Our Strategy

Our strategy has not changed since we articulated it in 2011 and neither have our long term strategic financial objectives which were purposefully set as through the cycle measures.

In May 2014 we announced a set of stretching financial targets for the period from 2015 to 2017, to challenge the business to deliver more over the medium term and in positive market conditions. We also added a fourth measure of cash conversion.

We remain disciplined and focused on the long term, continuing to target improvement across all measures to deliver the best quality and sustainable returns for our shareholders. Since we set out this strategy, we have transformed Taylor Wimpey into a value-driven business.

Our Strategy is divided into three components:

  • Our Vision
  • Our Strategic Objectives
  • Our Strategic Principles

Our Vision

Our Vision is to be the UK’s leading residential developer for creating value and delivering quality.

Our Strategic Objectives

Operating profit* margin

Long term target

Earn top quartile operating profit* margin

Medium term target 2015-2017

20% average

Progress in 2015

Operating profit margin

Return on net operating assets**

Long term target

Deliver at least a 15% return on net operating assets** through the housing cycle.

Medium term target 2015-2017

20% return per annum

Progress in 2015

Return on net operating assets

Net asset growth % (including returns to shareholders)***

Long term target

Grow net assets by 10% per annum on average through the housing cycle (including returns to shareholders)

Medium term target 2015-2017

15% average increase per annum

Progress in 2015

Net assets growth (including returns to shareholders)

Cash conversion

In May 2014 we added a fourth measure of cash conversion.

Medium term target 2015-2017

Average conversion of at least 65% of operating profit* into operating cash flow

Progress in 2015

Return on net operating assets (%)

Our Strategic Principles

Absolute commitment that a strong margin performance is the way to drive the best sustainable returns
Margin underpinned by timing and quality of short term acquisitions and enhanced by extensive strategic land pipeline
Continual improvement philosophy with a relentless focus on adding value to every existing and new site
Significant ongoing investment in great quality people and processes
Increasing focus on asset efficiency and maximising the returns on our land investments
Active management of investments and structure over the housing cycle, to reduce risk and maximise returns over the long term