Our investment case

Our strategy is differentiated by a long term focus on value and on achieving both our financial and quality objectives sustainably in a cyclical environment. This has enabled us to deliver a record operating profit* margin in 2017 and return £1.1 billion to shareholders since 2015.

Why we are different

We are a value-driven business, with a long term, sustainable focus.

We have remained disciplined in the implementation of our strategy which has enabled us to make significant progress towards our financial objectives and outperform the pace of performance improvement we targeted. Read more about our strategy.

Today we have an optimal landbank of c.75k plots underpinned by a strategic pipeline of c.117k potential plots.

Our focus remains on adding value and steady sustainable growth as we maximise efficiency through operational excellence and discipline on our sites and throughout our business.

We have a clear strategy and a strong focus on where we can add further value to the business. In this way, we are confident that we can adapt to all market conditions from a position of strength and perform well, underpinning our value proposition to shareholders and other stakeholders.

Strategy set to manage through the cycle

The housing market is cyclical and so factors such as customer confidence and mortgage cost inevitably have a direct impact on the short term outlook. We believe that a long term view and a proactive and flexible approach is needed to manage through the cycle. Our strategy is built on this and so seeks to protect growth whilst mitigating future downside risk. This applies to all areas of the business, from landbuying to our Dividend Policy.

High earnings quality with high margin
driven by strong landbank

Steady growth has created a sustainable business focused on good quality locations where people want to live.

We believe that quality of location is a key determinant of a home purchase and that this remains true through all market conditions.

We have taken a very disciplined approach, since we set out the strategy back in 2011, to returns we are expecting to deliver from the sites and in the quality of those locations which we believe will differentiate us irrespective of the cycle.

Quality business with further continuous operational improvement

We have always been clear that our quality measures are as important to us as our financial objectives and are key to the way we run our business. We believe that these areas will become more important during this cycle, and will become an area of clear differentiation for Taylor Wimpey and contribute to our long term success. We will maintain a firm focus on health and safety, which will always be our non-negotiable top priority. We will continue to improve the business through our investment in our people, product, processes and systems, through research and development and embedding improvements to our customer service processes.

Dual stream dividend underpins value

We are confident that the quality of our short term landbank, with the underpin of our significant strategic land pipeline, combined with a high-quality balance sheet, will mean that we can continue to be cash generative through the cycle, enabling us to sustain a significant ordinary dividend to shareholders on an annual basis, including through a ‘normal’ downturn. We will also supplement this with special dividends at appropriate times in the cycle.

* Operating profit is defined as profit on ordinary activities before net finance costs, exceptional items and tax, after share of results of joint ventures.