of scheme assets | 1,522.3 | 1,653.5 |
Present value of scheme obligations | (1,432.1) | (1,576.8) |
Surplus in scheme | 90.2 | 76.7 |
IFRIC 14 limitation on recognition of surplus | (112.2) | (103.0) |
Deficit after IFRIC 14 adjustment | (22.0) | (26.3) |
210
Taylor Wimpey plc
Annual Report and Accounts 2024
Notes to the consolidated financial statements continued
21
Retirement benefit obligations
continued
The TWPS, in common with the majority of such defined benefit pension schemes in the UK, has a number of areas of risk. These areas of risk, and the ways in which the Group has sought to manage them,
are set out in the table below.
The risks are considered from both a funding perspective, which drives the cash commitments of the Group, and from an accounting perspective, i.e. the extent to which such risks affect the amounts recorded
in the consolidated financial statements.
Although investment decisions in the UK are the responsibility of the TWPS Trustee, the Group takes an active interest to ensure that the pension scheme risks are managed efficiently. The Group has regular
meetings with the Trustee to discuss investment performance, regulatory changes and proposals to actively manage the position of the TWPS.
Risk | Description |
Asset volatility | The TWPS strategy remains well diversified through its exposure to a range of asset classes, including volatility-controlled equities, direct loans, government bonds and a broad spectrum of corporate bonds |
and other fixed income exposures. The TWPS invests across a number of managers to reduce manager concentration risk. | |
The TWPS does not target a specific asset allocation but instead bases its strategic asset allocation on the return objectives and risk constraints agreed upon by the Trustee. In response to the significant | |
increases in bond yields over 2022, the Trustee took prudent steps to ensure that the TWPS continued to have sufficient collateral in support of the liability-hedging programme. During the course of 2023 and | |
2024, the Company and Trustee rebalanced the portfolio into more liquid assets with the appointment of three new managers during the period, with all three having daily dealing terms and which are reflected | |
in the asset allocation at the end of the reporting period. | |
Changes in | Falling bond yields tend to increase the funding and accounting liabilities. However, the investment in bond and liability-matching derivatives offers a significant degree of matching, i.e. the movement in assets |
bond yields | arising from changes in bond yields substantially matches the movement in the funding or accounting liabilities. In this way, the exposure to movements in bond yields is reduced. |
Investing in | To maintain appropriate diversification of investments within the TWPS assets and to take advantage of overseas investment returns, a proportion of the underlying investment portfolio is invested overseas. |
foreign currency | To balance the risk of investing in foreign currencies while having an obligation to settle benefits in Sterling, a currency hedging programme, using forward foreign exchange contracts, has been put in place |
to reduce the currency exposure of these overseas investments to the targeted level. | |
Asset/liability | In order to manage the TWPS’ economic exposure to interest rates and inflation rates, a liability-hedging programme has been put in place. Derivatives are used to hedge changes in the TWPS’ assets from |
mismatch | changes in its liabilities, substantially reducing asset/liability mismatch risk. However, it is only possible to target matching of the assets with the liabilities assessed on one measure. Due to its relevance in driving |
Company contributions, the current policy is to assess the matching against the TWPS’ long term funding basis. This can lead to a slight mismatch between the assets and the liabilities assessed on the | |
Company’s accounting basis, in particular if there is a change in corporate bond yield spreads. |
Strategic report
Directors’ report
Financial statements
Shareholder information
211
Notes to the consolidated financial statements continued
21
Retirement benefit obligations
continued
Risk | Description |
Liquidity | The TWPS requires sufficient liquidity to meet benefit payments, and to ensure sufficient collateral to support the liability-hedging programme. In response to the market volatility experienced in Q3/Q4 2022, |
the Trustee updated its processes to ensure that the TWPS holds sufficient assets within the liability-hedging programme to cover the impact of a further 4.0% increase in yields. The manager of the | |
liability-hedging programme also has direct access to further liquid assets should they be required. | |
Across the portfolio, the TWPS has liquid assets which could be sold at short notice if required. In particular, 67% are managed in either segregated accounts or daily/weekly dealt pooled funds and can be | |
realised within a few business days under normal market conditions, and 16% are invested in pooled funds with monthly redemption dates. Of the remaining assets, 1% could be redeemed within | |
approximately six to nine months of notification in normal market conditions, and the rest are made up of illiquid assets including insurance policies and illiquid debt (which includes direct lending bonds). | |
Life expectancy | The majority of the TWPS obligations are to provide a pension for the life of the member on retirement, so increases in life expectancy will result in an increase in the TWPS’ liabilities. The inflation-linked nature |
of the majority of benefit payments from the TWPS increases the sensitivity of the liabilities to changes in life expectancy. During 2014, the Group reached agreement with Partnership Life Assurance Company | |
Limited (now Just Group plc) to insure the benefits of 10% of members with the greatest anticipated liabilities through a medically underwritten buy-in. By insuring these members, the Group has removed more | |
than 10% of longevity risk from the TWPS by significantly reducing the longevity risk in relation to a large proportion of the liabilities. | |
Climate risk | The TWPS Trustee recognises that climate change is a financial risk affecting the TWPS assets. The TWPS Trustee integrates the monitoring of appropriate climate risk metrics into its risk management |
framework and considers these metrics when making investment decisions. The TWPS Trustee requires its appointed investment managers to integrate climate change risks and opportunities into their | |
investment processes as applied to the assets of the TWPS. | |
Responsible | The TWPS Trustee recognises that environmental, social and governance (ESG) risks can be financially material risks and should be considered as part of the TWPS’ investment strategy. The TWPS Trustee |
investment | has adopted a responsible investment policy and considers ESG risks when making investment decisions. The TWPS Trustee also has a programme of regular dialogue with its investment managers, with |
a particular focus on the TWPS Trustee’s key themes of Climate Change and Diversity, Equity and Inclusion. The TWPS Trustee expects its investment managers to have robust ESG, climate change and | |
stewardship policies and processes in place and challenges its managers where deficiencies or areas for further improvement are identified. |
212
Taylor Wimpey plc
Annual Report and Accounts 2024
Notes to the consolidated financial statements continued
Strategic report
Directors’ report
Financial statements
Shareholder information
213
Notes to the consolidated financial statements continued
Provisions
Cladding | ||||
fire safety | Leasehold | Other | Total | |
£m | £m | £m | £m | |
At 1 January 2023 | 208.7 | 23.5 | 58.1 | 290.3 |
Additions | – | – | 24.3 | 24.3 |
Utilisation | (16.8) | (4.0) | (7.0) | (27.8) |
Released | – | – | – | – |
Foreign exchange | – | – | (0.1) | (0.1) |
At 31 December 2023 | 191.9 | 19.5 | 75.3 | 286.7 |
Additions | 88.0 | – | 5.8 | 93.8 |
Utilisation | (28.5) | (5.6) | (7.7) | (41.8) |
Released | (19.1) | – | (12.7) | (31.8) |
Foreign exchange | – | – | (0.2) | (0.2) |
At 31 December 2024 | 232.3 | 13.9 | 60.5 | 306.7 |
2024 | 2023 | |
£m | £m | |
Current | 161.7 | 124.9 |
Non-current | 145.0 | 161.8 |
31 December | 306.7 | 286.7 |
In 2018, the Group established an exceptional provision for the cost of replacing ACM on a small
number of legacy developments, which has been increased since then to reflect the latest estimates
of costs to complete the planned works as well as the requirements of the Government’s Building
Safety Pledge for Developers (see Note 6). It is expected that around 45% of the remaining provision
will be utilised over the next 12 months.
In 2017, the Group launched a leasehold assistance scheme to help certain customers restructure
their ground rent agreements with their freeholder and established an associated provision of
£130.0 million to fund this. Following the agreement of voluntary undertakings with the CMA, the
Group expects that the majority of the remaining provision will be utilised within the next 12 months.
Other provisions consist of a remedial work provision covering various obligations on a limited
number of sites across the Group. Other provisions also include amounts for legal claims and other
contract-related costs associated with various matters arising across the Group, the majority of
which are anticipated to be settled within a three-year period; however, there is some uncertainty
regarding the timing of these outflows due to the nature of the claims and the length of time it can
Share capital
2024 | 2023 | |
£m | £m | |
Authorised: | ||
22,200,819,176 (2023: 22,200,819,176) ordinary shares of 1p each | 222.0 | 222.0 |
1,158,299,201 (2023: 1,158,299,201) deferred ordinary shares of 24p each | 278.0 | 278.0 |
31 December | 500.0 | 500.0 |
Number of | Number of deferred | ||
ordinary shares | ordinary shares | £m | |
Issued and fully paid: | |||
31 December 2023 | 3,556,985,103 | 1,065,566,274 | 291.3 |
31 December 2024 | 3,556,985,103 | 1,065,566,274 | 291.3 |
During the year, the Company issued nil (2023: nil) ordinary shares to satisfy option exercises.
The Company has two classes of shares:
• Ordinary shares of 1p, each of which carries the right to one vote at general meetings of
the Company and such other rights and obligations as are set out in the Company’s Articles
of Association.
• Deferred ordinary shares of 24p, which carry no voting rights and no entitlement to any dividend.
The deferred ordinary shares were issued as part of a capital reorganisation in 2009 and have not
214
Taylor Wimpey plc
Annual Report and Accounts 2024
Notes to the consolidated financial statements continued
Share premium
2024 | 2023 | |
£m | £m | |
At 1 January | 777.9 | 777.9 |
Shares issued in year | – | – |
At 31 December | 777.9 | 777.9 |
Other reserves
Capital | ||||
redemption | Translation | Total other | ||
reserve | reserve | Other | reserves | |
£m | £m | £m | £m | |
Balance at 1 January 2023 | 32.4 | 9.2 | 504.0 | 545.6 |
Exchange differences on | ||||
translation of foreign operations | – | (2.4) | – | (2.4) |
Movement in fair value of | ||||
hedging instruments | – | 1.2 | – | 1.2 |
Balance at 31 December 2023 | 32.4 | 8.0 | 504.0 | 544.4 |
Exchange differences on | ||||
translation of foreign operations | – | (8.8) | – | (8.8) |
Movement in fair value of | ||||
hedging instruments | – | 3.9 | – | 3.9 |
Balance at 31 December 2024 | 32.4 | 3.1 | 504.0 | 539.5 |
Capital redemption reserve
The capital redemption reserve arose on a redemption of the Company’s shares and is
not distributable.
Translation reserve
The translation reserve consists of exchange differences arising on the translation of overseas
operations. It also includes changes in the fair value of hedging instruments where such
instruments are designated and effective as hedges of investment in overseas operations.
Other reserves
£499.1 million of other reserves arose on the cash box placing that occurred in June 2020
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Financial statements
Shareholder information
215
Notes to the consolidated financial statements continued
Own shares
£m | |
Balance at 1 January 2023 | 43.1 |
Disposed of on exercise of options | (13.4) |
Balance at 31 December 2023 | 29.7 |
Own shares acquired | 4.0 |
Disposed of on exercise of options | (6.1) |
Balance at 31 December 2024 | 27.6 |
The own shares reserve represents the cost of shares in Taylor Wimpey plc purchased in the market,
those held as treasury shares and those held by the Taylor Wimpey Employee Share Ownership Trusts
(ESOTs) to satisfy options and conditional share awards under the Group’s share plans.
2024 | 2023 | |
Number | Number | |
Ordinary shares held in trust and treasury for bonus, | ||
option and performance award plans | 20.6m | 21.9m |
During the year, Taylor Wimpey plc purchased 3.2 million of its own shares to be held in the ESOTs
(2023: none). The market value of the shares held in the ESOTs and treasury at 31 December 2024
was £25.1 million (2023: £32.2 million) and their nominal value was £0.2 million (2023: £0.2 million).
Dividends on these shares have been waived except for a nominal aggregate amount in pence.
ESOTs are used to hold the Company’s shares which have been acquired on the market. These shares
and those held in treasury are used to meet the valid exercise of options and/or vesting of conditional
awards and/or award of shares under the Executive Incentive Scheme, Bonus Deferral Plan,
Performance Share Plan, Savings-Related Share Option Scheme and the matching award of shares
under the Share Incentive Plan.
The ESOTs’ entire holding of shares and those held in treasury at 31 December 2024 and
31 December 2023 were covered by outstanding options and conditional awards over shares
Notes to the cash flow statement
Cash and cash equivalents comprise cash at bank and other short term highly liquid investments with
an original maturity of three months or less.
Movement in net cash
Cash and cash | Bank and | Total | |
equivalents | other loans | net cash | |
£m | £m | £m | |
Balance at 1 January 2023 | 952.3 | (88.5) | 863.8 |
Net cash flow | (185.8) | – | (185.8) |
Foreign exchange | (1.6) | 1.5 | (0.1) |
Balance at 31 December 2023 | 764.9 | (87.0) | 677.9 |
Net cash flow | (113.5) | – | (113.5) |
Foreign exchange | (4.0) | 4.4 | 0.4 |
Balance at 31 December 2024 | 647.4 | (82.6) | 564.8 |
For movements in lease liabilities in the year see Note 19. Inventory working capital movements in the
Contingent liabilities and capital commitments
The Group in the normal course of business has given guarantees and entered into counter-indemnities
in respect of bonds relating to the Group’s own contracts and has given guarantees in respect of
the Group’s share of certain contractual obligations of joint ventures. The possibility of any outflow
in settlement for these is considered to be remote.
The Group has entered into counter-indemnities in the normal course of business in respect of
performance bonds.
Provision is made for the Directors’ best estimate of all known legal claims and all legal actions
in progress. The Group takes legal advice as to the likelihood of success of claims and actions
and no provision is made where the Directors consider, based on that advice, that the action is
unlikely to succeed.
The Group has no material contingent liabilities or capital commitments at 31 December 2024
Share-based payments
Equity-settled share option plan
Details of equity-settled share-based payment arrangements are set out in the Remuneration Committee report on pages 136 to 159. The tables below show the movements in the schemes in the year as well
as their weighted average exercise price (WAEP).
2024 | 2023 | |||
Sharesave (SAYE) | Options | WAEP (in £) | Options | WAEP (in £) |
Outstanding at the beginning of the year | 25,913,136 | 0.91 | 29,408,740 | 0.95 |
Granted during the year | 3,809,591 | 1.25 | 7,746,227 | 0.91 |
Forfeited during the year | (2,727,832) | 0.94 | (7,516,682) | 1.03 |
Exercised during the year | (2,173,207) | 0.99 | (3,725,149) | 0.98 |
Outstanding at the end of the year | 24,821,688 | 0.96 | 25,913,136 | 0.91 |
Exercisable at the end of the year | 1,128,215 | 1.33 | 2,294,076 | 1.00 |
The remaining Sharesave options outstanding at 31 December 2024 had a range of exercise prices from £0.83 to £1.42 (2023: £0.83 to £1.42) and a weighted average remaining contractual life of 2.44 years
(2023: 2.91 years).
2024 | 2023 | |||
Share Incentive Plan (SIP) | Options | WAEP (in £) | Options | WAEP (in £) |
Outstanding at the beginning of the year | 7,275,770 | – | 7,288,698 | – |
Granted during the year | 1,459,860 | – | 1,866,218 | – |
Forfeited during the year | (511,476) | – | (883,601) | – |
Exercised during the year | (804,526) | – | (995,545) | – |
Outstanding at the end of the year | 7,419,628 | – | 7,275,770 | – |
Exercisable at the end of the year | 3,444,567 | – | 3,419,633 | – |
216
Taylor Wimpey plc
Annual Report and Accounts 2024
Notes to the consolidated financial statements continued
29
Share-based payments
continued
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Directors’ report
Financial statements
Shareholder information
217
Notes to the consolidated financial statements continued
2024 | 2023 | |||
Performance Share Plan (PSP) | Options | WAEP (in £) | Options | WAEP (in £) |
Outstanding at the beginning of the year | 5,878,715 | – | 10,543,277 | – |
Granted during the year | 1,853,039 | – | 2,019,637 | – |
Forfeited during the year | (1,325,810) | – | (4,845,594) | – |
Exercised during the year | (642,003) | – | (1,838,605) | – |
Outstanding at the end of the year | 5,763,941 | – | 5,878,715 | – |
Exercisable at the end of the year | – | – | – | – |
The conditional awards outstanding at 31 December 2024 had a weighted average remaining contractual life of 1.75 years (2023: 1.77 years).
The average share price at the date of exercise across all options exercised during the period was £1.42 (2023: £1.25). For share plans granted during the current and preceding year, the fair value of the
awards at the grant date was determined as follows:
Share awards with | Share awards with | |||
no market conditions | market conditions | |||
2024 | 2023 | 2024 | 2023 | |
Model | Binomial | Binomial | Monte Carlo | Monte Carlo |
Weighted average share price | £1.58 | £1.17 | £1.39 | £1.28 |
Weighted average exercise price | £0.97 | £0.79 | Nil | Nil |
Expected volatility | 31% | 36% | 31% | 42% |
Expected life | 3/5 years | 3/5 years | 3 years | 3 years |
Risk-free rate | 3.8% | 4.4% | 4.09% | 3.79% |
Expected dividend yield | 5.79% | 7.65% | 0.0% | 0.0% |
Weighted average fair value of options granted in year | £0.64 | £0.42 | £0.54 | £0.76 |
Expected volatility was determined by calculating the historical volatility of the Group’s share price over the expected term. The expected life used in the model was based on historical exercise patterns.
The Group recognised a share-based payment expense of £12.1 million in the year (2023: £11.1 million), which was composed of £9.2 million in relation to equity settled schemes and £2.9 million in relation to
218
Taylor Wimpey plc
Annual Report and Accounts 2024
Notes to the consolidated financial statements continued
Related party transactions
Transactions between the Company and its subsidiaries, which are related parties, have been
eliminated on consolidation and are not disclosed in this note. The pension schemes of the Group are
related parties. Arrangements between the Group and its pension schemes are disclosed in Note 21.
Transactions between the Group and its joint ventures are disclosed below. The Group has loans with
joint ventures that are detailed in Note 13.
Taylor Wimpey Scottish Limited Partnership (the ‘Partnership’) is fully consolidated into these financial
statements and the Group has taken advantage of the exemption available under the Partnerships
(Accounts) Regulations 2008 to not file separate accounts for the Partnership.
Trading transactions
During the year, Group sales to joint ventures totalled £26.9 million (2023: £5.2 million) and purchases
totalled £6.3 million (2023: £7.0 million). Interest received from joint ventures was £2.1 million
(2023: £2.0 million). At 31 December 2024, receivables from joint ventures were £5.0 million
(31 December 2023: £45.7 million) and payables were £33.5 million (31 December 2023: £0.2 million).
Included within the payables balance is £33.0 million (2023: nil) of a cash transfer that occurred in
the year from a joint venture due to that joint venture having a short term excess of cash beyond that
required for its immediate operational purposes, it is returnable to the joint venture on demand and
no interest is due on the balance.
The key management personnel of the Group are the members of the Group Management Team
(GMT) as presented on page 107.
The remuneration information for the Executive Directors is set out in the Remuneration Committee
report on page 146. The aggregate compensation for the other members of the GMT is as follows:
2024 | 2023 | |
£m | £m | |
Short term employee benefits | 5.0 | 4.5 |
Post-employment benefits | 0.3 | 0.3 |
Total (excluding share-based payments charge) | 5.3 | 4.8 |
In addition to the amounts above, a share-based payment charge of £1.8 million (2023: £1.0 million)
Dividends
2024 | 2023 | |
£m | £m | |
Proposed | ||
Interim dividend 2024: 4.80p (2023: 4.79p) per ordinary share of 1p each | 169.9 | 169.1 |
Final dividend 2024: 4.66p (2023: 4.79p) per ordinary share of 1p each | 165.0 | 169.4 |
334.9 | 338.5 | |
Amounts recognised as distributions to equity holders | ||
Paid | ||
Final dividend 2023: 4.79p (2022: 4.78p) per ordinary share of 1p each | 169.5 | 168.8 |
Interim dividend 2024: 4.80p (2023: 4.79p) per ordinary share of 1p each | 169.9 | 169.1 |
339.4 | 337.9 |
The Directors recommend a final dividend for the year ended 31 December 2024 of 4.66 pence per
share (2023: 4.79 pence per share) subject to shareholder approval at the Annual General Meeting,
with an equivalent final dividend charge of c.£165 million based on the number of shares in issue at the
end of the year (2023: £169.5 million). The final dividend will be paid on 9 May 2025 to all shareholders
registered at the close of business on 28 March 2025.
In accordance with IAS 10 ‘Events after the Reporting Period’, the proposed final dividend has not
Strategic report
Directors’ report
Financial statements
Shareholder information
219
Notes to the consolidated financial statements continued
Alternative performance measures
The Group uses a number of alternative performance measures (APMs) which are not defined
within UK-adopted international accounting standards. The Directors use these measures in order
to assess the underlying operational performance of the Group and, as such, these measures should
be considered alongside statutory measures. The following APMs are referred to throughout the year
end results.
Profit before taxation and exceptional items and profit for the period before
exceptional items
The Directors consider the removal of exceptional items from the reported results provides more clarity
on the performance of the Group. They are reconciled to profit before tax and profit for the period on
the face of the consolidated income statement.
Operating profit and operating profit margin
Throughout the Annual Report and Accounts, operating profit is used as one of the main measures of
performance. Operating profit is defined as profit on ordinary activities before financing, exceptional
items and tax, after share of results of joint ventures. The Directors consider this to be an important
measure of the underlying performance of the Group. Operating profit margin is calculated as
operating profit divided by total revenue.
2024 | 2023 | |
Profit on ordinary activities before financing (£m) | 333.9 | 467.8 |
Adjusted for: | ||
Share of results of joint ventures (£m) (Note 13) | (15.9) | 2.4 |
Exceptional items (£m) (Note 6) | 98.2 | – |
Operating profit (£m) | 416.2 | 470.2 |
Revenue (£m) (Note 4) | 3,401.2 | 3,514.5 |
Operating profit margin | 12.2% | 13.4% |
Net operating assets
Net operating assets is defined as basic net assets less net cash, excluding net taxation balances
and accrued dividends. Average net operating assets is the average of the opening and closing net
operating assets of the 12-month period. With return on net operating assets, the Directors consider
this to be an important measure of the underlying operating efficiency and performance of the Group.
2024 | 2023 | 2022 | |
Basic net assets (£m) | 4,405.2 | 4,523.4 | 4,502.1 |
Adjusted for: | |||
Cash (£m) (Note 16) | (647.4) | (764.9) | (952.3) |
Borrowings (£m) (Note 17) | 82.6 | 87.0 | 88.5 |
Net taxation (£m) | (23.4) | (21.8) | (18.8) |
Accrued dividends (£m) | – | – | – |
Net operating assets (£m) | 3,817.0 | 3,823.7 | 3,619.5 |
Average basic net assets (£m) | 4,464.3 | 4,512.8 | |
Average net operating assets (£m) | 3,820.4 | 3,721.6 |
Return on net operating assets
Return on net operating assets is defined as rolling 12-month operating profit divided by the average of
opening and closing net operating assets. The Directors consider this to be an important measure of
the underlying operating efficiency and performance of the Group.
2024 | 2023 | |
Operating profit (£m) | 416.2 | 470.2 |
Average net operating assets (£m) | 3,820.4 | 3,721.6 |
Return on net operating assets | 10.9% | 12.6% |
32
Alternative performance measures
continued
220
Taylor Wimpey plc
Annual Report and Accounts 2024
Notes to the consolidated financial statements continued
This is calculated as net assets before any accrued dividends, excluding intangible assets, divided
by the number of ordinary shares in issue at the end of the period. The Directors consider this to be
a good measure of the value intrinsic within each ordinary share.
2024 | 2023 | |||
Basic net assets (£m) | 4,405.2 | 4,523.4 | ||
Adjusted for: | ||||
Intangible assets (£m) (Note 11) | (1.5) | (2.6) | ||
Tangible net assets (£m) | 4,403.7 | 4,520.8 | ||
Ordinary shares in issue (millions) | 3,557.0 | 3,557.0 | ||
Tangible net assets per share (pence) | 123.8 | 127.1 |
Adjusted basic and diluted earnings per share
This is calculated as earnings attributed to shareholders of the Parent, excluding exceptional items and
tax on exceptional items, divided by the weighted average number of shares in issue during the period.
The Directors consider this provides an important measure of the underlying earnings capacity of the
Group. Note 10 shows a reconciliation from basic and diluted earnings per share to adjusted basic
and diluted earnings per share.
Net operating asset turn
This is defined as 12-month rolling total revenue divided by the average of opening and closing net
operating assets. The Directors consider this to be a good indicator of how efficiently the Group is
utilising its assets to generate value for shareholders.
2024 | 2023 | |
Revenue (£m) (Note 4) | 3,401.2 | 3,514.5 |
Average net operating assets (£m) | 3,820.4 | 3,721.6 |
Net operating asset turn | 0.89 | 0.94 |
Net cash
Net cash is defined as total cash less total borrowings (bank and other loans). This is considered by the
Directors to be the best indicator of the financing position of the Group. This is reconciled in Note 27.
Cash conversion
This is defined as cash generated from operations, which excludes payments relating to exceptional
charges, divided by operating profit on a rolling 12-month basis. The Directors consider this measure
to be a good indication of how efficiently the Group is turning profit into cash.
2024 | 2023 | |
Cash generated from operations (£m) | 311.7 | 288.9 |
Operating profit (£m) | 416.2 | 470.2 |
Cash conversion | 74.9% | 61.4% |
Adjusted gearing
This is defined as adjusted net debt divided by basic net assets. The Directors consider this to be
a more representative measure of the Group’s gearing levels. Adjusted net debt is defined as net cash
less land creditors.
2024 | 2023 | |
Cash (£m) (Note 16) | 647.4 | 764.9 |
Loans (£m) (Note 17) | (82.6) | (87.0) |
Net cash (£m) | 564.8 | 677.9 |
Land creditors (£m) (Note 18) | (627.9) | (516.1) |
Adjusted net debt (£m) | (63.1) | 161.8 |
Basic net assets (£m) | 4,405.2 | 4,523.4 |
Adjusted gearing | 1.4% | (3.6)% |
Post balance sheet events
221
Shareholder information
Strategic report
Directors’ report
Financial statements
Note
2024
£m
2023
£m
Non-current assets
Investments in Group undertakings
4
4,518.7
4,509.5
Trade and other receivables
5
68.0
67.6
4,586.7
4,577.1
Current assets
Trade and other receivables
5
857.9
686.2
Cash and cash equivalents
509.8
666.4
1,367.7
1,352.6
Current liabilities
Trade and other payables
6
(823.2)
(798.8)
(823.2)
(798.8)
Net current assets
544.5
553.8
Total assets less current liabilities
5,131.2
5,130.9
Non-current liabilities
Bank and other loans
7
(82.6)
(87.0)
Provisions
(1.0)
(1.0)
Net assets
5,047.6
5,042.9
Equity
Share capital
8
291.3
291.3
Share premium
9
777.9
777.9
Own shares
10
(27.6)
(29.7)
Other reserves
11
536.0
536.0
Retained earnings
12
3,470.0
3,467.4
Total equity
5,047.6
5,042.9
As permitted by Section 408 of the Companies Act 2006, Taylor Wimpey plc has not presented
its own income statement. The profit of the Company for the financial year was £336.5 million
(2023: £278.4 million).
The Company financial statements were approved by the Board of Directors and authorised for issue
on 26 February 2025. They were signed on its behalf by:
J Daly
C Carney
Director
Director
Company balance sheet
at 31 December 2024
Taylor Wimpey plc
Annual Report and Accounts 2024
222
Note
Share
capital
£m
Share
premium
£m
Own
shares
£m
Other
reserves
£m
Retained
earnings
£m
Total
£m
Total equity at 1 January 2023
291.3
777.9
(43.1)
536.0
3,527.1
5,089.2
Profit for the year
–
–
–
–
278.4
278.4
Total comprehensive income for the year
–
–
–
–
278.4
278.4
Utilisation of own shares
–
–
13.4
–
–
13.4
Cash cost of satisfying share options
–
–
–
–
(9.1)
(9.1)
Capital contribution on share-based payments
–
–
–
–
8.9
8.9
Dividends approved and paid
15
–
–
–
–
(337.9)
(337.9)
Total equity at 31 December 2023
291.3
777.9
(29.7)
536.0
3,467.4
5,042.9
Profit for the year
–
–
–
–
336.5
336.5
Total comprehensive income for the year
–
–
–
–
336.5
336.5
Own shares acquired
–
–
(4.0)
–
–
(4.0)
Utilisation of own shares
–
–
6.1
–
–
6.1
Cash cost of satisfying share options
–
–
–
–
(3.7)
(3.7)
Capital contribution on share-based payments
–
–
–
–
9.2
9.2
Dividends approved and paid
15
–
–
–
–
(339.4)
(339.4)
Total equity at 31 December 2024
291.3
777.9
(27.6)
536.0
3,470.0
5,047.6
Company statement of changes in equity
for the year to 31 December 2024
223
Shareholder information
Strategic report
Directors’ report
Financial statements
Material accounting policies
1
The following material accounting policies have been used consistently, unless otherwise stated,
in dealing with items which are considered material.
Basis of preparation
The Company meets the definition of a qualifying entity under Financial Reporting Standard 101
(FRS 101) issued by the Financial Reporting Council. Accordingly, these Company financial statements
were prepared in accordance with FRS 101 ‘Reduced Disclosure Framework’ as issued by the
Financial Reporting Council as applied in conformity with the provisions of the Companies Act 2006
and under the historical cost convention except as otherwise stated below.
As permitted by FRS 101, the Company has taken advantage of the disclosure exemptions available
under that standard in relation to share-based payments, financial instruments, capital management,
presentation of comparative information in respect of certain assets, presentation of a cash flow
statement, standards not yet effective, impairment of assets and related party transactions.
The principal accounting policies adopted are set out below.
Going concern
The Group, which the Company heads, has prepared forecasts, including certain sensitivities, taking
into account the Principal Risks identified on pages 86 to 90. Having considered these forecasts,
the Directors remain of the view that the Group’s financing arrangements and capital structure provide
both the necessary facilities and covenant headroom to enable the Group to conduct its business for
at least the next 12 months. Accordingly, the Company financial statements have been prepared on
a going concern basis.
Critical accounting judgements and key sources of estimation uncertainty
Management has not made any individual accounting judgements that are material to the Company
and does not consider there to be any key sources of estimation uncertainty.
Investments in Group undertakings
Investments are included in the balance sheet at cost less any provision for impairment. The Company
assesses investments for impairment whenever events or changes in circumstances indicate that the
carrying value of an investment may not be recoverable. If any such indication of impairment exists,
the Company makes an estimate of the recoverable amount of the investment. If the recoverable
amount is less than the value of the investment, the investment is considered to be impaired and is
written down to its recoverable amount. An impairment loss is expensed immediately. Where an
impairment loss subsequently reverses, due to a change in circumstances or in the estimates used to
determine the asset’s recoverable amount, the carrying amount of the investment is increased to the
revised estimate of its recoverable amount, so long as it does not exceed the original carrying value
prior to the impairment being recognised.
The Company values its investments in subsidiary holding companies based on a comparison
between the net assets recoverable by the subsidiary company and the investment held. Where
the net assets are lower than the investment, an impairment is recorded. For trading subsidiaries,
the investment carrying value in the Company is assessed against the net present value of the cash
flows of the subsidiary.
Taxation
The tax charge represents the sum of the tax currently payable.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit before
tax because it excludes items of income or expense that are taxable or deductible in other years and it
further excludes items that are never taxable or deductible.
The Company’s liability for current tax is calculated using tax rates that have been enacted or
substantively enacted by the balance sheet date.
Any liability or credit in respect of group relief in lieu of current tax is also calculated using corporation
tax rates that have been enacted or substantively enacted by the balance sheet date unless a different
rate (including a nil rate) has been agreed within the Group.
Notes to the Company financial statements
Taylor Wimpey plc
Annual Report and Accounts 2024
224
Material accounting policies
continued
1
Foreign currencies
Transactions denominated in foreign currencies are recorded in Sterling at actual rates as of the date
of the transaction. Monetary assets and liabilities denominated in foreign currencies at the year end
are reported at the rates of exchange prevailing at the year end.
Any gain or loss arising from a change in exchange rates after the date of the transaction is included
as an exchange gain or loss in profit and loss.
Trade and other receivables
Trade and other receivables are measured at amortised cost, less any loss allowance based on
expected credit losses. The measurement of expected credit losses is based on the probability of
default and the magnitude of the loss if there is a default. The assessment of probability of default is
based on historical data adjusted for any known factors that would influence the future amount to
be received in relation to the receivable.
Trade and other payables
Trade and other payables are measured at amortised cost.
Borrowings
Borrowings are initially recognised at fair value, net of transaction costs incurred and subsequently
measured at amortised cost.
Share-based payments
The Company issues equity-settled share-based payments to certain employees of its subsidiaries.
Equity-settled share-based payments are measured at fair value at the grant date. The fair value is
expensed on a straight-line basis over the vesting period, based on the estimate of shares that will
vest. The cost of equity-settled share-based payments granted to employees of subsidiary companies
is borne by the employing company, without recharge. As such, the Company’s investment in the
subsidiary is increased by an equivalent amount.
Own shares
The cost of the Company’s investment in its own shares, which comprise shares held in treasury
by the Company and shares held by employee benefit trusts for the purpose of funding certain of
the Company’s share option plans, is shown as a reduction in shareholders’ equity.
Dividends paid
Dividends are charged to the Company’s retained earnings reserve in the period of payment in respect
of an interim dividend, and in the period in which shareholders’ approval is obtained in respect of the
Company’s final dividend.
Particulars of employees
2
2024
Number
2023
Number
Directors
2
2
The Executive Directors received all of their remuneration, as disclosed in the Remuneration Committee
report on pages 136 to 159, from Taylor Wimpey UK Limited. This remuneration is reflective of the
Directors’ service to the Company and all its subsidiaries.
Auditors’ remuneration
3
2024
£m
2023
£m
Total audit fees
0.2
0.2
Non-audit fees
–
–
Total
0.2
0.2
A description of other non-audit services is included in Note 6 of the consolidated financial statements.
Notes to the Company financial statements continued
225
Shareholder information
Strategic report
Directors’ report
Financial statements
Investments in Group undertakings
4
Shares
£m
Cost
At 1 January 2024
7,434.1
Capital contribution relating to share-based payments
9.2
At 31 December 2024
7,443.3
Provision for impairment
At 1 January 2024
(2,924.6)
At 31 December 2024
(2,924.6)
Carrying amount
At 31 December 2024
4,518.7
At 31 December 2023
4,509.5
All investments are unlisted and information about all subsidiaries is listed on pages 229 to 236.
Trade and other receivables
5
Current
Non-current
2024
£m
2023
£m
2024
£m
2023
£m
Due from Group undertakings
855.8
683.0
64.5
64.0
Other receivables
2.1
3.2
3.5
3.6
857.9
686.2
68.0
67.6
Amounts due from Group undertakings are unsecured, repayable on demand and are predominantly
interest bearing.
Trade and other payables
6
Current
Non-current
2024
£m
2023
£m
2024
£m
2023
£m
Due to Group undertakings
811.4
789.9
–
–
Other payables
1.0
1.0
–
–
Corporation tax creditor
10.8
7.9
–
–
823.2
798.8
–
–
Amounts due to Group undertakings are unsecured, repayable on demand and are predominantly
interest bearing.
Bank and other loans
7
2024
£m
2023
£m
€100.0 million 5.08% Senior Loan Notes 2030
82.6
87.0
82.6
87.0
2024
£m
2023
£m
Amount due for settlement after one year
82.6
87.0
82.6
87.0
Notes to the Company financial statements continued
Taylor Wimpey plc
Annual Report and Accounts 2024
226
Share capital
8
2024
£m
2023
£m
Authorised:
22,200,819,176 (2023: 22,200,819,176) ordinary shares of 1p each
222.0
222.0
1,158,299,201 (2023: 1,158,299,201) deferred ordinary shares of 24p each
278.0
278.0
500.0
500.0
Number of
ordinary shares
Number of deferred
ordinary shares
£m
Issued and fully paid:
31 December 2023
3,556,985,103
1,065,566,274
291.3
31 December 2024
3,556,985,103
1,065,566,274
291.3
The Company has two classes of shares:
• Ordinary shares of 1p, each of which carries the right to one vote at general meetings of
the Company and such other rights and obligations as are set out in the Company’s Articles
of Association.
• Deferred ordinary shares of 24p, which carry no voting rights and no entitlement to any dividend.
The deferred ordinary shares were issued as part of a capital reorganisation in 2009 and have
not subsequently changed.
During the year, the Company issued nil (2023: nil) ordinary shares to satisfy option exercises.
Share premium
9
2024
£m
2023
£m
At 1 January
777.9
777.9
At 31 December
777.9
777.9
Own shares
10
2024
£m
2023
£m
Own shares
27.6
29.7
2024
Number
2023
Number
Ordinary shares held in trust and treasury for bonus, option and
performance award plans
20.6m
21.9m
During the year, Taylor Wimpey plc purchased 3.2 million of its own shares to be held in the ESOTs
(2023: none). The market value of the shares held in the ESOTs and treasury at 31 December 2024
was £25.1 million (2023: £32.2 million) and their nominal value was £0.2 million (2023: £0.2 million).
Dividends on these shares have been waived except for a nominal aggregate amount in pence.
ESOTs are used to hold the Company’s shares which have been acquired on the market. These shares
and those held in treasury are used to meet the valid exercise of options and/or vesting of conditional
awards and/or award of shares under the Executive Incentive Scheme, Bonus Deferral Plan,
Performance Share Plan, Savings-Related Share Option Scheme and the matching award of
shares under the Share Incentive Plan.
The ESOTs’ entire holding of shares and those held in treasury at 31 December 2024 and
31 December 2023 were covered by outstanding options and conditional awards over shares
at those dates.
Notes to the Company financial statements continued
227
Shareholder information
Strategic report
Directors’ report
Financial statements
Other reserves
11
2024
£m
2023
£m
At 1 January
536.0
536.0
At 31 December
536.0
536.0
£499.1 million of other reserves arose on the cash box placing that occurred in June 2020 and
qualified for merger relief under Section 612 of the Companies Act 2006. Other reserves also includes
£32.4 million (2023: £32.4 million) in respect of the redemption of the Company’s shares, which is
non-distributable.
Retained earnings
12
Retained earnings of £3,470.0 million (2023: £3,467.4 million) includes profit for the year of
£336.5 million (2023: £278.4 million), of which £315.5m million (2023: £266.0 million) is dividends
received from subsidiaries. Included in retained earnings is £944.0 million (2023: £934.4 million),
which is not distributable.
Share-based payments
13
The Company has taken advantage of the FRS 101 disclosure exemption in relation to
share-based payments. Details of share awards granted by the Company to employees of
subsidiaries, and that remain outstanding at the year end over the Company’s shares, are set out
in Note 29 of the consolidated financial statements. The Company did not recognise any expense
related to equity-settled share-based payment transactions in the current or preceding year.
Contingent liabilities
14
The Company has, in the normal course of business, given guarantees and entered into counter-indemnities
in respect of bonds relating to the Group’s own contracts. The possibility of any outflow in settlement
for these is considered to be remote.
Provision is made for the Directors’ best estimate of known legal claims and legal actions in progress.
The Group takes legal advice as to the likelihood of success of claims and actions and no provision
is made where the Directors consider, based on that advice, that the action is unlikely to succeed.
The Company has in issue a guarantee in respect of the Taylor Wimpey Pension Scheme (TWPS),
which had an underlying IAS 19 surplus of £90.2 million at 31 December 2024 (2023: £76.7 million).
This guarantee commits the Company to ensuring that the participating subsidiary meets its
obligations under any schedule of contributions agreed with the TWPS Trustee from time to time.
Notes to the Company financial statements continued
Taylor Wimpey plc
Annual Report and Accounts 2024
228
Dividend
15
2024
£m
2023
£m
Proposed
Interim dividend 2024: 4.80p (2023: 4.79p) per ordinary share of 1p each
169.9
169.1
Final dividend 2024: 4.66p (2023: 4.79p) per ordinary share of 1p each
165.0
169.4
334.9
338.5
Amounts recognised as distributions to equity holders
Paid
Final dividend 2023: 4.79p (2022: 4.78p) per ordinary share of 1p each
169.5
168.8
Interim dividend 2024: 4.80p (2023: 4.79p) per ordinary share of 1p each
169.9
169.1
339.4
337.9
The Directors recommend a final dividend for the year ended 31 December 2024 of 4.66 pence per
share (2023: 4.79 pence per share) subject to shareholder approval at the Annual General Meeting,
with an equivalent final dividend charge of c.£165 million based on the number of shares in issue at the
end of the year (2023: £169.5 million). The final dividend will be paid on 9 May 2025 to all shareholders
registered at the close of business on 28 March 2025.
In accordance with IAS 10 ‘Events after the Reporting Period’, the proposed final dividend has not
been accrued as a liability at 31 December 2024.
Notes to the Company financial statements continued
229
Shareholder information
Strategic report
Directors’ report
Financial statements
The entities listed below are companies incorporated in the United Kingdom and the registered office is Gate House, Turnpike Road, High Wycombe, Buckinghamshire, HP12 3NR. All of the below are 100%
subsidiaries of the Group, either directly or indirectly held by Taylor Wimpey plc, and only have ordinary share capital.
Admiral Developments Limited
Admiral Homes (Eastern) Limited
Admiral Homes Limited
Ashton Park Limited
BGS (Pentian Green) Holdings Limited
Bryad Developments Limited
Bryant Country Homes Limited
Bryant Group Services Limited
Bryant Homes Central Limited
Bryant Homes East Midlands Limited
Bryant Homes Limited
Bryant Homes North East Limited
Bryant Homes Northern Limited
Bryant Homes South West Limited
Bryant Homes Southern Limited
Bryant Properties Limited
Candlemakers (TW) Limited
Clipper Investments Limited
Compine Developments (Wootton) Limited
Dormant Nominees One Limited
Dormant Nominees Two Limited
Farrods Water Engineers Limited
Flyover House Limited
George Wimpey Limited
George Wimpey Bristol Limited
George Wimpey City Limited
George Wimpey City 2 Limited
George Wimpey East Anglia Limited
George Wimpey East London Limited
George Wimpey East Midlands Limited
George Wimpey Manchester Limited
George Wimpey Midland Limited
George Wimpey North East Limited
George Wimpey North London Limited
George Wimpey North Midlands Limited
George Wimpey North West Limited
George Wimpey North Yorkshire Limited
George Wimpey South East Limited
George Wimpey South Midlands Limited
George Wimpey South West Limited
George Wimpey South Yorkshire Limited
George Wimpey Southern Counties Limited
George Wimpey West London Limited
George Wimpey West Midlands Limited
George Wimpey West Yorkshire Limited
Globe Road Limited
Grand Union Vision Limited
Groveside Homes Limited
Hamme Construction Limited
Hanger Lane Holdings Limited
Hassall Homes (Cheshire) Limited
Hassall Homes (Mercia) Limited
Hassall Homes (Southern) Limited
Hassall Homes (Wessex) Limited
Haverhill Developments Limited
Jim 1 Limited
Jim 3 Limited
Jim 4 Limited
Jim 5 Limited
L. & A. Freeman Limited
Laing Homes Limited
Laing Land Limited
LandTrust Developments Limited
Limebrook Manor LLP
MCA Developments Limited
MCA East Limited
MCA Holdings Limited
MCA Land Limited
MCA Leicester Limited
MCA London Limited
MCA Northumbria Limited
MCA Partnership Housing Limited
MCA South West Limited
MCA West Midlands Limited
MCA Yorkshire Limited
McLean Homes Limited
McLean Homes Bristol & West Limited
McLean Homes Southern Limited
McLean TW Estates Limited
McLean TW (Chester) Limited
McLean TW (Northern) Limited
McLean TW (Southern) Limited
McLean TW (Yorkshire) Limited
McLean TW Group Limited
McLean TW Holdings Limited
McLean TW Limited
McLean TW No. 2 Limited
Melbourne Investments Limited
Pangbourne Developments Limited
Prestoplan Limited
River Farm Developments Limited
South Bristol (Ashton Park) Limited
Spinks & Denning Limited
St. Katharine By The Tower Limited
St. Katharine Haven Limited
Stone Pit Restoration Limited
Stonepit Limited
Tawnywood Developments Limited
Taylor Wimpey Capital Developments Limited
Taylor Wimpey Commercial Properties Limited
Particulars of subsidiaries, associates and joint ventures
Taylor Wimpey plc
Annual Report and Accounts 2024
230
Taylor Wimpey Developments Limited
Taylor Wimpey Garage Nominees No 1 Limited
Taylor Wimpey Garage Nominees No 2 Limited
Taylor Wimpey Holdings Limited
Taylor Wimpey International Limited
Taylor Wimpey Property Company Limited
Taylor Wimpey Property Management Limited
Taylor Wimpey SH Capital Limited
Taylor Wimpey UK Limited
Thameswey Homes Limited
The Garden Village Partnership Limited
The Wilson Connolly Employee Benefit
Trust Limited
Thomas Lowe and Sons, Limited
Thomas Lowe Homes Limited
TW NCA Limited
TW Springboard Limited
Twyman Regent Limited
Valley Park Developments Limited
Whelmar (Chester) Limited
Whelmar (Lancashire) Limited
Whelmar (North Wales) Limited
Whelmar Developments Limited
Wilcon Homes Anglia Limited
Wilcon Homes Eastern Limited
Wilcon Homes Midlands Limited
Wilcon Homes Northern Limited
Wilcon Homes Southern Limited
Wilcon Homes Western Limited
Wilcon Lifestyle Homes Limited
Wilfrid Homes Limited
Wilson Connolly Holdings Limited
Wilson Connolly Investments Limited
Wilson Connolly Limited
Wilson Connolly Properties Limited
Wilson Connolly Quest Limited
Wimgrove Developments Limited
Wimgrove Property Trading Limited
Wimpey Construction Developments Limited
Wimpey Construction Overseas Limited
Wimpey Corporate Services Limited
Wimpey Dormant Investments Limited
Wimpey Geotech Limited
Wimpey Group Services Limited
Wimpey Gulf Holdings Limited
The entities listed below, with the Group’s ownership share, are companies incorporated in the
United Kingdom and the registered office is Gate House, Turnpike Road, High Wycombe,
Buckinghamshire, HP12 3NR.
Company name
% Owned
Academy Central LLP
62%
Bordon Developments Holdings Limited
50%
Chobham Manor LLP
50%
Chobham Manor Property Management Limited
50%
Falcon Wharf Limited
50%
GWNW City Developments Limited
50%
Paycause Limited
66.67%
Taylor Wimpey Pension Trustees Limited
99%
Triumphdeal Limited
50%
Vumpine Limited
50%
Whitehill & Bordon Development Company BV Limited
50%
Whitehill & Bordon Development Company Phase 1a Limited
50%
Whitehill & Bordon Regeneration Company Limited
50%
Particulars of subsidiaries, associates and joint ventures continued
231
Shareholder information
Strategic report
Directors’ report
Financial statements
The entities listed below, with the Group’s ownership share, are companies incorporated in the United Kingdom and the registered office is Unit C, Ground Floor, Cirrus Glasgow Airport Business Park,
Marchburn Drive, Abbotsinch, Paisley, PA3 2SJ.
Company name
% Owned
Bryant Homes Scotland Limited
100%
George Wimpey East Scotland Limited
100%
George Wimpey West Scotland Limited
100%
London and Clydeside Estates Limited
100%
London and Clydeside Holdings Limited
100%
Strada Developments Limited
50%
Taylor Wimpey (General Partner) Limited
100%
Taylor Wimpey (Initial LP) Limited
100%
Taylor Wimpey Scottish Limited Partnership
100%
Whatco England Limited
100%
Wilcon Homes Scotland Limited
100%
Other entities incorporated in the United Kingdom, unless otherwise stated, and the Group’s ownership share are shown below.
Company name
% Owned
Registered office
Bishops Park Limited
50%
11 Tower View, Kings Hill, West Malling, ME19 4UY
Bishop’s Stortford North Consortium Limited
33.14%
Bath House, 6-8 Bath Street, Bristol, BS1 6HL
Bromley Park (Holdings) Limited
Bromley Park Limited
50%
Kent House, 14-17 Market Place, London, W1W 8AJ
Countryside 27 Limited
50%
Countryside House, The Drive, Great Warley, Brentwood, CM13 3AT
Emersons Green Urban Village Limited
54.44%
250 Aztec West, Almondsbury, Bristol, BS32 4TR
Gallagher Bathgate Limited
50%
Gallagher House, Gallagher Business Park, Warwick, CV34 6AF
Greenwich Millennium Village Limited
50%
Countryside House, The Drive, Great Warley, Brentwood, CM13 3AT
Haydon Development Company Limited
19.27%
6 Drakes Meadow, Penny Lane, Swindon, SN3 3LL
Langley Sustainable Urban Extension Limited
33.33%
One Eleven, Edmund Street, Birmingham, B3 2HJ
Morrison Land Development Inc
100%
9366, 49 St NW, Edmonton, AB T6B 2L7, Canada
North Swindon Development Company Limited
28.35%
6 Drakes Meadow, Penny Lane, Swindon, SN3 3LL
Padyear Limited
50%
Second Floor, Arena Court, Crown Lane, Maidenhead, SL6 8QZ
Quedgeley Urban Village Limited
50%
250 Aztec West, Almondsbury, Bristol, BS32 4TR
St George Little Britain (No.1) Limited
St George Little Britain (No.2) Limited
50%
Berkeley House, 19 Portsmouth Road, Cobham, KT11 1JG
Taylor Wimpey de España S.A.U.
100%
C/Aragón 223-223A, 07008 Palma de Mallorca, Spain
Taylor Woodrow (Gibraltar) Limited
100%
17 Bayside Road, Gibraltar
Wisley Property Investments Limited
100%
190 Elgin Avenue, George Town, KY1-9008, Cayman Islands
Particulars of subsidiaries, associates and joint ventures continued
Taylor Wimpey plc
Annual Report and Accounts 2024
232
Company name
Reference
Ada Gardens Resident Management Company Limited
22
Admiral Park (Block 6) Residents Management Company Limited
22
Admiral Park (Tongham) Management Company Limited
22
Albion Lock (Sandbach) Management Company Limited
11
Alder Park Residents Management Company Limited
17
Alyn Meadows Management Company Limited
11
Apsham Grange (Topsham) Management Company Limited
4
Barham Meadows Resident Management Company Limited
33
Barker Butts Lane Management Company Limited
1
Barry Waterfront Residents Management Company Limited
4
Battersea Exchange Management Company Limited
1
Berwick Green Bristol Management Company Limited
39
Biggleswade Management Company Limited*
1
2
Billington Grove (SM) Management Company Limited
3
Bishop Stortford NPB Limited
24
Bishop Stortford NPE Limited
24
Bordon Phase 3 Management Company Limited
4
Bramcote Residents Management Company Limited
25
Bramley Park Management Company Limited
1
Brantham Residential Estate Management Company Limited
1
Broadleaf Park (Rownhams) Management Company Limited
4
Broadway Fields Residents Management Company Limited
1
Broken Stone Road (Blackburn) Residents Management Company Limited
16
Bronze Park (Apartments) Resident Management Company Limited
2
Bronze Park Resident Management Company Limited
2
Brookvale (Dawlish) Management Company Limited
18
Brookvale Apartments (Dawlish) Management Company Limited
18
Broughton Gate (Milton Keynes) Management Company Limited
3
Buckingham Park (Weedon Hill) Management Company Limited
3
Buckton Fields (Northampton) Apartment Management Company Limited
17
Buckton Fields (Northampton) Estate Management Company Limited
17
Company name
Reference
Burdon Lane (Ryhope) Residents Management Company Limited
17
Canford Vale Management Company Limited
16
Capital Court Property Management Limited*
2
31
Castle Manor & Ashby Fields Management Company
7
Cherrywood Gardens Residents Management Company Limited
25
Cliddesdon Reach Management Company Limited
1
Clipstone Park (Leighton Buzzard) Management Company Limited
3
Clover House (Cranbrook) Management Company Limited
4
Coatham Vale and Berrymead Gardens Residents Management Company Limited
17
Coed Issa Management Company Limited
8
Colney Manor Resident Management Company Limited
8
Concept (EA) Management Company Limited
3
Coopers Grange (Bishops Stortford) Residents Management Company Ltd
8
Coppice Place Management Company Limited
3
Coronation Square Residents Management Company Limited
35
Cotswold View Residents Association Limited
1
Cromwell Place (Phase 2) Residents Management Company Limited
18
Cromwell Place Residents Management Company Limited
18
Crookham Park (Church Crookham) Management Company Limited*
7
22
Culm Valley Park (Cullompton) Management Company Limited
4
Cwm Gelli (Blackwood) Residents Management Company Limited
1
Dale House Resident Management Company Limited
16
Dawlish View Management Company Limited
4
Denne Road Management Company Limited
1
Diglis Water Estate Management Company Limited
1
Dunton Green Management Company (No.1) Limited
1
Dunton Green Management Company (No.2) Limited
1
Earls Court Farm Worcester Residents Management Company Limited
13
East Leeds Block 1 Residents Management Company Limited
34
East Leeds Blocks 2 & 3 Residents Management Company Limited
34
East Leeds Residents Management Company Limited
34
Particulars of subsidiaries, associates and joint ventures continued
The following entities are Management Companies that are limited by guarantee (unless otherwise stated) and are temporary parts of the Group. All are incorporated in the United Kingdom and their assets are
not held for the benefit of the Group. The Group holds all of the issued share capital of each entity, where relevant, unless otherwise shown.
233
Shareholder information
Strategic report
Directors’ report
Financial statements
Company name
Reference
Edlogan Wharf Community Interest Company
1
Elgar Place Management Company Limited
1
Emberton Grange Management Company Limited
18
Evergreens (Beaufort Park) Management Company Limited
24
Forge Wood (Crawley) Management Company Limited
26
Foxwood Garden Village Residents Management Company Limited
16
Franklin Park (Stevenage) Residents Management Company Limited
14
Friars Oak (Hassocks) Residents Management Company Limited
36
Gillingham Lakes (Phase 2) Residents Management Company Limited
37
Glasdir Management Company Limited
1
Glebe Farm (Middlewich) Management Company Limited
30
Glen House Resident Management Company Limited
16
Great Hall Park Residents Association Limited
1
Greenfields Park (EA) Management Company Limited
5
Gresley Meadow Management Company Limited
15
Handley Chase (Sleaford) Residents Management Company Limited
12
Handley Gardens (Lancaster Avenue) Block Management Company Limited
3
Handley Gardens Management CIC
6
Hanwell Fields 3B Management Company Limited
1
Harebell Meadows and Hartburn Grange Residents Management Company Limited
16
Hastings Manor (Hugglescote) Residents Management Company Limited
7
Hay Common Management Company Limited
4
Haybridge (Wells) Management Company Limited
4
Hayes Green Management Company Limited
3
Heatherwood (Ascot) Management Company Limited
22
Heritage Park Gravesend Residents Association (No.1) Limited
1
Heritage Park Gravesend Residents Association (No.2) Limited
1
Heritage Park Gravesend Residents Association (No.3) Limited
1
Heritage Park Gravesend Residents Association (No.4) Limited
1
Heritage Park Gravesend Residents Association (No.5) Limited
1
Herrington View Residents Management Company Limited
17
Hethersett Residents Management Company Limited
8
Humberstone Residents Estate Management Company Limited
7
Company name
Reference
Hunters Meadow Residents Association Limited
3
Jasmine Park (Whirley) Management Company Limited
1
K Reach (EA) Management Company Limited
3
Kentmere Place Residents Association Limited
1
Kesgrave K Management Company Limited
1
Kingsbourne (Nantwich) Community Management Company Limited
8
Kingsley Grange (Wickford) Residents Association Limited
8
Ladden Garden Village Apartments Residents Management Company Limited
21
Leawood (Management) Company Limited*
1
Lindridge Chase Residents Management Company Limited
15
Lion Mills (EA) Management Company Limited
3
Longridge Farm and Greendale Park Residents Management Company Limited
17
Longshore and Shoreview Residents Management Company Limited
17
Macintosh Mills Car Park (Management) Limited
1
Maidenfields Estate Residents Management Company Limited
18
Manor Court (Prescot) Management Company Limited
1
Manor Park Sprowston Residents Management Company Limited
8
Manor Rise Block C Management Company Limited
22
Manor View (East Grinstead) Residents Management Company Limited
27
Mayfield Gardens Management Company Limited
3
Melin Newydd Management Company Limited
4
Melton Manor (Melton Mowbray) Residents Company Limited
7
Millbrook Place (Crewe) Residents Management Company Limited
38
Millers Brow Management Company Limited
1
Mountbatten Mews (Honiton) Management Company Limited
4
Netherton Grange Residents Management Company Limited
3
Newbridge Gardens Management Company (No 1) Limited
5
Newbridge Gardens Management Company (No 2) Limited
5
Newcastle Great Park (Estates) Limited*
3
32
Newcastle Great Park Management Company Limited*
5
32
Newland Grange (Wakefield) Residents Management Company Limited
34
NGP Management Company (Cell A) Limited*
3
32
NGP Management Company (Cell D) Limited*
3
32
Particulars of subsidiaries, associates and joint ventures continued
Taylor Wimpey plc
Annual Report and Accounts 2024
234
Company name
Reference
NGP Management Company (Cell E) Limited*
3
32
NGP Management Company (Cell F) Limited*
3
32
NGP Management Company (Commercial) Limited*
3
32
NGP Management Company (Town Centre) Limited*
3
32
NGP Management Company Residential (Cell G) Limited*
3
32
Nightingale Park Residents Association Limited
8
North Wharf Gardens Management Company Limited
1
Nunnery Fields (Management No.1) Limited
5
Nunnery Fields (Management) Limited
5
Oak Park (Cheddar) Management Company Limited
3
Oakapple 2 Resident Management Company Limited
10
Oaklands Residents Management Company Limited
18
Ockley Park (Hassocks) (Block E) Residents Management Company Limited
22
Ockley Park (Hassocks) (Blocks A & B) Residents Management Company Limited
22
Ockley Park (Hassocks) Residents Management Company Limited
22
Orchard Grove (Comeytrowe) Management Company Limited
4
Orsett Village Residents Association Limited
8
Pages Priory Phase Two (Leighton Buzzard) Management Company Limited
3
Parc Llandaf Management Company Limited
4
Parc Nedd Residents Association Limited
1
Park Farm (South East) Management Company Limited
19
Parklands (Woburn Two) Management Company Limited
3
Parsons Chain Residents Management Company Limited
15
Pathfinder Place (Melksham) Management Company Limited
4
Pathfinder Way (Varsity Grange H3) Resident Management Co Ltd
33
Peartree Village Management Limited
9
Plas Brymbo Management Company Limited
1
Poppyfields (Benwick) Residents Association Limited
1
Postmark Residents Management Company Limited
1
Primrose Gardens (Valley Park) Management Co Ltd
16
Q.Hill (EA2) Management Company Limited
8
Queen Eleanor’s Heights Residents Association Limited
1
Redhill Gardens Residents Management Company Limited
1
Company name
Reference
Redhill Park Limited*
3
23
Regency Place (Shiplake) Management Company Limited
1
Robin Gardens Management Company Limited
7
Romans Gate (Old Stratford) Residents Association Limited
1
Saxon Park Management Company Limited
1
Seagrave Park Residents Management Company Limited
7
Seaham Garden Village Residents Management Company Limited
16
Sherdley Green Residents Management Company Limited
16
Sherford 1A Parcel 4 Management Company Limited
3
Sherford 1A Parcel 5 Management Company Limited
3
Sherford 1B Parcel EFGJ Management Company Limited
3
Sherford Estate Management Company Limited
3
Shopwyke Lakes Chichester (Management) Company Limited
4
Southgate Maisonettes (27 and 28) Limited
1
Speakman Gardens Residents Association Limited
1
St Augustines Place Herne Bay Management Company Limited
4
St Crispin Area H Management Company Limited
1
St Dunstans Apartment Management Company Limited*
1
St Mary View Management Company Limited
16
Stanbury View (Parklands) Management Company Limited
22
Stanhope Fields Residents Management Company Limited
34
Stanhope Gardens (Wellesley) (Block A) Residents Management Company Limited
22
Stanhope Gardens (Wellesley) (Block F) Residents Management Company Limited
22
Stanhope Gardens (Wellesley) (Block G) Residents Management Company Limited
22
Stanhope Gardens (Wellesley) (Blocks B-D) Residents Management Company Limited
22
Stonebrooke Gardens Management Company Limited
20
Stoneridge Hall Residents Management Company Limited
17
Stortford Fields (Parcel U) Management Company Limited
14
Stortford Fields Apartments (Parcel U) Management Company Limited
14
Stortford Fields Estate Management Company Limited
10
Stour Valley Management Phase 1 Limited
29
Summer Downs Residents Management Company Limited
1
Sunderland House (Handley Gardens) Resident Management Company Limited
3
Particulars of subsidiaries, associates and joint ventures continued
235
Shareholder information
Strategic report
Directors’ report
Financial statements
Company name
Reference
Telford Millennium Management Company Limited
1
Tent 1 Management Company Limited
11
Thamesview (Plots 425 to 560) Residents Association Limited
1
The Apartments at Lindridge Chase Residents Management Company Limited
15
The Arboretum (Haverhill) Residents Management Company Limited
8
The Asps Residents Management Company Limited
16
The Atrium (Overstone) Residents Management Company Limited
8
The Avenue Number 4 Management Company Limited
1
The Avenue Number 5 Management Company Limited
1
The Beaumont Park Management Company Limited*
1
The Breme Park (Bromsgrove) Management Company Limited
1
The Bridge Estate Management Company Limited*
6
40
The Burleigh Rise Management Company Limited*
1
The Coach Houses (Northampton) Residents Association Limited
1
The Copse (Mawsley) Management Company Limited
7
The Grange at Newton Management Company Limited
3
The Grange Number One Desborough Management Company Limited
1
The Heath RMC Limited
3
The Highgate (Durham) Management Company Limited*
1
The Junction Flat Management Company Limited*
1
The Laurels (Kirby Cross) Management Company Limited
18
The Merriemont Management Company Limited*
1
The Middlefield Springs Management Company Limited
3
The Orchard (Hadham) Residents Management Company Limited
8
The Orchard (Willow Street) Management Company Limited
1
The Orchard Grove (Playground) Management Company Limited*
1
The Pennington Wharf Community Management Company Limited
8
The Quarters Quedgeley Management Company Limited
3
The Ruxley Towers Management Company Limited*
1
The Seasons Residents Association Limited
1
The Silverdale 9 Flats Management Company Limited
1
The Silverdale 9 Houses Management Company Limited
1
The Skylarks (Warfield) Management Company Limited
22
The Spinney Residents Management Company Limited*
1
Company name
Reference
The Swan Gardens Management Company Limited*
1
The Vale RMC Limited
3
The Weekley Wood Management Company Limited*
1
The Wharf Lane (Solihull) No.1 Management Company Limited
1
The Willowfields Management Company Limited*
1
The Woodlands At Shevington Management Company Limited
11
The Woodway Gate Management Company No.1 Limited
1
Vision at Meanwood Residents Management Company Limited
16
Watton Management Company Limited*
4
28
Webheath (Redditch) Management Company Limited
3
Wellington Paddocks (Walmer) Management Company Limited
1
Westbridge Park (Auckley) Management Company Limited
11
Whalley Road (Barrow) Management Company Limited
8
White House Farm (Emersons Green) Management Company Limited
4
White Land (Forum) Management Company Limited
3
Whitehouse Farm Apartments (Emersons Green) Management Company Limited
18
Willow Lake (Bletchley One) Management Company Limited
3
Willow Lake (Bletchley Two) Management Company Limited
3
Willowcroft (SM) Management Company Limited
7
Windermere Grange Residents Management Company Limited
15
Winnington Village Community Management Company Limited
11
Woodside Vale (Leeds) Residents Management Company Limited
16
Wool Gardens (Crewkerne) Management Company Limited
4
Wootton Meadows Residents Association Limited
1
Worlebury House Apartments Residents Management Company Limited
21
Wrexham Road Garden Village Management Company Limited
8
Wyrley View Residents Management Company Limited
25
* Private Limited Company.
1 60% ownership.
2 17.2% ownership.
3 50% ownership.
4 33.3% ownership.
5 11.11% ownership.
6 18.4% ownership.
7
Group representatives on Board only.
Particulars of subsidiaries, associates and joint ventures continued
Taylor Wimpey plc
Annual Report and Accounts 2024
236
Reference
Registered address
1
Gate House, Turnpike Road, High Wycombe, Buckinghamshire, HP12 3NR
2
Newton House, 2 Sark Drive, Newton Leys, Milton Keynes, MK3 5SD
3
Queensway House, 11 Queensway, New Milton, BH25 5NR
4
Fisher House, 84 Fisherton Street, Salisbury, SP2 7QY
5
94 Park Lane, Croydon, CR0 1JB
6
1 London Road, Brentwood, Essex, CM14 4QP
7
2 Hills Road, Cambridge, CB2 1JP
8
RMG House, Essex Road, Hoddesdon, EN11 0DR
9
Countryside House, The Drive, Great Warley, Brentwood, Essex, CM13 3AT
10
Gateway House, 10 Coopers Way, Southend-On-Sea, SS2 5TE
11
Chiltern House, 72-74 King Edward Street, Macclesfield, Cheshire, SK10 1AT
12
Unit 2, The Osiers Business Park, Laversall Way, Leicester, LE19 1DX
13
Redrow House, St. Davids Park, Ewloe, Flintshire, CH5 3RX
14
Imperial Place, Building 2, Maxwell Road, Borehamwood, WD6 1JN
15
Second Floor, Fore 2, Fore Business Park, Solihull, B90 4SS
16
Unit 7, Portal Business Park, Easton Lane, Tarporley, Cheshire, CW6 9DL
17
Cheviot House, Beaminster Way, Newcastle upon Tyne, NE3 2ER
18
Vantage Point, 23 Mark Road, Hemel Hempstead, HP2 7DN
19
Foundation House, Coach & Horses Passage, Tunbridge Wells, TN2 5NP
20
Boulton House, 17-21 Chorlton Street, Manchester, M1 3HY
21
730 Aztec West, Almondsbury, Bristol, BS32 4UE
22
Victoria House, 178-180 Fleet Road, Fleet, GU51 4DA
23
5 Market Yard Mews, 194-204 Bermondsey Street, London, SE1 3TQ
24
Suite 35, Interchange Business Centre, Howard Way, Newport Pagnell, MK16 9PY
25
Unit 2, Tournament Court, Edgehill Drive, Warwick, CV34 6LG
26
Unit 8, The Forum, Minerva Business Park, Peterborough, PE2 6FT
27
One Eleven, Edmund Street, Birmingham, West Midlands, B3 2HJ
28
11th Floor, Two Snow Hill, Birmingham, B4 6WR
29
13a, Building Two, Canonbury Yard, 190 New North Road, London, N1 7BJ
Reference
Registered address
30
1 Lumsdale Road, Stretford, Manchester, M32 0UT
31
28 Alexandra Terrace, Exmouth, Devon, EX8 1BD
32
2nd Floor, Citygate, St James’ Boulevard, Newcastle Upon Tyne, NE1 4JE
33
124 Thorpe Road, Norwich, NR1 1RS
34
Sandpiper House, Peel Avenue, Calder Park, Wakefield, WF2 7UA
35
13b St. George Wharf, London, SW8 2LE
36
The Arc, Springfield Drive, Leatherhead, Surrey, KT22 7LP
37
Colvedene Court, Wessex Way, Colden Common, Winchester, SO21 1WP
38
Washington House, Birchwood Park Avenue, Warrington, WA3 6GR
39
1st Floor, 2540 The Quadrant, Aztec West, Almondsbury, Bristol, BS32 4AQ
40
Prologis House, Blythe Gate, Blythe Valley Park, Solihull, B90 8AH
Particulars of subsidiaries, associates and joint ventures continued
237
Shareholder information
Strategic report
Directors’ report
Financial statements
2024
£m
2023
£m
2022
£m
2021
£m
2020
£m
Revenue
3,401.2
3,514.5
4,419.9
4,284.9
2,790.2
Profit on ordinary activities before financing
333.9
467.8
827.5
698.2
282.4
Adjust for: Share of results of joint ventures
(15.9)
2.4
15.9
5.4
7.9
Adjust for: Exceptional items
98.2
–
80.0
125.0
10.0
Operating profit
416.2
470.2
923.4
828.6
300.3
Net finance income/(costs)
2.3
3.6
(15.5)
(24.0)
(25.9)
Profit for the financial year before
taxation and exceptional items
418.5
473.8
907.9
804.6
274.4
Exceptional items
(98.2)
–
(80.0)
(125.0)
(10.0)
Taxation charge including taxation
on exceptional items
(100.7)
(124.8)
(184.3)
(124.1)
(47.4)
Profit for the financial year
219.6
349.0
643.6
555.5
217.0
Balance sheet
Intangible assets
1.5
2.6
4.2
6.6
8.1
Property, plant and equipment
21.9
22.0
17.3
21.7
24.0
Right-of-use assets
35.9
37.8
26.3
26.5
27.5
Interests in joint ventures
26.9
70.5
74.0
85.4
82.2
Other financial assets
10.8
10.3
10.0
10.0
–
Non-current trade and other receivables
14.9
28.1
12.2
27.5
26.3
Non-current assets (excluding tax)
111.9
171.3
144.0
177.7
168.1
Inventories
5,376.6
5,169.6
5,169.6
4,945.7
4,534.7
Other current assets
(excluding tax and cash)
130.4
124.4
191.2
168.2
189.1
Trade and other payables
excluding land creditors
(728.0)
(691.6)
(735.8)
(587.7)
(571.4)
Land creditors
(355.9)
(301.2)
(395.0)
(314.2)
(347.9)
Lease liabilities
(10.4)
(8.8)
(7.3)
(7.0)
(6.4)
Provisions
(161.7)
(124.9)
(106.7)
(125.4)
(70.6)
Net current assets
(excluding tax and net cash)
4,251.0
4,167.5
4,116.0
4,079.6
3,727.5
2024
£m
2023
£m
2022
£m
2021
£m
2020
£m
Trade and other payables
excluding land creditors
(78.7)
(80.9)
(76.7)
(137.1)
(131.8)
Land creditors
(272.0)
(214.9)
(330.6)
(492.2)
(328.0)
Retirement benefit obligations
(22.2)
(26.5)
(29.9)
(37.3)
(89.5)
Lease liabilities
(28.0)
(31.0)
(19.7)
(20.4)
(21.6)
Provisions
(145.0)
(161.8)
(183.6)
(119.7)
(59.9)
Non-current liabilities (excluding debt)
(545.9)
(515.1)
(640.5)
(806.7)
(630.8)
Cash and cash equivalents
647.4
764.9
952.3
921.0
823.0
Bank and other loans
(82.6)
(87.0)
(88.5)
(84.0)
(103.6)
Taxation balances
23.4
21.8
18.8
26.4
32.6
Basic net assets
4,405.2
4,523.4
4,502.1
4,314.0
4,016.8
Statistics
Basic earnings per share
6.2p
9.9p
18.1p
15.3p
6.3p
Adjusted basic earnings per share
8.4p
9.9p
19.8p
18.0p
6.5p
Tangible net assets per share
123.8p
127.1p
126.5p
118.1p
110.0p
Dividends paid (pence per share)
9.59
9.57
9.06
8.28
–
Number of ordinary shares in issue
at the year end (millions)
3,557.0
3,557.0
3,557.0
3,648.6
3,645.4
UK short term landbank (plots)
78,626
80,323
82,830
85,376
77,435
UK average selling price (£000)
319
324
313
300
288
UK completions (homes including JVs)
10,089
10,438
13,773
14,087
9,609
Five year review (unaudited)
Taylor Wimpey plc
Annual Report and Accounts 2024
238
Dear shareholder,
Annual General Meeting (AGM)
The 2025 AGM of Taylor Wimpey plc (the Company) will be held in the Gerrards Suite at the Crowne
Plaza Gerrards Cross, Oxford Road, Beaconsfield, HP9 2XE on Wednesday 30 April 2025 at 10:30am.
Attending the AGM
If you wish to attend and vote at the AGM in person, please bring your notice of availability with you.
It will help to authenticate your right to attend, speak and vote, and will help us to register your
attendance without delay.
For the safety and comfort of those attending the AGM, large bags, cameras, recording equipment
and similar items will not be allowed into the building and in the interests of security, by attending the
AGM you hereby agree to be searched, upon request, together with any bags and other possessions.
There is wheelchair access to the venue for shareholders who require it or those with reduced mobility.
However, where required, attendees are strongly advised to bring their own carers to assist with their
general mobility around the venue. Directions to the venue can be found on the reverse of your notice
of availability.
Light refreshments comprising of tea, coffee and pastries will be available from 9:30am and after the
end of the AGM.
How to vote
If you would like to vote on the resolutions in this Notice of Meeting but cannot attend the AGM
either in person, or prefer to register your vote in advance, please register your proxy vote online at
www.signalshares.com. In order for your proxy vote to count, our Registrar must receive your proxy
form no later than 10:30am on Monday 28 April 2025. If you would like a proxy form, please contact
our Registrar on +44 (0)371 664 0300 and they will send one in the mail for you to complete and
return. Calls are charged at the standard geographic rate and will vary by provider. Calls outside
the United Kingdom will be charged at the applicable international rate. Lines are open between
9:00am and 5:30pm, Monday to Friday excluding public holidays in England and Wales.
If you are a CREST member, register your vote through the CREST system by completing and
transmitting a CREST proxy instruction as described in the procedural notes on pages 247 and 248.
If you are an institutional investor you may also be able to appoint a proxy electronically via the
Proxymity platform, a process which has been agreed by the Company and approved by the Registrar.
For further information regarding Proxymity, please go to www.proxymity.io.
Shareholder questions
In the event that shareholders are unable to attend the AGM, shareholders are invited to submit
questions by email to CoSec@taylorwimpey.com. Please provide any advance questions by 10:30am
on Monday 28 April 2025. The questions will be answered by the Board during the AGM. The answers
provided will be made available on the Company’s website as soon as practicable following the
conclusion of the AGM.
Should shareholders have further questions on the answers given to a question at the AGM, they may
submit follow-up questions by email to CoSec@taylorwimpey.com.
Recommendation
Your Directors are of the opinion that the resolutions are in the best interests of the Company and its
shareholders as a whole and recommend you to vote in favour of them. Each Director will be doing so
in respect of all of their own beneficial shareholding.
Yours faithfully,
Ishaq Kayani
Group General Counsel and Company Secretary
This Notice of Meeting is important and requires your immediate attention. If you are in any doubt as to the action
you should take, you are recommended to seek your own financial advice immediately from a stockbroker,
solicitor, bank manager, accountant, or other independent financial adviser authorised under the Financial
Services and Markets Act 2000.
If you have sold or otherwise transferred all of your shares in Taylor Wimpey plc, please pass this document
together with the accompanying documents to the purchaser or transferee, or to the person who arranged the
sale or transfer so they can pass these documents to the person who now holds the shares. If you have sold or
transferred part only of your holding of shares in the Company, please consult the person who arranged the sale
or transfer.
Notice of Annual General Meeting
239
Shareholder information
Strategic report
Directors’ report
Shareholder information
Directors’ report
Financial statements
Notice of Annual General Meeting
Notice is hereby given of the ninetieth Annual General Meeting (the AGM) of the Company to be held
on Wednesday 30 April 2025 at 10:30am in the Gerrards Suite at the Crowne Plaza Gerrards Cross,
Oxford Road, Beaconsfield, HP9 2XE for the purposes set out below.
Ordinary business
Ordinary resolutions:
1.
To receive the Directors’ Report, Strategic Report, Directors’ Remuneration Report, Independent
Auditors’ Report and Financial Statements for the year ended 31 December 2024.
2.
To declare due and payable on 9 May 2025 a final dividend of 4.66 pence per ordinary share of
the Company for the year ended 31 December 2024 to shareholders on the register at close of
business on 28 March 2025.
3.
To re-elect as a Director, Robert Noel.
4.
To re-elect as a Director, Jennie Daly CBE.
5.
To re-elect as a Director, Chris Carney.
6.
To re-elect as a Director, Lord Jitesh Gadhia.
7.
To re-elect as a Director, Irene Dorner.
8.
To re-elect as a Director, Scilla Grimble.
9.
To re-elect as a Director, Mark Castle.
10. To re-elect as a Director, Clodagh Moriarty.
11. To elect as a Director, Martyn Coffey.
12. To re-appoint PricewaterhouseCoopers LLP (PwC) as external Auditors of the Company,
to hold office until the conclusion of the next general meeting at which accounts are laid before
the Company.
13. Subject to the passing of resolution 12, to authorise the Audit Committee to determine the
remuneration of the external Auditors on behalf of the Board.
14. That the Board be generally and unconditionally authorised to allot shares in the Company and to
grant rights to subscribe for or convert any security into shares in the Company:
a. up to a nominal amount of £11,800,203 (such amount to be reduced by any allotments or
grants made under paragraph b below, in excess of £11,800,203); and
b. comprising equity securities (as defined in the Companies Act 2006) up to a nominal amount of
£23,600,406 (such amount to be reduced by any allotments or grants made under paragraph
a above) in connection with an offer by way of a rights issue:
i.
to ordinary shareholders in proportion (as nearly as may be practicable) to their existing
holdings; and
ii.
to holders of other equity securities as required by the rights of those securities or as the
Board otherwise considers necessary, and so the Board may impose any limits or restrictions
and make any arrangements which it considers necessary or appropriate to deal with
treasury shares, fractional entitlements, record dates, legal, regulatory or practical problems
in, or under the laws of, any territory or any other matter, such authorities to apply until the
end of the next Annual General Meeting of the Company (or, if earlier, until the close of
business on 29 July 2026) but, in each case, so that the Company may make offers and
enter into agreements during this period which would, or might, require shares to be allotted
or rights to subscribe for or convert securities into shares to be granted after the authority
ends; and the Board may allot shares or grant rights to subscribe for or convert securities
into shares under any such offer or agreement as if the authority had not ended.
Special resolutions:
15. That if resolution 14 is passed, the Board be given power to allot equity securities (as defined in the
Companies Act 2006) for cash under the authority given by that resolution and/or to sell ordinary
shares held by the Company as treasury shares for cash as if Section 561 of the Companies Act
2006 did not apply to any such allotment or sale, such power to be limited:
a. to the allotment of equity securities and sale of treasury shares in connection with an offer of,
or invitation to apply for, equity securities (but in the case of the authority granted under
paragraph b of resolution 14, by way of a rights issue only):
i.
to ordinary shareholders in proportion (as nearly as practicable) to their existing holdings; and
ii.
to holders of other equity securities, as required by the rights of those securities, or as the
Board otherwise considers necessary,
Notice of Annual General Meeting continued
Taylor Wimpey plc
Annual Report and Accounts 2024
240
and so that the Board may impose any limits or restrictions and make any arrangements which it
considers necessary or appropriate to deal with treasury shares, fractional entitlements, record
dates, legal, regulatory or practical problems in, or under the laws of, any territory or any other
matters; and
b. in the case of the authority granted under paragraph a of resolution 14 and/or in the case of
any sale of treasury shares, to the allotment of equity securities or sale of treasury shares
(otherwise than under paragraph a above) up to a nominal amount of £3,540,061.
c. to the allotment of equity securities or sale of treasury shares (otherwise than under paragraph
a or paragraph b above) up to a nominal amount equal to 20% of any allotment of equity
securities or sale of treasury shares from time to time under paragraph b above, such authority
to be used only for the purposes of making a follow-on offer which the Board of the Company
determines to be of a kind contemplated by paragraph 3 of Part 2B of the Statement of
Principles on Disapplying Pre-Emption Rights most recently published by the Pre-Emption
Group prior to the date of this notice.
Such power to apply until the end of the next Annual General Meeting of the Company
(or, if earlier, until the close of business on 29 July 2026) but, in each case, during this period
the Company may make offers, and enter into agreements, which would, or might, require equity
securities to be allotted (and treasury shares to be sold) after the power ends and the Board may
allot equity securities (and sell treasury shares) under any such offer or agreement as if the power
had not ended.
16. That if resolution 14 is passed, the Board be given the power in addition to any power granted
under resolution 15 to allot equity securities (as defined in the Companies Act 2006) for cash under
the authority granted under paragraph a of resolution 14 and/or to sell ordinary shares held by the
Company as treasury shares for cash as if Section 561 of the Companies Act 2006 did not apply
to any such allotment or sale, such power to be:
a. limited to the allotment of equity securities or sale of treasury shares up to a nominal amount
of £3,540,061; such authority to be used only for the purposes of financing (or refinancing,
if the authority is to be used within 12 months after the original transaction) a transaction which
the Board determines to be either an acquisition or a specified capital investment of a kind
contemplated by the Statement of Principles on Disapplying Pre-Emption Rights most recently
published by the Pre-Emption Group prior to the date of this Notice; and
b. limited to the allotment of equity securities or sale of shares (otherwise than under paragraph
a above) up to a nominal amount equal to 20% of any allotment of equity securities or sale
of treasury shares from time to time under paragraph a above, such authority to be used
only for the purposes of making a follow-on offer which the Board determines to be of a kind
contemplated by paragraph 3 of Part 2B of the Statement of Principles on Disapplying
Pre-Emption Rights most recently published by the Pre-Emption Group prior to the date of
this notice.
Such power to apply until the end of the next Annual General Meeting of the Company (or, if earlier,
until the close of business on 29 July 2026) but, in each case, during this period the Company
may make offers, and enter into agreements, which would, or might, require equity securities to
be allotted (and treasury shares to be sold) after the power ends and the Board may allot equity
securities (and sell treasury shares) under any such offer or agreement as if the authority had
not ended.
17. That the Company be authorised for the purposes of Section 701 of the Companies Act 2006 to
make market purchases (within the meaning of Section 693(4) of the Companies Act 2006)
of the ordinary shares of 1 pence each of the Company (ordinary shares), provided that:
a. the maximum number of ordinary shares hereby authorised to be purchased shall be 354,006,117;
b. the minimum price (exclusive of expenses) which may be paid for ordinary shares is 1 pence
per ordinary share;
c. the maximum price (exclusive of expenses) which may be paid for an ordinary share is the
highest of:
i.
an amount equal to 105% of the average of the middle market quotations for an ordinary
share (as derived from the London Stock Exchange Daily Official List) for the five business
days immediately preceding the date on which such ordinary share is purchased; and
ii.
the higher of the price of the last independent trade and the highest independent bid on
the trading venues where the purchase is carried out;
Notice of Annual General Meeting continued
241
Shareholder information
Strategic report
Directors’ report
Shareholder information
Directors’ report
Financial statements
d. the authority hereby conferred shall expire at the earlier of the conclusion of the next
Annual General Meeting of the Company and 29 October 2026 unless such authority is
renewed prior to such time; and
e. the Company may make contracts to purchase ordinary shares under the authority hereby
conferred prior to the expiry of such authority which will or may be executed wholly or partly
after the expiry of such authority and may purchase ordinary shares in pursuance of any
such contracts, as if the authority conferred by this resolution had not expired.
Special business
Ordinary resolutions:
18. That the Directors’ Remuneration Report for the year ended 31 December 2024, as set out on
pages 136 to 159 of the Annual Report and Accounts for the financial year ended 31 December
2024, be approved in accordance with Section 439 of the Companies Act 2006.
19. That in accordance with Sections 366 and 367 of the Companies Act 2006, the Company and
all companies which are its subsidiaries when this resolution is passed are authorised to:
a. make political donations to political parties and/or independent election candidates not
exceeding £250,000 in aggregate;
b. make political donations to political organisations other than political parties not exceeding
£250,000 in aggregate; and
c. incur political expenditure not exceeding £250,000 in aggregate, during the period beginning
with the date of passing this resolution and the conclusion of the next Annual General Meeting of
the Company.
For the purposes of this resolution the terms ‘political donations’, ‘political parties’, ‘independent
election candidates’, ‘political organisations’ and ‘political expenditure’ have the meanings given by
Sections 363 to 365 of the Companies Act 2006.
Special resolution:
20. That a general meeting other than an Annual General Meeting of the Company may continue to be
called on not less than 14 clear days’ notice.
By order of the Board
Ishaq Kayani
Group General Counsel and Company Secretary
Taylor Wimpey plc
Gate House
Turnpike Road
High Wycombe
Buckinghamshire
HP12 3NR
Registered in England and Wales No. 296805
26 February 2025
Notice of Annual General Meeting continued
Taylor Wimpey plc
Annual Report and Accounts 2024
242
Explanatory notes to the resolutions
The notes on the following pages explain the proposed resolutions.
Resolutions 1 to 14, 18 and 19 are proposed as ordinary resolutions. This means that for each of
those resolutions to be passed, more than half of the vote cast must be in favour of the resolution.
Resolutions 15 to 17 and 20 are proposed as special resolutions. This means that for each of those
resolutions to be passed, at least three quarters of the votes cast must be in favour of the resolution.
Notwithstanding this, the Board is mindful of the Investment Association’s Public Register which
identifies any listed company that has received 20% or more votes against a resolution put up to
shareholders. If such circumstance arose, the Board would adhere to the requirements under the 2024
UK Corporate Governance Code (the Code).
Voting on the resolutions at the AGM will be by way of a poll, rather than on a show of hands. This is
a more transparent method of voting as shareholder votes are counted according to the number of
shares held and this will ensure an exact and definitive result.
Ordinary business
Ordinary resolutions
Ordinary resolutions require more than half of the votes cast to be in favour.
Resolution 1: To receive the Annual Report and Financial Statements
English company law requires the Directors to lay the Financial Statements of the Company for
the year ended 31 December 2024 and the reports of the Directors, namely the Strategic Report,
Directors’ Report, Directors’ Remuneration Report, and Auditors’ Report (the Annual Report);
before a general meeting of the Company.
Resolution 2: To declare a final dividend
The Directors recommend the payment of a final dividend of 4.66 pence per ordinary share in respect
of the year ended 31 December 2024. If approved at the AGM, the dividend will be paid on 9 May
2025 to shareholders who are on the Register of Members at the close of business on 28 March 2025.
Dividend Re-Investment Plan
Subject to shareholders approving the dividend as set out in resolution 2 at the AGM scheduled for
30 April 2025, the Company will be offering residents in the United Kingdom, Channel Islands or the
Isle of Man a Dividend Re-Investment Plan (DRIP). The DRIP is provided and administered by the DRIP
plan administrator, MUFG Corporate Markets Trustees (UK) Limited, which is authorised and regulated
by the Financial Conduct Authority (FCA). The DRIP offers shareholders the opportunity to elect to
invest cash dividends received on their ordinary shares, in purchasing further ordinary shares of the
Company. These shares would be bought in the market, on competitive dealing terms.
The DRIP will operate automatically in respect of the final dividend for 2024 (unless varied beforehand
by shareholders) and all future dividends, including any special dividends, until such time as you
withdraw from the DRIP or the DRIP is suspended or terminated in accordance with its terms
and conditions.
Shareholders are again reminded to check their position with regard to any dividend mandates that
are in place, should you wish to either participate in the DRIP or to discontinue or vary any participation,
as existing mandates will apply to all dividend payments (including special dividends) unless or
until revoked.
CREST
For shares held in uncertificated form (CREST), please note that elections continue to apply only to
one dividend and a fresh election must be made, via CREST, for each dividend.
Full details of the terms and conditions of the DRIP and the actions required to make or revoke an
election, both in respect of ordinary dividends (i.e. in this case, the 2024 final dividend) and any special
dividends, are available at www.signalshares.com or on request from the Registrar, MUFG Corporate
Markets, Central Square, 29 Wellington Street, Leeds, LS1 4DL, email: drip.enquiries@cm.mpms.
mufg.com or call +44 (0)371 664 0381. Calls are charged at the standard geographic rate and will
vary by provider. Calls outside the United Kingdom will be charged at the applicable international rate.
The Registrar is open between 9:00am and 5:30pm, Monday to Friday excluding public holidays in
England and Wales.
Resolutions 3-11: Election and re-election of Directors
In accordance with the Code which states that all directors should be subject to annual election by
shareholders, the Board has resolved that all Directors of the Company will retire and, being eligible,
offer themselves for election or re-election, as appropriate, by shareholders at the AGM.
Notice of Annual General Meeting continued
243
Shareholder information
Strategic report
Directors’ report
Shareholder information
Directors’ report
Financial statements
Details of the Directors’ service contracts, remuneration, and interests in the Company’s shares and
other securities are given in the Directors’ Remuneration Report to shareholders on pages 136 to 159
of this Annual Report and Accounts. Full biographical information concerning each Director can be
found on pages 104 to 106 of the Annual Report and Account.
The following summary information is given in support of the Board’s proposal for each Director
standing for election or re-election, as appropriate.
Robert Noel – offers himself for re-election
Robert has been a Non Executive Director since 1 October 2019; the Company’s Senior Independent
Director between 21 April 2020 and 27 April 2023; and the Board’s Employee Champion between
26 April 2022 and 27 April 2023. Robert formally assumed the position of Chair on 27 April 2023.
The Board is satisfied that he is independent in character and judgement in applying his expertise
in chairing meetings of the Board and of the Nomination and Governance Committee, and that he
will be able to allocate sufficient time to the Company to discharge his responsibilities effectively.
Robert has experience as a Chair and as a Chief Executive of listed companies and has particularly
deep property expertise which assists the Board in assessing large scale land opportunities.
Jennie Daly CBE – offers herself for re-election
Jennie has been Chief Executive since 26 April 2022 following the conclusion of the AGM,
having previously been the Group Operations Director since 20 April 2018.
Chris Carney – offers himself for re-election
Chris has been the Group Finance Director since 20 April 2018.
Lord Jitesh Gadhia – offers himself for re-election
Jitesh has been a Non Executive Director since 1 March 2021 and was appointed as the Company’s
Senior Independent Director with effect from 1 December 2024. The Board is satisfied that he
is independent in character and judgement in applying his expertise at meetings of the Board, the
Remuneration Committee (of which he was appointed Chair on 26 April 2022) and the Nomination
and Governance Committee, and that he will be able to allocate sufficient time to the Company to
discharge his responsibilities effectively, including as Senior Independent Director. Jitesh’s executive
and non executive experience and involvement in public affairs gives an additional perspective to the
Board dynamic. He has extensive remuneration committee experience and serves as Chair of the
Remuneration Committee of Compare The Market Limited and Rolls-Royce Holdings plc.
Irene Dorner – offers herself for re-election
Irene was appointed as a Non Executive Director and Chair-Designate on 1 December 2019.
Irene was the Company’s Chair and Chair of the Nomination and Governance Committee from
26 February 2020 to 27 April 2023. Irene has strong leadership skills, coupled with deep commercial
experience. On standing down as Chair in 2023, and in accordance with the Code, she became
a non independent Non Executive Director and continues to provide an effective contribution to
the Board and the Nomination and Governance Committee, and the further development of the
Group’s strong cultural principles.
Scilla Grimble – offers herself for re-election
Scilla has been a Non Executive Director since 1 March 2021 and on 1 September 2024 was
appointed Chair of the Audit Committee. The Board is satisfied that she is independent in character
and judgement in applying her expertise at meetings of the Board, the Audit Committee and the
Nomination and Governance Committee, and that she will be able to allocate sufficient time to the
Company to discharge her responsibilities effectively. Scilla has significant financial, risk, technology
and property experience. Scilla has detailed knowledge and experience of financial reporting for
listed companies and therefore is considered by the Board to have the relevant skills and experience
to chair the Audit Committee.
Mark Castle – offers himself for re-election
Mark was appointed as a Non Executive Director on 1 June 2022, and was appointed as the Board’s
Employee Champion on 27 April 2023. The Board is satisfied that he is independent in character and
judgement in applying his expertise at meetings of the Board, the Audit Committee, the Remuneration
Committee and the Nomination and Governance Committee, and that he will be able to allocate
sufficient time to the Company to discharge his responsibilities effectively. Mark brings significant
operational experience in all aspects of the construction sector, including as Chief Operating Officer
of Mace Group Limited until 2021.
Clodagh Moriarty – offers herself for re-election
Clodagh was appointed as a Non Executive Director on 1 June 2022. The Board is satisfied that she
is independent in character and judgement in applying her expertise at meetings of the Board, the
Remuneration Committee, and the Nomination and Governance Committee, and that she will be able
to allocate sufficient time to the Company to discharge her responsibilities effectively. Clodagh has
extensive customer-focused experience across retail, strategy, digital transformation and e-commerce.
Notice of Annual General Meeting continued
Taylor Wimpey plc
Annual Report and Accounts 2024
244
Martyn Coffey – offers himself for election
Martyn was appointed as a Non Executive Director on 1 December 2024 and offers himself for election
by shareholders to the Board. The Board is satisfied that he is independent in character and judgement
in applying his expertise at meetings of the Board, the Audit Committee and the Nomination and
Governance Committee, and that he will be able to allocate sufficient time to the Company to
discharge his responsibilities effectively. Martyn brings a wealth of experience in the area of
manufacturing for the building industry and of supply chains, having previously been the CEO of
Marshalls Plc for over ten years and a Non Executive Director of Eurocell Plc for eight years.
The Board confirms that each of the above Directors (other than Martyn Coffey who joined recently)
has during 2024 been subject to formal performance evaluation, details of which are set out in the
Nomination and Governance Committee Report on pages 123 and 124, and that each continues to
demonstrate commitment and is an effective member of the Board who is able to devote sufficient
time in line with the Code to fulfil their role and duties.
Resolution 12: Re-appointment of PwC as external Auditors of the Company
The Company is required to appoint external Auditors at each general meeting at which accounts are
laid before the shareholders. It is therefore proposed that the external Auditors are appointed from the
conclusion of the 2025 AGM until the conclusion of the next general meeting at which accounts are
laid before shareholders. The Board recommends the re-appointment of PwC as the Company’s
external Auditors.
Resolution 13: Authorisation of the Audit Committee to agree on behalf of the Board the
remuneration of PwC as external Auditors
The Board seeks shareholders’ authority for the Audit Committee to determine on behalf of the Board
the remuneration of the external Auditors for their services. The Board has adopted a procedure
governing the appointment of the external Auditors to carry out non-audit services, details of which
are given in the Audit Committee report. Details of non-audit services performed by the external
Auditors in 2024 are given in Note 6 on page 194 of the Annual Report.
Resolution 14: Authority to allot shares
The Directors wish to renew the existing authority to allot unissued shares in the Company, which was
granted at the Company’s last AGM held on 23 April 2024 which is due to expire at the conclusion of
this AGM. Accordingly, paragraph a of resolution 14 would give the Directors the authority to allot
ordinary shares or grant rights to subscribe for or convert any securities into ordinary shares up to
an aggregate nominal amount equal to £11,800,203 (representing 1,180,020,300 ordinary shares).
This amount represents approximately one third of the issued ordinary share capital of the Company
as at 20 February 2025, the latest practicable date prior to publication of this Notice of Meeting.
In line with guidance issued by The Investment Association (The IA), paragraph b of resolution 14
would give the Directors authority to allot ordinary shares or grant rights to subscribe for or convert
any securities into ordinary shares in connection with a rights issue in favour of ordinary shareholders
up to an aggregate nominal amount equal to £23,600,406 (representing 2,360,040,600 ordinary
shares), as reduced by the nominal amount of any shares issued under paragraph a of resolution 14.
This amount (before any reduction) represents approximately two thirds of the issued ordinary share
capital of the Company as at 20 February 2025, the latest practicable date prior to publication of
this Notice of Meeting.
The Company holds 16,923,924 shares in treasury.
The authorities sought under paragraphs a and b of resolution 14 will expire at the earlier of 29 July
2026 and the conclusion of the next Annual General Meeting of the Company.
The Directors have no present intention to exercise either of the authorities sought under this resolution.
However, if they do exercise the authorities, the Directors intend to follow The IA recommendations
concerning their use (including as regards the Directors standing for re-election in certain cases).
Special Resolutions
Special resolutions require at least three quarters of the votes cast to be in favour.
Resolutions 15 and 16: Authority to dis-apply pre-emption rights
Resolutions 15 and 16 would give the Directors the power to allot ordinary shares (or sell any
ordinary shares which the Company holds in treasury) for cash without first offering them to existing
shareholders in proportion to their existing shareholdings.
Notice of Annual General Meeting continued
245
Shareholder information
Strategic report
Directors’ report
Shareholder information
Directors’ report
Financial statements
The Company follows the principles set out by The Pre-Emption Group and has taken the opportunity
to increase the proportion of issued capital (excluding treasury shares) which may be allotted on the
basis contemplated by resolutions 15 and 16, in each case as permitted in the Statement of Principles
on Disapplying Pre-Emption Rights most recently published by the Pre-Emption Group prior to the
date of this notice (the Pre-emption Principles).
The power set out in resolution 15 seeks to renew the Directors’ power to allot shares or grant rights
to subscribe for, or convert securities into, shares or sell treasury shares where they propose to do so
for cash (other than pursuant to an employee share scheme) otherwise than to existing shareholders
pro-rata to their holdings (i.e. non pre-emptively), as permitted by the Articles. The power will be
limited to:
a.
the allotment of shares for cash in connection with a rights issue, to allow the Directors to make
appropriate exclusions and other arrangements to resolve legal or practical problems which,
for example, might arise in relation to overseas shareholders;
b.
the allotment of shares and treasury shares for cash up to an aggregate nominal value of
£3,540,061 being approximately 10 percent of the issued ordinary share capital (excluding
treasury shares) at 20 February 2025, the latest practicable date prior to publication of this
Notice of Meeting; and
c.
the allotment of shares and treasury shares for cash up to an aggregate nominal value of
£708,012, being approximately 2 percent of the issued ordinary share capital (excluding treasury
shares) at 20 February 2025, the latest practicable date prior to publication of this Notice of
Meeting, for the purposes of making a follow-on offer which the Board determines to be of
a kind contemplated by paragraph 3 of Part 2B of the Pre-emption Principles.
Resolution 16 is a special resolution which seeks to give the Directors power to make
non-pre-emptive issues of ordinary shares in connection with acquisitions and other capital
investments as contemplated by the Pre-emption Principles. This power is intended to give
the Directors flexibility in managing the Company’s capital resources and is in addition to that proposed
by resolution 15. It would be limited to allotments or sales of shares and treasury shares for cash up to:
(i)
an aggregate nominal value of £3,540,061, being approximately 10 percent of the issued ordinary
share capital (excluding treasury shares) at 20 February 2025, the latest practicable date prior to
publication of this Notice of Meeting; and
(ii)
an aggregate nominal value of £708,012, being approximately 2 percent of the issued ordinary
share capital (excluding treasury shares) at 20 February 2025, the latest practicable date prior
to publication of this Notice of Meeting, for the purposes of making a follow-on offer which
the Board determines to be of a kind contemplated by paragraph 3 of Part 2B of the
Pre-emption Principles.
If given, these authorities will expire at the conclusion of the Annual General Meeting in 2026 or
at the close of business on 29 July 2026, whichever is the earlier (unless previously renewed,
varied or revoked by the Company in a general meeting).
The Board will continue to seek to renew these authorities at each Annual General Meeting in
accordance with best practice.
Resolution 17: Authority to make market purchases of shares
This resolution authorises the Company to make market purchases of its own ordinary shares as
permitted by the Companies Act 2006.
Any purchases under this authority would be made in one or more tranches and would be limited
in aggregate to 10% of the ordinary shares of the Company in issue at the close of business on
20 February 2025.
The minimum price (exclusive of expenses) which may be paid for an ordinary share is 1 pence per
ordinary share. The maximum price to be paid on any exercise of the authority would not exceed the
highest of:
(i)
105% of the average of the middle market quotations for the Company’s ordinary shares for the
five business days immediately preceding the date of the purchase; and
(ii)
the higher of the price of the last independent trade and the highest current independent bid on the
trading venues where the purchase is carried out.
Shares purchased pursuant to these authorities could be held as treasury shares, which the Company
can re-issue quickly and cost-effectively, providing the Company with additional flexibility in the
management of its capital base. The total number of shares held as treasury shares shall not at any
one time exceed 10% of the Company’s issued share capital. Accordingly, any shares bought back
over the 10% limit will be cancelled. As at 20 February 2025, the Company holds 16,923,924 shares
in treasury.
This is a standard resolution, sought by the majority of public listed companies at Annual General Meetings.
Notice of Annual General Meeting continued
Taylor Wimpey plc
Annual Report and Accounts 2024
246
The Board utilised this power during 2022 to return excess capital to its shareholders of £150 million
through buying back 116.9 million shares, of which 25,000,000 were held in treasury and the
remaining 91.9 million were cancelled. That share buyback is expected to benefit shareholders through
the opportunity for increased future dividends per share on the remaining shares. The shares held in
treasury have been and continue to be used for obligations of the Company in respect of its employee
share schemes, and are currently being used to meet the exercise of Sharesave options and the
vesting of Performance Share Plan awards, as described in more detail in Note 26 on page 215.
The Directors have no present intention of exercising this authority other than for the reasons stated
above, but will keep the matter under review, and would do so only after careful consideration, taking
into account market conditions, the cash reserves of the Company, the Company’s share price,
appropriate gearing levels, other investment opportunities and the overall financial position of the
Company. The authority will be exercised only if the Board believe that to do so would result in an
increase in earnings per share and would be likely to promote the success of the Company for the
benefit of its shareholders as a whole.
The total number of options and conditional share awards to subscribe for ordinary shares outstanding
as at the close of business on 20 February 2025 was 28,601,621, representing approximately 0.8%
of the issued ordinary share capital of the Company as at that date and approximately 0.9% of
the Company’s issued ordinary share capital following any exercise in full of this authority to make
market purchases.
This authority will last until the earlier of 29 October 2026 and the conclusion of the Company’s next
Annual General Meeting.
Special business
Ordinary resolutions
Ordinary resolutions require more than half of the votes cast to be cast in favour.
Resolution 18: Approval of the Directors’ Remuneration Report
The Remuneration Committee of the Board (the Committee) is seeking shareholders’ approval of the
Directors’ Remuneration Report in resolution 18 which will be proposed as an ordinary resolution.
The Directors are required to prepare the Directors’ Remuneration Report, comprising an annual report
detailing the remuneration of the Directors, a statement by the Chair of the Committee and the
Remuneration at a glance section. The Company is required to seek shareholders’ approval in respect
of the contents of this Report on an annual basis. This vote on the Directors’ Remuneration Report is
an advisory one only.
Resolution 19: Authority to make political donations
In order to comply with its obligations under the Companies Act 2006 and to avoid any inadvertent
infringement of that Act, the Board wishes to renew its existing authority for a general level of political
donation and/or expenditure. Resolution 19 seeks to renew the existing authority for the Company to
make political donations and incur political expenditure.
The Companies Act 2006 requires this authority to be divided into three heads (as set out in resolution
19) with a separate amount specified as permitted for each. An amount not exceeding £250,000
for each head of the authority has been proposed. In accordance with the Companies Act 2006,
resolution 19 extends approval to all of the Company’s subsidiaries.
This authority will expire at the conclusion of the next Annual General Meeting of the Company unless
renewal is sought at that meeting.
The Company and the Group do not make any donations to political parties or organisations and
do not intend to going forward, but do support certain industry-wide bodies such as the Home
Builders Federation in the UK. Whilst the Board does not regard this as political in nature, in certain
circumstances such support together with donations made for charitable or similar purposes could
possibly be treated as a donation to a political organisation under the relevant provisions of the
Companies Act 2006. For example, a donation to a humanitarian charity which may also operate
as a political lobby, sponsorship, subscriptions, paid leave to employees fulfilling public duties and
payments to industry representative bodies could constitute a donation to a political organisation
within the current definitions in the Companies Act 2006.
Details of the Company’s and the Group’s charitable donations appear on page 18 of the Annual
Report and Accounts.
Notice of Annual General Meeting continued
247
Shareholder information
Strategic report
Directors’ report
Shareholder information
Directors’ report
Financial statements
Special resolution
Special resolutions require at least three quarters of votes cast to be in favour.
Resolution 20: Notice of general meetings
The Companies (Shareholders’ Rights) Regulations 2009 have increased the notice period required
for general meetings of the Company to 21 clear days unless shareholders agree to a shorter notice
period, which cannot be less than 14 clear days. At the last AGM, a resolution was passed approving
the Company’s ability to call general meetings (other than Annual General Meetings, which will continue
to be held on at least 21 clear days’ notice) on not less than 14 clear days’ notice. As this approval will
expire at the conclusion of this AGM, resolution 20 proposes its renewal. The shorter notice period of
14 clear days would not be used as a matter of routine for any general meeting, but only where the
flexibility is merited by the business of a particular meeting and is thought to be to the advantage of
shareholders as a whole. The renewed approval will be effective until the Company’s next Annual
General Meeting, when it is intended that a similar resolution will be proposed.
Note that in order to be able to call a general meeting on less than 21 clear days’ notice, the Company
must make available electronic voting to all shareholders in respect of that meeting.
Procedural notes
1.
To be entitled to attend and vote at the AGM (and for the purpose of the determination by the
Company of the votes which shareholders may cast), shareholders must be registered on the
Register of Members of the Company by 6:00pm on Monday 28 April 2025 (or, in the event of any
adjournment, on the date which is two working days before the time of the adjourned meeting).
2.
As at 20 February 2025 (being the latest practicable date prior to the publication of this Notice)
the Company’s issued share capital consisted of 3,556,985,103 ordinary shares, carrying one vote
each. The Company holds 16,923,924 shares in treasury. Therefore, the total voting rights in the
Company as at 20 February 2025 were 3,540,061,179.
3.
A shareholder entitled to attend and vote at the AGM may appoint a proxy or proxies to exercise
all or any of their rights at the AGM. A proxy need not be a shareholder of the Company. In the
case of joint holders, where more than one of the joint holders purports to appoint a proxy, only the
appointment submitted by the most senior holder will be accepted. Seniority is determined by the
order in which the names of the joint holders appear in the Company’s Register of Members in
respect of the joint holdings (the first-named being the most senior).
4.
To be valid, any proxy appointment must be received by MUFG Corporate Markets at FREEPOST
PXS 1, Central Square, 29 Wellington Street, Leeds, LS1 4DL or, electronically via the internet at
www.signalshares.com or, if you are a member of CREST, via the service provided by Euroclear
UK and International Limited at the electronic address provided in note 9, or via the Proxymity
platform in each case no later than 10:30am on Monday 28 April 2025. Please note that all proxy
appointments received after this time will be void. A proxy appointment sent electronically at any
time that is found to contain any virus will not be accepted.
5.
If you require a paper proxy form, or if you require additional forms, please contact MUFG
Corporate Markets, by email at shareholderenquiries@cm.mpms.mufg.com, or by telephone
on +44 (0)371 664 0300 (calls are charged at the standard geographic rate and will vary by
provider. Calls outside the United Kingdom will be charged at the applicable international rate.
Lines are open between 9:00am to 5:30pm, Monday to Friday excluding public holidays in
England and Wales).
6.
Any person to whom this notice is sent who is a person nominated under Section 146 of the
Companies Act 2006 to enjoy information rights (a ‘Nominated Person’) may, under an agreement
between them and the shareholder by whom they were nominated, have a right to be appointed
(or to have someone else appointed) as a proxy for the AGM. If a Nominated Person has no such
proxy appointment right or does not wish to exercise it, they may, under any such agreement,
have a right to give instructions to the shareholder as to the exercise of voting rights. Such persons
should direct any communications and enquiries to the registered holder of the shares by whom
they were nominated and not to the Company or its Registrar.
7.
The statement of the rights of shareholders in relation to the appointment of proxies in notes 3 and
4 above does not apply to Nominated Persons. The rights described in these notes can only be
exercised by shareholders of the Company.
8.
CREST members who wish to appoint a proxy or proxies through the CREST electronic proxy
appointment service may do so by using the procedures described in the CREST Manual. CREST
personal members or other CREST sponsored members, and those CREST members who have
appointed a service provider(s), should refer to their CREST sponsor or voting service provider(s),
who will be able to take the appropriate action on their behalf.
Notice of Annual General Meeting continued
Taylor Wimpey plc
Annual Report and Accounts 2024
248
9.
In order for a proxy appointment or instruction made using the CREST service to be valid,
it must be properly authenticated in accordance with Euroclear UK and International Limited’s
specifications, and must contain the information required for such instruction, as described in
the CREST Manual (available via www.euroclear.com). The message, regardless of whether it
constitutes the appointment of a proxy or is an amendment to the instruction given to a previously
appointed proxy must, in order to be valid, be transmitted so as to be received by the issuer’s
agent (ID RA10) by 10:30am on Monday 28 April 2025. For this purpose, the time of receipt will
be taken to be the time (as determined by the time stamp applied to the message by the CREST
Application Host) from which the issuer’s agent is able to retrieve the message by enquiry to
CREST in the manner prescribed by CREST. After this time any change of instructions to proxies
appointed through CREST should be communicated to the appointee through other means.
10. The Company may treat as invalid a CREST Proxy instruction in the circumstances set out in
Regulation 35(5)(a) of the Uncertificated Securities Regulations 2001.
If you are an institutional investor you may also be able to appoint a proxy electronically via the
Proxymity platform, a process which has been agreed by the Company and approved by the
Registrar. For further information regarding Proxymity, please go to www.proxymity.io. Your proxy
must be lodged by 10:30am on Monday 28 April 2025 in order to be considered valid or, if the
meeting is adjourned, by the time which is 48 hours before the time of the adjourned meeting.
Before you can appoint a proxy via this process you will need to have agreed to Proxymity’s
associated terms and conditions. It is important that you read these carefully as you will be
bound by them and they will govern the electronic appointment of your proxy. An electronic proxy
appointment via the Proxymity platform may be revoked completely by sending an authenticated
message via the platform instructing the removal of your proxy vote.
11. Any corporation which is a member can appoint one or more corporate representatives who may
exercise on its behalf all of its powers as a member provided that they do not do so in relation to
the same shares.
12. Members meeting the threshold requirements set out in Section 527 of the Companies Act 2006
have the right to require the Company to publish on a website a statement setting out any matter
relating to:
•
The audit of the Company’s accounts (including the Auditors’ Report and the conduct of the
audit) that are to be laid before the AGM; or
•
Any circumstance connected with an auditor of the Company ceasing to hold office since the
previous meeting at which annual accounts and reports were laid in accordance with Section
437 of the Companies Act 2006.
The Company may not require the shareholders requesting any such website publication to pay
its expenses in complying with Sections 527 or 528 of the Companies Act 2006. Where the
Company is required to place a statement on a website under Section 527 of the Companies Act
2006, it must forward the statement to the Company’s external Auditors no later than the time
when it makes the statement available on the website. The business which may be dealt with at
the AGM includes any statement that the Company has been required under Section 527 of the
Companies Act 2006 to publish on a website.
13. Under Section 319A of the Companies Act 2006, shareholders have the right to ask questions at
the AGM relating to the business of the AGM. The Company must cause to be answered any such
question relating to the business being dealt with at the AGM but no such answer need be given if:
(i) to do so would interfere unduly with the preparation for the meeting or involve the disclosure
of confidential information; (ii) the answer has already been given on a website in the form of an
answer to a question; or (iii) it is undesirable in the interests of the Company or the good order of
the AGM that the question be answered.
14. Shareholders have the right to request information to enable them to determine that their vote
on a poll was validly recorded and counted. If you require confirmation please contact MUFG
Corporate Markets, by email at shareholderenquiries@cm.mpms.mufg.com, or by telephone
on +44 (0)371 664 0300 (calls are charged at the standard geographic rate and will vary by
provider. Calls outside the United Kingdom will be charged at the applicable international rate.
Lines are open between 9:00am to 5:30pm, Monday to Friday excluding public holidays in
England and Wales).
15. A copy of this Notice, and other information required by Section 311A of the Companies Act 2006,
can be found at www.taylorwimpey.co.uk/corporate.
16. Voting on all resolutions at this year’s AGM will be conducted by way of a poll. The results
of the poll will be announced via a Regulatory Information Service and made available at
www.taylorwimpey.co.uk/corporate as soon as practicable after the AGM.
Notice of Annual General Meeting continued
249
Shareholder information
Strategic report
Directors’ report
Shareholder information
Directors’ report
Financial statements
17. A copy of the Company’s Articles of Association will be available for inspection during normal
business hours (excluding Saturdays, Sundays and public holidays) at the Company’s registered
office: Gate House, Turnpike Road, High Wycombe, Buckinghamshire, HP12 3NR from the date
of this Notice until the close of the AGM.
18. The documents listed below are available for inspection at an agreed time at the Company’s
registered office. If you wish to inspect these documents, email CoSec@taylorwimpey.com during
normal business hours (excluding Saturdays, Sundays and public holidays). Copies of these
documents will also be available before and during the AGM.
•
Copies of the Executive Directors’ service contracts.
•
Copies of the letters of appointment of the Chair of the Board and the Non Executive Directors.
•
A copy of the full Annual Report and Accounts of the Company for the year ended 31 December
2024, including the Directors’ Remuneration Report referred to in resolution 18. This document
is also available on our corporate website.
19. Personal data provided by shareholders at or in relation to the AGM (including names, contact
details, votes and Investor Codes), will be processed in line with the Company’s privacy policy
which is available at www.taylorwimpey.co.uk/privacy-policy.
20. Under sections 338 and 338A of the Companies Act 2006, shareholders meeting the threshold
requirements in those sections have the right to require the Company:
i.
to give, to shareholders of the Company entitled to receive notice of the Annual General
Meeting, notice of a resolution which may properly be moved and is intended to be moved
at that meeting, and/or
ii.
to include in the business to be dealt with at that meeting any matter (other than a proposed
resolution) which may be properly included in the business. A resolution may properly be moved
or a matter may properly be included in the business unless:
a. (in the case of a resolution only) it would, if passed, be ineffective (whether by reason of
inconsistency with any enactment or the Company’s constitution or otherwise);
b. it is defamatory of any person; or
c. it is frivolous or vexatious.
Such a request may be in hard copy form or in electronic form, must identify the resolution of
which notice is to be given or the matter to be included in the business, must be authenticated
by the person or persons making it, must have been received by the Company no later than
18 March 2025, being the date six clear weeks before the Annual General Meeting, or if later,
the time at which Notice of the Annual General Meeting is given and (in the case of a matter to
be included in the business only) must be accompanied by a statement setting out the grounds
for the request.
Notice of Annual General Meeting continued
Taylor Wimpey plc
Annual Report and Accounts 2024
250
Web communications
The Company makes documents and information available to shareholders by electronic means
and via a website, rather than by sending hard copies. This way of communicating is enabled
in accordance with the Companies Act 2006, Rule 6 of the Disclosure and Transparency Rules
and the Company’s Articles of Association.
Making documents and information available electronically:
a.
Enables the Company to reduce printing and postage costs;
b.
Allows faster access to information and enables shareholders to access documents on the
day they are published on the Company’s website; and
c.
Reduces the amount of resources consumed, such as paper, and lessens the impact of printing
and mailing activities on the environment.
The Company provides hard copy documentation to those shareholders who have requested this and
is, of course, happy to provide hard copies to any shareholders upon request.
The Company’s website is www.taylorwimpey.co.uk and shareholder documentation made available
electronically is generally accessible at www.taylorwimpey.co.uk/corporate.
Electronic communications
The Company also encourages shareholders to elect to receive notification of the availability
of Company documentation by means of an email. Shareholders can sign up for this facility
by registering at www.signalshares.com.
Online facilities for shareholders
You can access our Annual Report and Accounts, half year and full year statements, and copies of
recent shareholder communications online via our corporate website.
You can manage your shareholding in Taylor Wimpey plc via MUFG Corporate Markets’ shareholder
portal, which can be accessed online at www.signalshares.com.
Dividend Re-Investment Plan
Residents in the United Kingdom, Channel Islands or Isle of Man can choose to invest their cash
dividends, including any special dividends, in purchasing Taylor Wimpey plc shares on the market
under the terms of the Dividend Re-Investment Plan (DRIP). For further information on the DRIP and
how to join, contact MUFG Corporate Markets.
Shareholders are again reminded to check their position with regard to any dividend mandates that
are in place, should you wish to either participate in the DRIP or discontinue or vary any participation,
as existing mandates will apply to all dividend payments (including special dividends) unless or until
revoked. The deadline for DRIP elections to reach the Registrar is 15 April 2025.
CREST
The Company offers shareholders who hold their Taylor Wimpey plc shares in CREST a facility for
the receipt of dividends through the CREST system.
For shares held in uncertificated form (CREST), please note that elections continue to apply only to
one dividend and a fresh election must be made, via CREST, for each dividend.
Full details of the terms and conditions of the DRIP and the actions required to make or revoke
an election, both in respect of ordinary dividends (i.e. in this case, the 2024 final dividend) and
any special dividends, are available at www.signalshares.com or on request from the Registrar,
MUFG Corporate Markets, Central Square, 29 Wellington Street, Leeds, LS1 4DL, email:
drip.enquiries@cm.mpms.mufg.com, tel: +44 (0)371 664 0381. Calls are charged at the standard
geographic rate and will vary by provider. Calls outside the United Kingdom will be charged at
the applicable international rate. Lines are open between 9:00am and 5:30pm Monday to Friday
excluding public holidays in England and Wales.
Dividend mandates
We strongly encourage all shareholders to receive their cash dividends by direct transfer to a bank or
building society account. This ensures that dividends are credited promptly to shareholders without
the cost and inconvenience of having to pay in dividend cheques at a bank. If you wish to use this
cost-effective and simple facility, please register for the shareholder portal at www.signalshares.com
and register your bank mandate online or complete and return the dividend mandate form attached to
your dividend cheque. Additional mandate forms may be obtained from MUFG Corporate Markets.
Shareholder facilities
251
Shareholder information
Strategic report
Directors’ report
Shareholder information
Directors’ report
Financial statements
Duplicate share register accounts
If you are receiving more than one copy of our Annual Report and Accounts, it may be that your
shares are registered in two or more accounts on our Register of Members. You might wish to
consider merging them into one single account. Please contact MUFG Corporate Markets who
will be pleased to carry out your instructions in this regard.
Taylor Wimpey and CREST
Taylor Wimpey plc shares can be held in CREST accounts, which do not require share certificates.
This may make it quicker and easier for some shareholders to settle stock market transactions.
Shareholders who deal infrequently may, however, prefer to continue to hold their shares in certificated
form and this facility will remain available for the time being, pending the likely general introduction of
dematerialised shareholdings in due course.
Taylor Wimpey plc share price
Our share price is available on our corporate website.
Gifting shares to charity
If you have a small holding of Taylor Wimpey plc shares, you may wish to consider gifting them
to charity. You can do so through ‘ShareGift’, which is administered by a registered charity,
Orr Mackintosh Foundation Limited. Shares gifted are re-registered in the name of the charity,
combined with other donated shares and then sold through stockbrokers who charge no commission.
The proceeds are distributed to a wide range of recognised charities. For further details, please contact
ShareGift directly at www.sharegift.org or telephone them on +44 (0)20 7930 3737.
Unsolicited approaches to shareholders and ‘Boiler Room’ scams
We receive reports from time to time from Taylor Wimpey shareholders who have received what appear
to be fraudulent approaches from third parties with respect to their shareholding in the Company.
In some cases these are ‘cold calls’ and in others correspondence. They generally purport to be
from a firm of solicitors or an investment company and offer, or hold out the prospect of, large gains
on Taylor Wimpey plc shares or other investments you may hold.
The approaches normally include the seeking of an advance payment from the shareholder, the
disclosure of the shareholder’s bank details or the sale of an unrelated investment. Shareholders are
advised to be extremely wary of such approaches. More information is available on our website
www.taylorwimpey.co.uk/corporate/shareholder-information/boiler-room-scams and you can check
whether an enquirer is properly authorised and report scam approaches by contacting the FCA on
www.fca.org.uk/consumers or by calling 0800 111 6768. This is a freephone number from the UK
and lines are open Monday to Friday, 8:00am to 6:00pm and Saturday 9:00am to 1:00pm.
Shareholder facilities continued
Taylor Wimpey plc
Annual Report and Accounts 2024
252
Annual General Meeting
10:30am on Wednesday 30 April 2025 at:
The Gerrards Suite at the Crowne Plaza Gerrards
Cross, Oxford Road, Beaconsfield, HP9 2XE.
Proxy instructions must be received by 10:30am
on Monday 28 April 2025.
Group General Counsel and
Company Secretary
Ishaq Kayani
Taylor Wimpey plc
Gate House
Turnpike Road
High Wycombe
Buckinghamshire
HP12 3NR
Tel: +44 (0)1494 558323
Registrar
For any enquiries concerning your shareholding
or details of shareholder services,
please contact:
MUFG Corporate Markets
Central Square
29 Wellington Street
Leeds
LS1 4DL
Email: shareholderenquiries@cm.mpms.mufg.com
Tel: +44 (0)371 664 0300
Website: www.signalshares.com
Calls are charged at the standard geographic rate
and will vary by provider. Calls outside the United
Kingdom will be charged at the applicable
international rate. Lines are open between
9:00am and 5:30pm, Monday to Friday excluding
public holidays in England and Wales.
External Auditors
PricewaterhouseCoopers LLP
Solicitors
Slaughter and May
Stockbrokers
Citigroup Global Markets Limited
Bank of America
Principal operating addresses
UK
Taylor Wimpey plc
Gate House
Turnpike Road
High Wycombe
Buckinghamshire
HP12 3NR
Tel: +44 (0)1494 558323
Website: www.taylorwimpey.co.uk
Registered in England and Wales
number 296805
Details of all our operating locations
are available on our website
www.taylorwimpey.co.uk
Taylor Wimpey UK Limited
Gate House
Turnpike Road
High Wycombe
Buckinghamshire
HP12 3NR
Tel: +44 (0)1494 558323
Spain
Taylor Wimpey de España S.A.U
C/Aragón
223-223A
07008 Palma de Mallorca
Mallorca
Spain
Tel: +34 971 706570
253
Shareholder information
Strategic report
Directors’ report
Shareholder information
Directors’ report
Financial statements
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Annual Report and Accounts 2024
2
www.taylorwimpey.co.uk