Building for the
future
Annual Report and Accounts 2023
Contents
Strategic report
1
2
6
Building for the future
Our investment case
Business overview
10 Chair’s statement
Directors’ report
Financial statements
90 Governance at a glance
158
Independent auditors’ report
92 Board of Directors
168 Consolidated income statement
95 Group management team
96 Chair’s Q&A
169
Consolidated statement of
comprehensive income
12 Chief Executive’s statement
97
Building strong governance
16 Our business model
100 Board activities
21 Our market environment
101 Shareholder engagement
28
30
31
Market trends, opportunities
and risks
Purpose, values and strategy
Performance and strategy
39 Operational review
43 Building for our customers
102 Workforce engagement
104
Board leadership
105 Monitoring culture
106 Diversity
107
Nomination and Governance
Committee report
46 Building for our people
113 Audit Committee report
49 Materiality assessment
125 Compliance statement
129 Governance structure
130 Role of the Board
131 Remuneration Committee report
153
Statutory, regulatory and other
information
50
53
69
71
74
Our commitment to the
environment
Task force on Climate-related
Financial Disclosures
Non-financial and sustainability
information statement
Risk management
Principal Risks and uncertainties
78 Group financial review
82
84
Viability statement
Stakeholder engagement
and priorities
87
Section 172(1) statement
170 Consolidated balance sheet
Our investment case
Our business model
171
Consolidated statement of
changes in equity
172
Consolidated cash flow statement
173
Notes to the consolidated
financial statements
211 Company balance sheet
212
213
219
Company statement of
changes in equity
Notes to the Company
financial statements
Particulars of subsidiaries,
associates and joint ventures
Read more on pages 2 to 5
Read more on pages 16 to 20
Operational review
Our commitment to the
environment
Read more on pages 39 to 42
Read more on pages 50 to 52
226 Five year review
Our reporting suite
Shareholder information
227
231
Notice of Annual
General Meeting
Notes to the Notice of
Annual General Meeting
239 Shareholder facilities
Sustainability Summary 2023
Building for a
sustainable future
Building for the
future
Annual Report and Accounts 2023
Our 2023 Annual Report is an
integrated report which includes
key sustainability and financial
disclosures.
More information on our materiality
process, sustainability activities
and policies can be found in our
Sustainability Summary 2023.
Scan to view
our online
Annual Report
2023
Scan for the full
Sustainability
Summary 2023
Strategic reportDirectors’ reportFinancial statementsShareholder information Building for
the future
In 2023 we delivered a good
performance in the face of
challenging market conditions.
Going forward, we remain focused
on driving value and ensuring we are
ready and able to take advantage
of opportunities. We are building
for the future.
2023 was a challenging year for the industry and our customers with rising
interest rates and cost of living pressures impacting affordability.
Our clear purpose to build great homes and create thriving communities
remains unchanged and is even more important today for our employees,
customers, communities and partners.
With the benefit of a strong landbank and financial position and led by an
experienced management team, Taylor Wimpey is well set to respond to
changing market conditions in an agile way, building on momentum to
ensure we optimise value and are poised for recovery and future growth
from 2025, assuming supportive market conditions.
1
We have a
compelling
investment
proposition:
A strong and resilient
business, well positioned
for all market conditions
A high-quality landbank
that differentiates us
see page 2
see page 3
A sustainable and
responsible business
see page 4
Reliable shareholder
returns
see page 5
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Our investment case
Strong and
resilient
Focused on operational excellence
to optimise margin and drive attractive
long term returns
2
Experienced senior
leadership and highly
engaged employees
Strong balance sheet
Tight control of cost and
work in progress, ensuring
build rates are aligned with
sales rates at a site level
Leveraging Taylor Wimpey
Logistics and our new timber frame
facility to support security of supply,
increase visibility and speed of build
Increased standardisation
to drive quality, savings and
incremental operational
efficiencies
Increased use of
technology on site and
data monitoring to aid
simplification and drive
decision-making
4.89
Construction Quality
Review average score
(out of 6)
(2022: 4.81)
13.4%
Operating profit margin*
(2022: 20.9%)
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Our investment case continued
c.80k
plots in short term
landbank
(31 Dec 2022: c.83k)
We have a balance sheet light, industry
leading strategic pipeline of c.142k
potential plots (31 Dec 2022: c.144k)
£61bn
potential revenue in our landbank
across both the short term landbank and
strategic pipeline
(31 Dec 2022: £61bn)
High-quality, well-located landbank
in places people want to live
Differentiated by our
landbank
Our high-quality landbank together with
an industry-leading strategic land pipeline
provides optionality throughout the cycle
c.8k
plots converted from
strategic pipeline
(2022: c.4k)
We remain selective in acquiring new
sites but will be active where we see
good opportunities to create value
for shareholders
3
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Our investment case continued
Sustainable and
responsible
ESG is embedded throughout the business
for the benefit of all our stakeholders
We are driven by our
purpose to build great
homes and create thriving
communities and by our core
value to ‘do the right thing’
98%
of our employees agree
that we take health and
safety seriously
(2022: 98%)
Net Zero Transition Plan
targets validated by
Science Based
Targets initiative (SBTi)
Read more about our commitment to
the environment on pages 50 to 52
In 2023, we launched our zero carbon
ready prototype homes trial in Sudbury,
the first trial of its kind on a live
development site testing low carbon
technologies
Read more on page 36
4
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Our investment case continued
7.5%
of net assets or at least
£250 million annually
throughout the cycle
paid out via an ordinary
cash dividend
Reliable shareholder
returns
We are committed to paying an annual
ordinary dividend through the cycle, and
returning surplus capital at the appropriate time
* Definitions and reconciliations of our APMs to the equivalent statutory measures are included in Note 32 of the financial statements.
Please see page 81 for definitions.
5
4.79p
2023 final ordinary
dividend per share
(2022: 4.78p)
9.58p
2023 total ordinary
dividend for the year
(2022: 9.40p)
Highly cash generative business –
allows for investment for growth and
attractive shareholder returns
Established, differentiated Ordinary
Dividend Policy aimed at providing
investors with visibility of the annual
income stream they can expect
throughout the cycle, including during
a normal downturn
Read more about our capital
allocation priorities on page 37
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Business overview
We built over 10,000 homes in 2023,
making us one of the UK’s leading
homebuilders. We operate across five divisions
and at a local level from 22 regional businesses
in the UK, with a small operation in Spain.
Where we operate
A national housebuilder operating at a local level.
Scotland, North East
and North Yorkshire
North West
and Yorkshire
4
regional businesses
3
regional businesses
Midlands
and Wales
5
regional businesses
London and
South East
5
regional businesses
Central, South
West and Spain
5
UK regional
businesses
6
1
Spanish
regional
business
Spain
Map key
Head office
Regional offices
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Business overview continued
Net zero
by 2045
Our net zero targets have been
independently validated by the
Science Based Targets initiative,
and we were only the second UK
housebuilder to achieve this
Read more about our Net Zero
Transition Plan on page 51
ESG ratings and accreditations
7
More information about our
approach to, and performance on,
sustainability and ESG topics can be
found throughout this report:
Environment
50
53
Our commitment to the
environment
Task force on Climate-related
Financial Disclosures
Social
43 Building for our customers
46 Building for our people
84
Stakeholder engagement
and priorities
Governance
102 Workforce engagement
104 Board Leadership
104 Anti-bribery and anti-corruption
110 Succession planning
155 Modern Slavery Act
Built on a strong culture of doing the right thing
Respectful
and fair
Better
tomorrow
Take
responsibility
Be proud
We are defined by our purpose
To build great homes
and create thriving communities
To deliver superior returns for shareholders through
our high-quality landbank and enhance value
through sharper operational focus
Implemented through
our strategic cornerstones
Read more about our strategic cornerstones on pages 31 to 38
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Business overview continued
Delivering a good
performance by managing
through the cycle
Group financial highlights
10,848
Group completions including
joint ventures
£3,514.5m
Revenue
£470.2m
Operating profit*
2023
2022
2021
10,848
14,154
14,302
2023
2022
2021
£3,514.5m
£4,419.9m
£4,284.9m
2023
2022
2021
£470.2m
£923.4m
£828.6m
£473.8m
Profit before tax
9.57p
Total dividend per share
paid in the year
£677.9m
Year end net cash*
2023
2022
2021
£473.8m
£827.9m
£679.6m
2023
2022
2021
9.57p
9.06p
8.28p
2023
2022
2021
£677.9m
£863.8m
£837.0m
*Alternative Performance Measures
The Group uses Alternative Performance Measures (APMs), such as
those indicated above with a footnote symbol, as important financial
performance indicators to assess underlying performance of the Group.
The Group's two financial targets are operating profit margin and return
on net operating assets. Definitions and reconciliations of our APMs to
the equivalent statutory measures are included in Note 32 of the
financial statements. Please see page 81 for definitions.
8
127.1p
13.4%
12.6%
Tangible net assets per share*
Operating profit margin*
Return on net operating assets*
2023
2022
2021
127.1p
126.5p
118.1p
2023
2022
2021
13.4%
20.9%
19.3%
2023
2022
2021
12.6%
26.1%
24.7%
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Business overview continued
UK highlights
92%
(2022: 90%)
151
(2022: 166)
35%
(2022: 26%)
Customer satisfaction
8-week score
Annual Injury Incidence Rate (per
100,000 employees and contractors)
Reduction in operational CO2
emissions (absolute) since 2019
4.89
(2022: 4.81)
47
(2022: 104)
Construction Quality Review
average score (out of 6)
New outlets opened
in the year
93%
(2022: 93%)
Employee
engagement score
£370k
(2022: £352k)
Average selling price
on private completions
9
c.80k
(2022: c.83k)
Plots in short term
landbank
£405m
(2022: £455m)
Contributions to local communities,
via planning obligations
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Chair’s statement
Optimising performance,
investing in long term
sustainability
We must optimise short term
performance but continue
to invest in areas that matter
for the future sustainability of
the business.”
Robert Noel
Chair
10
Taylor Wimpey plc Annual Report and Accounts 2023
Dear shareholder,
In 2023, customers’ affordability was significantly
reduced by increased mortgage rates. This directly
impacted Taylor Wimpey and the wider housebuilding
sector’s volumes, and earnings. In my first year
as Chair, I am very pleased to report that, despite
this backdrop, we have delivered a good financial
performance which was in line with expectations,
with revenue of £3.5 billion (2022: £4.4 billion)
and operating profit* of £470.2 million (2022:
£923.4 million). We have also delivered a resilient
performance across each element of ESG
(environmental, social and governance) which is
important to us and you can read more about this
on page 7.
As my predecessor, Irene Dorner, wrote in her letter
last year, it is in changing market conditions where
the experience and strength of our team really count.
I am pleased to say that we have reaped the benefit
of a very experienced management team, led by
CEO Jennie Daly, who have responded proactively
and decisively with an unwavering focus on cost
and operating efficiency. I would also like to thank
all our people and our partners for their continued
hard work and dedication.
You can read more about our 2023 financial
performance in Group Finance Director Chris
Carney’s section and how this was achieved in
Jennie Daly’s section and throughout this report.
Health and safety
Health and safety remains our number one priority in
all markets and it is the first topic covered in every
Board, Group Management Team (GMT) and local
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 key throughout the organisation. I am
therefore delighted that 98% of our employees
agree that we take health and safety seriously.
The Board is also pleased to see another year
of progress in this area, even against a strong
comparator, with our Annual Injury Incidence
Rate (AIIR) for reportable injuries per 100,000
employees and contractors down to 151 in 2023
(2022: 166), remaining well below both the HBF
Home Builder Average AIIR of 241 and the Health
and Safety Executive construction industry average
AIIR of 296. Maintaining and improving standards
requires constant vigilance and part of this is
identifying areas where we can do better. We are
therefore reiterating and reinforcing our focus on
health, safety and environmental compliance across
the business, to include additional training.
Building for the future
The theme of this report is ‘Building for the future’,
which underscores that while we must optimise
short term performance for today’s market, we
have a long term focus and continue to invest today
in areas that matter for the sustainability and
success of the Company. I am pleased to say that
your Board has the confidence that Taylor Wimpey
has both the resilience and fundamentals in place
to weather all market conditions and to capitalise
on future market opportunities.
This year, ‘Building for the future’ has another, more
literal meaning, given we launched our zero carbon
ready homes prototypes, the first of their kind on a
live development site. We are pleased with our
progress on this project and our preparedness well
ahead of future regulation – you can read more
about this throughout this report.
Strategic reportDirectors’ reportFinancial statementsShareholder information In line with this, at the time of our full year results in
February 2024, we announced a 2023 final ordinary
dividend payment of 4.79 pence per share, which
is subject to shareholder approval at the Annual
General Meeting. With the 2023 interim dividend
payment of 4.79 pence per share, the total ordinary
dividend for the year is 9.58 pence per share or
approximately £339 million.
Looking forward
We operate in an undersupplied market, and
remain determined to play our part in building
much needed quality homes and creating thriving
communities. We have a strong balance sheet,
excellent landbank and highly experienced and
engaged teams. We have a clear strategy to
respond to all market conditions and are well
positioned for future growth.
Robert Noel
Chair
Chair’s statement continued
Stakeholder engagement
Governance
During my time as Board employee representative,
I was privileged to hear the views of many of our
colleagues first hand and to represent the employee
voice in the boardroom. We continue to promote
the employee voice through our local and national
employee forums.
This year the Board has visited a number of regional
business units and sites, including our Sudbury
prototypes, which you can read about in more
detail on page 36, and the strong and positive
culture, to do the right thing, that permeates our
organisation remains very evident.
Following interviews with all our key stakeholders,
we have updated our material impacts which show
the areas that are most material for our business,
valued by our stakeholders and where we can have
the most positive impact through our approach to
every element of ESG. You can read more about
this on page 49.
The executives and I have also continued to have
a high level of engagement with institutional
shareholders. We look forward to continuing this
level of engagement at the AGM and in future
institutional shareholder meetings.
This year’s AGM will take place in person at the
Crowne Plaza Hotel, Gerrards Cross. Like last year,
a live audiocast of our AGM will be available to
qualifying shareholders, to further encourage
shareholder engagement and accessibility.
Shareholders will also be able to submit their vote
in advance by proxy and email questions in
advance of the meeting.
Whilst the Board’s composition was unchanged
during 2023 in terms of personnel, there were
changes in April to a number of key roles and to the
membership of the Remuneration Committee.
Following my appointment as Chair, my predecessor
Irene Dorner continues on the Board as a non-
independent Non Executive Director and continues
to give us the benefit of her wide experience.
Humphrey Singer succeeded me as Senior
Independent Director and has over eight years’
experience of the Company and its Board, to draw
upon when engaging with stakeholders.
Mark Castle took over my role as the Board’s
Employee Champion and has further developed the
Board’s interaction with employees at all levels
across the Group and the promotion of their views
into relevant Board discussions. Finally, Mark Castle
and Clodagh Moriarty joined the Remuneration
Committee.
Non Executive Directors visited an increased
number of the Group’s regional businesses and
sites during the year. We enjoyed and learned from
the interaction with employees across the business.
ESG engagement at Board level was enhanced
during 2023 with more regular and expanded
reporting, supported by the introduction of a tracker
of progress against key metrics.
Dividend
We are pleased to be able to provide a reliable
return to our shareholders in line with our Ordinary
Dividend Policy to return 7.5% of net assets
per annum to shareholders throughout the cycle.
* Definitions and reconciliations of our APMs to the equivalent statutory measures are included in Note 32 of the financial statements.
Please see page 81 for definitions.
11
98%
of employees feel we take
health and safety seriously
£339m
Total ordinary dividend for 2023
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Chief Executive’s statement
Delivering on what
we set out to do and
building for the future
Having successfully navigated
through an uncertain
18 months, our focus remains on
optimising value across all areas
of the business while investing
in our long term success.”
Jennie Daly
Chief Executive
Scan to see
Chief Executive
Jennie Daly and
Group Finance
Director Chris
Carney presenting
our Full Year
2023 results
12
Taylor Wimpey plc Annual Report and Accounts 2023
Dear shareholder,
We came into 2023 in a strong financial position,
which stood us in good stead in what was a
challenging year for the industry and for our
customers, who were impacted by both cost
of living challenges and significantly increased
mortgage rates. With a strong balance sheet and
landbank, experienced management team and
a focus on execution and cost discipline, I am
extremely pleased to report to you that we
delivered a good set of results in these challenging
market conditions.
We couldn’t achieve this without the dedication of
our employees and supply chain partners. Almost
60% of our staff are currently shareholders or are
participating in one or more employee share plan,
further directly aligning their interests with you,
our shareholders.
Delivering in a challenging market
2023 saw UK total housing transactions reduce
substantially due to higher mortgage costs, cost
of living pressures and lower consumer confidence.
To give you a sense of the change experienced
by our customers, in 2023, the base rate was at
its highest since 2007, more than 15 years ago,
and we entered the year with energy costs at
historic highs.
Trading in the first quarter of 2023 was encouraging
as mortgage rates eased back from the peak of 2022.
However, higher than expected inflation in the second
quarter led to rate increases culminating in the base rate
rising to 5.25%, well above initial market expectations.
Whilst remaining high compared to recent years,
mortgage rates started to fall towards the end of the
year. You can read more about the market
environment on pages 21 to 29.
Against that backdrop, I am pleased we delivered
Group completions, including joint ventures, of
10,848 homes (2022: 14,154) and £470.2 million
operating profit*, which was at the top end of
guidance (2022: £923.4 million), with an operating
profit margin* of 13.4% (2022: 20.9%). You can
read more about our financial performance
on pages 78 to 81.
We operate in a cyclical industry, therefore the ability
to navigate changing economic conditions is central
to our success and we are pleased that we have been
able to perform strongly in a weaker market.
Our business and strategy is deliberately set up
to perform through the cycle and our differentiated
Ordinary Dividend Policy reflects this and I’m very
pleased that shareholders continue to see the
benefit of this. Due to the strength of the balance
sheet and having been tested against our clear
capital allocation framework and Ordinary Dividend
Policy, I am delighted we have continued to pay
a dividend returning £337.9 million to our
shareholders in 2023.
2023 decisive management action
Given the challenging market conditions in 2023,
our highly experienced teams focused on driving
value through all the levers available to us. Cost
discipline was a core focus, especially given the
inflationary environment and we took appropriate
action across all areas of operations. In particular,
we tightened controls across our work in progress
and restricted all discretionary spend, including
recruitment.
In 2023, we conducted a detailed review to ensure
our customer offering remains competitive which
targeted cost savings.
In early 2023, we delivered annualised cost savings
of £19 million with a one off cost to achieve these
of £8 million.
Strategic reportDirectors’ reportFinancial statementsShareholder information Chief Executive’s statement continued
We also significantly reduced land approvals.
With our sector leading strategic land pipeline and
the expertise of our teams, we benefitted from a
high level of strategic conversion in the year at
c.8k plots (2022: c.4k plots). Our strategic land
pipeline is a key competitive advantage in a
challenging planning environment and, accordingly,
our short term landbank remains strong at c.80k
plots (2022: c.83k plots).
Building for the future
While much of our focus in 2023 has rightly been
on protecting value and optimising the here and
now, a key priority has been to continue to invest
in the things that matter for the long term success
of the business and to ensure we are poised for
recovery and future growth, when conditions allow.
This includes continuing to invest in training our
highly engaged workforce to ensure they have the
appropriate skills to drive the business forward.
This is reflected by the theme of this year’s Annual
Report and Accounts, ‘Building for the future’.
We believe a holistic future focus is needed for
success across every area of the business which
includes the important area of ESG. Continuous
business improvement also remains fundamental
to how we protect stakeholder value against a
backdrop of increasing regulatory and economic
demands. This includes componentisation,
standardisation and modern methods of
construction such as timber frame. Our approach
to standardisation and simplification, which I first
set out in May 2022, will play a crucial role in
allowing us to protect value and scale up at the
appropriate time and we have continued to embed
this in the business. During 2023, as part of our
investment in the future, we opened our own timber
frame facility located adjacent to our logistics
function in Peterborough to drive efficiencies,
environmental benefits and enhance security of
supply. In combination with our existing suppliers,
our own facility will help us in our goal to increase
timber frame usage to 30% of our production by
2030. The first units will be delivered to our
business in 2024.
We are also ensuring a positive approach to
continued innovation and R&D and we are pushing
ourselves to be more ambitious, than we have
been historically, in some areas such as IT which
will benefit the business in the longer term.
This year we have launched our zero carbon
ready homes prototypes as we prepare for the
Future Homes Standard, a generational step
change in building regulations. At our site in
Sudbury, we delivered a Future Homes Standard
pilot, which was an industry first on a live
development site. Five prototype zero carbon ready
homes tested a range of innovative technologies
and over 450 stakeholders from employees,
investors to MPs and customers have visited
our site to ask questions and provide feedback.
We fundamentally believe we have a responsibility
to do what we can to support the wider sector,
particularly smaller homebuilders (SMEs).
Accordingly, we have shared the lessons and
insights learnt on Sudbury with the Future Homes
Hub and held a separate SME call and presentation.
Delivering value through our purpose
Our purpose is to build great homes and create
thriving communities. We believe having a shared
purpose across our whole business and value chain
is critical and I am delighted to say I see this in action
every day on our sites and in our local businesses.
While relatively simple, our purpose not only is
vital for our customers but also has far reaching
societal impacts of which we are extremely proud.
Delivering for our
communities
In 2023, we invested
£405m in the
communities in which
we build via planning
obligations, including:
Education
£53.2m
(2022: £47.5m)
Public transport
£6.0m
(2022: £4.8m)
Public open space /
sports pitches / play areas
£5.9m
(2022: £5.8m)
Highways
£7.0m
(2022: £9.3m)
We build much needed homes, create new and
enhance existing communities, deliver much
needed infrastructure and are a significant
contributor to local economies across the UK.
We are part of an industry that has the opportunity
to transform not just places but the privilege to
directly improve lives. New housing can contribute
to improved economic and social mobility,
community cohesion and renewal, better health
outcomes and increased educational attainment.
As a national builder operating at a local level
throughout the UK, we want to be seen as a
valuable partner to the communities we work in and
welcome the responsibility that goes along with this.
We work hand in hand with local residents and other
businesses to not only demonstrate the value of
what we can bring to a local area, but to hear their
aspirations and concerns and, where we can, look
to fulfil and address these. A key part of this is a
commitment to deliver on our promises, and
address the things that haven’t gone as we hoped,
promptly and in the right way.
During 2024, the UK will be holding local and
mayoral elections across the country, in addition to
a General Election expected in the second half of the
year. We welcome the recognition from both main
political parties of the importance of housebuilding
to economic growth and prosperity in the UK and
continue to engage with the full range of political
stakeholders at every level of the business.
We have a strong culture at Taylor Wimpey
which is very visibly demonstrated in our latest
employee survey with a 93% engagement
score. We can gain more insight through our
local and national employee forums and all
employee Q&A and engagement sessions which
I personally run regularly with the senior team.
13
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Chief Executive’s statement continued
I have spent a lot of this year out and about in the
business and on site and speaking to employees,
and their feedback has been extremely valuable.
We are proud of our approach to talent
development at Taylor Wimpey. 45% of our regional
business unit management teams have been
promoted from within Taylor Wimpey and 62%
of Site Managers were promoted from within the
business. We have a low voluntary turnover level of
14.2% (2022: 17.7%). During 2023 we introduced
a new employee recognition scheme, giving
employees with long service additional holiday.
While I am very pleased with the performance of
the business, there are areas we need to continue
to work on. Customer service was a real focus for
2023 and while we have increased our 8-week
‘Would you recommend score’ to 92% (2022: 90%),
we have not yet seen the same increase in our
9-month score and we will be ensuring that we
address this area in 2024.
Strategy and 2024 priorities
Our strategy is to build a stronger and more resilient
business and deliver superior returns. This has
been a consistent strategy for the Group over
several years as we seek to manage the business
through the cycle for the benefit of all stakeholders.
Our strategy is centred on four strategic
cornerstones: land, operational excellence,
sustainability and capital allocation. These strategic
cornerstones guide our principles of working but
allow us to be flexible and agile even during
challenging and volatile market conditions.
This approach enables us to optimise value for
our stakeholders and, through our differentiated
Ordinary Dividend Policy, to provide a reliable
income stream for our investors through the cycle.
14
Our strategic cornerstones
Land
Operational
excellence
Sustainability
Capital
allocation
An agile approach to
optimising value
Driving efficiency
and execution
• Focused on progressing
land through the planning
system to open quality
outlets
• Strong landbank a benefit
in difficult planning
environment and enables
a selective approach to
new land, balancing value
and risk
• Continued focus on
driving performance
• Investing in the long term
success and sustainability
of 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 business
• Creating thriving
communities through
placemaking
• Prioritise value over volume
A clear and
disciplined approach
• Maintain a strong
balance sheet
• Funding business needs
including land investment
and WIP
• Clear and sustainable
ordinary dividend to provide
visibility to shareholders
Read more on pages 31 to 32
Read more on pages 33 to 34
Read more on pages 35 to 36
Read more on pages 37 to 38
2024 priorities
As we look forward in 2024 and beyond, we will continue to prioritise value over volume. Driving increased operating
efficiency, cost savings and value improvement will remain a key focus for our business, but we will also continue to invest in
areas that matter for the long term success and sustainability of the business to ensure we are poised for growth from 2025,
assuming a supportive market.
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information “ Our strong
landbank and
proactive approach
to planning ensures
we are well
positioned for
growth from 2025,
assuming
supportive market
conditions.”
Chief Executive’s statement continued
Having successfully navigated through an uncertain
18 months, our focus remains on optimising value
across all areas of the business. Our strategy
encompasses building greater discipline through each
element of our business model to improve efficiency,
protect value and ensure we are fit for the future.
In this year’s Annual Report, we have increased
disclosure in this important area to give you a
greater insight into how we create, enhance and
realise value at every stage.
Our key performance indicators, which we use to
measure success and progress, are aligned to our
strategic cornerstones and you can read more on
pages 31 to 38.
As we look forward in 2024 and beyond, we will
continue to prioritise value over volume. Driving
increased operating efficiency, cost savings and
value improvement will remain a key focus for our
business but we will also continue to invest in
areas that matter for the long term success and
sustainability of the business to ensure we are
poised for future growth, from 2025, assuming
a supportive market.
Competition and Markets Authority (CMA)
housebuilding market study
Taylor Wimpey welcomes 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. Taylor
Wimpey notes the new investigation opened by the
CMA under the Competition Act 1998, and we will
cooperate fully in relation to this.
Current trading and outlook
Whilst still early in the year and at the beginning of
the Spring selling season, current trading shows
some encouraging signs of improvement with
reduced mortgage rates positively impacting
affordability and confidence in our customer base.
The year-to-date net private sales rate
(w/e 25 February 2024) is 0.67 per outlet per
week (2023 equivalent period: 0.62).
The cancellation rate is 12% (2023 equivalent period:
17%) and the level of down valuations remains low.
Appointments and overall customer interest in our
homes remain at good levels, supported by our
quality product, site locations and focused sales
and marketing efforts. However, conversions from
enquiry to reservation continue to take longer
when compared to pre Q2 2023.
As previously noted, we came into 2024 with a
lower order book against a strong comparator.
As at 25 February 2024, our total order book
excluding joint ventures was £1,949 million
(2023 equivalent period: £2,154 million),
comprising 7,402 homes (2023 equivalent period:
8,078 homes).
Accordingly, and given prevailing market conditions,
we remain focused on optimising value and currently
expect 2024 UK completions (excluding JVs) to be in
the range of 9.5k to 10k homes, with completions
weighted 45/55% in favour of the second half of the
year. First half operating profit margin will reflect
slightly lower pricing in the order book, build cost
inflation embedded in work in progress of around 4%
and investment in IT and timber frame to drive
operational efficiencies.
The prevailing underlying annualised build cost
inflation on new tenders is c.1% and reduces to zero
when taking into account the savings arising from
our value improvement programme.
Despite significantly reduced land approvals
over the last 18 months our landbank, as at
31 December 2023, remains very strong at c.80k plots
(2022: c.83k plots) and is underpinned by the supply
of our industry leading strategic land pipeline. We will
remain selective in our approach to land but will be
active where we see opportunities that balance risk,
reward and returns to create shareholder value.
We have approved an additional c.1k plots in the
year-to-date as we have crystallised deals that our
teams have been working on for some time.
While the constraining impact of planning on site
openings is unlikely to abate in the near-term for the
sector, our strong landbank and highly experienced
teams who take a proactive approach to generating
high-quality planning applications, ensure we are
well positioned for growth from 2025, assuming
supportive market conditions. As a business in a
strong financial position, we also continue to provide
a reliable income stream to our investors via our
differentiated Ordinary Dividend Policy to return 7.5%
of net assets per annum, or at least £250 million
annually throughout the cycle.
Looking ahead, Taylor Wimpey is a strong and resilient
company with a strategy to manage the cycle over
the long term. 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.
* Definitions and reconciliations of our APMs to the equivalent statutory measures are included in Note 32 of the financial statements.
Please see page 81 for definitions.
15
Jennie Daly
Chief Executive
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information We are one of the UK’s leading
homebuilders. We invest in land
and develop high-quality homes
and communities for customers
in our 22 UK regional businesses
and in our small Spanish operation.
We manage the homebuilding
process through the value
chain from original land investment
decision to customer completion
and after sales service.
We invest in our highly engaged
and talented employees who are
crucial to our success.
Our value chain
Creating
Enhancing
Protecting
Make the right
land investments
Manage the
planning process
Design and develop
sustainable homes
Our business model
What
we do
How we
make
money
Critical
relationships
Key
resources
16
Optimising
Build efficiently
and deliver for
our customers
Realising
Support customers
through the
homebuying
process
Reinvesting
and returning
Reinvest for growth
or return value to
shareholders
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information 2
Manage the planning process
Our highly experienced land teams work closely with
local authorities and other regulators to deliver our
developments, meeting increasingly complex
technical, environmental and health and safety
requirements. We strive to open our sites as efficiently
as possible. However, the time between acquiring
land and opening our sites is dependent on the
site-specific planning status and conditions.
Working with local authority partners
Short term land is land that has some form of
residential planning permission. The type of
permission can vary from ‘resolution to grant’ (RTG)
status or ‘outline planning’, meaning it is permitted
for residential development 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 to
move our projects forward.
Preparation for infrastructure
Appropriately, there is a significant administrative
burden to overcome before we can commence
building. For example, we have to work with the
Highways Agency, services such as electric, water
and sewers, and establish infrastructure such as
roads before we can start building homes on our sites.
Our business model continued
1
What
we do
How we
make
money
Critical
relationships
Key
resources
Make the right land
investments
We create value by buying land at the right price,
using our longstanding land and planning expertise,
enabling us to create high-quality developments in
places customers want to live.
Our teams work to understand local housing needs
in selecting the right locations and developing these
through the planning system.
A detailed commercial assessment is established
before we bid for land, including an assessment of
local demographics, full costing of the site to
development, and specific commercial and technical
considerations. Site evaluation involves all areas of
our regional business unit management teams,
including land, sales and marketing, commercial,
production, technical and finance.
Highly experienced teams
We invest in and develop our landbank and strategic
land pipeline. There are two main types of land. Short
term land, is land that has some form of planning for
residential development, though it may still be months
or years from attaining implementable planning
allowing us to build.
We are also highly experienced in developing a
second type, strategic land, which is land without
any form of approval for residential development.
Our highly experienced strategic land teams often
work on land long before it is earmarked for
development. The majority of our strategic pipeline
is not owned but is controlled by option agreements.
There can be no certainty that strategic land will
achieve planning permission, but we only include
plots in our pipeline where we see a greater than
50% probability of success. Our experienced team
has a strong track record of identifying land that
could become part of future local development plans,
with over 50% of our landbank originating from the
strategic pipeline.
This crucial first step in
creating
value
Location
Good planning
prospects
Right price
Right time
in the cycle
17
Detailed planning
The final stages are achieving ‘detailed planning’, and
after satisfying any pre-commencement conditions,
we attain implementable planning, allowing us to start
on site.
It is vital that we engage and consult with local
communities to explain our plans throughout the
planning process. Whilst we may not always achieve
universal acceptance, we do our best to outline the
benefits of our project and to minimise disruption to
local residents.
Resolving issues
As stated, we engage with communities and key
stakeholders on all of our proposed developments.
However planning can be a contentious area. Our
developments are sometimes challenged, and we
may have to work with local residents and authorities
to resolve issues and even appeal decisions through
the legal process if a project has stalled and we
believe we are fully meeting our obligations.
Affordable housing and community
facilities
We create much needed housing and, as part
of our planning obligations in 2023, 23% of our
completions were affordable housing. We create
significant local economic benefit, including
employment, and through our planning obligations,
build or fund the building of schools, leisure and
recreational facilities.
Enhancing
our land assets and our
strategic land pipeline
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information
Our business model continued
3 Design and develop
sustainable homes
We design homes to meet the needs of our
customers today and in the future. We build energy
efficient homes that meet or exceed the regulatory
requirements and we now deliver sites with greater
biodiversity than prior to our involvement.
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. (Read more on page 55)
We focus on good placemaking which means that
we consider how our developments work as a whole
and how they will contribute to a thriving community.
We design places where our customers can live well,
feel part of a community and adopt an active, more
sustainable lifestyle, establishing attractive
landscaping, and shared communal and recreational
areas. We design carefully considered street scenes
and consider how our developments interact with
existing nature and our nature enhancements.
Our plotting expertise and standard house types
enable us to protect value. Good plotting means
we are using our land resources efficiently and our
standard house types helps us maintain high quality
through contractor familiarity with our processes and
materials and our ingrained quality control processes.
Our new house types were designed following
extensive customer research and focus groups.
Protecting
land use via plotting and value through our
efficient design and standard house types
What
we do
How we
make
money
Critical
relationships
Key
resources
18
4 Build efficiently and deliver
for our customers
The health and safety of our employees and
subcontractors is our number one priority.
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 optimise our efficiency.
We focus on optimising the value of our investments
by managing sites consistently.
We are delivering value by getting the basics right
with right first time build leading to consistent delivery
for customers and higher satisfaction. We are
regularly one of the highest independently rated
volume builders in terms of construction quality.
We aim to make Taylor Wimpey the partner of choice
in our industry. Maintaining excellent supplier and
subcontractor relationships is key to ensuring the
highest standards on our sites.
5 Support customers through
the buying process
We realise the value created through the preceding
stages and create future value by maximising our
sales potential and protecting and building our brand
and reputation.
Our large database and IT systems, enable our highly
trained sales teams to identify customers and
effectively manage our interactions throughout the
buying journey.
This includes status reports, lead generation, and up
to date management dashboards.
Our dedicated sales teams work with our customers
to understand their needs, in relation to their
preferred options that suit the way they want to live.
This can include individually tailored incentives of
home options or financial incentives to assist them
in completing their homebuying journey.
Optimising
value, by working with our partners
to focus on quality and efficiency
Realising
value created by focusing on creating a
positive homebuying journey
Reinvesting and returning
By protecting and optimising value through the value
chain we are able to maximise value to return to our
shareholders and for reinvestment in the business.
Our Ordinary Dividend Policy is to return 7.5% of
net assets to shareholders annually or at least
£250 million, throughout the cycle. In 2023, we
returned £338 million to shareholders through
ordinary dividends paid in the year.
To read more about our capital
allocation framework see page 37
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Our business model continued
What
we do
How we
make
money
Critical
relationships
A value mindset
We offer a high-quality standard
product range which is adaptable
to local planning requirements, to
ensure a consistent high-quality offering
for our customers. Our central logistics
and procurement functions ensure we
achieve the benefits our scale affords.
We have built up our expertise, national
position and trusted reputation over
many years.
In line with our culture of ‘doing the right
thing’, our experienced teams and trusted
partners – enabled by our capital and
infrastructure – are focused on delivering
a high-quality product for our customers.
We are focused on delivering quality homes
for our customers and optimising value for
our stakeholders.
As one of the UK’s largest homebuilders,
we have built a national presence via our
22 regional businesses, enabling us to deliver
for customers in England, Scotland and
Wales, with a small business in Spain.
Whilst our business model is straightforward,
delivery involves the management of complex
partnerships and processes throughout our
value chain while maintaining the agility to
adjust to varying market dynamics.
UK regional businesses
22
covering England, Scotland
and Wales, providing truly
national coverage for
our customers
Upfront investment
Investing wisely in our land assets is the
first step in establishing value, enabling us
to use our expertise and tight operational
controls to enhance and protect that
value throughout the value chain.
We make our money when we complete
a home, and our customer is able to
move in. This can be several years on
from our initial land investment decision.
Our ability to effectively deploy our balance
sheet and retain our focus on value from initial
land acquisition to home completion is vital.
We manage our investment closely to ensure we
are maximising stakeholder value, staying alert
to opportunities in the land market and adjusting
our work in progress to meet market demand.
Ahead of bidding for land, we conduct a land
purchase exercise (LPE), which involves the
detailed costing of a proposed development,
determining the margin profile and risk
parameters that are acceptable to us.
Alongside our owned 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 an option
fee giving us the right to buy land at certain
milestones rather than buying it outright.
We then buy this land when we have achieved
a certain planning status. This enhances our
visibility of future years land supply and allows
us to be selective in the short term land market.
Land value
£3.3bn
(2022: £3.4bn)
Key
resources
Key costs
Our key costs are land, building materials,
labour and central overheads including
design, finance, legal and administrative
functions.
Margins
We protect our margin throughout
our value chain. However, current
margin has been impacted by falling
industry demand and rising costs.
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 on costs
across our business.
We have also invested in a customer
relationship management system to enable
us to better target potential customers and
better manage our relationships with existing
customers and support them through their
buying journey.
By developing excellent long term partner
relationships with suppliers and
subcontractors and deploying modern
methods of construction, we are able to
drive efficiencies across the business.
Increasing subcontractor familiarity with our
processes enables us to build right first time.
Utilising standard product helps us to achieve
economies of scale from our suppliers.
Standard product and procedures improve
the efficiency of our build.
We embed margin into our initial LPE and
closely monitor our progress through the
design and development stages to ensure
we are meeting our targets and utilising our
enhanced planning and management
information.
Against a backdrop of rising regulatory costs,
we work on continuous business improvement
to identify efficiencies and cost savings across
the business. This allows us to optimise margin
in times of higher demand whist minimising
margin impact in times of lower demand.
We have made significant reductions in our
cost base over the past two years to reflect
lower demand and protect margin. However,
we have maintained a national footprint to
enable us to capitalise on a stronger market
in future years.
Upgrade options and financial incentives for
our customers are a useful tool to cement
interest, particularly in weaker markets. We
carefully manage our offer in this regard since
this directly impacts our profit margin. All
reported selling prices are net of incentives.
In 2023, we delivered
c.£19m
of annualised savings
Group operating margin*
13.4%
(2022: 20.9%)
* Definitions and reconciliations of our APMs to the equivalent statutory measures are included in Note 32 of the
financial statements. Please see page 81 for definitions.
Read more about our performance through our KPIs on pages 31 to 35
and about our Principal Risks on pages 74 to 77
19
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Our business model continued
What
we do
How we
make
money
Critical
relationships
Key
resources
20
Critical relationships across our value chain
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.
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, agree
to our quality standards and are added to
our subcontractor portal to enable us to
accurately monitor progress.
Key resources we rely on
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 the
Highways Agency.
Local authorities
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.
Customers and communities
Our customer proposition is closely tied to
our purpose and centres on building great
homes and creating thriving communities.
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.
Materials
Our key materials include brick, timber and
roof tiles. Other items include external and
internal doors, insulation and we increasingly
use triple glazing and solar panels on our
homes. We use a small amount of steel,
mostly related to fixings. Other common
materials include wiring, paint, gypsum
(plasterboard), flooring and white goods.
We seek to minimise supply chain disruption
by operating at least a dual supplier strategy
for key components.
Environment and climate
It is important that we work with our
environment 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
biodiversity (by at least 10% on site or via
offsets where this is not achievable on site).
Workforce
Taylor Wimpey UK has around 4.5k
employees. We have highly experienced
and dedicated technical 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, health and
safety personnel and Production and
Technical Managers.
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 changing building regulations such
as the Future Homes Standard.
We believe changes to the current planning
system are required to ensure there is
sufficient future land supply to meet the
UK’s housing needs.
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Our market environment
The 2023 market demonstrates
the cyclical nature of our sector
and this is reflected in the way we
manage our business
UK house prices were strongest in lower priced
regions in Scotland and Northern England
Scotland
North West
Yorkshire
and Humberside
-0.40%
-0.20%
0.30%
0.50%
East
Midlands
West Midlands
Wales
East of England
South West
London
South East
-1.10%
-1.30%
-1.90%
-2.20%
-2.50%
Source: Zoopla, December 2023
21
1.80%
• House prices and build costs – impacts the
affordability of housing and the profitability of
housebuilding
• Secondhand transactions – set the price
for the overall housing market
• Population growth – impacts the availability
of housing and therefore the demand and
pricing dynamics
• Rental cost – influences the relative
attractiveness of ownership versus renting and
therefore affects demand for new homes
Weaker market conditions in 2023
As a new build developer, we are part of a wider
market where secondhand homes generally
account for 80-85% of total UK housing
transactions. Therefore, market pricing is generally
led by the secondhand market.
Overall, UK house prices began to consistently fall
on a month by month basis from the third quarter
of 2022, and by October 2023 had fallen by 1.2%
on a year on year basis (source: ONS). However,
prices began stabilising towards the end of the
year and recent trends have shown price recovery.
We manage our business with
the cycle in mind, maintaining
a strong balance sheet, tight
operational controls and an agile
approach, and we entered the
changing market from a position
of strength.
A cyclical industry
The UK housebuilding sector is cyclical therefore
we manage our business to navigate changing
market conditions.
We have focused on optimising value as the sector
experienced lower transactions in 2023.
It is, however, equally important to retain the ability
to respond to a better market. There is a
recognised UK housing shortage, estimated by
some at over four million. Therefore, there is likely
to be significant demand for the homes we build
in the medium to long term.
Some of the key factors that influence our
market are:
• Interest and mortgage rates – major factors
in affordability and accessibility for customers
• Employment and consumer confidence
– affects the ability and confidence of consumers
to purchase houses
• 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
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information
Our market environment continued
Regionally, prices fell more in areas of higher price
such as London and the South East. Real house
prices (adjusted for inflation) have fallen in the last
two years (see chart opposite). However, cost of
living pressures have offset some of the positive
impact on affordability of this fall.
Underlying prices on our 2023 completions
excluding mix impacts (relating to different house
sizes as well as the geographic make up of sales)
were 1% higher year-on-year.
Industry commentators have differing views on the
house price outlook for 2024. Capital Economics
now expects house price growth of up to 5% while
Halifax predicts that house prices will fall by
between 2-4% in 2024.
Given conditions in the land market and the economic
backdrop in 2023, we were extremely selective in our
landbuying, approving only c.3k plots, which was
significantly below replacement levels.
Market change resulted in reduced
transactions levels
While price declines have been moderate during
this downturn, the fall in transactions has been
more significant.
According to the ONS’s provisional estimate, April
to November 2023 saw a greater than 20% decline
in UK residential property transactions to 687.3k,
against 863.2k for the comparable period in 2022.
During 2023, we closely monitored our build rates to
ensure our deliveries were matching market demand.
22
High build cost inflation moderated
throughout 2023
House prices have fallen in real terms (adjusted for inflation) in the
last two years
£350,000
£300,000
£250,000
£200,000
£150,000
£100,000
5
8
9
1
7
8
9
1
9
8
9
1
1
9
9
1
3
9
9
1
5
9
9
1
7
9
9
1
9
9
9
1
1
0
0
2
3
0
0
2
5
0
0
2
7
0
0
2
9
0
0
2
1
1
0
2
3
1
0
2
5
1
0
2
7
1
0
2
9
1
0
2
1
2
0
2
3
2
0
2
Trend
Real House Price
UK house prices adjusted for inflation
Source: Nationwide Building Society
Build costs are driven by several factors, chief
amongst 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, whilst 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 whilst 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, the last 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.
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Our market environment continued
Mortgage rates impacted selling rates during 2023
%
e
t
a
r
e
g
a
g
t
r
o
M
7
6
5
4
3
2
1
0
1.00
0.90
0.80
0.70
0.60
0.50
0.40
0.30
0.20
0.10
0.00
e
t
a
r
s
e
a
s
l
e
t
a
v
i
r
p
t
e
N
Jan
2023
Feb
2023
Mar
2023
Apr
2023
May
2023
Jun
2023
Jul
2023
Aug
2023
Sep
2023
Oct
2023
Nov
2023
Dec
2023
Net private sales rate
2-year 75% LTV fixed-rate mortgages
5-year 75% LTV fixed-rate mortgages
Source: Bank of England, Taylor Wimpey
Under pressure household finances beginning to recover as pay growth
exceeds inflation
8%
6%
4%
2%
0%
-2%
-4%
-6%
-8%
-10%
23
7
0
0
2
8
0
0
2
9
0
0
2
0
1
0
2
1
1
0
2
2
1
0
2
3
1
0
2
4
1
0
2
5
1
0
2
6
1
0
2
7
1
0
2
8
1
0
2
9
1
0
2
0
2
0
2
1
2
0
2
2
2
0
2
3
2
0
2
Change in real pay (pay adjusted for inflation)
Source: Monthly Wages and Salaries Survey, ONS
2023 started with double digit levels of general
UK (CPI) inflation and the building sector was not
immune. We experienced prevailing rates of build
cost inflation of 9-10% in the initial months of 2023.
As stated, changes in market conditions (house
price and production rates) generally feed into
changes in our input costs, albeit with a time lag.
Last year, build cost inflation moderated to reflect
sector trading conditions, in particular falling output.
Consequently, the build cost inflation we
experienced in our operations reduced to around
6% in the summer, around 2-3% in the final quarter,
and, as we entered 2024, inflation was in the region
of 0-1%.
Other key costs, such as the price at which we
have bought land, are more permanent given that
the land we build on today was typically purchased
several years ago.
Given it takes around nine months to complete a
standard home, there is a natural lag in between
prevailing rates of build cost inflation / deflation and
when these costs are reflected in our results.
Potential easing of the interest rate
tightening cycle
The last two years have seen interest rates rising
from below 0.25% to the current base rate of
5.25%. This led the average monthly mortgage
rates for a five year fixed mortgage with a 75% loan
to value (LTV) to increase from 1.6% in December
2021 to 5.7% by July 2023, before moderating to
4.68% in December 2023.
Interest rates have a significant bearing on the cost
of borrowing and the affordability of homes for our
customers. Therefore, it was unsurprising to see
industry sales rates fall significantly, reflecting the
higher cost of borrowing.
The Bank Rate was raised by the Bank of England
five successive times in 2023, continuing the
upward trend that began in December 2021,
settling at 5.25%. On the last three occasions that
the Monetary Policy Committee has met, the rate
has been held at 5.25%.
Traditionally, performance in the UK housing market
has been strongly correlated to the UK interest rate
cycle. Mortgage rates reflect interest rate
expectations so it was not surprising to see our
own and industry sales reduce following mortgage
rate increases (see chart: Mortgage rates impacted
selling rates during 2023).
In 2023, sales rates across the industry were
severely impacted by factors such as rising
borrowing cost and consumer confidence.
Uncertainty over house prices, the economic
outlook, employment prospects and future interest
rates are all areas of concern for consumers that
are likely to impact their buying decisions.
Rising mortgage rates particularly impacted first
time buyers who generally require larger LTV ratios.
Reduced market activity as a result of rising
mortgage rates and other factors (particularly first
time buyers) has knock-on effects for chains,
impacting the overall health of the market.
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information
Our market environment continued
Easing inflation outlook
The Bank of England (BoE) has increased the
interest rate primarily to combat inflation, which has
been running significantly higher than its 2% target.
External factors such as global conflicts, supply
chain issues, energy and food prices have had a
major bearing on interest rate policy in this rate
cycle. Domestically, and partly as a consequence
of these external inflationary pressures, public and
private sector wage increases have also added
to inflation.
4%
current rate of inflation
2%
estimate of inflation
for April 2024
Inflation peaked at 11.1% in October 2022,
reducing to 6.7% in the summer of 2023 and, as at
February 2024, stands at 4%, mirroring earlier
predictions by the BoE. Oxford Economics predicts
that CPI inflation will reach 2% by April 2024, in line
with BoE target.
4.8%
average cost of a
75% LTV two year
fixed term mortgage
24
Opinion amongst commentators varies as to
whether a rate cut may occur in the first quarter,
second half or at all. Ultimately, the BoE’s mandate
is to reach target inflation of 2%, and the inflationary
backdrop is the key element in determining the
future direction of interest rates.
Capital Economics now expects interest rate
reductions to start in June in 2024 and reach 3%
in 2025 and mortgage rates have already moved
to reflect an expected reduction in interest rates.
Opinion around timing on a potential cut varies and
the Governor of the Bank of England, Andrew
Bailey, has repeatedly cautioned the market that
interest rates may need to stay higher for longer.
Interest rate and mortgage rate reductions could
help more people access housing, which would be
a positive for our market. However, the extent to
which they will impact our trading depends on if
and when rate cuts occur. For example, a first
quarter rate cut could have an impact on 2024
sales, but a third quarter rate cut would likely mostly
benefit 2025, given the time lag between sales in
order book and completions.
Mortgage rates can, and often do, move ahead
of the Bank Rate in anticipation of future moves.
As Capital Economics points out, “the fall in some
mortgage rates to below 4% means the effect of
future cuts in Bank Rate are already being felt”.
Challenged affordability beginning to ease
The fall in transactions shows rising interest rates,
coupled with the cost of living pressures, stretched
the affordability of housing for many over the past
18 months.
However, following the BoE’s decision to hold
interest rates at current levels, mortgage rates
eased to their lowest levels in many months.
According to Rightmove, as at 7 February 2024,
the average cost of a two year fixed mortgage at
a 75% loan to value (LTV) was 4.8%. On the same
basis the average five year fixed mortgage rate
was 4.55%.
Affordability and consumer confidence are also
impacted by other factors such as wage growth,
the general level of inflation and employment levels
as well as the cost and availability of alternative
rental properties.
Wage growth now exceeds the level of house price
inflation, which together with falling overall inflation is
offsetting the impact of increased borrowing costs.
However, whilst all the factors outlined here will
help determine overall affordability, interest rates
will generally have the greatest impact.
Therefore, any rate decrease will offer the greatest
benefit to our sector.
Consumer service Which? estimates that a 0.5%
rise in rates is likely to add around £64 per month
to the average mortgage cost on the basis of a
25-year mortgage with a £250k loan. It is worth noting
that the cost is dependent on the homeowner’s
LTV ratio with the increase higher for a high LTV
(low deposit) mortgage and lower for those with
more equity, meaning that first time buyers with
lower deposits are most affected.
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Our market environment continued
Lack of distress in housing market
Long term housing need
Ageing housing stock
A lower level of transactions may mean that many
people have chosen not to sell in a difficult market.
However, there have been times, such as the global
financial crisis, when people have been forced to
sell owing to financial stress and indebtedness.
The Financial Conduct Authority expected around
1.7 million existing fixed rate deals to expire in
2023. This means many people will face higher
mortgage payments this year than under their
previous deals.
Up until August 2022, there was a mandatory
mortgage stress test in place to ensure customers
seeking a mortgage would be able to afford
payments in the event of a 3% rise over the
standard variable rate. Therefore, though likely to be
challenging, the more stringent lending criteria of
the last decade should mean that increased
payments are affordable for the majority of
mortgage holders.
Accordingly, there is good reason to believe that
there should be relatively low levels of financial
stress amongst homeowners and lower numbers
of forced sellers than in previous downturns, which
could be positive for house price stability.
High employment and real wage growth
UK unemployment was 3.8% in the three months
to December 2023, a modest rise on the 3.7% in
the three months to December 2022.
According to the ONS, annual growth in regular
earnings was 7.3% in August to October 2023.
This translated to annual growth in real terms
(adjusted for inflation) of 1.3%.
Notwithstanding our sector’s cyclicality, the medium
to long term fundamentals of the market remain
strong. Data on UK population growth and
changing demographics continue to underpin
household formations and long term demand.
There is a recognised housing shortage in the UK
with new home completions significantly below the
UK Government’s desired levels. Government
planning amendments suggest a move away from
a specific top-down target, but continue to suggest
that 300k new homes per year are needed to fulfil
UK housing demand, a level last achieved in 1977
(source: Statista).
According to the think tank Centre for Cities, the
UK has a 4.3 million housing shortfall that would
take 50 years to fill even if the industry were to
meet the 300k per year guidance for new housing.
Given that this target has never been met, there is
likely to be significant undersupply for some years.
Population growth
Demographics and population growth impact
housing need. As the chart opposite shows UK
population growth is not being matched by
new housing.
The UK Government’s English Housing Survey (EHS),
suggests the home ownership rate is 65% in
England. According the EHS, the average age of
a first time buyer outside London is 33 (35 for a
first time buyer in London), compared with 30.5
in 2007/08.
Therefore, having peaked at 71% in 2003
(source: EHS 2022-23) the current level of home
ownership is below the aspirations of both
the Conservative Government and the
Labour Opposition.
25
With 38% of our housing built pre-1946, the UK
has the oldest housing stock in Europe. This is
increasingly problematic when considering the UK’s
2050 net zero carbon agenda, given only a small
percentage of this old housing stock meets the
highest energy efficiency ratings.
Existing housing stock is likely to require major
retrofit of new technology. Statista estimates that
around 78% of UK homes have gas central heating
systems. The cost of converting this housing stock
to electrical heating will be considerable.
Financial website This is Money estimates the cost
of electrification for an existing home to be £26,000.
In addition, consumer group Which? suggests the
cost of an air source heat pump (one of the world’s
most widely used electric heating technologies) to be
£10,000 on its own.
3.8%
UK unemployment,
3 months to
December 2023
65%
UK home ownership
rate, compared to
71% peak
33yrs
average age of first time
buyer (excluding London)
UK population growth continues to drive housing need
700
600
500
400
300
200
100
0
-100
1
0
0
2
4
0
0
2
7
0
0
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6
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4
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0
2
7
3
0
2
0
4
0
2
3
4
0
2
6
4
0
2
Growth in population (thousands)
Net additional dwellings England (thousands)
Source: ONS, DLUHC
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Our market environment continued
Monthly rental once again rising above monthly mortgage costs for
75% LTV loan
1,400
1,200
1,000
800
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S
Average UK rental value
Monthly mortgage 75% LTV
Sources: Bank of England, Nationwide, Homelet Rental Index
English residential planning approvals continue to fall from 2021 peak
100,000
90,000
80,000
70,000
60,000
50,000
40,000
30,000
20,000
10,000
0
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Private
Social
1 & 2 Units
26
Source: House Builders Federation (HBF)
In past markets, land prices have generally
responded to changes in demand and industry
output, rising in periods of high demand but
reducing when industry output falls. In market
downturns, it has often been possible to acquire
cheaper land that benefited margin in future years.
However, over this period, given planning constraints,
land has generally been in short supply and prices
have not adjusted to reflect market conditions in the
manner they have in previous downturns.
In December, the Government confirmed changes
to the National Planning and Policy Framework
(NPPF) that will place more emphasis on devolving
planning decisions to a local authority level.
Whilst there was emphasis from the Government
statement on enforcement measures, the success
of the NPPF has traditionally relied on a level of top
down scrutiny that may not be present in the
current regulation. In addition, the absence of the
requirement for a five-year housing land supply is
a key concern.
Other problems faced by our planning system are
more structural in nature. Data from Institute for
Fiscal Studies suggests an almost 60% reduction
in real planning budgets over the 10 years to 2019.
This lack of resources has contributed to a backlog
of applications and at Taylor Wimpey we have seen
a major increase in the number of plots we have in
the planning system.
The homes we build at Taylor Wimpey are already
around twice as energy efficient as an average
existing secondhand home and it remains
the Government’s intention that new build homes
transition to be zero carbon ready from 2025.
At that point the homes we produce will be fully
electric and would be zero carbon ‘homes in use’
once the UK’s grid infrastructure is powered by
renewable sources.
Rental market
With low interest rates over recent years, monthly
mortgage costs have generally been either cheaper
or broadly comparable to the average cost of
rental, despite rising house prices. This changed
when rates spiked in September 2022 when
mortgage costs rose above rental comparators.
However, subsequent house price weakness and
strong growth in rental costs now mean that the
monthly cost of new homes is cheaper than the
rental alternative for a number of our UK regions
(see chart: Monthly rental once again rising above
monthly mortgage costs for 75% LTV loan).
The land and planning backdrop remains
a bottleneck
A healthy and functioning housing market requires
a reliable supply of land for developers to plan and
build. In 2023, there was a significant slowdown in
planning approvals as shown in the chart: English
Residential Planning approvals.
The latest HBF Housing Pipeline report for Q3 2023
shows planning permission grants are continuing to
fall and are at the lowest levels since 2015, with
c.246k plots approved in the 12-month period to
September 2023. The HBF believes this could lead
to as few as 200k plots being supplied in 2024.
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information
Recent 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 waste water
authorities, to which, according to the HBF,
homebuilders have paid £1 billion in the last three
years to September 2023.
Evidence suggests relatively small movements in
agricultural practices would offset the impact of
new homes. 2023 saw a bill put forward by the
Government in an attempt to unlock as many as
100,000 affected plots between 2023 and 2030.
However, this was later rejected by the House of
Lords, meaning Nutrient Neutrality remains an
ongoing issue, that has the potential to impact
industry build volumes in future years.
Our market environment continued
Our teams have been extremely proactive and have
tried, where possible, to ease the burden on the
planning system.
Whilst progressing our land through planning
remains a key priority for the business, a difficult
planning system continues to impact our outlet
openings and we currently have around 30k plots
in the planning system, much higher levels than
in prior years.
Improving planning may require further policy
changes and greater resource allocation to local
authority planning teams.
In 2024, scheduled local elections and the UK’s
General Election are likely to lead to further
disruption in the planning system.
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 water course.
The source 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 is affecting 150,000 homes at
various stages in planning.
27
“ Progressing our
land through
planning remains
a key priority for
the business, as a
difficult planning
system continues
to impact our
outlet openings.”
Mark Skilbeck
Director of Planning
74
local councils affected
by Nutrient Neutrality
regulations
£1bn
paid by housebuilders
to water authorities in
three years
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Market trends, opportunities and risks
Key driver
Interest rates and mortgage availability
Link to Principal Risks
Material impacts
Employment, skills and labour availability
Material impacts
Link to Principal Risks
B: Mortgage availability and
Our homes and places
D: Attract and retain high-calibre
Our people and suppliers
housing demand
C: Availability and costs of materials
and subcontractors
Interest rates and mortgage availability are key factors determining housing affordability
and accessibility for our customers. The Bank of England (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.
UK Consumer Price Index (CPI) inflation remained higher than expectations in the Q1
2023, prompting significant increases in mortgage rates from lenders in Q2 as lenders
anticipated that rate rises would be higher and longer lasting.
Interest rates peaked last year at 5.25% against initial expectation of around 4.5%
(source: Capital Economics).
However, inflation fell from 10.5% in December 2022 to 4.0% by December 2023 as the
impacts of rising energy prices unwound and BoE’s tightening policy took effect.
2023 backdrop
Drivers,
short term
opportunities
and risks
Drivers,
long term
opportunities
and risks
As lenders anticipate future interest rate cuts, we are seeing mortgage rates below the
current base rate widely available. UK inflation of 4% remains higher than the UK target of
2% but is expected to fall sharply in 2024 with the Office of Budgetary Responsibility (OBR)
predicting inflation of 1.5% in Q1 2024.
Wage growth in excess of house price growth and general inflation should help
affordability and there may be potential for interest rate cuts this year.
Lenders are offering longer term mortgages (beyond 30 years) to improve monthly
affordability. There is potential for fiscal stimulus in the UK budget on 6 March 2024.
The Bank Rate is expected to moderate gradually downwards to 3% in 2025 (source:
Capital Economics). This is a higher levels than most of the previous decade so the
expense of monthly mortgage costs is also likely to remain higher.
Wage growth may help improve affordability dependent on the level of future house
price inflation.
28
employees
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.
Having peaked at 4.3% for May to July 2023, UK unemployment was 3.8% for the three
months to December 2023 (3.7% for the three months to December 2022). According to
the ONS, annual growth in regular earnings was 7.3% in August to October 2023 which
translated to annual real term growth (adjusted for inflation) of 1.3%.
Wage increases have been a factor contributing to inflation. Labour market tightness
meant pressure on both public and private sector wages with a number of high profile
industrial actions, including in transport and the NHS. Job vacancy numbers fell from
December 2022’s 1.2 million but remain significant at 949k for September to
November 2023.
While there were still areas of tightness in the first half, labour cost inflation in the building
sector was more moderate than materials cost inflation throughout the year.
Construction labour availability improved because of falling industry output and, sector
specific labour inflation was negligible by the end of the year.
Whilst there may continue to be some pressure on UK wages in 2024, there is potential
that this lessens due to a number of multi-year settlements during 2023.
Economic forecasts vary for 2024. Some view stagnation likely given weak economic
conditions and a difficult global geopolitical backdrop. However, other commentators are
more optimistic, given the potential end of the rate tightening cycle. The 2024 spring
budget may have a bearing on the outlook for the year.
Gov.uk predicts that unemployment will rise modestly to c.4.6% in 2024. This compares
to a high of c.8.5% in 2011 following the global financial crisis.
The employment outlook will impact consumer confidence and is important for the
housing sector and the wider economy. If the economic backdrop is benign then it is
likely that future industry output could increase substantially to meet pent up demand,
which offers both opportunity and risk.
Attracting and retaining skilled workers to construction is key to the long term yet remains
challenging. At Taylor Wimpey, a key focus is attracting new talent to the industry.
We are increasingly seeking ways to mitigate risk, driving efficiencies through modern
methods of construction and have recently established our own timber frame facility.
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Market trends, opportunities and risks continued
Key driver
Climate change
Link to Principal Risks
Material impacts
Land and planning
Link to Principal Risks
Material impacts
A: Government policies, regulations
Our planet
A: Government policies, regulations
Responsible and resilient business
and planning
and planning
H: Natural resources and climate change
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.
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. All of our homes started since then incorporate the material
enhancements needed to meet the new standards.
We progressed our work in preparedness for the Future Homes Standards (FHS)
regulation that will require a 75% reduction in carbon emissions from 2025, successfully
launching our zero carbon ready homes trial in June 2023. We also launched our Net
Zero Transition Plan publicly in 2023 and will continue to work towards our science-
based targets.
The Government announced that it would no longer go ahead with the proposal that
rental properties would require an average Energy Performance Certificate (EPC) rating
of C by 2025 for new tenancies and by 2028 for existing tenancies. Any change could
mean costly retrofits for private landlords.
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. However, after mid 2025 and a suitable
transitional period the homes we build will be zero carbon ready.
Whilst 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. This cost is
generally reflected in residual land values.
Less than 2% of UK housing stock scores at the highest energy efficiency rating. We see
potential for a competitive advantage and price premium for new, more energy-efficient
homes. For example, we have already seen slightly cheaper ‘Green mortgages’ making
new homes comparably cheaper to buy than less energy-efficient second-hand stock.
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. A combination of these factors may mean that new homes can attract a future
pricing advantage over older stock.
E: Land availability
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.
We continued to limit our land spend given the tightness in the land market and the
economic backdrop.
The land market continued to be challenging in 2023 with limited land available at an
attractive value and a slow planning system.
Delays and resource constraints in the planning system are impacting the supply
of land for housing, with some of our developments also impacted by Nutrient
Neutrality legislation.
Amendments to the National Planning Policy Framework announced by the Government
in December 2023 removed the need for Planning Authorities to maintain a five-year
supply of deliverable housing sites which could result in further delays and a shortfall in
the supply of land available for development.
The backdrop will depend on the intentions of the party/ies that form/s the next
Government following the 2024 General Election.
However, there is recognition in political parties of the importance of housing.
The long term backdrop is uncertain, and it is unclear whether resources will be
allocated to enable the planning system to function better. However, current proposed
changes have the potential to reduce medium to long term land supply.
Following the 2024 General Election, there is potential for further changes to the planning
regime by whichever party or parties form/s the next Government. With housing vital to
growth in the UK economy we expect this to be a major focus during the next parliament
and for the land and planning backdrop to improve, albeit from a low base.
2023 backdrop
Drivers,
short term
opportunities
and risks
Drivers,
long term
opportunities
and risks
29
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information
Purpose, values and strategy
Focused on creating value
for our stakeholders
Our purpose
Our values
Our strategy
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.
Built on a strong
culture of doing the
right thing
Our strategic cornerstones allow us to be flexible and agile
Respectful
and fair
Take
responsibility
Better tomorrow
Be proud
Land
Sustainability
An agile approach to optimising value
Investing to protect long term value
for stakeholders
Read more on pages 31 to 32
Read more on pages 35 to 36
Operational
excellence
Capital
allocation
Driving efficiency and execution
A clear and disciplined approach
Read more on pages 33 to 34
Read more on pages 37 to 38
30
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Performance and strategy
Land
Our excellent landbank and strategic pipeline enabled us
to be highly selective in the land market in 2023.
Key performance indicators
Land cost as % of
average selling price
on approvals
Landbank years
% of completions
from strategically
sourced land
2023
2022
2021
15.2%
19.0%
16.1%
2023
2022
2021
c.7.7
c.6.0
c.6.1
2023
2022
2021
45%
52%
50%
Objective
Objective
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.
To run an efficient landbank being
mindful of the external environment
such as planning environment.
Definition
The years of land supply in our short
term landbank based at 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.
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.
31
2023 highlights
• Strong short term landbank of c.80k plots as
at 31 December 2023 (2022: c.83k plots)
• Balance sheet light, industry leading strategic
pipeline of c.142k potential plots as at
31 December 2023 (2022: c.144k plots)
• High level of strategic conversions with c.8k
plots converted from the strategic land
pipeline to the short term landbank
(2022: c.4k plots)
Priorities going forward
Short term
• Remain highly selective in acquiring new
sites but will be active where we see
good opportunities
• Progressing planning in our short term
landbank to open new outlets
• 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
Coronation
Square, Leyton
This development is
a regeneration project
in partnership with
Waltham Forest Council
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Performance and strategy continued
Land
Strategic cornerstone in action
In 2023, we completed
our first home
compliant with new
building regulations,
Parts L and F
32
Herrington View, Penshaw
Located in the former mining village of Penshaw, near
Sunderland, Herrington View is a good example of a
site originating from Taylor Wimpey’s strong strategic
pipeline. The site demonstrates the hard work and
expertise and high-quality planning applications
needed to successfully progress a strategic site.
Herrington View also highlights our strategy to
develop desirable locations, close to major transport
and employment hubs with the potential to deliver
a resilient performance through changing markets.
We originally optioned the land in 2016 with the
agreement running until 2024. The strategic land
team worked with Sunderland City Council to
progress the land to development status with the
authority allocating Penshaw to its Core Strategy
Development Plan in January 2020.
Working in partnership with Sunderland council
Sunderland council was early to recognise the
benefits our development would bring to the area.
Our teams meet regularly with the council to
manage workload and expectations and, work
together constructively to resolve any issues.
The Decision Notice awarding hybrid planning was
received in September 2022, allowing us to start
work in January 2023, less than six years since the
start of our option.
We began actively selling from the site in June 2023
having established show homes and our sales
centre, and first legal completions took place in
November the same year.
Comprising 34 net acres, Herrington View will
provide 440 new homes, of which 66 will be
designated affordable housing. The first phase of
116 homes has full planning permission, and the
remaining 324 plots currently have outline planning.
Carefully designed landscaped corridors will
allow customers views of the historic Penshaw
Monument and natural play areas within the
development will provide a safe place for children
to play and neighbours to meet. The site is adjacent
to the Herrington Country Park, allowing our
customers to get closer to nature. We are fitting
bird and bat boxes to 88 plots and we are
contributing towards Biodiversity Net Gain
enhancements in the Herrington Country Park.
Well-located site
The site is close to larger towns and cities with
Chester le Street four miles to the west and
Sunderland five miles to the east, while Durham and
Newcastle are less than 12 miles away. Herrington
View has excellent nearby road links including the
A19 and the A1(M), connecting our customers to
major transport networks and employment hubs.
The site is also close to a wide range of local
amenities including Doxford shopping and
Washington Galleries.
Our first completions incorporating revised
Building Regulations
Working with Group Technical, the local team
decided on the early implementation of Part L and F
of the Building Regulations. As a result, Herrington
View is responsible for our first UK legal completion
built to the new building regulations, making our
homes 31% more energy efficient than homes built
to the previous standard.
Phase 1 of the site is expected to complete in
2026. Depending on the market and our sales rate
future phases of the scheme will then give us a site
presence into the early 2030s.
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Performance and strategy continued
Operational excellence
We seek to drive continuous improvement and efficiency
benefits through relentless focus on operational excellence
throughout the business.
Key performance indicators
Construction
Quality Review
(average score/6)
Average reportable items
per inspection
Health and Safety
Injury Incidence Rate
(per 100,000 employees and
contractors) rolling 12 months
Employee engagement
(annual survey)
2023
2022
2021
4.89
4.81
4.67
2023
2022
2021
0.28
0.32
0.26
2023
2022
2021
151
166
214
2023
2022
2021
93%
93%
91%
2023 remuneration measure.
Read more on page 143
Objective
Objective
Objective
Objective
To achieve an average score of four
out of six across Taylor Wimpey.
Reduce defects found during
build stages.
Definition
Definition
The average score, out of six,
achieved during an in-depth annual
review of construction quality on a
site-specific basis.
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
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.
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.
33
We are committed to providing a
safe place in which our employees
and subcontractors can work and
our customers can live.
Definition
Reportable (all reportable) injury
frequency rate per 100,000 employees
and contractors (Annual Injury
Incidence Rate).
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
Why it is key to our strategy
• Continuous business improvement including
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.
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.
investment in technology to protect
stakeholder value against a backdrop of
increasing regulatory demands
• Continuing to invest in training our highly
engaged workforce to ensure they have the
appropriate skills to drive the business forward
2023 highlights
• 98% of our employees agree that we take
health and safety seriously (2022: 98%)
• Driving efficiencies through increased use
of technology, data monitoring and trend
analysis, and continued focus on defect
prevention and continuous improvement
• Conducted a detailed value exercise to
ensure our customer offering continues to be
of high-quality and the specification valued
by our customers whilst at the same time
targeting cost savings
Priorities going forward
Short term
• Health and safety remains our number one
priority in all markets
• Optimising value across all areas of the
business and increasing efficiency
• Continue to ensure consistent high quality
Medium term
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Performance and strategy continued
Operational excellence
Strategic cornerstone in action
34
Developing our own timber frame production
We took possession of our 240,000 square foot
timber frame facility in the summer of 2023 and
have since completed an extensive fit out. The large
facility is ideally located in Peterborough, close to
our Taylor Wimpey Logistics business.
Alongside the efficiency benefits, increasing our use
of timber frame will aid us in our carbon reduction
goals, since the timber frame process produces
less carbon than masonry construction. Timber
frame construction is currently slightly higher cost
than conventional brick and block construction but
enables us to speed up build, allowing earlier
commencement of all follow on trades whilst slightly
reducing our reliance on bricklaying resources.
Increasing security and reliability of supply
In recent years, the supply and pricing of timber
has been volatile due to global supply chain issues.
In establishing our own facility, we can hold our
own buffer stock enabling us to better manage any
future supply chain challenges. As we progress,
there is the potential to drive future savings for
our businesses.
A measured roll out
Production commenced in early 2024 with first kits
to be delivered to site in the first half of the year.
We are taking a measured approach to rolling out
our production. We have management with vast
experience in timber frame to ensure that proper
processes are in place before scaling up over the
next two years.
Environment and
efficiency benefits
Timber frame could reduce
embodied carbon from the
materials in a typical home
by around 15%
Our skilled employees will be provided with the
necessary training in the fundamentals of timber
frame production and health and safety. When fully
operational, we expect to run two shifts employing
around 100 people.
This year, the facility will produce several hundred
units, with first deliveries to our sites in the first half
of the year. At full capacity in two to three years’
time, we expect to produce around 3,000 kits per
year which, in combination with our external
suppliers, will support our goal of increasing timber
frame usage to 30% of our production by 2030.
c.3k
kits per year once at full capacity
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Performance and strategy continued
Sustainability
Investing to protect long term value for all stakeholders,
prepare for regulatory change, continue to develop sustainable
communities and play our part in limiting climate change.
Key performance indicators
Customer satisfaction
8-week score ‘Would
you recommend?’
Customer satisfaction
9-month score ‘Would you
recommend?’
Reduction in operational
carbon emissions intensity
(measured at end of year)
2023
2022
2021
92%
90%
92%
2023
2022
2021
5%
77%
78%
79%
2023
2022
2021
15%
13%
2023 remuneration measure.
Read more on page 143
2023 remuneration measure.
Read more on page 143
Objective
Objective
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.
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.
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.
35
2023 highlights
• Rated five-star for customer service in the
Home Builders Federation (HBF) survey
• Published our Net Zero Transition Plan to
reach net zero carbon emissions across our
value chain by 2045, ahead of regulation
• Delivered the UK’s first zero carbon ready
scheme on a live site at Sudbury, including
industry leading interactive models which will
help communicate the benefits of the new
technology to customers and sharing best
practice with industry and SMEs
• Net zero targets independently validated by
the Science Based Targets initiative and
achieved certification to the Carbon Trust’s
Route to Net Zero Standard, Advancing level
Priorities going forward
Short term
• Continue to invest in the long term
sustainability of the business including
training our highly engaged employees
• Continue to prioritise value over volume and
seek to increase volumes where market
conditions allow in a value enhancing way
Medium term
• Investing to protect long term value for all
stakeholders
• Further progress on our path to net zero
Cultivating
biodiversity
We integrate
hedgehog highways
and bug hotels or
bee bricks on new sites
Read more on page 52
Interactive
models
Helping to
communicate
the benefits of
new technologies
to customers
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Performance and strategy continued
Sustainability
Strategic cornerstone in action
An industry first
Taylor Wimpey installed
the UK’s first roof
mounted air source
heat pump on a live
development site
36
Scan to hear more
about our trial homes
at Sudbury
Developing net zero ready homes with our
Sudbury prototypes
The Future Homes Standard (FHS), is due to take
effect in England from 2025 (with associated
transitional arrangements). We expect the FHS to
require a 75-80% reduction in carbon emissions
from new homes. In Scotland, the New Build Heat
Standard is being introduced in April 2024.
This will represent a step change in the way we
build as well as the way customers live, with the
key requirement to move from gas central heating
and hot water to all electric homes.
Learning valuable lessons from the trials
In 2023, we completed our zero carbon ready
homes trial at our Chilton Woods development in
Sudbury, Suffolk. Zero carbon ready means the
homes should be net zero in use once the UK
energy grid is decarbonised.
The launch of the prototypes was a major milestone.
The trial, comprising five multi-specification prototype
homes, was the industry’s first research concept
testing low carbon technologies on a live
development site.
The homes have allowed us to review construction
methodologies, determine the design and technical
implications of integrating into Taylor Wimpey
homes, review the skills required to install the
new technologies and share lessons learnt across
the business.
The trials will continue once the homes are sold,
allowing us to measure performance of the new
technologies, obtain customer feedback enabling us
to optimise our approach, and refine our approach
ahead of and in response to final regulation.
We tested a combination of fabric and technology
solutions to achieve zero carbon ready homes,
designed to ensure they meet customers’
living requirements.
In developing these homes, we adopted a ‘fabric
first’ approach to raise the energy performance
(addressing walls structure, doors, windows,
insulation). Technology will continue to evolve,
while the fabric will be there for the lifespan of the
homes. Fabric enhancements include triple glazed
windows, wider cavity walls to allow for greater
thermal insulation and thermal lintels.
The five prototypes each tested different technology
combinations such as air source heat pumps,
underfloor heating, infrared panels, solar panels,
battery storage and mechanical ventilation and
heat recovery.
Preparing for the change
While innovative, these combinations are generally
well established technologies that are widely used
globally, so are relatively low risk. However, there
remain significant educational challenges in terms
of the supply, installation and importantly, customer
readiness for these new solutions.
Apart from one home deliberately designed to
push the boundaries of what is possible, the homes
were completed within budget, including the costs
to meet changes in line with updates to the building
regulations that came into place in June 2023.
We factor these costs into the residual value
calculations when we make land acquisitions.
We are pleased these trials successfully delivered
homes capable of meeting zero carbon ready
status, within budget and well ahead of regulation.
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Performance and strategy continued
Capital allocation
Our clear and disciplined capital allocation framework balances investment
in our future with sustainable dividends and cash returns for investors at the
appropriate time in the cycle.
Our capital allocation priorities
1. Maintain a strong
balance sheet
Maintain low adjusted
gearing* to reflect cyclical
nature of the industry
3. Sustainable
ordinary dividend
Ordinary Dividend Policy
of 7.5% of net assets or at
least £250 million annually
throughout the cycle
4. 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
2. Investment in
land and work in
progress (WIP) to
drive future growth
Focus on funding business
needs, including land
investment and WIP
to drive growth
£677.9m
Net cash*
(2022: £863.8m)
£516.1m
Land creditors
(2022: £725.6m)
9.57p
Total ordinary dividend
per share paid in the year
(2022: 9.06p)
37
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Performance and strategy continued
Capital allocation
Strategic cornerstone in action
Consistently evaluating capital allocation
Every day we make capital allocation decisions
when we assess our land and commit capital to
work in progress on our sites (the investment in
labour, materials and direct costs attributable to
our developments that is held in inventory until
completion, when it is recognised in cost of sales).
Our investment criteria are subject to a rigorous
process and includes detailed land assessment
against numerous financial metrics, subject to sign
off by senior management levels including the
Chief Executive.
In 2023, we reduced our land commitments due to
conditions in both the land and the wider housing
market. We also tightly controlled release of work
in progress with each of our businesses working
hard to closely match our build output to levels of
customer demand.
Providing visibility to investors
Our Dividend Policy has been established to
provide shareholders with a reliable dividend and
surplus cash return via special dividend or buyback
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.
Our Ordinary Dividend Policy has been stress
tested to withstand conditions beyond what we
would consider a normal downturn, including up
to a 20% fall in house prices and 30% decline
in volumes.
In line with our policy, we announced a final
Ordinary Dividend payment of 4.79 pence per
share, which is subject to shareholder approval
at the Annual General Meeting.
With the 2023 Interim Dividend payment of
4.79 pence per share, the total Ordinary Dividend
for the year is 9.58 pence per share or
approximately £339 million.
It remains our policy to return to shareholders
surplus cash generated by the business, and which
is in excess of that needed by the Group to fund
land investment, working capital, taxation and other
cash requirements, and after the ordinary dividend.
9.58p
2023 dividend pence per share
£339m
total dividend for the year
* Definitions and reconciliations of our APMs to the equivalent statutory measures are included in Note 32 of the financial statements.
Please see page 81 for definitions.
38
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Operational review
In 2023 we increased focus on
operational controls across the
business. In light of reduced demand
in our market, we continued to tightly
manage costs and investment in work
in progress and were highly selective
in our land investment.
Strategic report
Directors’ report
Financial statements
Shareholder information
What’s in this section
• 2023 sales, completions and pricing
• Land
• Central and local government
• Supply chain
• Opportunities in green building
• Modern methods of construction (MMC)
• Charity partnerships
Highlights for 2023
UK completions including
joint ventures
Reduction in absolute operational
carbon emissions intensity since 2019
Group operating
profit margin*
10.4k
(2022: 13.8k)
39
35%
(2022: 26%)
13.4%
(2022: 20.9%)
Taylor Wimpey plc Annual Report and Accounts 2023 Operational review continued
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.
2023 sales, completions and pricing
Total Group completions (including joint ventures)
were 10,848 (2022: 14,154). UK home completions
(including joint ventures) were 10,438 (2022: 13,773),
which included 2,388 affordable homes (2022: 2,920)
equating to 23% of total completions (2022: 21%).
Completions from joint ventures in the year were 82
(2022: 222). Our net private reservation rate for 2023
was 0.62 homes per outlet per week (2022: 0.68).
The cancellation rate for the full year was 18%
(2022: 18%).
UK average selling prices on private completions
increased by 5.1% to £370k (2022: £352k) with the
overall average selling price increasing by 3.5% to
£324k (2022: £313k).
We estimate that market-led house price growth for
our regional mix was c.1% for completions in the
12 months to 31 December 2023 (2022: c.8%).
Underlying build cost inflation in 2023 was c.8.5%
(2022: c.8%). At the start of 2024, prevailing build
cost inflation is running at around 1% and reduces
to zero when taking into account the savings arising
from our value improvement programme.
During 2023, we continued to focus on using the
levers within our control to reduce cost including
retendering of site phases and a full review of
specification to identify savings without impacting
health and safety, quality or customer satisfaction.
We ended the year with an order book valued at
£1,772 million (31 December 2022: £1,941 million),
excluding joint ventures, which represents 6,999
homes (31 December 2022: 7,499 homes). In the UK,
we traded from an average of 238 outlets in 2023
(2022: 232). We ended the year with 237 outlets
(31 December 2022: 259).
Land
We have a strong short term landbank of c.80k
plots as at 31 December 2023 (31 December 2022:
c.83k). During 2023 we acquired 1,572 plots (2022:
7,716) for the short term landbank. The average
cost of land as a proportion of average selling price
within the short term owned landbank remains low
at 13.7% (2022: 14.0%).
The average selling price in the short term owned
landbank in 2023 increased by 1.6% to £327k
(2022: £322k). Our focus is on progressing planning
in our short term landbank to open new outlets
and secure delivery from our strategic pipeline,
transferring assets to the operational business.
As at 31 December 2023, we were building on, or
due to start in the first quarter of 2024, on 99.6%
of sites with implementable planning.
Our strong land position has benefitted from
conversions from our strategic pipeline. We saw
fewer opportunities to buy land at attractive
valuations in 2023 and accordingly were highly
selective in land acquisition with approvals at
c.3k plots (2022: c.7k). The quality of our
strategic pipeline of c.142k potential plots
(31 December 2022: c.144k), continues to
provide differentiation offering optionality and
flexibility for the foreseeable future.
40
Benefiting from a
strong land position
Our short term landbank
is supported by a strong
strategic pipeline, with 54%
of our short term landbank
strategically sourced
Our success in developing our strong strategic
pipeline means that 54% of our short term landbank
has originated from this source (2022: 50%). In the
year, 45% of our completions were sourced from
the strategic pipeline (2022: 52%).
During 2023, we converted a further c.8k plots from
the strategic pipeline to the short term landbank
(2022: c.4k plots) and added a net c.6k new
potential plots to the strategic pipeline (2022: c.3k).
Despite continuing delays in plan-making across
the country, our high-quality strategic pipeline
remains a key strength, both as an important input
to the short term landbank and in providing an
enhanced supply of land with greater control over
the planning permissions we receive.
Central and local government
During 2024, the UK will be holding local elections
across the country, in addition to a General Election
expected in the second half of the year. We
welcome the recognition from both main political
parties of the importance of housebuilding to the
country and continue to engage with all
stakeholders at every level of the business.
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information “ 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.”
Nick Wright
Manufacturing and
Supply Chain Director
This aids production, improves speed of build and
significantly reduces site traffic. In addition to
delivery of pre-kitted products to site, it provides
services that support our regional businesses
including:
• Take off and scheduling services
• Strategic stock holding with annual pricing to
safeguard against fluctuating supplier
performance and price volatility
• Ensuring adherence and alignment to our
standardisation / stock keeping unit reduction
procurement strategy
The benefit of TWL can be seen in our site
deliveries. TWL supplies our businesses 99% on
time in full (OTIF), compared to receiving its supplies
87% OTIF.
Supply chain
We have worked on improving our supplier risk
process for a number of years and, as a result, our
visibility and understanding of our supply chain has
increased considerably. This encompasses risks
across the whole supply chain, rather than just our
first-tier suppliers.
Supplier risk is measured as instability in the supply
chain and can cover any number of scenarios, such
as global or national shortages of products, supplier
insecurity, including financial issues or supplier
quality and delivery problems. Our supply chain
strategy is to understand the risks at the various
stages of the supply chain and put in place
accordant strategies.
This work has resulted in a change to a number
of our supply chain routes to improve material
availability.
We are also developing our approach to
environmental and social risks in our supply chain,
integrating disclosure requirements into our tender
processes for key group suppliers.
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.
Operational review continued
The planning environment continues to be very
challenging with delays and resource pressures
impacting housing land supply. Amendments
to the National Planning Policy Framework (NPPF)
announced by the Government in December
include positive measures to support improved
quality of design and placemaking.
However, other changes, including softening of the
requirement to meet local planning targets, the
relaxation of the soundness test for plan-making
and the removal of the need for planning authorities
to maintain a five-year supply of deliverable housing
sites, could result in further delays and a shortfall in
the supply of sites.
We continue to engage with industry, water
authorities and central and local government on the
issue of Nutrient Neutrality. We have established our
internal Nutrient Working Group to help our regional
businesses develop effective responses to this issue.
During 2023, Biodiversity Net Gain (BNG)
requirements in England were published and came
into effect in February 2024. We have published
guidance and have held training sessions for our
regional businesses to support them to manage
the risks, costs and opportunities associated with
Biodiversity Net Gain. BNG was effectively
introduced via changes to the NPPF in 2018 so
we have factored the associated costs into our
land acquisition since that time.
We published guidance on Mandatory Net Gain
and land contracts in 2021 and run training
sessions for our regional businesses and land
teams to support them to manage the risks,
costs and opportunities associated with net gain.
41
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Operational review continued
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.
Changes to Building Regulations
2023 was a transitional year for our build teams as
we successfully adapted our production to meet
the revised Building Regulations. Our homes have
enhanced fabric standards following the phasing
in of the Part L (conservation of fuel and power),
and Part F (ventilation) of the Building Regulations
in England from June 2022 (with a one year
transitional period), Parts L & F from November
2022 for Wales, and Section 6 in Scotland from
February 2023. Additional features in our homes
include wastewater heat recovery systems, triple
glazing and photovoltaic (solar) panels. Collectively,
this will achieve a 31% reduction in carbon
emissions compared with our previous specification
across England and similar carbon reductions
across Wales and Scotland.
Future Homes Standard 2025
We are also preparing for the phase-out of gas
central heating and hot water systems from 2025 in
England and Wales and 2024 in Scotland. In 2023,
we delivered the UK’s first zero carbon ready
homes on a live development site at Sudbury to
understand the opportunities and challenges posed
by the Future Homes Standard.
“ 2023 was a
transitional year for
our teams as we
adapted our designs,
specifications and
production to meet
the revised building
standards. We were
also proud to deliver
the UK’s first zero
carbon ready
homes on a live
development site.”
Stephen Andrew
Group Technical Director
75%
target reduction in carbon
emissions for homes in use
by 2030
Over 450
stakeholders visited our
future homes prototypes
This included industry leading interactive augmented
reality models which will help communicate the
benefits of the new technology to customers. Over
450 stakeholders have visited the site and we have
shared best practice and our lessons learnt with
small and medium enterprises (SMEs).
Feedback from the visits and a customer focus
group showed that 81% of visitors felt that the use
of low carbon technologies enhances the value of
new homes.
Read more on page 36
Modern methods of construction (MMC)
Componentisation and other modern methods
of construction also form part of our strategy
for dealing with a skills shortage in our industry.
Whilst products such as smart roofs (where the
roof structure is manufactured off site and the
components are craned into place on site), which
we use for our ‘room in a roof’ homes, provide both
health and safety and efficiency benefits.
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 2023 we established our own timber frame
facility that will enable us to increase security and
reliability of supply. In combination with our existing
suppliers, our own facility will help us in our goal to
increase timber frame usage to 30% of our
production by 2030.
Read more on page 34
Charity partnerships
During 2023, 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 (previously End
Youth Homelessness), Crisis, Magic Breakfast, and
St Mungo’s.
In total, during 2023, we donated and fundraised
c.£1 million for registered charities (2022: c.£1 million).
This included supporting St Mungo’s Construction
Skills Training Centres to help people recovering
from homelessness to gain new skills and find
employment in the construction industry.
* Definitions and reconciliations of our APMs to the equivalent statutory measures are included in Note 32 of the financial statements.
Please see page 81 for definitions.
42
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Strategic report
Directors’ report
Financial statements
Shareholder information
Building for our customers
Our customers are central
to our purpose ‘to build great
homes and create thriving
communities’. We are an industry
leader in build quality and, whilst
already a 5-star rated builder,
enhancing our customer service
was a key priority in 2023.
What’s in this section
• Customer service
• New Homes Ombudsman
• Build quality
• Placemaking
• Cladding fire safety
Highlights for 2023
Customers in 8-week survey who
would recommend us to a friend
Construction Quality Review
average score (out of 6)
Trustpilot rating
92%
(2022: 90%)
43
4.89
(2022: 4.81)
4 out of 5
(2022: 4 out of 5)
Taylor Wimpey plc Annual Report and Accounts 2023 Building for our customers continued
Customer service
Customer service was a major focus for 2023 and
we are delighted to have increased our Home
Builders Federation (HBF) 8-week ‘would you
recommend?’ score to 92% (2022: 90%) and
retained our five star rating. However, we have not
yet seen the same 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 for 2023 was 77% (2022:
78%) and we will be prioritising improvements in
this area in 2024.
We encourage customers to leave reviews on
Trustpilot. At the end of 2023, with 8,950 reviews,
we had a 4 out of 5 star rating (end of 2022: 4 out
of 5) with a trust score of 3.9 out of 5 (2022: 3.9
out of 5).
44
92%
five star customer
service rating
(2022: 90%)
3.9
out of 5 trust score
(2022: 3.9 out of 5)
We have prioritised working with all our partners to
deliver excellent customer service and leverage our
customer database capabilities, in order to build a
strong order book. In a more challenging market,
understanding our customers is more important
than ever.
We are using the data insights provided by our fully
integrated customer relationship management
system to better support our customers and align
our marketing strategy.
Our systems enable us to identify potential new
leads, be proactive with our current customers
(with visibility of key customer and plot dates)
and pre-empt potential issues.
As part of our drive to ensure we are delivering
for our customers, in 2023 we have conducted
more widespread and consistent follow up with
customers to understand their views after they
have moved into their new home.
New Homes Ombudsman
We signed up to the New Homes Quality Code
in November 2022 and aligned our processes to
its requirements. Customer-facing employees are
trained on the Code as well as many colleagues in
our commercial and technical functions and some
of our subcontractors.
In 2023, we introduced a policy on how to support
potentially vulnerable customers as part of our
alignment to the Code requirements. This has now
been rolled out to our businesses.
Build quality
We continue to see improvements in our build
quality as measured by the NHBC Construction
Quality Review (CQR) score, which measures build
quality at key build stages. In 2023, we scored an
average of 4.89 (2022: 4.81) from a possible score
of six. This compares with an industry benchmark
group average score of 4.67.
We aim to further improve this 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.
Construction Quality
Review scores (out of 6)
2023
2022
2021
4.89
4.81
4.67
Quality is incentivised from the top of the
organisation, with a proportion of our Executive
Incentive Scheme linked to customer service and
build quality, and this is also one of our Principal
Risks. We also integrate customer service and
quality into our all employee bonus scheme.
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Building for our customers continued
Placemaking
Cladding fire safety
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.
We have clear placemaking standards based on
Building for a Healthy Life and aligned with the
National Design Guide and National Model Code.
There is an internal design review process for all
new schemes to ensure consistent design quality.
Our schemes are also reviewed more than once
during design development by our Director of
Design (a qualified architect and urban designer)
and must be signed off before they can proceed
to planning application.
Access to transport and local infrastructure and
facilities contributes to the success of our schemes.
In 2023, we contributed £405 million to local
communities in which we build across the UK via
planning obligations (2022: £455 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 2023, 70% of our UK
completions were within 500 metres of a public
transport node and 90% were within 1,000 metres.
It is our long held view that leaseholders should
not have to pay for the cost of remediation and
our programme started several years prior to
signing the Government Building Safety pledge.
We voluntarily signed the Government’s Building
Safety Pledge for Developers in April 2022, the
Welsh Government’s Pact in September 2022,
and the commitment letter to the Scottish Accord
in June 2023.
In total, we have made provisions amounting to
£245 million, which remains our best estimate of
the cost of our commitments to bring affected
buildings in line with the standards as set out in
the agreements reached with the governments.
We have identified 214 buildings that are within the
scope of our provisions, around half of which we
have either remediated, started work on or expect
to commence work on this year. To date, we have
fully completed 38 buildings with another nine
remediated and awaiting paperwork. A further 19
buildings had works underway at the end of 2023.
We have a dedicated team in place to manage our
remediation programme, progress our work on
these buildings as quickly as possible and to ensure
high-quality delivery. It is expected, given the size
and nature of the projects, the multiple stakeholders
involved and the availability of appropriately
qualified consultants and contractors, that work will
take around five years to complete in its entirety.
45
70%
of UK completions within
500 metres of public
transport node
90%
of UK completions
within 1,000 metres of
public transport node
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Building for our people
Our people and culture
are key to our progress.
We have a highly talented
and engaged workforce
that continues to drive
Taylor Wimpey forward for
the benefit of all stakeholders.
Strategic report
Directors’ report
Financial statements
Shareholder information
What’s in this section
• Health and safety
• Culture and people
• Skills
• Equality, diversity and inclusion
Highlights for 2023
Employee engagement score
Quality awards
Voluntary employee turnover
93%
(2022: 93%)
46
51
(2022: 62)
14.2%
(2022: 17.7%)
Taylor Wimpey plc Annual Report and Accounts 2023 Building for our people continued
Health and safety
Health and safety remains our number one priority
in all markets and it is the first topic covered in
every Board, Group Management Team (GMT) and
local 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 key throughout the
organisation. 98% of our employees agree that
we take health and safety seriously (2022: 98%).
Our Annual Injury Incidence Rate (AIIR) for
reportable injuries per 100,000 employees and
contractors was 151 in 2023 (2022: 166), remaining
well below both the HBF Home Builder average
AIIR of 241 and the Health and Safety Executive
construction industry average AIIR of 296.
However, our commitment goes beyond industry
benchmarks and we will continue to seek to
improve this. Around 37% of accidents are slips,
trips and falls. Our AIIR for major injuries per
100,000 employees and contractors was 65 in
2023 (2022: 68).
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%
(2022: 93%), with a 69% response rate. Our
overarching value is ‘do the right thing’. Our Taylor
Wimpey Inspire Awards recognise our employees
who go above and beyond.
47
We are proud of how committed our employees are
to the long term success of the Company and we
seek feedback from and engagement with all
employees. This includes regular email updates
from the Chief Executive as well as updates from
the GMT and other 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.
During 2023, our voluntary employee turnover rate
was 14.2% (2022: 17.7%).
We are pleased to report that Taylor Wimpey was
once again recognised in the NHBC Pride in the
Job Awards, achieving a total of 51 Quality Awards
(2022: 62) and 13 Seal of Excellence Awards
(2022: 15).
Skills
During 2023, we directly employed, on average,
4,618 people across the UK (2022: 5,140) and
provided opportunities for, on average, a further
9.3k operatives (2022:11.1k) on our sites.
We are proud of our approach to talent development
at Taylor Wimpey. 45% of our regional management
teams have been promoted internally and 62% of Site
Managers were promoted from within the business.
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.
“ I believe strongly
that having a diverse
workforce is crucial
to strengthening
our business for
the future, and this
becomes even
more important
in a challenging
market.”
Anne Billson-Ross
Group Human
Resources Director
To support entry level Trainees, competency
levelling was launched in April 2023. Competency
levelling enables Trainees to have a clear path of
progression into a target role, as well as rewarding
them according to their experience and
competence as they progress through their training.
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 housebuilding. In 2023, we strengthened
our schools outreach programme working with a
specialist company and developed our career
converters programme for ex-service personnel.
Working with partners to promote industry skills
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.
In 2023, we led a collaboration with five other major
housebuilders to identify tangible ways in which we
could address the skills shortage facing our sector,
leading to the creation of a Sector Skills Plan
Recognising that the majority of our trades on site
are performed by our supply chain, Taylor Wimpey
has been instrumental in developing a support
model with the CITB whereby we provide free
support to our subcontractors to enable them to
recruit, train, manage and claim grant funding for
their apprentices.
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information 62%
Female representation in
our graduate programme
6%
Gender pay gap in
favour of men
The calculations cover all staff employed by Taylor
Wimpey UK Limited as at 5 April 2023. Our latest
data shows that our mean gender pay gap was 6%
in favour of men (2022: 2% in favour of women) and
median pay gap 2% in favour of men (2022: 1% in
favour of men).
The shift in our pay gap this year reflects a number
of factors, including a reduction in the overall size of
our workforce, more highly paid women than men
leaving the business, and a reduction in
commission due to market conditions which affects
our sales function, which is 83% women.
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 on the programmes and our road
map to further improvement can be found in our
Diversity and Inclusion Report on our website.
Building for our people continued
We have seen some early successes with
subcontractors based in Exeter and the Midlands,
where the plan has helped provide recruitment
support as well as identifying colleges and signing
apprentices up for courses. In addition, we have
seen the plan has helped subcontractors to claim
funding to offset the cost of their apprenticeship
training – in some cases helping with backdated
claims that they were unaware would be eligible.
The pilot will be extended to others in the Sector so
that more subcontractors can take advantage of this
free of charge support structure. We are proud of our
approach to talent development at Taylor Wimpey.
Equality, diversity and inclusion (ED&I)
We remain committed to creating a more diverse
workforce and will publish our second Diversity and
Inclusion Report in 2024. 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. By truly embracing our
colleagues’ diverse perspectives we can deepen
our understanding of our customers and
stakeholders, enhance innovation and creative
thinking and continue to drive the business forward
and achieve success.
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.
Our workforce is not yet reflective of the UK’s ethnic
diversity. As at 31 December 2023, 5.7% of our
employees were from a Black, Asian or other
minority ethnic background (2022: 5.0%) and 3.7%
at regional business management level (2022: 2.5%).
We had a gender mix of 66% male (2022: 67%)
and 34% female (2022: 33%) across the Company.
Our GMT was 33% female (2022: 38%) and our
Board of Directors was 44% female (2022: 44%).
Women in the GMT and direct reports to GMT rose
to 28% (2022: 21%). The proportion of women in
management roles across the Group rose to 38%
from 30% in 2022.
We have more work to do in our regional business
management teams to address gender balance.
Women made up 27% of these roles in 2023
(2022: 31%). Whilst the employment freeze
impacted our efforts in terms of graduate and
trainee manager recruitment, our pipeline is strong,
with females accounting for 62% of our graduate
programme (2022: 64%).
In line with the Gender Pay Gap regulations, we
calculated our 2023 gender pay gap based on data
at the ‘snapshot date’ of 5 April 2023 and bonuses
paid over the preceding 12 months.
* Definitions and reconciliations of our APMs to the equivalent statutory measures are included in Note 32 of the financial statements.
Please see page 81 for definitions.
48
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Materiality assessment
We have updated our materiality
assessment, which helps us to
identify the most relevant and
significant impacts 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.
Our methodology
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
Our material impacts
reviewed by members of our senior leadership,
and some minor adjustments were made to
reflect business priorities.
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 2023
In recognising the important link between the
Company’s material impacts and risk management,
our material impacts have been aligned to our
Principal Risks, as set out on pages 74 to 77
Stakeholder impact
Financial impact
High
Medium
Material impacts
Medium
High
1. Our homes and places
Customer wellbeing in our homes*
Quality and sustainability of new communities
Affordability and accessibility of new homes
2. Our people and suppliers
Health, safety and wellbeing
Inclusion and equality
Skills development
Employment practices
Responsible sourcing and human rights
3. Our planet
Climate change
Nature
Resource use and waste
Water quality and management
Site environmental impacts
4. Responsible and resilient business
Financial performance
and economic contribution
Governance and transparency
Ethical and responsible
business practices
49
* Includes customer service.
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information
Our commitment to the environment
Our Environment Strategy,
Building a Better World, sets
out how we will play our part in
creating a greener, healthier future
for our customers, colleagues
and communities, while reducing
and mitigating environmental risks
to our business.
It includes ambitious targets up to 2030 and
we have committed to achieve net zero
emissions by 2045, five years ahead of the
Government’s target.
Highlights from 2023
Our net zero target was
validated by the Science
Based Targets initiative
50
Reduced operational
emissions by
35%
since 2019 (absolute)
Strategic report
Directors’ report
Financial statements
Shareholder information
What’s in this section?
• Climate change
• Our net zero target
• Nature
• Resources and waste
• Task Force on Climate-related
Financial Disclosures
• Non-financial information and
sustainability statement
3.5k
wildlife enhancements
installed on our sites
since 2021
279
98%
sites with hedgehog
highways since 2021
of construction waste
diverted from landfill
Taylor Wimpey plc Annual Report and Accounts 2023 Our commitment to the environment continued
Absolute
reductions
100%
2019
baseline
25%
Reduction
Science
based target
(scope 1 and 2)
46%
Reduction
Science
based target
(scope 3)
All homes zero
carbon ready
0%
External
milestones
2024
Net Zero ready
homes in Scotland
2025
Net Zero ready homes
in England and Wales
2030
61%
Reduction
75%
Reduction
100%
Reduction
All operations
net zero
Taylor Wimpey plc
A net zero
Business
2040
2045
2035
UK electric grid 100%
decarbonised
Ban on sales of
petrol/diesel cars
Climate change and net zero
We have set an ambitious target to be net zero
aligned in our operations by 2035 and reach
net zero across our value chain by 2045 –
ahead of the UK’s national target.
Our net zero target for 2045 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, including the
construction of low and zero carbon homes,
use of low carbon construction materials,
transitioning to 100% renewable electricity,
reducing and replacing fossil fuels and
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.
More detail and a summary of our roadmap is included
in our Net Zero Transition Plan
www.taylorwimpey.co.uk/corporate/sustainability/net-zero
2035
operations will be
net zero aligned
90%
reduction in value chain
emissions by 2045
and neutralising 10%
residual emissions
51
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Our commitment to the environment continued
Nature
Resources and waste
We want to create space for nature on our sites
and contribute to improving biodiversity 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.
We published our first biodiversity policy in 2023
and have prepared our teams for the Biodiversity
Net Gain requirements which came into force in
England in February 2024.
Wildlife enhancements can play an important role
in supporting native species. We aim to integrate
enhancements on all suitable new sites and have
started with hedgehog highways, bee bricks, bug
hotels, and bird and bat boxes.
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 recognise our business dependencies on nature
and the ecosystem services provided by the natural
world. We are reviewing the recommendations of
the Taskforce on Nature-related Financial Disclosures
and will publish our first disclosure against its
recommendations in our sustainability reporting.
Our Towards Zero Waste strategy and action plan
sets out a three-year programme of action and
capacity building across all stages of development
from land acquisition to construction, occupancy
and end of life. It focuses on:
• Achieve and build on the resource targets in our
Environment Strategy
• Quantify value chain resources and waste to
improve our data and enable us to adopt more
circular approaches. This covers soils, demolition,
packaging, materials and construction waste
• Other actions including setting targets,
incentivising resource-efficient behaviours,
supplier engagement and action plans for key
waste streams
We are working with our suppliers to reduce waste
from packaging, increase recycling and identify
opportunities to increase use of sustainable and
recycled materials.
We publish a Sustainability Summary with additional
data which includes the Sustainability Accounting
Standards Board (SASB) recommended disclosures
for our sector.
57,800
paint cans recycled
in 2023
105,180
pallets returned
in 2023
52
ESG credentials
We participate in several global and sectoral benchmarks.
We are a constituent of the Dow Jones Sustainability Europe
Index and included in the S&P Sustainability Yearbook 2024.
We are a part of FTSE4Good, have an AAA rating from MSCI
and have received an ESG Risk Rating of Low from
Sustainalytics and been included in its 2023 Top-Rated ESG
Companies List. We are a member of Next Generation, the
sustainability benchmark for UK housebuilders, and ranked
joint third with a gold rating in 2023. We disclose our
performance to CDP and scored: CDP Climate Change A-
(2022: A-), CDP Water B (2022: B), and CDP Forests C for
deforestation and forest risk commodities (2022: B-).
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Task Force on Climate-related Financial Disclosures
Strategic report
Directors’ report
Financial statements
Shareholder information
We seek to understand and
address the impacts of climate
change on our business, and to
build new homes and communities
that enable customers to adopt a
lower carbon lifestyle.
We use the Task Force
on Climate-related
Financial Disclosures
and IFRS Sustainability
Disclosure Standard 2
to report on our
climate-related risks
and opportunities.
A-
CDP Climate score
35%
reduction in operational carbon
emissions since 2019 (absolute)
48%
reduction in operational
carbon emissions since
2013 (absolute)
53
The Financial Conduct Authority requires UK
premium listed companies to report against the
Task Force on Climate-related Financial Disclosures
(TCFD) framework in Listing Rule 9.8.6R.
We believe our disclosures in this section are
consistent with the four recommendations and
11 recommended disclosures set out in the
TCFD report ‘Recommendations of the Task
Force on Climate-related Financial Disclosures’.
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 66 to 67.
In 2023, we reviewed our reporting against the
new IFRS Sustainability Disclosure Standard 2 –
Climate-related Disclosures and believe our
reporting covers the majority of its criteria. We will
look to further increase our alignment over the next
few years including in relation to the anticipated
financial effects of climate-related risks and
opportunities in the medium and long term.
In preparing our disclosures we have also referred
to the SASB standards and drawn on the
outcomes of our materiality process, our risk
assessment process, our climate scenario analysis
and stakeholder feedback.
Taylor Wimpey plc Annual Report and Accounts 2023 Task Force on Climate-related Financial Disclosures continued
Board of Directors
Oversight of the business response to climate risks and opportunities
Group Management Team
Review and approve climate strategy, scrutinise performance, review progress on climate strategy and targets
Legacy, Engagement and
Action for the Future (LEAF)
Committee
(functional oversight)
Analyse climate risk and
opportunities and develop
the business response,
monitor progress
Managing Directors
(operational implementation)
Drive implementation at
local level
Cross-functional
working groups
Road to Net Zero Carbon
Working Group
Construction Waste Group
Groundworks Group
Governance for climate change
Board level: Our Board of Directors is responsible
for oversight of our environmental, social and
governance (ESG) initiatives including climate-
related risks and opportunities. The Board receives
an ESG update at every meeting, including a
quarterly ESG scorecard with key performance
indicators and progress towards climate targets.
The Board visited our zero carbon ready trial homes
in Sudbury in 2023. The Board has conducted a
mapping exercise to ensure that all ESG matters
are considered by the Board or one of its
Committees. Board ESG competencies are
indicated on page 94.
Executive level: Our Chief Executive has ultimate
responsibility for achieving our climate targets.
Sustainability (including climate change) is a
standing agenda item for 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 2023,
to support progress on our near term carbon
reduction targets. We updated our Environment
Policy in 2023, which covers climate change and is
reviewed and approved by our Chief Executive.
LEAF Committee: Ingrid Osborne, Divisional Chair
for London and South East and a member of our
GMT, was executive sponsor for our Environment
Strategy. In 2023, Ingrid chaired our LEAF
Committee, which 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.
The Director of Sustainability is responsible for
monitoring climate-related issues and updating
our Climate Change and Sustainability Risk and
Opportunity Register. He oversees our reporting
and disclosures on climate change, and the
assurance of our climate data. He reports 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.
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.
Business Unit Management Teams receive a
quarterly report on carbon, energy and resource
use, which enables them to compare performance
against targets and other regional businesses.
54
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Task Force on Climate-related Financial Disclosures continued
The teams are kept updated about climate-related
issues and we build knowledge and expertise
through training workshops, masterclasses and
briefings. A scope 1 and 2 carbon reduction
measure was included in the medium term incentive
plans for regional management from 2023.
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 84 to 86.
We work with the Carbon Trust on many aspects
of climate change. From 2017 to 2023 we held the
Carbon Trust Standard for our overall approach to
carbon management, including our policy, strategy
and verification of our data and processes. We
were the first volume homebuilder to achieve this.
In early 2024, we achieved certification to the
Carbon Trust’s Route to Net Zero Standard,
Advancing level, the only housebuilder to hold
this new standard.
Strategy
Climate change presents risks and opportunities
for our business, including those related to the
transition to a lower carbon economy and those
associated with the physical impacts of climate
change. Sustainability is one of our four strategic
cornerstones, reflecting the importance of climate
change and other environmental matters to our
business and stakeholders.
We assess climate risks and opportunities using
short term (to 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 Next Generation
benchmark and the work of the Future Homes Hub,
a collaboration for the UK new homes sector.
We participate in CDP Climate Change and publish
our submission on our website. We received a
score of A- for 2023 (2022: A-). We were included
on the Financial Times Europe’s Climate Leaders
list 2023. Our Net Zero Transition Plan has been
shortlisted in the Edie Awards for 2024.
Climate risks and opportunities are relevant across
our value chain and business model. 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 58 to 61
and in the metrics section on pages 62 to 63.
For example, some climate risks are more relevant
to our supply chain, while others impact our
construction sites or customers and homes in use.
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 such as timber frame,
transitioning to 100% renewable electricity, reducing
or replacing fossil fuels and decarbonising our fleet.
The Transition Plan is available on our website at
www.taylorwimpey.co.uk/corporate/sustainability/
net-zero.
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 1.5oC this century as well
as modelling the physical impacts of climate
change on our assets and supply chain in two
temperature scenarios (1.5oC and 4oC 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.
55
New Carbon Trust
Standard – In early 2024
we achieved certification
to the Carbon Trust’s
Route to Net Zero
Standard, Advancing level,
and are the only
housebuilder to hold this
new standard.
Taskforce on
Nature-related
Financial Disclosures
We participated in
the Taskforce on
Nature-related Financial
Disclosures (TNFD)
Forum. Our first
disclosure against the
TNFD recommendations
will be published on
our website.
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Task Force on Climate-related Financial Disclosures continued
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 UK’s incoming 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.
regulatory change, changes to interactions with
customers, investors and planners, and to how and
what we build.
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.
In relation to physical risks, it showed moderate
exposure to risks relating to windstorms, flooding
and drought. The analysis showed that the cost risk
from the physical impacts of climate change will be
mitigated by building to the standards of the day
and including the additional build costs within the
assessment of land values. In addition, we
conducted modelling with the Carbon Trust of
our scope 3 emission reductions, see page 68.
We used the findings to inform development of
our Net Zero Transition Plan, including the cost
of investment needed to achieve our targets.
The findings have also been integrated into our
risk assessment process.
Our analysis in 2022 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 4oC – 6oC), 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 significant
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. 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 181 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 180 and the outcome of the net realisable
value exercise is disclosed on page 191.
56
Delivered the
UK’s first
multi-specification zero
carbon ready scheme
on a live development site
in Sudbury
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 (12 months 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 July 2023 Taylor Wimpey signed a new Revolving
Credit Facility containing three sustainability linked
performance targets which are to 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.
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Task Force on Climate-related Financial Disclosures continued
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.
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,
our Climate Change and Sustainability Risk and
Opportunity Register. Management consider 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 Group.
The Group’s Principal Risk ‘Natural resources and
climate change’ (see page 77), 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 71,
as part of our risk management process, assessing
their impact on the Group’s strategic objectives
and ensuring appropriate mitigations are in place.
Our Environment Risk 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.
During 2023, we have updated our process for
monitoring scope 1 and 2 emissions to 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.
Read more about our risk management process on
pages 71 to 73
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Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Task Force on Climate-related Financial Disclosures continued
Our risks and opportunities
The table below summarises the findings from our latest climate scenario analysis which focused on transition risks in the short term (up to 2025) and medium term (up to 2030) in a 1.5oC
scenario and physical risks in the medium and long term (up to 2030 and beyond) in a 1.5oC and a 4oC 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 1.5oC 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 but will keep this under review.
Policy and legal
Residual risks or opportunities (moderate to high):
Risk type: Transition (policy and legal)
Time frame analysed: Short term (up to 2025), Medium term (up to 2030)
Description
Example risks / opportunities
Our mitigations
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
Risk of delay and increased cost as
local councils introduce additional
local planning requirements or go
beyond the requirements of the FHS
R Increasingly stringent local
planning requirements
(e.g. in relation to flooding
and biodiversity) and
potential for variation
in standards between
authorities
• We engage and consult regularly with government to understand its priorities
• We have established a Research & Development (R&D) programme and
internal Road to Net Zero Carbon Working Group to prepare our business for
regulatory changes
• We participate in Future Homes Hub 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
• 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, flooding and other matters to address planning requirements.
• We also engage with Future Homes Hub and UK government to encourage
a consistent approach
Residual risk after mitigation (1.5oC scenario unless stated)
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.
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 bought
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 have asked our agencies to confirm their review process for validating
green marketing claims
Short term moderate risk exposure, likelihood considered rare with
impact on the financial statements considered immaterial as we 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
• Potential future carbon pricing
• Cost of purchasing emissions offsets
Key
R Risk
58
O Opportunity
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Technology
Residual risks or opportunities (moderate to high):
Risk type: Transition (technology)
Time frame analysed: Short term (up to 2025), Medium term (up to 2030)
Description
Example risks / opportunities
Our mitigations
Residual risk after mitigation (1.5oC scenario unless stated)
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 are engaging with government on its efforts to address insufficient power
supply and develop a smart network
• We are exploring innovative local solutions to power supply storage such as the
sustainable energy and heat hub at our development in Sudbury
Short term major risk exposure, almost certain likelihood with impact
on the financial statements is not considered material as the risk is
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.
• Communicating risk to regional teams
Risk of increased costs associated
with new technologies and potential
availability challenges
• We have an ongoing R&D and programme supplier engagement to identify
beneficial new technology and test its performance against our quality, safety,
sustainability and technical standards
Risk that current new technology
solutions quickly become outdated
Short term moderate risk exposure, almost certain likelihood with the
impact on the financial impacts 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.
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
Short term insignificant risk exposure, almost certain likelihood with
impact on financial statements considered immaterial based on
timing of implementation of current regulations.
• We have led a collaboration with housebuilders and the HBF to create a sector
wide skills plan and are partnering with the Construction Industry Training
Board, the Home Building Skills Partnership and some of our mid-sized
sub-contractors to help more sub-contractors to recruit apprentices
Medium term minor risk exposure, almost certain likelihood with impact
on financial statements dependent on extent of skills shortage.
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
R Substitution of existing
technologies with lower
emission alternatives
(eg PV panels, EV
charging infrastructure,
all electric homes and
construction equipment)
to comply with the
Future Homes Standard
and emissions reduction
targets
R Skills shortages
impacting ability to
install low carbon
technologies
Key
R Risk
59
O Opportunity
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Market and reputation (stakeholder)
Residual risks or opportunities (moderate to high):
Time frame analysed: Short term (up to 2025), Medium term (up to 2030)
Risk type: Transition (market, reputation)
Opportunity type: Products, markets
Description
Example risks / opportunities
Our mitigations
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
R Changing customer
demands in relation to
low carbon homes
R Increased cost of raw
materials as carbon pricing
and investment in low
carbon plant, equipment
and facilities impacts the
cost of materials such as
steel and cement
R Increased investor
expectations in relation
to sustainability
performance and
disclosure
O Increased investor
expectations in relation
to sustainability
performance and
disclosure
Opportunity if more efficient and
lower emission homes become
more attractive to customers than
secondhand market.
• We conduct regular research to monitor and understand changing customer
attitudes to sustainability issues, including low carbon homes
• We engage customer, sales and marketing teams and marketing agencies
to ensure the benefits of new low carbon homes are communicated effectively
• We partner with peers through the Future Homes Hub and engage with
government to ensure the benefits of low carbon homes are communicated,
and to support further development of green mortgages
Residual risk after mitigation (1.5oC scenario unless stated)
Short 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.
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 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.
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
Risk that failing to meet changing
investor expectations affects revenue
and investment streams
• 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
green electricity for all new sites, reducing carbon taxation on energy
consumption
• 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 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.
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.
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
• We complete a regular materiality update (every three years) to ensure we focus
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 an opportunity
of increased revenues through enhanced reputation in the market,
but this is not possible to quantify reliably.
on priority ESG topics
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
60
O Opportunity
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Physical impacts
Residual risks or opportunities (moderate to high):
Risk type: Physical (acute and chronic)
Time frame analysed: Medium term (up to 2030), Long term – (beyond 2030)
Description
Example risks / opportunities
Our mitigations
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, 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 from suppliers to
inform our approach to mitigating material supply risks
• We are updating our policies and processes to reflect climate change mitigation
and adaptation of risks and opportunities
• Longer term impacts, including flooding, heat, drought, and drought-related
subsidence, are best managed through updating industry-wide standards.
We are working and will continue to work collaboratively with organisations
that set or influence standards
Other residual risks or opportunities (currently identified as low):
• Assets 1.5oC (2030 and beyond 2030) – flooding, heat stress, drought, wildfire, subsidence
• Assets 4oC (beyond 2030) – heat stress, wildfire, subsidence
• Supply chain 1.5oC (2030 and beyond 2030) – heat stress, drought, and wildfire
• Supply chain 4oC (2030 and beyond 2030) – heat stress and wildfire
Residual risk after mitigation (1.5oC scenario unless stated)
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.
Key
R Risk
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O Opportunity
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Metrics and targets
We have established metrics and targets to enable
us to manage and mitigate our identified climate
risks and ensure we capitalise on opportunities
relating to 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 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. In developing our
target we have also taken into account the ‘Metrics,
Targets, and Transition Plans’ guidance issued by
TCFD. 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, which enables us to monitor
progress more effectively during different stages
of the housing cycle.
62
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).
We monitor performance on energy and carbon
emissions for each of our regional businesses on
a quarterly basis. Progress against our targets is
reviewed by the GMT and Board of Directors at
least annually.
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 (VCS), Gold
Standard Verified Emissions Reduction (GS VER),
Voluntary Offset Standard (VOS) and Climate
Community and Biodiversity Standards (CCB).
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.
We plan to re-baseline our Purchased Good and
Services (supply chain) 2019 footprint using the
more accurate measurement methodology that
we implemented in 2022, which is based on the
quantities of materials purchased. We will use
this to adjust our overall scope 3 baseline and
report progress against this. We were not able
to complete this process in 2023 but plan to do
so in 2024.
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 CO2 but N2O and
CH4 are included in conversion factors, for example
in relation to gas and diesel usage. We currently
exclude refrigerants (HFCs, PFCs, SF6) from our
footprint as these are not material for our business.
More detail is included in the footnotes on page 68.
We also publish our carbon reporting methodology on our
website www.taylorwimpey.co.uk/corporate/sustainability
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Task Force on Climate-related Financial Disclosures continued
TCFD cross-sector metrics
Industry-based 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 World
Resources Institute (WRI) Water Risk Atlas tool,
Aqueduct. Our approach to mitigating physical risks
is explained on page 61.
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. Whilst 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 64 and 68 and
information on remuneration on page 143.
We report against the criteria and metrics
established by the Sustainability Accounting
Standards Board (SASB) Standard for the Home
Builders sector in our Sustainability Summary 2023.
We are active participants in the Future Homes
Hub, 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. Our Sustainability Director chairs
the working group established to develop a shared
set of metrics on climate change and sustainability
performance for the industry.
Performance in 2023
In 2023, our absolute operational carbon emissions
(scopes 1 and 2) reduced by 13.1% year on year
but our operational emissions intensity increased
by 12.2%. While we completed fewer homes, there
was only a small reduction in the number of outlets
which meant we continued to use energy for site
compounds, street lighting and pumping stations
as well as our fixed facilities such as offices,
IT systems and our logistics warehouse.
Since 2019, our absolute operational emissions
have fallen by 35.3% and operational emissions
intensity has decreased by 5%. This reflects the
drop in completions in 2023 and the impact of our
carbon reduction measures, including increased
use of renewable electricity, energy efficiency
improvements, a reduction in diesel use on our
sites and decarbonisation of the UK’s national grid.
63
Our total carbon footprint (scopes 1, 2 and 3) was
1.94 million tonnes in 2023 (2022: 2.54 million
tonnes). Total intensity was 187 tonnes per 100 sqm
of build (2022: 190.0 tonnes per 100 sqm).
We are re-baselining our scope 3 emissions
following an update to our methodology. This will
enable us to report progress against our net zero
and scope 3 target.
More detail on our performance is included in our
Sustainability Summary.
20%
of homes included
PV panels in 2023
72%
EV or hybrid cars in our fleet
79%
of electricity from REGO-backed
renewable sources
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Task Force on Climate-related Financial Disclosures continued
Progress against climate targets
Key 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)
We will re-baseline our Purchased Good and Services (supply chain) 2019 footprint using the more accurate measurement
methodology that we implemented in 2022 based on the quantities of materials purchased. We will use this to adjust our
overall scope 3 baseline and report progress against this target. We were not able to complete this process in 2023 but
plan to do so in 2024.
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
Since 2019, our absolute operational emissions (scopes 1 and 2), have fallen by 35.3% and operational emissions intensity has
decreased by 5%. The decrease in absolute emissions is due to a reduction in the number of completions in 2023 as well as
carbon reduction measures including our use of green electricity and hybrid generators, and decarbonisation of the UK’s
national grid. Our emissions intensity increased by 12.2% year on year in large part due to the impact of challenging
economic conditions. While we completed fewer homes, there was only a small reduction in the number of outlets which
meant we continued to use energy for site compounds, street lighting and pumping stations as well as our fixed facilities such
as offices, IT systems and our logistics warehouse. We remain focused on meeting our reduction target by 2025.
The emissions reduction element of this target has been approved by the SBTi.
Policy and legal
Technology
Market and reputation
Physical
32% reduction in operational energy intensity
for UK building sites by 2025
Operational energy use on UK building sites was 77,215 MWh. This is a 21.4% reduction on 2019, however energy use
intensity increased by 17.5% over the same period. This reflects the reduction in completions in 2023 but continued
energy use needed to run our sites. We have further work to do to meet our target on energy efficiency.
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 is around 79% of our total Group electricity consumption (2022: 70%).
50% reduction in car and grey fleet emissions
by 2025
We have reduced company car and grey fleet emissions by 21.1% since 2019. Around 72% of vehicles in our company car
fleet are now electric or hybrid (2022: 55%).
Policy and legal
Technology
Market and reputation
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)
In 2023, we started to roll-out changes to our homes 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 are also piloting technologies to explore how we will move towards zero
carbon ready homes from 2025 in England and Wales and 2024 in Scotland.
Policy and legal
Technology
Market and reputation
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)
21% reduction in embodied carbon per home
by 2030
We will report progress against this target once the re-baseline of our scope 3 footprint is complete.
This target has been approved by the SBTi.
Policy and legal
Technology
We will report progress against this target once the re-baseline of our scope 3 footprint is complete. We are working with
suppliers to identify and select products with a lower carbon footprint and have established our timber frame facility to
increase our use of timber frame which can reduce embodied carbon from materials.
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. Around 20% of our
homes included PV panels in 2023.
Policy and legal
Technology
Market and reputation
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Key climate targets
Progress
Adaptation and beyond our value chain
Link to TCFD risks
and opportunities
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
Update our policies and processes to reflect
the risks and opportunities from a changing
climate by 2022
Cut our waste intensity by 15% by 2025
and use more recycled materials. By 2022,
publish a ‘towards zero waste’ strategy for
our sites
We are rolling-out our new standard house types which have a design principle to include at least one study area with
space for a desk and easy access to broadband and electricity sockets, to enable working from home. We installed over
1,380 EV charging points in 2023, and over 3,700 since 2019. We expect the number of charging points installed to
increase more quickly as we roll out the new specification for our homes.
Technology
Market and reputation
We conducted scenario analysis in 2022 and have used the results to inform our Net Zero Transition Plan, our TCFD
disclosure and risk management processes. We published an updated environment policy in 2023 and are working to
further embed climate risks into our environmental management system. We will no longer report progress against this
target from 2024.
The volume of waste produced in 2023 was 28% lower than in 2019, however our waste intensity increased by 9.8%
against our 2019 baseline. We believe the increase in intensity this year is partly due to disruptions in our build programme
as a result of market challenges which led to materials being stored for longer on site. 98% of construction waste was
diverted from landfill. We have further work to do to meet our target and will continue to focus on this in 2024. At the time
of publication, our waste data 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. We have launched our Towards
Zero Waste Strategy and Action Plan to guide our progress on waste reduction and increased use of recycled materials.
Technology
Market and reputation
Physical
Policy and legal
Reduce operational mains water intensity
by 10% from a 2019 baseline by 2025
Water consumption has reduced by 28% since 2019, however, water intensity has increased by 9.3% over the same
period. We believe the increase in intensity this year is due to the drop in number of completions. While we completed
fewer homes there was only a small reduction in the number of outlets which meant we continued to use water for
activities such as dust suppression and in our offices and site compounds.
Physical
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Implementing the TCFD recommendations – progress to date
TCFD recommendation
Progress to date
Governance
Disclose the organisation’s
governance around climate-related
risks and opportunities
Describe the board’s oversight
of climate-related risks and
opportunities.
Describe management’s role in
assessing and managing climate-
related risks and opportunities.
We have established and disclosed responsibility for climate risks at Board
level. Key, 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 71 to 73.
We have established and disclosed responsibility for climate risks at
Executive, Director and operational level, outlined on page 57. In 2023,
a carbon reduction target was included in the incentive plans for senior
management and regional management, read more on page 143. Climate
change has been included within the Principal Risk ‘Natural resources and
climate change’. Read more on page 77.
Next steps
To further embed climate risks into
business planning and decision
making processes.
A carbon reduction target will be
included in senior and regional
management incentive plans again in
2024. We will look to strengthen our
governance on climate-related and other
environmental risks and opportunities
through reviewing the role of our LEAF
group and improving operational
integration through our working groups.
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.
Describe the impact of climate-
related risks and opportunities on
the organisation’s businesses,
strategy, and financial planning.
Describe the resilience of the
organisation’s strategy, taking into
consideration different climate-
related scenarios, including a 2oC
or lower scenario.
The tables on pages 58 to 61 include the risks and opportunities we have
identified and reflects our updated climate scenario analysis from 2022. The
table explores transition risks in the short and medium term in a 1.5oC
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.
We have used the findings of our scenario analysis, summarised on pages
55 and 56, to enhance our understanding of the impact of climate risks on
financial planning and business strategy. We have quantified some of these
potential impacts and the costs of our net zero commitment to support our
financial planning though we do not currently disclose these figures.
Our scenario analysis in 2022 explored the resilience of our strategy to a
1.5oC scenario (transition risks) and 1.5oC and 4oC scenarios (physical risks).
The findings are summarised on pages 55 and 56. We have previously
considered the impacts of a disorderly transition scenario. Our first Net Zero
Transition Plan outlines how we will decarbonise our business up to 2045.
It is available on our website.
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.
We will update our Transition Plan
regularly and at least every three years.
We will undertake regular scenario
analysis.
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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.
Metrics and targets
Disclose the metrics and targets
used to assess and manage
relevant climate-related risks and
opportunities where such
information is material
Describe the organisation’s
processes for managing
climate-related risks.
Describe how processes for
identifying, assessing, and managing
climate-related risks are integrated
into the organisation’s overall risk
management.
Disclose the metrics used by
the organisation to assess
climate-related risks and
opportunities in line with its strategy
and risk management process.
Disclose scope 1, scope 2, and,
if appropriate, scope 3 greenhouse
gas (GHG) emissions, and the
related risks.
Describe the targets used by the
organisation to manage climate-
related risks and opportunities and
performance against targets.
This process is outlined in risk management on page 57 and in Principal
Risks and uncertainties on page 77. We have linked our climate targets to the
risks and opportunities as set out by TCFD, pages 64 and 65. 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, including our Climate Risk Register is outlined in risk
management on page 57 and in Principal Risks and uncertainties on page
77. We have linked our climate targets to the risks and opportunities as set
out by TCFD on pages 64 and 65. Our planned key actions are outlined in
our Net Zero Transition Plan.
Climate change is fully integrated into our top-down and bottom-up risk
management process and is included within the Principal Risk ‘Natural
resources and climate change’. The Principal Risk is monitored by the Audit
Committee and senior management, assessing its impact on the Group’s
strategic objectives and ensuring appropriate mitigations are in place.
Read more on page 57.
We publish a range of performance data and performance measures to
support our Environment Strategy, including our net zero commitment and
supporting targets page 51, and 64 to 65. We report against several of the
cross-industry, climate-related metric categories recommended by TCFD.
Industry-specific metrics are included in the SASB Index in our Sustainability
Summary and ESG Addendum.
We disclose greenhouse gas emissions data for scopes 1, 2 and 3 on
page 68.
We will continue to further strengthen
our risk processes in relation to climate
change.
Continue to further strengthen our risk
processes in relation to climate change.
Climate risks will continue to be monitored
and evaluated, and we will further
enhance our approach as appropriate.
The outputs from our scenario analysis
have been used to develop our transition
plan which will inform our business
strategy going forward.
We will continue to keep our climate
reporting under review and to develop
additional metrics where needed to
support disclosure to investors and
other stakeholders.
We are committed to continuous
improvement in our data processes and
data quality.
We published our net zero commitment in early 2023 and this has now been
validated by the Science Based Targets initiative (SBTi). Our ambitious
scopes 1 and 2 science-based carbon reduction target for 2025 has also
been approved by the SBTi, see page 51. We have targets relating to energy
and resource-efficiency, the carbon performance of our homes in use and
embodied carbon.
We will continue to keep our climate
targets under review and to disclose our
progress against them. We will review
the potential for including financial
metrics in future reports.
For our SASB disclosure please see our Sustainability Supplement and ESG Addendum.
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Greenhouse gas emissions (tonnes of CO2e) and energy use (MWh)
Scope 1 GHG emissions – combustion of fuel
Scope 2 GHG emissions – market based
Scope 2 GHG emissions – location based
Total scopes 1 and 2 – market based
Emissions per 100 sqm completed homes (scope 1 and 2)
Total scope 3 emissions**
Purchased goods and services
Waste generated in operations
Business travel
Fuel and energy-related activities
Downstream leased assets
Use of sold products
Upstream transport and distribution
End of life treatment of sold products
Employee commuting
Emissions per 100 sqm completed homes (scope 1, 2 and 3)
Total scope 3 emissions (previous methodology)**
Energy use
Operational energy use (fuel and electricity consumption from sites, offices and fleet)
Operational energy intensity (site and office fuel and electricity intensity – MWh/100 sqm) MWh/100 sqm
tonnes CO2e
tonnes CO2e
tonnes CO2e
tonnes CO2e
tonnes CO2e/100 sqm
tonnes CO2e
tonnes CO2e
tonnes CO2e
tonnes CO2e
tonnes CO2e
tonnes CO2e
tonnes CO2e
tonnes CO2e
tonnes CO2e
tonnes CO2e
tonnes CO2e/100 sqm
tonnes CO2e
MWh
2023
14,275
1,628
4,649
15,902
1.53
1,922,202
852,593
18,294
2,087
4,591
7,008
914,417
46,064
24,627
52,521
187
–
2022
15,975
2,331
4,279
18,306
1.37
2,519,103
1,309,017
15,089
1,553
4,886
6,399
1,044,294
34,351
29,166
74,348
190
–
2021
17,464
2,272
5,406
19,736
1.41
2,383,398
1,413,410
15,446
1,464
5,802
6,592
1,107,417
39,891
29,210
13,189
190
2,632,421
2020
16,522
1,981
5,272
18,503
1.96
–
–
–
–
–
–
–
–
–
–
–
1,961,431
2019
21,018
3,563
6,172
24,581
1.62
–
–
–
–
–
–
–
–
–
–
–
3,869,583
85,741
8.27
92,312
6.9
104,870
7.5
85,422
9.3
101,352
6.8
Our carbon and energy use data is externally assured by Carbon Trust Assurance to a limited assurance level. Our scopes 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 (CO2e) for all operations. Scopes 1 and 2 emissions are from our sites,
offices, show homes and sales areas, plots before sale and car fleet 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. 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
See our Carbon Reporting Methodology Statement at www.taylorwimpey.co.uk/corporate/sustainability/our-approach/climate-change
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. Following
the update, our data is no longer comparable with emissions calculated using the previous methodology. For transparency, we
continue to report scope 3 emissions prior to 2021 using our previous methodology.
Energy data and energy efficiency measures
The energy consumption figure in the table is a Group figure. 98.4% of this total energy consumption is from the UK and offshore
areas and 1.6% from Spain. 97.8% of total scope 1 and scope 2 emissions are from the UK and offshore areas and 2.2% from
Spain. During the last year, we have worked to reduce energy and emissions through our purchase of green tariff electricity for our
sites during construction, by 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, trialling hybrid generators and through the efforts of our
Sustainability Champions including 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 CO2e/100 sqm completed build.
68
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder 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
Environmental matters
• Published our Net Zero Transition Plan
and our net zero target was validated by
the Science Based Targets initiative (SBTi)
• 48% reduction in direct carbon
emissions since 2013
• Published our ’Towards Zero Waste’
strategy
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
Employees
• 96% of employees feel proud to work
for Taylor Wimpey
• 95% of employees feel that they can
be their authentic self at work
• 44% of plc Board positions held
by women
Human rights
• Continue to train employees to identify
signs of modern slavery and human
trafficking for which we operate a zero
tolerance policy
69
Relevant policies
Read more
on pages
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
Environment Policy
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
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:
Strategic cornerstones – Sustainability
TCFD
Operational review
35 to 36
53 to 68
39 to 42
Related Principal Risks:
H: Natural resources and climate change
G: Health, safety and environment
More information can be found within:
TCFD
53 to 68
Related Principal Risks:
H: Natural resources and climate change
More information can be found within:
Stakeholder engagement
and priorities
Building for our people
Nomination and Governance
Committee report
84 to 86
46 to 48
107 to 112
Related Principal Risks:
D: Attract and retain high-calibre employees
More information can be found within:
Stakeholder engagement
and priorities
Building for our people
84 to 86
46 to 48
Related Principal Risks:
A: Government policies, regulations and planning
C: Availability and costs of materials and
subcontractors
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Non-financial and sustainability information statement continued
Reporting requirement and
key performance information
Social matters
• Contributed £405 million to
communities via our planning
obligations
• In 2023, around 23% of our
completions were designated
affordable
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
Business model
• c.10.4k new homes completed for
customers in the UK in 2023, including
joint ventures
• Strong short term landbank of c.80k
plots, as at 31 December 2023
Non-financial KPIs
• Achieved a recommend score of 92%
in the HBF 8-week survey which
equates to a five-star rating
• Our Annual Injury Incidence Rate (AIIR)
for reportable injuries per 100,000
employees and contractors was 151
in 2023
70
Relevant policies
Read more
on pages
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:
Stakeholder engagement
and priorities
Building for our customers
84 to 86
43 to 45
Related Principal Risks:
B: Mortgage availability and housing demand
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
Audit Committee Report
104
113 to 124
Related Principal Risks:
A: Government policies, regulations and planning
Community Policy
Environment Policy
Customer Service Policy – Our approach and commitments to provide excellent
customer service
More information can be found within:
Business model
16 to 20
Related Principal Risks:
E: Land availability
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 and strategy
Stakeholder engagement
and priorities
Board activities
Board leadership
Related Principal Risks:
F: Quality and reputation
G: Health, safety and environment
31 to 36
84 to 86
100
104
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Risk management
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
and strategic goals.
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 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 and emerging risks to
ensure they remain appropriate as well as a review
of the key risks identified by the business, their risk
profiles and mitigating factors. At the Board
meeting in February 2024, the Board completed
its annual assessment of risks. This followed the
Audit Committee’s formal assessment of risks in
December 2023, 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 72 illustrates the
internal governance process within the Group
around risk management.
71
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Risk management continued
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.
Risk management framework
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,
ensuring 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.
72
Board
approval
Audit Committee
review
GMT review of key,
Principal and emerging risks
M
o
n
i
t
o
r
i
n
g
Consolidation of key risks
g
ortin
p
d re
n
n a
atio
nic
u
m
m
o
C
Functions and regional business risk identification and assessment
Inputs (e.g. business change, external factors, workshops)
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Risk management continued
Evaluation of risks
Risk appetite and tolerance
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.
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.
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 2023 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 75 to 77. 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 the
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
increasing 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
Political / economic
Technological
Social
Governmental
Adaptation of building methodologies
Geopolitical uncertainty
Artificial intelligence
Customer demographics and preferences
Changing government policies
73
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Principal Risks and uncertainties
Principal Risks overview
The table below 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 49.
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 75 to 77.
During the year, three of our Principal Risks
(‘Government policies, regulations and
planning’, ‘Mortgage availability and
housing demand’, and ‘Quality and
reputation’) have seen an increase in their
inherent and residual risk profiles, and our
‘Cyber security’ Principal Risk has seen an
increase in its inherent profile, as reflected
in the table below and on pages 75 to 77.
These movements are primarily driven
by the ongoing economic, political and
increasing regulatory environment we are
operating in.
The Board has finalised its assessment
of these risks and of any changes to the
residual risk profile during the year.
Principal Risks heat map
The heat map below 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 75 to 77.
Our values
Strategic
cornerstones
Risk change in year
Inherent
risk change
in year
Residual
risk change
in year
Material
impacts
Category
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 Cyber security
Key to our values
Key to our strategic cornerstones
Key to risk change
Key to material impacts
Respectful and fair
Take responsibility
Better tomorrow
Be proud
Land
Operational excellence
Sustainability
Capital allocation
Increased risk
No change
Decreased risk
Our homes and places
Our people and suppliers
Our planet
Responsible and resilient business
74
Key
Inherent
Residual
h
g
H
i
d
o
o
h
i
l
e
k
L
i
A
B
C
H I
D
H
I
C
F
A
E
G
B
F
D
E
G
w
o
L
Low
Impact
High
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information
Principal Risks and uncertainties continued
Principal Risk
A Government policies, regulations and planning
B Mortgage availability and housing demand
C Availability and costs of materials and subcontractors
Inherent risk
change in year
Residual risk
change in year
Residual rating
Risk appetite
Link to values
Link to strategic
cornerstones
Description
Key mitigations
Moderate
Low
Moderate
Low
Moderate
Low-moderate
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.
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.
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.
• 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
• 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
• 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
Example key risk
indicators
• New government regulations (e.g. around planning and climate)
• Delays in planning
• Sentiment towards the industry (e.g. cladding fire safety
remediation)
Opportunities
• 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
• Interest rate increases
• Levels of unemployment
• Volume of enquiries/people visiting our developments
• UK household spending/levels of disposable income
• Loan to value metrics
• To continue to develop strong working relationships with
established mainstream lenders and those wishing to increase
volume in the new build market
Link to material
impacts
Accountability
Our planet
Responsible and resilient business
Our homes and places
Responsible and resilient business
Our people and suppliers
• Group Technical Director
• Director of Planning
• Regional Managing Directors
• UK Sales and Marketing Director
• Regional Sales and Marketing Directors
• Supply Chain Director
• Procurement Director
• Group Commercial Director
Key to our values
Key to our strategic cornerstones
Key to risk change
Respectful and fair
Better tomorrow
Land
Sustainability
Take responsibility
Be proud
Operational
excellence
Capital allocation
Increased risk
No change
Decreased risk
75
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information
Principal Risks and uncertainties continued
Principal Risk
D Attract and retain high-calibre employees
E Land availability
F Quality and reputation
Low
Moderate
Low
Moderate
Moderate
Low
Inherent risk
change in year
Residual risk
change in year
Residual rating
Risk appetite
Link to values
Link to strategic
cornerstones
Description
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.
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.
Key mitigations
• 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
Example key risk
indicators
• Critically assess opportunities
• Land quality framework
• Engagement with national and local government
• Review of land portfolio
• Obtaining specialist environmental and legal advice
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.
• Customer-ready Home Quality Inspection
• Consistent Quality Approach
• Quality Managers in the business
• Customer-driven strategy
• Enhanced data analytics
• Ombudsman readiness
• Movement in landbank years
• Number of land approvals
• Timing of conversions from strategically sourced land
• 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
Opportunities
• To further develop in-house capability, expertise and knowledge
• A strong balance sheet allows us to invest when land market
• To better understand the needs of our customers, enabling
Link to material
impacts
Accountability
Our people and suppliers
• Group HR Director
• Every employee managing people
conditions are attractive
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
Our homes and places
Responsible and resilient business
• Divisional Chairs
• Regional Managing Directors
• Regional Land and Planning Directors
• Managing Director Group Strategic Land
• UK Business, Land and Development Director
• Customer Director
• UK Head of Production
• Director of Design
Key to our values
Key to our strategic cornerstones
Key to risk change
Respectful and fair
Better tomorrow
Land
Sustainability
Take responsibility
Be proud
Operational
excellence
Capital allocation
Increased risk
No change
Decreased risk
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Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information
Inherent risk
change in year
Residual risk
change in year
Residual rating
Risk appetite
Link to values
Link to strategic
cornerstones
Description
Key mitigations
Principal Risks and uncertainties continued
Principal Risk
G Health, safety and environment
H Natural resources and climate change
I Cyber security
Low
Low
Moderate
Low
Moderate
Low-moderate
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.
• 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
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.
• 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
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.
• 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
Example key risk
indicators
• Increase in near misses and fatalities
• Health and safety audit outcomes
• Number of reportable health and safety incidents
• Energy use and greenhouse gas emissions
• Biodiversity net gain %
• Construction waste generation and waste to landfill
Opportunities
• To lead the industry in health and safety and to reduce the amount
and level of incidents
• Sustainable homes and developments attractive to customers
• A sustainable business of choice for investors
• Advantageous planning positions
Link to material
impacts
Accountability
Our people and suppliers
Responsible and resilient business
• Head of Health, Safety and Environment
• Regional Managing Directors
Our planet
Our homes and places
Our planet
Responsible and resilient business
• Director of Sustainability
• Regional Managing Directors
• IT Director
Key to our values
Key to our strategic cornerstones
Key to risk change
Respectful and fair
Better tomorrow
Land
Sustainability
Take responsibility
Be proud
Operational
excellence
Capital allocation
Increased risk
No change
Decreased risk
77
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information
Group financial review
Focused on driving
performance and
protecting value
I am pleased with the operational
discipline our teams have shown
in controlling costs and managing
working capital to protect
stakeholder value.”
Chris Carney
Group Finance Director
78
Taylor Wimpey plc Annual Report and Accounts 2023
Income statement
Value distributed during 2023
Group revenue was £3,514.5 million in 2023
(2022: £4,419.9 million), with Group completions,
excluding JVs, being 22.7% lower at 10,766
(2022: 13,932). The UK average selling price on
private completions increased by 5.1% to £370k
(2022: £352k), due to both house price inflation and
positive mix. The increase in the total UK average
selling price was 3.5% to £324k (2022: £313k) as a
result of the greater proportion of affordable housing
in 2023 (23%) than the prior year (2022: 21%), and
a small increase in the UK average selling price on
affordable housing to £168k (2022: £166k).
Group gross profit decreased to £716.5 million
(2022: £1,132.4 million), the impact of build cost
inflation and fixed build and selling costs being
absorbed over fewer completions, resulting in a
gross margin of 20.4% (2022: 25.6%).
Net operating expenses were £248.7 million
(2022: £304.9 million), the comparative including
£80.0 million of exceptional costs relating to the
cladding fire safety provision following the signing
of the Government’s Building Safety Pledge for
Developers in April 2022, with no such amount
in the current year. Excluding exceptional costs,
the net operating expenses were £248.7 million
(2022: £224.9 million), which was predominantly
made up of administrative costs of £232.7 million
(2022: £220.7 million). The increase in administrative
costs over the comparative period was driven
mainly by the non-recurring costs associated with
the change programme announced at the start of
the year and the annual pay review process, partially
offset by a portion of the savings associated with
the change programme. This resulted in a profit on
ordinary activities before financing of £467.8 million
(2022: £827.5 million), £467.8 million (2022:
£907.5 million) excluding exceptional items.
Contribution to
local communities
via planning obligations
£405.2m
(2022: £454.6m)
Employment
£270.7m
(2022: £290.0m)
Dividends paid in year
£337.9m
(2022: £323.8m)
Strategic reportDirectors’ reportFinancial statementsShareholder information Group financial review continued
Completions from joint ventures in the year were 82
(2022: 222). The lower level was a result of both the
current market and the status of the joint ventures’
developments. As a result of the decreased joint
venture completions, the share of joint ventures’
profit in the period was £2.4 million (2022: £15.9
million). When including this in the profit on ordinary
activities before financing, the resulting operating
profit* was £470.2 million (2022: £923.4 million),
delivering an operating profit margin* of 13.4%
(2022: 20.9%). The total order book value of joint
ventures as at 31 December 2023 decreased to
£6 million (31 December 2022: £26 million),
representing nine homes (31 December 2022: 56).
The net finance income of £3.6 million (2022:
£15.5 million expense) represents interest earned
on deposits in the current year, more than
offsetting 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 £473.8 million (2022: £827.9 million). The total
tax charge for the period was £124.8 million
(2022: £184.3 million), a rate of 26.3% (2022: 22.3%);
the prior year included a credit of £17.6 million in
respect of the exceptional charge recognised in
that year and a £1.7 million credit arising from the
remeasurement of the Group’s UK deferred tax assets
following the introduction of the new Residential
Property Developer Tax. The pre-exceptional tax
charge was £124.8 million (2022: £201.9 million),
representing an underlying tax rate of 26.3%
(2022: 22.2%).
As a result, profit for the year was £349.0 million
(2022: £643.6 million).
Basic earnings per share was 9.9 pence
(2022: 18.1 pence). The adjusted basic earnings
per share* was 9.9 pence (2022: 19.8 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 410 homes (2022: 381) with the average
selling price increasing to €400k (2022: €383k),
due to regional mix. The total order book as at
31 December 2023 increased to 490 homes
(31 December 2022: 448 homes).
Gross margin decreased to 28.1% (2022: 29.7%),
due to timing variances on the recognition of sales
commissions that had a positive impact on the prior
year; this flowed through to an operating profit* of
£35.3 million (2022: £32.6 million) and an operating
profit margin* of 24.7% (2022: 26.2%).
The total plots in the landbank stood at 2,755
(31 December 2022: 2,544), with net operating
assets* of £94.0 million (31 December 2022:
£89.8 million).
2023 Group results
Completions including joint ventures
Revenue (£m)
Operating profit* (£m)
Operating profit margin* (%)
Profit before tax and exceptional items (£m)
Profit for the year (£m)
Basic earnings per share (p)
Adjusted basic earnings per share* (p)
79
UK
10,438
3,371.7
434.9
12.9
Spain
410
142.8
35.3
24.7
Group
10,848
3,514.5
470.2
13.4
473.8
349.0
9.9
9.9
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Group financial review continued
Balance sheet
Net assets at 31 December 2023 increased
marginally to £4,523.4 million (31 December 2022:
£4,502.1 million), with net operating assets*
increasing by £204.2 million, 5.6%, to £3,823.7 million
(31 December 2022: £3,619.5 million). Return on
net operating assets* decreased to 12.6%
(31 December 2022: 26.1%) primarily due to the
reduction in Group operating profit in the year, and
to a lesser extent by the increase in average net
operating assets. Group net operating asset turn*
was 0.94 times (31 December 2022: 1.25),
reflecting the decreased revenue in the year.
Land
Land as at 31 December 2023 decreased by
£158.8 million in the year to £3,269.5 million as the
highly selective approach to acquiring new land
continued throughout the year, resulting in land
creditors decreasing to £516.1 million
(31 December 2022: £725.6 million). Included
within the gross land creditor balance is £44.9 million
of UK land overage commitments (31 December
2022: £43.0 million). £301.2 million of the land
creditors is expected to be paid within 12 months
and £214.9 million thereafter.
As at 31 December 2023, the UK short term
landbank comprised 80,323 plots (31 December
2022: 82,830), with a net book value of £2.8 billion
(31 December 2022: £2.9 billion). Short term owned
land had a net book value of £2.7 billion
(31 December 2022: £2.8 billion), representing
61,190 plots (31 December 2022: 63,088).
The controlled short term landbank represented
19,133 plots (31 December 2022: 19,742).
80
The value of long term owned land decreased to
£242 million (31 December 2022: £311 million),
representing 34,319 plots (31 December 2022:
36,646), with a further total controlled strategic
pipeline of 107,676 plots (31 December 2022:
107,739). Total potential revenue in the short and
long term owned and controlled landbank was
£61 billion (31 December 2022: £61 billion).
Work in progress (WIP)
Total WIP investment, excluding part exchange and
other, increased to £1,871.0 million (31 December
2022: £1,725.9 million) due primarily to build cost
inflation. This also resulted in average WIP per UK
outlet to increase to £7.6 million (31 December
2022: £6.4 million).
Provisions and deferred tax
Provisions decreased to £286.7 million
(31 December 2022: £290.3 million), primarily due
to utilisation of the cladding fire safety provision
(£16.8 million) as works have been carried out,
which was offset by increases in other provisions
which largely relate to remedial works on a limited
number of sites around the Group.
Our net deferred tax asset of £23.4 million
(31 December 2022: £26.0 million) relates to our
pension deficit and UK and Spanish provisions that
are tax deductible when the expenditure is incurred.
Pensions
As a result of the 31 December 2019 triennial
valuation, a funding arrangement was agreed
with the Trustee of the Taylor Wimpey Pension
Scheme (TWPS) that committed the Group to
paying up to £20.0 million per annum into an escrow
account between April 2021 and March 2024.
“ As at 31 December
2023, the UK
short term
owned landbank
comprised 61,190
plots, with a
net book value of
£2.7 billion.”
Chris Carney
Group Finance Director
Pension contributions
£22.2m
(2022: £22.5m)
Taxes
£155.9m
(2022: £208.7m)
Following an initial contribution totalling £10.0 million,
all further payments into the escrow account are
subject to a quarterly funding test, effective from
30 September 2021. Should the TWPS Technical
Provisions funding position at any quarter end be
100% or more, payments into the escrow account
are suspended and would only restart should the
funding subsequently fall below 98%. The funding
test at 30 September 2021 showed a funding level
of 103% and has remained above 100% since then
and therefore escrow payments were suspended
on, and from, 1 October 2021. The most recent
funding test at 31 December 2023 showed a
surplus of £54 million and a funding level of 103.3%
and as a result no payment into escrow is due in
the first quarter of 2024.
The Group continues to provide a contribution for
Scheme expenses (£2.0 million per year) and also
makes contributions via the Pension Funding
Partnership (£5.1 million per year). Total Scheme
contributions and expenses in the period were
£7.1 million (2022: £7.1 million) with no further
amounts paid into the escrow account (2022: nil).
At 31 December 2023, the IAS 19 valuation of
the Scheme was a surplus of £76.7 million
(31 December 2022: £76.6 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 under
the 2019 triennial valuation. Retirement benefit
obligations of £26.5 million at 31 December 2023
(31 December 2022: £29.9 million) comprise a
defined benefit pension liability of £26.3 million
(31 December 2022: £29.6 million) and a post-
retirement healthcare liability of £0.2 million
(31 December 2022: £0.3 million).
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Group financial review continued
The Group continues to work closely with the
Trustee in managing pension risks, including
management of interest rate, inflation and longevity
risks. The triennial valuation of the TWPS with a
reference date of 31 December 2022 is in progress.
Net cash and financing position
Net cash decreased to £677.9 million at
31 December 2023 from £863.8 million at
31 December 2022, due to the settlement of land
creditors and payment of dividends in the year.
Average net cash for the year was £606.6 million
(2022: £595.7 million).
The decrease in completions caused cash
generated from operations to decrease in the year
and resulted in a cash conversion* of 61.4% of
operating profit for the year ended 31 December
2023 (2022: 76.3%).
Net cash, combined with land creditors, resulted in
an adjusted gearing* of (3.6)% (31 December 2022:
(3.1)%).
At 31 December 2023, our committed borrowing
facilities were £687 million, of which the revolving
credit facility was undrawn throughout the year. In
July 2023, the Group renewed its revolving credit
facility, increasing it to £600 million with a maturity
of July 2028 and the option to request an
extension for two further years. In December 2022,
the Group entered into an agreement to refinance
the €100 million 2.02% senior loan notes due June
2023 with €100 million 5.08% senior loan notes
due June 2030. The weighted average maturity of
the committed borrowing facilities at 31 December
2023 was 4.8 years (31 December 2022: 1.9 years).
The new revolving credit facility includes three
sustainability-linked performance targets, which
adjust the margin 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.
Dividends
Subject to shareholder approval at the AGM
scheduled for 23 April 2024, the 2023 final ordinary
dividend of 4.79 pence per share will be paid on
10 May 2024 to shareholders on the register
at the close of business on 2 April 2024 (2022 final
dividend: 4.78 pence per share). In combination
with the 2023 interim dividend of 4.79 pence per
share, this gives total ordinary dividends for the year
of 9.58 pence per share (2022 ordinary dividend:
9.40 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.
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 and reconciliations of our APMs to the equivalent statutory measures are included in Note 32 of the financial statements.
81
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.
• The Annual Injury Incidence Rate (AIIR) is defined as the number of incidents
per 100,000 employees and contractors, calculated on a rolling 12-month
basis, where the number of employees and contractors is calculated using a
monthly average over the same period.
• Net cash is defined as total cash less total borrowings.
• Cash conversion is defined as operating cash flow divided by operating profit
or loss on a rolling 12-month basis, with operating cash flow defined as cash
generated by 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.
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Viability statement
Viability disclosure
Assessment of prospects
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.
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 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).
• The Group’s current performance and the
Group’s financing arrangements.
• Quality and reputation (F).
• Cyber security (I).
• 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.
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.
• Five years represents a reasonable estimate of the
• Strategy and business model flexibility, including
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:
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.
• 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.
Principal Risks
The Principal Risks, to which the Group are 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 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’).
82
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Viability statement continued
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,
including the impact from the Future Homes
Standard.
• 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 than
has been experienced during 2023. To arrive at our
stress test we have drawn on experience gained
from managing the business through previous
economic downturns and the COVID-19 pandemic.
We have applied the market dynamics encountered
at those times, as well as the mitigations adopted, to
our 2024 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 2024 from 2023
levels, before recovering back to 2023 levels
by 2026.
Price (Principal Risk: B) – a reduction to current
selling prices of 10%, remaining at these levels
across 2024 and 2025 before recovering to 2023
levels by 2026.
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 2024.
Within the scenario, build costs are forecast to
reduce across 2024 and 2025 with lower volumes
reducing demand for materials and resources and
land cost remaining broadly flat as the possible
increase in availability due to lower volumes is offset
by a restriction in supply. An estimate for the cost
of the Future Homes Standard has been assumed.
The mitigating actions considered in the model
include a continued 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, we also have a range
of additional options to maintain our 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 2023, the Group had a cash
balance of £765 million and access to £600 million
from a fully undrawn revolving credit facility,
together totalling £1,365 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.
83
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Stakeholder engagement and priorities
We believe engaging with
all our stakeholders and
hearing their feedback
will make us a better business.
During 2023, 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 49
84
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
Priorities for 2024
• Embedding a consistent sales journey
communication plan
• Customer education on the implications of
new technology
• Increasing 9-month customer satisfaction
Material impacts
Our homes and places
Our planet
Responsible and resilient business
Relevant KPIs
• Customer satisfaction 8-week score ‘Would you
• We engage with customers throughout the
recommend?’
• Customer satisfaction 9-month score ‘Would you
recommend?’
• Construction Quality Review
• Average reportable items per inspection
Strategic cornerstones
Land
Operational excellence
Sustainability
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
Key challenges
• Maintaining high levels of customer satisfaction
• Increasing longer term customer satisfaction
Engagement performance metrics and
highlights in 2023
• Updated our sales communication toolkit which is
aligned to our Customer Journey key principles
• Industry first roll out of interactive QR codes in show
homes to educate customers on new technology
• Customer research into views of FHS and implications
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Stakeholder engagement and priorities continued
Our employees
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 CEO and
senior management
• Dedicated employee helpline available to
all employees
• National Employee Forum, Local Employee Forums,
Young Persons Forum
Priorities for 2024
• Continued commitment to diversity
• Continue to offer a number of engagement and
communication channels including introducing
monthly newsletter for all employees and
site-specific quarterly newsletter
• Implementation of new HR system
Material impacts
Our people and suppliers
Responsible and resilient business
Relevant KPIs
Our partners
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
• Health and Safety Injury Incidence Rate
Key challenges
Priorities for 2024
• Further improve health and safety and
environmental protection
• Continue to engage with suppliers and
subcontractors
• Continue to engage with local and national
stakeholders
• Continue to engage with government and across
political parties
• Maintain engagement with industry bodies across
key areas
Material impacts
Our homes and places
Our people and suppliers
Our planet
Responsible and resilient business
Relevant KPIs
• Health and Safety Injury Incidence Rate
• Reduction in operational carbon emissions intensity
Strategic cornerstones
Land
• Understanding and highlighting risk across whole
supply chain
Engagement performance metrics and
highlights in 2023
• Introduced new subcontractor portal
• Donated or fundraised £1 million for national and
local charities (2022: £1 million)
• Industry first zero carbon ready homes pilot testing
new technology on a live site, using our own
subcontractors and suppliers
• Led a collaboration with five other major
Operational excellence
housebuilders, helping create a Sector Skills Plan
to provide free support to our subcontractors in
relation to skills and training (in particular
apprenticeships)
Sustainability
• System of employee networks sponsored by
senior management to support employees and
actively promote diversity
• Employee engagement
Strategic cornerstones
Operational excellence
Sustainability
Key challenges
• Ensuring all employees across the business
feel heard
• Attracting and retaining the best people in
the industry
• Driving high engagement with site-based
employees
• Increasing diversity
Engagement performance metrics and
highlights in 2023
• Employee engagement score of 93% (2022: 93%)
• Low voluntary turnover of 14.2% (2022:17.7%)
• 51 Pride in the Job Quality Awards (2022: 62) and
13 Seals of Excellence (2022: 15)
• Published second Diversity and Inclusion Report
85
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Stakeholder engagement and priorities continued
Our investors
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
Key challenges
• Ensuring investors understand the investment
proposition and what differentiates Taylor Wimpey
Engagement performance metrics and
highlights in 2023
• Site visit with investors and analysts to Sudbury
• Stakeholder interviews
• Award-winning Annual Report and awarded Silver
for our Sustainability Supplement
Priorities for 2024
• Continued commitment to best practice disclosure
• Continue to regularly engage with existing and
prospective investors
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
Strategic cornerstones
Land
Operational excellence
Sustainability
Capital allocation
Accreditation
86
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
Key challenges
Priorities for 2024
• 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
• Ensuring communities understand the value
that Taylor Wimpey can bring to their local area
Strategic cornerstones
Engagement performance metrics and
highlights in 2023
• Invested £405 million in local communities
via planning obligations
• Supported local community organisations
• Utilised our Engagement Academy to equip
our land, planning and technical teams with
best practice
Land
Sustainability
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Section 172 (1) statement
How the Board considered
stakeholders during the year
Our Directors are bound by their duties under
the Companies Act 2006 (the Act) to promote the
success of the Company for the benefit of our
shareholders as a whole, having regard to our
other key stakeholders.
We believe that in order to progress our strategy
and achieve long term sustainable success, the
Board must consider all stakeholders relevant to a
decision and satisfy themselves that any decision
upholds our culture of ‘doing the right thing’.
Our values, as set out on page 30, are key to
how we do business and are closely aligned to the
matters the Directors must consider as part of their
Section 172 duties.
The Board recognises that stakeholder engagement
is essential to understand what matters most to
our stakeholders and the likely impact of any key
decisions. We have a long history of engaging with
all of our stakeholders and the Board continues to
highly value the feedback that this engagement
provides. Details of how we engaged with our
different groups of stakeholders during 2023 and
how this informed what the Board considers
matters to them most can be found on pages 100
to 103.
The Board receives an update from the Executive
Directors at each Board meeting which details any
substantial engagement since the last meeting.
In addition, there were standing agenda items at
each meeting to ensure that the Board received
relevant updates on all of our key stakeholders;
such as the regular reports from Customer Service,
HR, Investor Relations and the Divisional Chairs.
The Board had an annual schedule of ‘teach-in’
sessions with our key Heads of Function (such as
Sales and Marketing, Land and Planning, Customer
Service, Investor Relations, Sustainability and Supply
Chain) where they received in-depth updates about
each group of stakeholders. In addition, the Board
regularly engaged directly with our investors and
employees, and further information around the
direct engagement that took place in 2023 can be
found on pages 101 and 103.
The Board is aware that in some situations,
stakeholders’ interests will be conflicted and they
may have to prioritise interests. The Board, led
by the Chair, ensures that as part of its decision
making process, the Directors assess the impact
of the decision on our stakeholders and the likely
consequences of any decision in the long term.
The table to the right shows how the Board
approaches its decision making.
On the next page, we have set out examples of
key decisions made by the Board and provided
further details about the decision making process.
Read more on page 100
87
Setting our culture, values and strategy
The Board sets our strategic direction, culture and values; and these are key
to how we do business and how we achieve our purpose.
Diverse set of skills, knowledge and experience
The Directors collectively have a diverse set of skills, knowledge, experience
and stakeholder expertise which assists the Board in making decisions.
This contributes to their ability to make well informed decisions which
promote our long term sustainable success for all stakeholders.
As part of a Director’s induction, they receive a detailed briefing on their
duties as a Director.
Board information
The Board receives comprehensive papers from Management which provide
details on the likely long term impact of a decision and how stakeholders
have been considered in the development of the proposal, including any
relevant engagement.
The Board also has an annual schedule of ‘teach-ins’ where the Heads of
Functions deliver updates on key activities during the year which feeds into
the decision making process.
Board discussion and decision
As part of its discussion, the Board provides rigorous evaluation, risk
management and challenge to ensure a decision promotes long term
sustainable success. The Board uses the stakeholder engagement
summarised on pages 100 to 103 to inform their decision making process.
Monitoring
The Board receives regular updates on key decisions and the actions taken
in respect of them.
This is done through regular reports submitted by Management to each
Board meeting and verbal updates as necessary.
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Section 172 (1) statement continued
Diversity and Inclusion Report
Audiocast at AGM
One of the key decisions made by the Board in the past year
was to approve the Diversity and Inclusion Report, which
outlined our progress and challenges in promoting diversity,
equality and inclusion across our organisation.
The Board decided to continue using an audiocast facility for
the 2024 Annual General Meeting (AGM), enabling
shareholders to join and participate remotely.
Criteria considered
A, B, C, D, E, F
Relevant stakeholders
• Employees
• Customers
• Investors
• Communities
Criteria considered
A, B, D, E, F
Relevant stakeholders
• Employees
• Investors
• Regulators
Board decision making: Market
Conditions and Macroeconomic Context
The Board deliberated on critical decisions impacting our
business. Informed by market dynamics and the broader
economic landscape, discussions centred around strategic
choices that would shape our future.
Criteria considered
A, B, C, D, E, F
Relevant stakeholders
• Employees
• Customers
• Investors
• Communities
Decision making process
Decision making process
Decision making process
• The Board recognised the importance of this issue for our employees,
customers, partners and society at large, and committed to taking
further actions to improve our performance and culture in this area.
• The Group HR Director, prepared a draft Report, disclosing data from
the Gender Pay Gap Report and the progress against key diversity
and inclusion focus areas and targets.
• The draft Report was presented to the Nomination and Governance
Committee which discussed the stretching nature of the targets and
the initiatives to drive progress.
• The Committee agreed with the content of the draft Report,
suggested some adjustments to the commentary and resolved to
recommend the aspirational targets to the Board for approval,
subject to the amendments.
• The draft Report, with the recommended amendments was
presented to the Board and recommended for approval.
• The Board approved the Diversity and Inclusion Report, and it was
published in March 2023.
• In response to changing circumstances and technological
• The Board discussed the market conditions and macroeconomic
advancements, the Board deliberated on enhancing shareholder
engagement at the AGM, with the aim of facilitating broader
participation while maintaining transparency and compliance.
context in the UK and Spain, including challenges and opportunities
faced by stakeholders, such as interest rate changes, government
policies, and housing market developments.
• The Board discussed the audiocast facility to be used and approved
the implementation of using an audiocast for the AGM; a decision
that allows shareholders to listen to proceedings and send in
questions, virtually.
• The Board deliberated on the company’s performance and outlook,
and approved various financial and operational decisions, such as
the dividend payment, the timber frame strategy, the 2024 Budget
and Business Plan, and the approach to cladding remediation.
• The audiocast facility also enables employee shareholders, who
• The Board reviewed and noted the progress and actions taken on
would have otherwise been working, to access the meeting. This
also includes the Share Incentive Plan (SIP) shareholders who are
provided with login access to the meeting.
• The Board’s decision to continue with audiocasting for the AGM
reflects a commitment to modernising shareholder interactions and
enhancing engagement.
the health, safety and environmental aspects of the business, and its
impact on the communities we serve. Updates on the ESG balanced
scorecard, investor feedback, and the external economic outlook
were also received and deliberated on by the Board.
Further information can be found on pages 97 to 98
Further information can be found on page 108
Further information can be found on page 227
Approval of the Strategic report
This Strategic report on pages 1 to 88 was approved
by the Board of Directors and signed on its behalf by
Key to decision criteria
A: The likely consequences of any
decision in the long term
B: The interests of our employees
C: The need to foster our business
relationships with suppliers,
customers and others
E: The desirability of maintaining a
reputation for high standards of
business conduct
D: The impact of our operations on
F: The need to act fairly as between
the community and the
environment
members
Jennie Daly
Chief Executive
88
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information In this section
90 Governance at a glance
92 Board of Directors
95 Group Management Team
96 Chair’s Q&A
97
Building strong governance
100 Board activities
101 Shareholder engagement
102 Workforce engagement
104
Board leadership
105 Monitoring culture
106 Diversity
107
Nomination and Governance Committee report
113 Audit Committee report
125 Compliance statement
129 Governance structure
130 Role of the Board
131 Remuneration Committee report
153
Statutory, regulatory and other information
Directors’
report
89
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Governance at a glance
Your Board is committed
to high governance standards
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.
The Company is committed to the
principles of the 2018 UK Corporate
Governance Code (the Code), published
by the Financial Reporting Council
(the FRC), which sets out standards
of good practice for listed companies
such as Taylor Wimpey.
The Company has generally sought to
comply with new provisions of the Code
in advance of their formal application.
We are reviewing the recent
announcement of the revised 2024
edition of the Code to assess whether
and to what extent we can and should
comply in advance of its formal
application from 1 January 2025.
This will be reported on more fully
in next year’s Annual Report and
Accounts.
Good governance
is a top priority for
your Board”
Robert Noel
Chair
Our commitment to
good governance
helps us to deliver our
Company purpose”
Jennie Daly
Chief Executive
The Company is
committed to strong
financial governance”
Chris Carney
Group Finance Director
Actions taken in 2023
Actions for 2024
Additional reporting on
succession and development
plans was introduced to
facilitate the Board’s close
attention to progress and
future plans in these areas,
explained in more detail
on page 110.
The Board undertook
increased engagement with
members of the Group
Management Team and
Heads of Functions,
explained in greater detail
on page 112.
The Board’s agenda layouts
were amended and an ESG
scorecard introduced, in
order to facilitate a better
understanding of the
Company’s ESG priorities
and progress towards their
achievement, as described
in more detail on page 104.
Action to give greater focus
to Board preparation and
discussions, including
summaries of key matters
and greater time for
Non Executive Director
input and challenge.
Action to give additional
focus to people issues;
leadership development; and
general succession planning.
Arranging a greater
proportion of external input
into discussion of key topics
in order to promote collective
discussion whilst taking into
account opposing views.
90
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Governance at a glance continued
Proportion of the Board that
is independent
56%
Board ethnic diversity
Board gender diversity
11%
person from minority ethnic
background
44%
female
Fully compliant
with the 2018 UK Corporate Governance
Code from 27 April 2023, when the
composition of the Remuneration
Committee was changed.
Read more on page 130
Read more on page 106
Read more on page 106
Read more on pages 125 to 128
Mean gender pay gap
6%
Gender diversity among
senior Board positions
25%
female
Workforce engagement sessions
Investor engagement sessions
26
119
Read more on page 150
Read more on page 106
Read more on page 102
Read more on page 101
Board roles
Board age diversity
Non Executive Director tenure
Year
1
Year
2
Year
3
Year
4
Year
5
Year
6
Year
7
Year
8
Year
9
Robert Noel
Humphrey Singer
Mark Castle
Irene Dorner
Jitesh Gadhia
Scilla Grimble
Clodagh Moriarty
Chair
Executive Director
Non Executive Director
1
2
6
40-50
51-60
61-70
3
5
1
91
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Board of Directors
Building on
our board
leadership
Key
A Audit Committee
R Remuneration Committee
N Nomination and Governance Committee
Committee Chair
92
Robert Noel
Chair
N R
Jennie Daly
Chief Executive
Chris Carney
Group Finance Director
Chair
Executive Director
Executive Director
Date of appointment
Appointed as a Non Executive Director on
1 October 2019
Appointed as Chair on 27 April 2023
Date of appointment
Appointed as Group Operations Director on
20 April 2018
Appointed as Chief Executive on 26 April 2022
Date of appointment
20 April 2018
Board tenure
5 years
Board tenure
4 years
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
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
• Experience of chairing a FTSE 250 company
and planning sectors
• Ability to challenge whilst working collegially
and developing strong relationships amongst
key stakeholder groups
• Proactive approach to stakeholders and their
key priorities with extensive customer and
people-focused skills
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
• Chairman at Hammerson plc
• Trustee of the National History Museum
• Non Executive Director at GMS Estates Limited
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.
External appointments
• Member of the Board at the Home Builders
Federation
• Non Executive Director at New Homes Quality
Board Limited
• Member of the Government’s AI Opportunity
Forum
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.
External appointments
None
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Board of Directors continued
Humphrey Singer
Senior Independent Director
Mark Castle
Independent Non Executive Director
Irene Dorner
Non-independent Non Executive Director
Lord Jitesh Gadhia
Independent Non Executive Director
A N
Senior Independent Director
A N R
Independent Non Executive Director
N
Non-independent Non Executive Director
N R
Independent Non Executive Director
Date of appointment
Appointed as a Non Executive Director on
9 December 2015
Appointed as Senior Independent Director on
27 April 2023
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
8 years
Board tenure
1 year
Skills and attributes which support strategy
and long term success
• Wealth of executive finance experience and
acumen with a focus on both digital solutions and
customer service
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
Humphrey was previously Chief Finance Officer of
Marks and Spencer Group plc, Group Finance
Director of Dixons Retail plc and also held senior
finance related roles within Dixons and Coca Cola
Enterprises.
External appointments
• Chief Financial Officer at Belron Group
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
93
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 Executive Director on 27 April 2023
Board tenure
4 years
Skills and attributes which support strategy
and long term success
• Engaging and inclusive leadership style with
significant experience of chairing boards of both
public and private companies
• Strong communicator and ability to manage and
develop stakeholder relations
• Extensive experience of operating in highly
regulated industries
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 Chair of
Virgin Money (UK) plc, Non Executive Director
of AXA SA and Chair of its Audit Committee, and
Non Executive Director of Rolls-Royce Holdings plc
and Chair of its Remuneration Committee.
External appointments
• Chair of Control Risks Limited
Date of appointment
1 March 2021
Board tenure
3 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
• Honorary Fellow of St. Anne’s College, Oxford
• Chair and Trustee of the British Asian Trust
• Trustee of the South East Asia Rainforest
• Non Executive Director at Bard Topco Limited
Research Partnership
• Chair of the Trustees at the Hampstead Theatre
• Member of the Council of Chatham House
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Board of Directors continued
Scilla Grimble
Independent Non Executive Director
Clodagh Moriarty
Independent Non Executive Director
A N
Independent Non Executive Director
N R
Independent Non Executive Director
Date of appointment
1 March 2021
Board tenure
3 years
Date of appointment
1 June 2022
Board tenure
1 year
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
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 Sainsburys 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
last 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 housebuilder law firms.
External appointments
None
2023 Board attendance
Audit
Committee
1/1
–
–
3/3
3/3
–
–
3/3
–
Board
9/9
9/9
9/9
9/9
9/9
7/9
9/9
9/9
9/9
Nomination
and
Governance
Committee
3/3
–
–
3/3
3/3
3/3
2/3
3/3
3/3
Remuneration
Committee
5/5
–
–
–
2/2
3/3
5/5
–
2/2
Robert Noel
Jennie Daly
Chris Carney
Humphrey Singer
Mark Castle
Irene Dorner
Jitesh Gadhia
Scilla Grimble
Clodagh Moriarty
There was full attendance at all meetings, except Irene
Dorner who was unavailable for two Board meetings; and
Jitesh Gadhia who was unavailable for one Nomination and
Governance Committee meeting. Prior to those meetings,
the Non Executive Directors’ views on the meeting agenda
items were sought and subsequently shared with the other
Board or Committee members during the meeting.
Following the meeting they were briefed on the business of
the respective meeting and any decisions that were taken.
Board skills
Skill
Number of Directors
Operational
Financial
Property
Customer service
Economics
Public sector
Risk
IT
ESG
Strategy
Construction
9
9
7
7
8
2
2
5
5
4
4
94
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Group Management Team
Our strong and
experienced
management team
The strength and depth of our management team positions
us well for changing market conditions. With a combined
total of over 150 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.
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.
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.
95
Ingrid Osborne
Divisional Chair, London and
South East
Ingrid has been with the business
for 23 years and was previously
Managing Director for our Central
London business. 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 at Taylor Wimpey.
Nigel Holland
Divisional Chair, Central,
South West and Spain
Nigel has been with the business
for 30 years, with a background in
sales and marketing. In his role as
Divisional Chair, Nigel oversees our
East Anglia, South Midlands,
Bristol, Southern Counties and
Exeter regional businesses as well
as our Spanish business. He was
Chair of our Equality, Diversity and
Inclusion Committee until the end
of 2023.
Shaun White
Divisional Chair, Midlands
and Wales
Shaun joined the Company over
23 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. As of January
2024 Shaun is a member of our IT
Steering Committee.
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. As of January
2024, Ian is Chair of our LEAF
Committee.
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. As of January 2024,
Lee is Chair of our Equality,
Diversity and Inclusion Committee.
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Chair’s Q&A
What have been the key highlights for the
Board this year?
Our team have delivered a good performance,
despite the challenging market conditions that
continued throughout 2023.
The way in which we run our business remains of
paramount importance to us and is what enables
Taylor Wimpey to successfully deliver on our
purpose to build great homes and create thriving
communities. Our long term success relies on us
having strong governance standards to underpin
our activities and as a Board, we have ensured
that we remain well positioned as a business to
optimise performance, deliver quality homes to
our customers and deliver long term value to all
of our stakeholders. This includes remaining agile
and making robust decisions at the right time
throughout the year.
A
&
Q
More information about key Board activities can be
found on page 100
How has the Board engaged with
its stakeholders during 2023?
The Board always has the interests of all of our
stakeholders at the heart of our decision making
throughout the year.
During the year, we continued to engage with our
shareholders proactively, including meetings with
institutional investors to discuss a range of topics
which are of mutual interest to the Company and
its shareholders in relation to performance,
market outlook, and macro-economic influences.
In 2023, Mark Castle became the Board’s
Employee Champion. Mark has since visited a
number of regional businesses, discussing key
matters with our employees across the business.
96
The key actions resulting from the evaluation were
to enhance preparations for Board discussions; to
allow additional time for thoughts and reflections;
to increase reporting on talent management,
leadership development and succession planning;
and to increase external input on key topics.
More information about the 2023 external Board
evaluation process and outcomes can be found on
page 111
What are the key priorities for the Board
in 2024?
Looking to 2024, the priorities for the Board are
to continue to operate a strong Board to support
and challenge our Group Management Team in
delivering our strategy and creating long term
success for our stakeholders. We will remain
focused on our strategic cornerstones, and ensure
we remain well positioned to optimise performance
in all market conditions.
More information about 2024 priorities can be found
on page 15
Robert Noel
Chair
In addition, our Non Executive Directors also visited
regional businesses and development sites across
the country to engage with employees and see our
culture in action.
More information about key Board activities can be
found on page 100. More information on engagement
with our employees and shareholders can be found on
pages 101 and 102
How does the Board take into account
ESG matters?
The Board’s engagement with ESG matters was
enhanced during 2023 with the introduction of a
regular report at every Board meeting which sets
out key ESG matters and tracks progress against
a framework of key metrics. This enhanced
engagement with ESG matters has led to increased
discussion at Board meetings on key matters and
will continue to support the Board’s delivery of
long term sustainable value for our stakeholders.
In addition, equality, diversity and inclusion
continues to be a regular agenda item for the
Board, and the Nomination and Governance
Committee, and is a key area of focus as we build
on the progress we have made towards the targets
we have set for ourselves.
More information about ESG matters can be found on
page 104
What was the outcome of the external Board
evaluation and what are the next steps?
The external Board evaluation concluded that the
Board is functioning well, governance is strong,
with a good degree of trust, confidence and a
healthy level of respect between all Board
members. The Board has committed Non Executive
Directors, who are knowledgeable and well
prepared for meetings. They bring strong, diverse
perspectives and experience to Board discussions.
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Dear Shareholder
I am pleased to present the Corporate Governance
Report for 2023, which sets out the key areas
considered by the Board and its Committees
during the year and in preparation for 2024.
Despite challenging market conditions during 2023,
the Company maintained its progress and
underpinned this with a focus on strong
governance, which I have been proud to lead since
my appointment as Chair in April 2023.
During 2023 and into 2024, the Board has carefully
monitored and reviewed progress and performance
against our strategic cornerstones whilst paying
close attention to the further development of our
initiatives in the areas of stakeholder engagement;
championing the ‘employee voice’ in the Boardroom;
progressing towards our ESG targets; improving
diversity and inclusivity throughout the Group as
well as at senior levels; and structuring the Board
and its discussions to give additional time
to consideration of these key areas.
This report seeks to explain how the Board ensures
that the progress we are making in our operations
is married to our continuing belief that business
should be carried on in a responsible and compliant
manner, which can be summed up as ‘doing the
right thing’ by all of our stakeholders.
Key to this approach is the culture within which
we approach our business, to ensure that we have
effective systems and processes in place to monitor
how we do business, including actively recognising and
managing risks arising from our operations and the
macroeconomic conditions within which we operate,
and continuing to strive for continuous improvement
and innovation in our business practices.
That ensures that business decisions are made in
the right way, as described more fully on page 100
of this Corporate Governance Report.
Stakeholder engagement
Our Board continues to place the interest of
stakeholders at the forefront of decision making.
We believe this is the correct way in which to
progress our strategy and deliver sustainable, long
term success. Further details on how we, as a
Board, have fulfilled our duties under section 172(1)
of the Companies Act 2006, to consider
all stakeholders relevant to a decision and satisfy
ourselves that each decision is in line with our
business culture, is set out on page 101 and an
explanation as to how we engaged with
our different stakeholders during 2023 can be
found on pages 84 to 88.
Building strong governance
I look forward to
maintaining our strong
relationships with both
shareholders and key
stakeholders.”
Robert Noel
Chair
97
Taylor Wimpey plc Annual Report and Accounts 2023
Strategic reportDirectors’ reportFinancial statementsShareholder information Preparing for planned financial
governance changes
A significant area of focus during 2023 was on the
FRC consultation around proposed changes to the
Code to introduce the principles designed to meet
the Government’s consultation on ‘Restoring Trust
in Audit and Corporate Governance’. Details on
how we have prepared to meet the new
compliance requirements are set out in the
Audit Committee Report on page 120.
The Board will continue to ensure that all applicable
laws and regulations are complied with, and we
remain confident that the business continues to
operate in a controlled and well-managed way.
Building strong governance continued
We continued our practice of engaging with our
shareholders in a proactive manner, holding 119
meetings with institutional investors, including 10
visits to our operations, to discuss a variety of key
themes, including results and performance, current
trading, market backdrop and outlook, responding
to market conditions, upcoming changes to
regulation and ESG matters. We held 10 site visits
with both analysts and investors including visits to
our net zero ready prototype homes in Sudbury.
(Read more about our prototype homes on page 36.)
We also held a number of management meetings
for analysts of the 17 investment brokers covering
the sector on behalf of investors.
Employee voice
When I was appointed Chair in April 2023, my
previous role as the Board’s Employee Champion
was passed to Mark Castle. I am delighted with
the way he has further developed the ongoing
consultation and communication channels between
the Board and the Group’s employees ensuring that
their views are properly explained and championed
to the Board, and taken into account, when making
decisions that could affect them.
In addition to these ongoing communication and
consultation channels, the Non Executive Directors
visited 11 regional businesses and 18 sites across
the country and took these opportunities to see our
culture in action as evidenced by their interactions
with employees during these visits.
Further information on shareholder and employee
engagement during the year can be found on
pages 101 to 103
Focused on ESG
Our ESG initiatives were a constant feature of
Board discussions during 2023 and the agendas
of Board and Board Committee meetings were
reorganised during the year in order to give these a
more prominent position in Directors’ deliberations
at meetings.
Progress against our ESG strategy, with
independently verified science based targets and
performance reviews, is carefully monitored by
the Board, which ensures that these remain
aligned to our purpose of ensuring that we play
our part in creating long term sustainable value
for our stakeholders.
During the year, the Board received regular reports
on the progress of our Net Zero Transition Plan.
Further information on the Board’s actions during
2023 to drive this element of our strategy are set
out on pages 7 and 36.
Further developing equality, diversity
and inclusion
Equality, diversity and inclusion remain key priorities
for the Board. The Nomination and Governance
Committee received an update during the year on
progress made towards achieving our Equality,
Diversity and Inclusion aspirations and increasingly
becoming a more diverse and inclusive employer,
where everyone is welcome.
Further details on progress made during 2023 and our
plans for 2024 can be found on page 106
98
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information The Board monitors a number of cultural indicators,
including information and impressions gained
during the interaction with executives and other
employees at all levels of the Company, during
Board presentations and visits to Company offices
and operations by the Board and individual Directors.
More details of these indicators and the insight gained
from them, appear on page 105
Conclusion
Finally, I would like to again take this opportunity
to thank all of my Board colleagues, the Group
Management Team and all of our employees
across the business, for their dedication, loyalty
and hard work which has underpinned our strong
performance for 2023 in tough conditions, and our
prospects for 2024.
Robert Noel
Chair
I believe the Company’s culture remains strong and
the Board will continue to consider a wide range of
indicators during 2024 to ensure that this continues
to be the case.
Annual General Meeting
This year’s Annual General Meeting (AGM) will
take place in person in the Gerrards Suite at the
Crowne Plaza Hotel in Gerrards Cross on Tuesday
23 April 2024 at 10:30am. I hope you will be able
to attend and the Board looks forward to meeting
shareholders and to hearing their views; and
answering any questions that you may have.
We are pleased to provide an electronic facility for
shareholders who are unable to attend the AGM
in person, so they may follow remotely and submit
questions to the Board on the business of the
meeting should they wish to do so. More details
of the AGM and the business to be considered,
are set out on pages 227 to 238.
Building strong governance continued
Board composition
After a period of transition on the Board during
2022, this year saw a settled Board focusing
on driving the strategy and progressing key
governance initiatives described in this letter and
in more detail throughout this report.
The only changes to the Board during the year
were to the roles of individual Directors:
On 27 April 2023 I succeeded Irene Dorner as
Chair; Humphrey Singer succeeded me as
Senior Independent Director; and Mark Castle
took over my former role as the Board’s Employee
Champion. Irene kindly agreed to remain as a
Non Executive Director and continues to bring her
deep commercial experience and strong cultural
principles to the Board.
Appropriate changes were also made at that time
to the composition of certain Board Committees,
which remain in full compliance with the Code.
Culture
The key to maintaining strong governance
principles across an organisation is having
a culture of doing the right thing. The Board
recognises the importance of having a strong
culture and appropriate values embedded
throughout the organisation and it is responsible
for defining and setting the culture from the top
and leading by example.
99
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Board activities
Board meetings
In addition to the regular topics discussed, the Board also considered and approved the matters set out below.
Strategy
Matters approved
• Business restructure plans which
right-sized the business in response to
market challenges
Read
more Matters considered
• Business restructure plans
• Updates on ESG initiatives
• Investor feedback on results announcements and
investor events
• Managing market changes
• Regular review of the Company’s strategic dashboard
• External review of the UK housing market outlook
• Land acquisitions
• Land sale
• Fire safety and cladding updates
31
31
115
• Customer service performance and progress update
• Supply chain management performance and
progress update
During 2023, the Board held nine formal meetings,
one of which was a business update call. The
Board considers that the usual eight meetings plus
one business call per year remains appropriate and
there are processes in place to convene additional
Board meetings when considered necessary.
There was full attendance at all Board meetings,
except Irene Dorner who was not available for
two meetings. Prior to each meeting, Irene’s views
on the meeting agenda items were sought and
subsequently shared with the other Board
members during the meeting. Following the
meeting, Irene was briefed on the business of the
meeting and any decisions taken.
Matters considered and approved at
Board meetings during 2023
Board meeting agendas are derived from the
Board’s annual plan which is approved at the end
of each year and sets out the topics expected to
be discussed during the following year. The Chair,
Chief Executive and Company Secretary meet in
advance of each Board meeting to discuss and
agree the agenda for the next meeting, as well as
to discuss progress made on actions arising from
the previous meeting. Any additional topics are
then added to the agenda.
During 2023, the Board considered a number of
topics regularly, including:
• Health, safety and environment reports
• Chief Executive reports
• Group Finance Director reports
• Reports from each Board Committee following
Committee meetings
• Governance and legal matters
• Employee engagement feedback
• Reports from each operating division, HR and
Link to strategic
cornerstones
Operations
Link to strategic
cornerstones
Finance
Link to strategic
cornerstones
Governance
Link to strategic
cornerstones
Read
more
104
101
Stakeholders
considered
• Customers
• Employees
• Investors
• Communities
• Partners
• Customers
• Employees
• Communities
• Partners
41
31
• Employees
• Investors
• Sales and Marketing performance and progress update
• Divisional updates
• Land position update
• Employee survey results and resulting action plan
• Employee value proposition
• Updates on engagement with the Competition and Markets
Authority in respect of the Housebuilding Market Study
• Regular review of the strategic dashboard indicators
• Forward strategic plans for 2024-2028
• Annual forecasts for 2024-2028
• Finance projections versus strategic plans and budgets
• Reports from the Board’s Employee Champion
• Regular review of whistleblowing reports and response
• Annual report from the National Employee Forum
• Review of progress and plans on employee engagement
• Review of progress on diversity and inclusion strategy
• Board evaluation outcomes
• Preparations; draft structure and messaging for
Annual Report
• Customers
• Employees
• Investors
• Communities
• Partners
102
104
102
106
111
• Results announcements and trading
statements
• Dividend payments to shareholders
• The Company’s Principal and emerging
Risks, including risk appetite
• Annual Budget for 2024
• Annual review of Treasury Policies
• Board and Committee changes
• Diversity and Inclusion Report
• Modern Slavery Statement
• Board evaluation action plans for 2022
and 2023
• Board annual plan for 2024
• Annual review and confirmation of
governance framework documents
• Updates to conflicts register
78
78
71
78
78
99
108
155
111
109
104
Customer Service
Land
Operational excellence
Sustainability
Capital allocation
100
Key to our strategic cornerstones
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Chair meetings
Annual General Meeting (AGM)
Shareholder engagement
The Board actively seeks and encourages
engagement with investors, including its major
institutional shareholders and shareholder
representative bodies. During 2023, the Company
has continued to engage with shareholders in a
proactive manner.
The charts below set 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.
Irene Dorner, prior to stepping down as Chair on
27 April 2023, and Robert Noel, following his
appointment as Chair on that date, held a total of
three meetings with key institutional shareholders
representing c.5% of our issued share capital.
Key themes discussed at those meetings were our
results and performance, current trading, market
backdrop and outlook, responding to market
conditions, upcoming changes to regulation and
ESG matters.
Number of shareholder meetings in 2023
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.
Remuneration consultation
During 2023 Jitesh Gadhia, in his capacity as
Chair of the Remuneration Committee, wrote to our
major institutional shareholders to explain, and seek
feedback on the Remuneration Committee’s
proposals for applying the Remuneration Policy
adopted by shareholders at the 2023 AGM.
Chair
Non Executive Directors
Executive Directors
GMT and Directors
Investor Relations
3
1
61
10
44
Investor and analyst updates
We hosted visits for institutional investors and
analysts over four days, in June and September
2023, to view our flagship zero carbon ready
homes trial at our Chilton Woods development
in Sudbury, Suffolk.
101
We look forward to engaging with our retail
shareholders at the AGM, which will again be held
in person. We are pleased to again provide an
audiocast facility for shareholders who are unable
to attend the AGM in person, so they may follow
proceedings remotely and submit questions to the
Board on the business of the meeting should they
wish to do so. Shareholders are also invited to
submit questions via email in advance of the AGM,
which will be answered during the meeting itself.
Further details on the 2024 AGM can be found in
the Notice of Meeting on page 227.
Percentage of the share register met in 2023
Chair
4.9%
Non Executive Directors
14.1%
Executive Directors,
GMT and Directors*
GMT and Directors
Investor Relations
* Investor Relations also attended.
41.1%
33.5%
31.2%
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Workforce engagement
Employee champion
Informal engagement sessions
The Employee Champion is responsible for
championing the ‘employee voice’ in the
boardroom and strengthening the link between
the Board and employees.
The Board’s Employee Champion is Mark Castle,
who took the position when the previous
Champion, Robert Noel, was appointed Chair
in April 2023. Mark regularly engages with the
workforce to gather their views through a variety
of formal and informal channels (as set out in the
diagram opposite). As part of this engagement,
Mark identifies any areas of concern and feeds
these back to the Board to consider.
Over 20,000 individual comments were reviewed
and the key themes and trends were addressed.
The next page explains five matters raised by
employees during employee engagement sessions,
actions taken in response to those matters and
the outcome.
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.
Each regional business also has its own Local
Employee Forum (LEF) and 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.
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
Informal
engagement
session
National
Employee
Forum
Local
Employee
Forum
Mark Castle
The Board’s Employee Champion
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.
102
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Workforce engagement continued
Communication
When
January 2023
Long service
January 2023
Uniforms
April 2023
Expenses
April 2023
Employee value proposition
January 2024
Matter raised
Facilitating communication between
Executives and Employees by way
of webinars
Recommended a review of how the
Company recognises and rewards
long service
Concerns regarding the range
of sizes of uniforms available and
whether the interim wear is compliant
with tax regulations
Recommended a review of the
expenses policy, with regard to the
cost of hotel accommodation outside
central London
Views were sought on the way in which
we articulate our employee value
proposition
Action taken
The process and timings for accessing
future webinars was reviewed
A full review of long service awards was
undertaken
Impact/
Outcome
The live webinar session sign-up
process was changed to make it easier
to access and future live sessions are
also being delivered within a core
period of the day
New reward enhancements have been
introduced, which celebrate significant
milestones for long service and provide
additional holiday days for long-serving
employees
A review of uniform policies was
undertaken which took into account
the ability to order any gender uniform;
ensure a larger range of boot sizes was
available; and that interim wear
is compliant with tax regulations
A review was undertaken to assess the
current cost of hotel accommodation
when travelling on business
A focus group was arranged,
including the NEF representatives,
to ensure that their voice was
represented in the design of our
employee value proposition
All of the feedback from the NEF has
been incorporated into the current
uniform review and trials
As a result of the review, changes were
made to the expenses policy
with regard to hotel accommodation
All of the feedback from the NEF has
been incorporated into the design of
our employee value proposition
Engagement activities throughout the year
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
• • • •
•
•
Board meeting
Employee Champion update to
the Board
• •
•
Employee Champion engagement
with employees
•
Chair and Non Executive Director
site and regional business visits
•
• • • • •
Teams Q&A sessions
Employee survey
• •
•
103
Dec
•
•
• •
• •
• • •
•
•
• •
•
•
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Board leadership
Operational and strategic oversight
Policies and procedures
The Board sets the strategic direction of the
Company and agrees the annual budget, whereby
the necessary resources to achieve sufficient
progress towards achievement of the agreed
strategy, are made available.
The execution of our strategy and the day to day
management of the Company’s operations is led
by the Chief Executive who is assisted by the GMT.
This is a vastly experienced team that has operated
in a variety of market conditions, both with the
Company and in the industry generally, and its
members, and their respective roles, responsibilities
and experience, are set out on page 95.
The Board receives at each meeting a detailed
update on progress and plans towards the
achievement of the strategy, and the day to day
performance and prospects for the Company,
from the CEO, together with similar reports from
each GMT member for their respective areas.
These are supplemented by reports from certain
key Heads of Function who provide updates on
key stakeholder groups; performance in the period
and employee matters.
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.
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 2023, four proposed
external appointments were considered by the Board,
Jennie Daly’s appointments as a member of the
Business Council, and as a member of the AI
Opportunity Forum, Mark Castle’s appointment as
Chair of Eleco plc, and Irene Dorner’s appointment
as a Member of the Council of Chatham House.
In all cases, 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 HSE.
104
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; and a requirement
to review training videos on anti-corruption,
anti-money laundering and competition law.
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.
During 2023, the Board received regular briefings and updates on progress
towards the achievement of our Net Zero Policy; our science based targets;
our Environmental Policy; and the strategic cornerstone of ‘sustainability’ as
part of our overall Strategy with its associated specific key performance
indicators.
The Board also receives regular updates on progress against key topics,
such as diversity and inclusion, the environment and stakeholder matters.
The implementation of ESG initiatives across the Group is led by the CEO
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.
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Monitoring culture
The Board recognises the importance of a healthy company culture and considers the Company’s culture of ‘doing the right thing’ as a key strength of the business. The Board is responsible for
defining and setting the Company’s culture from the top, and the Board and GMT as a whole are responsible for leading by example. The Board’s number one priority will remain health and safety
for everyone who works on or visits a Taylor Wimpey site.
Purpose
Culture
To build great homes and
create thriving communities
Values
Respectful and fair
Take responsibility
Better tomorrow
Be proud
105
The Board reviewed a number of cultural indicators throughout 2023, including the following:
151
Annual Injury Incidence Rate
per 100,000 employees
and contractors (2022: 166)
34%
93%
98%
of our employees are women
(2022: 33%)
employee engagement score
(2022: 93%)
of employees agreed that Taylor Wimpey
takes health and safety in the
workplace seriously (2022: 98%)
6
30
Employee Champion
engagement sessions
(2022: 7)
Non Executive Director
visits to regional businesses
(2022: 10)
14.2%
voluntary employee turnover
(2022: 17.7%)
95%
of employees agreed that Taylor Wimpey
is committed to supporting charities doing
important work around issues connected to
our business and the surrounding communities
(2022: 97%)
5.7%
20
of employees are from ethnic
minorities (2022: 5.0%)
Non Executive Director
visits to sites (2022: 9)
96%
95%
of employees are proud
to work for Taylor Wimpey
(2022: 96%)
of employees agreed that Taylor Wimpey
offers opportunities for employees of
all backgrounds to progress (2022: 95%)
During 2023, the Board undertook a
number of additional actions to further
support and monitor the Company’s culture,
including reviewing the Company’s approach
to diversity and inclusion, supporting the
work to articulate our employee value
proposition, and representatives attending
the National Employee Forum.
After considering the Company’s cultural
indicators throughout 2023, there have
been a number of actions taken to further
support and monitor the Company’s
culture, including:
• The Board members undertook a
• The Board and GMT continued to
programme of regional business and site
visits during 2023, 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. These visits
will continue during 2024.
• The Board and GMT considered feedback
from the Employee Survey and oversaw
action plans designed to address various
matters raised.
consider employee feedback resulting
from the various employee engagement
methods as set out on pages 102 and
103 and monitored actions taken as
a result.
These processes continue into 2024, when
the Board will continue to consider a wide
range of cultural indicators and will take
action as considered appropriate
throughout the year.
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information
Diversity
FCA diversity disclosure table
Gender diversity
Men
Women
Other categories
Not disclosed/prefer not to disclose
Ethnic diversity
White British or other white
Mixed/multiple ethnic groups
Asian/Asian British
Black/African/Caribbean/Black British
Other ethnic group including Arab
Not specified/prefer not to say
Number of
Board
members
5
4
–
–
Percentage of
the Board
55.6%
44.4%
–
–
Number of
Board
members
8
–
1
–
–
–
Percentage of
the Board
88.9%
–
11.1%
–
–
–
Number of
senior
positions on
the Board
3
1
–
–
Number of
senior
positions on
the Board
4
–
–
–
–
–
Number
in executive
management
6
3
–
–
Percentage
of executive
management
66.7%
33.3%
–
–
Number
in executive
management
8
–
1
–
–
–
Percentage of
executive
management
88.9%
–
11.1%
–
–
–
Diversity data
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,
disability and military background, and include
the option to ‘prefer not to say’.
Board diversity
Board diversity 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 was reviewed
and approved during 2023 and 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.
Whilst 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.
The Board also fully supports the Parker Review’s
‘Beyond One by 21’ recommendation and is
pleased to confirm compliance with this
recommendation as at 31 December 2023.
The Board is pleased to report compliance with the
FCA’s diversity disclosure requirements, as set out
in the table above. At Taylor Wimpey, ‘executive
management’ is defined as the Group Management
Team. The figures in the table are stated as at
31 December 2023.
106
Diversity remains a key consideration during
recruitment and will continue to be referenced
in all search and recruitment processes.
Employee diversity
Employee diversity remains a key priority for the
Board, and across the Company as a whole.
In 2023, the Board oversaw the progress and
development of a number of activities in this area,
including the embedding of the revised Equality,
Diversity and Inclusion Policy introduced in 2021,
the development of a number of aspirational
diversity metrics to be achieved by 2025, and the
publication of our Diversity and Inclusion Report.
The Company’s Equality, Diversity and Inclusion
Policy is based on three key areas of focus:
• 21st century leadership – Ensure that line
managers understand their role and responsibility
in developing a more diverse and inclusive culture
through the provision of relevant training and
building awareness across the Company.
• Employer of choice – Ensure that our working
environment, policies, procedures and
development and progression opportunities
support greater diversity and inclusion.
• Expanding our reach – Develop broader
recruitment channels and take positive action to
expand the diversity of candidates attracted to
the Company, including designing development
programmes to attract and support new
employees.
Detailed information about the Company’s
employee diversity policies, practices and progress
in this area can be found in our Diversity and
Inclusion Report on our website.
34%
of our workforce
identify as women
33%
of GMT positions
held by women
28%
of Leadership Team
positions are held
by women
5.7%
of the workforce is
from a minority ethnic
background
44%
of our Board are
women
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Nomination and Governance Committee report
The Committee has
maintained high
standards of governance
and talent development.”
Robert Noel
Chair of the Nomination and
Governance Committee
Key activities and areas of focus
• Reviewed and recommended the approval of an externally
facilitated Board evaluation
• Oversaw the appointments of Humphrey Singer as the Senior
Independent Director and Mark Castle as Board Employee
Champion
• Reviewed the Group Management Team, Heads of Functions
and wider workforce talent and succession plans
• Reviewed and recommended the approval of the Company’s
equality, diversity and inclusion activities, progress and targets
“ The Committee
has been
committed to
identifying and
overseeing the
nomination of
visionary leaders
and creating a
pipeline of
succession that
upholds the
Company’s values
and strategic
focus.”
Robert Noel
Chair of the Nomination
and Governance
Committee
Committee members
1. Robert Noel (Chair)(a)
2. Humphrey Singer
3. Mark Castle
4. Irene Dorner
5. Jitesh Gadhia(b)
6. Scilla Grimble
7. Clodagh Moriarty
Meeting
attendance
3/3
3/3
3/3
3/3
2/3
3/3
3/3
(a) Robert Noel was appointed as Chair on 27 April 2023.
(b) Jitesh Gadhia was unavailable for the meeting on 25 May 2023.
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, Future Talent Development Manager and Co-Chairs of the Proud2Be
Employee Network.
107
Quick links
108 Equality, diversity and inclusion
109 Corporate governance
110 Board changes
111 Board evaluation
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Nomination and Governance Committee report continued
Dear Shareholder
Corporate governance
Our responsibilities as a Committee 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. More information about our activities
in this area can be found on page 100.
Embedding good corporate governance throughout
the Company will remain an important area of focus
for the Committee throughout 2024.
External Board evaluation
I am pleased to report that the results of our annual
Board evaluation concluded that the Board
continues to be effective, with appropriate
challenge and support at Board meetings.
The 2023 Board evaluation was externally facilitated
by Manchester Square Partners.
Whilst conducting the 2023 Board evaluation,
we also reviewed the key actions identified in the
2022 Board evaluation and reviewed progress
made against these actions during 2023.
More information about the outcomes of the
2023 external Board evaluation can be found
on page 111.
As Chair, I am pleased to present the 2023 report
of the Nomination and Governance Committee
(the Committee) on behalf of the Board.
2023 Priorities
The Committee met three times during the year and
reviewed various matters, including:
• An external evaluation of the Board, its
committees, and individual directors, as well as
the feedback and action plans arising from the
evaluation process.
• Board Succession Planning and Group
Management Team performance, development
and organisation structure.
• The Diversity and Inclusion Report (including the
approval of diversity targets) as well as progress
made towards achieving the Board’s diversity
objectives, including gender, ethnic, and cultural
diversity.
• The corporate governance framework and
practices of the Company, including the review
and approval of the annual corporate governance
disclosures and assessing alignment with best
practices and regulatory requirements.
As a Committee, we have overseen the
appointments of Humphrey Singer as Senior
Independent Director, and Mark Castle as the
Board’s Employee Champion, as well as the
transition from Irene Dorner to me as Chair. More
information on the Board changes can be found on
page 110.
108
“ We have made
significant progress
in advancing our
strategic priorities
and enhancing our
governance
standards.”
Robert Noel
Chair of the Nomination
and Governance Committee
Equality, diversity and inclusion
Our focus on equality, diversity and inclusion
remains unchanged. It would be easy, in times of
challenge, to reduce activities and attention to this
important area of work.
In 2023, we made progress on our aspirational
targets, became a Level 2 Disability Confident
employer, undertook a wide range of actions led by
our employee affinity groups, and most importantly,
our employees have told us in our engagement
survey that they recognise that we are working hard
to become as diverse as the communities in which
we operate.
We will be publishing our second Diversity and
Inclusion Report with the full details of our
achievements in this area.
Whilst we are pleased with our progress,
we recognise that in reality our Company is still
working towards diversity and we will continue to
aspire to be reflective of the communities in which
we operate; to this end we have set diversity
targets in line with the Parker Review.
More information about our future focus on equality,
diversity and inclusion can be found on page 106
and also in our Diversity and Inclusion Report which
can be found on our website.
Robert Noel
Chair of the Nomination
and Governance Committee
27 February 2024
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Nomination and Governance Committee report continued
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; and 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.
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 2023, the Committee oversaw a number
of governance matters, including:
• Approved the 2023 Notice of Annual
General Meeting
• Confirmed compliance with the Committee’s
Terms of Reference
• Reviewed the corporate governance
framework and reported to the Board that
it remains appropriate
• Recommended to the Board the annual approval
of the Directors’ Conflicts of Interest Register
• Approved the 2023 external Board evaluation
process
• Approved the Committee’s annual plan for 2024
Each Director is required to seek election or
re-election, as appropriate, at each year’s Annual
General Meeting. 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.
Irene Dorner, having stepped down from the role
of 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 in order
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 2023 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 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 2024 Annual General Meeting
each Director, irrespective of their appointment
date, will be submitted for re-election. More
information can be found on page 229.
109
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
Board balance and skills
During 2023, following a number of Board changes,
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 2023, of the Chair, two Executive
Directors and six Non Executive Directors remains
appropriate. This balance will be kept under review
during 2024. In addition, the skills of each member
of the Board, as set out on pages 92 to 94, 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.
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Contingency planning
During 2023, 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.
Nomination and Governance Committee report continued
Board appointments
The Committee ensures that 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.
There were no new appointments made to the
Board during 2023; Humphrey Singer was
appointed the Senior Independent Director and
Mark Castle, the Board’s Employee Champion.
More information on the Board changes during 2023
can be found on pages 99, 102, and 108
Succession planning
The Committee is conscious that the Code does
not consider a Non Executive Director to be
independent after they have served on the Board
for nine years and therefore is mindful of the tenure
of each Non Executive Director. When reviewing its
annual agenda plan, the Committee is aware of any
likely upcoming Board changes as a result of this,
and is therefore in a position to begin the
succession and recruitment process at an early
stage. To this end, the Committee will begin,
in early 2024, to make arrangements for the
succession and recruitment of a new Non Executive
Director as Humphrey Singer finishes a nine year term.
During 2023, the Committee considered the
succession planning for both the Group
Management Team and Heads of Functions,
as well as wider workforce planning for certain
roles including regional managing directors. 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 reviews the development
programmes for these individuals to ensure they
continue to develop in line with the succession plan.
The Committee is supported in this by the Group
Talent Management Board and Divisional Talent
Management Boards which regularly review
succession plans and related development
requirements across roles within the Company.
During 2023, actions taken to support succession
plans included Senior Management development
and engagement, the discussion of aspirational
diversity targets, and early talent capability levelling.
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 is also
valuable for the Board and Committee to assess
the strength and depth of the succession plans in
place. During 2023, a number of individuals were
invited to present to the Board on topics including
customer service, sales and marketing, production,
supply chain, employee engagement, and land.
110
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information 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. This process follows
a three year cycle, with the 2023 Board evaluation being externally facilitated by Manchester
Square Partners (MSP). MSP also carried out the 2017 and 2020 externally facilitated
evaluations and it was considered that their insight into the significant evolution of the Board
since 2017 (which has included two Chair changes, a new Chief Executive, various Non
Executive Director changes and Group General Counsel and Company Secretary changes)
would be invaluable. The Committee noted that MSP have no other connection to the
Company and were chosen for their constructive and direct evaluation style.
Stage 1
May 2023
The Nomination and Governance
Committee reviewed and approved
the proposal to appoint MSP to
conduct the 2023 externally
facilitated Board evaluation.
Stage 2
June 2023
The Chair and MSP agreed the
scope of the Board evaluation and
developed an outline framework to
ensure that the specific objectives
of the Board evaluation were met.
MSP were provided access to the
Board and Committee papers for the
prior 12 months. MSP observed the
June Board meeting.
Year 1 (2023)
Externally facilitated Board
evaluation by MSP
Year 2 (2024)
Internal evaluation facilitated by the
Chair and Group General Counsel
and Company Secretary
Year 3 (2025)
Internal evaluation facilitated by the
Chair and Group General Counsel
and Company Secretary
111
Stage 5
September 2023
MSP prepared a summary paper
of key findings and themes for an
initial discussion with the Chair.
Stage 4
August 2023
Individual interviews were
conducted with each of the Board
members and the Group General
Counsel and Company Secretary.
Stage 3
July 2023
MSP observed the July Board and
Audit Committee meetings.
Stage 6
October 2023
MSP produced a report to the
Board on their findings and
recommendations and attended
the October Board meeting to
discuss the report.
Stage 7
December 2023
The Board agreed a set of actions to be
implemented during 2024 which will
address the points raised in the
evaluation report.
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information
Nomination and Governance Committee report continued
MSP concluded that the Board functions well and
governance is strong at Taylor Wimpey. There is a
good degree of trust, confidence and healthy
respect between the Directors; with all Directors
being aligned in respect of the role of the Board
over the next few years. MSP confirmed that the
relationship between the Chair and Chief Executive
is developing well with regular open dialogue. The
Committees are functioning effectively with praise
for the work and rigour the respective Committee
Chairs bring. The 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 the findings of the evaluation,
which will be actioned during 2024. In addition,
the Committee reviewed progress made against
the agreed 2022 Board evaluation actions. Further
information can be found in the tables below.
2022 recommendations
Actions taken in 2023
2023 recommendations
Proposals planned for 2024
Increase exposure
to members of
Senior Management
The Group Management Team and Heads
of Functions met with the Board on a more
frequent basis during 2023, through a mixture
of additional meetings and dinners.
Additional external input
on key topics to provoke
collective discussion and
hear opposing views
Additional items will be included on Board
agendas throughout the year for one or two
external speakers to present on key topics.
Increase reporting
on succession and
development plans
Ensure progress
against ESG initiatives
are clear
The Committee received regular updates
on talent and succession planning at all levels
of the business, from early entry to the GMT.
As part of these updates, the Committee
were provided with overviews of the
development plans in place to strengthen
our succession pipeline.
An ESG balanced scorecard has been
developed during 2023 which the Board
reviews at least on a quarterly basis. The
scorecard captures key areas of importance
to Taylor Wimpey and increases visibility of
progress. There is also a standing ESG item
at each Board meeting which provides
key ESG updates since the last meeting.
More information can be found on pages 98
and 104.
Further enhance discussions
at Board and Committee
meetings
All papers submitted to the Board to include
an executive summary which note any
particular questions Management would like the
Non Executive Directors to consider in advance
of the meetings. A brief biography of all
presenters to be included in the Board packs.
Development of an Employee
Value Proposition
The Board to contribute to the development
of an Employee Value Proposition throughout
2024 to ensure an interconnection between
purpose, values and culture.
112
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Audit Committee report
The Audit Committee supports
the Board in fulfilling its
corporate governance
responsibilities to maintain the
integrity of the Group’s financial
reporting within a framework of
strong internal controls."
Humphrey Singer
Senior Independent Director
Committee members
1. Humphrey Singer (Chair)
2. Robert Noel(a)
3. Scilla Grimble
4. Mark Castle
Meeting
attendance
3/3
1/1
3/3
3/3
(a) Stepped down from the Committee on 27 April 2023 when he became Chair of the Board.
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 in his capacity as Secretary to
the Committee, other members of the Company Secretariat team to minute proceedings, Group Financial Controller,
Head of Internal Audit, Head of Tax, Head of Group Reporting, Group IT Director, and the external Auditors.
All members of the Committee are independent Non Executive Directors as
required by the 2018 UK Corporate Governance Code (the Code). The Board has
determined that Humphrey Singer, Chair of the Committee, has recent and
relevant financial experience as required by the Code. More information can be
found on page 117.
113
“ The Audit Committee
is focused on
maintaining strong
financial governance
and welcomes its
further enhancement
through the latest
revisions to the Code
by the Financial
Reporting Council.”
Humphrey Singer
Chair of the
Audit Committee
Key activities and areas of focus
• Sought and received assurance that management action on,
and investment in, cyber security, and the programme to
digitise the Company’s production procedures, will each
further strengthen our overall control environment
• Monitored the Group’s readiness for the adoption of any
financial governance and ongoing corporate reporting changes
resulting from any regulatory requirements instigated by the
Department for Business, Energy & Industrial Strategy (BEIS)
or the Financial Reporting Council (FRC)
• Sought and received assurance that key business controls,
in particular segregation of duties and delegation of authority,
remain effective following the change programme undertaken
early in 2023
2024 key areas of focus
• To gain assurance that the transition to a new IT service
provider is appropriately managed, minimising operational
disruption and associated risks
• To oversee the development of the changes
required in response to the 2024 Corporate
Governance Code
• To gain assurance that the new HR and
Payroll system is implemented within a
robust framework
Quick links
114 Committee changes
116 Committee activities during 2023
117 Committee meetings
122 Group assurance approach
124
Recommendation to the Board
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Audit Committee report continued
Dear Shareholder
On behalf of the Board, I am pleased to present
the 2023 report of the Audit Committee
(the Committee).
We fulfil the Committee’s responsibilities through
the activities undertaken throughout the year,
as detailed on pages 116 to 117.
Committee changes
As foreshadowed in last year’s report, Robert Noel
stood down from the Committee on 27 April 2023,
in compliance with the Code, upon his appointment
as Chair of the Board.
In preparation for that change, we considered the
Committee’s composition and the balance of its
experience and expertise, and are confident that
the remaining three members of the Committee
are sufficient in number and experience, including
recent and relevant financial experience, to
continue the work of the Committee on behalf of
shareholders, in an effective and compliant manner.
Key areas of focus during 2023
Our key areas of focus during 2023 were
addressed as set out below:
Cyber security and digitisation of production
procedures
We oversaw, and received regular updates on,
plans and progress to maintain and enhance
the resilience of the Company’s cyber defences,
through the implementation of a new end point
protection service using a new XDR (Extended
detection and response) service from a specialist
security service provider.
114
We also monitored progress in the digitisation of
the Company’s production procedures, through
the delivery of new devices and mobile apps and
sought and received assurance from Management
and the Executive Directors that these will deliver
appropriate controls across the Company’s UK
business.
Further information on our activities during 2023
and plans for 2024 in meeting the revised
requirements of the Code; the wider responsibility
to ensure that all applicable laws and regulations
are complied with; and to assure ourselves that the
business continues to operate in a controlled and
well-managed way, are set out on page 120.
Key business controls
We sought and received assurances from
Management, underpinned by the summary
findings from Internal Audit reports conducted
during the year, that key business controls,
including proper segregation of duties and
appropriate delegation of authority, remained
effective throughout the reporting period and to the
date of this report.
More information on our activities during 2023 in
this area can be found on page 123.
Our interim review of progress and our final review
prior to signing this report each concluded that all
of those key areas of focus were satisfactorily
addressed or progressed during 2023.
More information on the ways in which, during
2023, we drove further improvements in cyber
resilience and business controls, and plans for
further enhancements during 2024, are set out
on page 121.
Preparing for planned financial governance
changes
We continued and built upon the work commenced
during 2022 in preparation for the recently
announced changes to the Code to reflect the
outcome of the Government’s consultation on its
initiative, by BEIS, entitled ‘Restoring Trust in Audit
and Corporate Governance’.
The primary change is to require an explanation in
each year’s Annual Report as to how the Board has
monitored the Company’s risk management and
internal control framework during the year and
carried out a review of its effectiveness.
Whilst these changes do not apply until later
reporting periods, we will be continuing to prepare
for compliance and will also be considering whether
it is possible and appropriate to introduce systems
and processes to enable us to comply with some
of the provisions during 2024.
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Audit Committee report continued
Significant items
In addition to the key areas of focus during 2023, the other key area addressed by
the Committee, as it does every year, were the significant items raised during the
preparation and audit of the Group’s accounts for 2023. The following significant
items are those that the Committee has identified and considered in discharging
its duties and in considering the financial reporting of the Group:
Significant item description
Action taken
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.
Cladding fire safety provision
The Company entered into the Developer
Remediation Contracts with the UK
Government on 13 March 2023 and the
Welsh Government on 18 April 2023. These
were legally binding agreements which
followed the commitments previously given
under the Pledge and Pact respectively.
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.
115
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 PwC 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.
The Committee reviewed and challenged
Senior 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 Committee was
satisfied that the provision represented
Management’s best estimate of the
expected remediation costs.
Audit oversight
Continuing compliance
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.
More information about how we complied with the
guidance can be found on pages 125 to 128.
Humphrey Singer
Chair of the Audit Committee
27 February 2024
We continue to hold individual meetings with the
external Auditors and with the Head of Internal
Audit, independent of the Executive Directors, to
discuss matters within our remit and any issues
arising from the external and internal audits. This
provides each audit activity with direct access in the
event that they wish to raise any matters without
the presence of Management.
The audit of the 2023 financial results has been
improved and enhanced by lessons learned,
both by the external Auditors and the Company,
following our detailed annual evaluation of the
external audit process and the outcome of the
external audit of the Annual Report and
Accounts 2022.
Detection and prevention of fraud
The first full year of the new Head of Internal Audit
has focused particularly on assessing and further
improving the continued effectiveness of the
Company’s processes; controls; and reporting
mechanisms for the detection and prevention of
fraud in the Company’s business activities. More
information is set out on page 119.
Key areas of focus during 2024
Alongside fulfilling our statutory and governance
functions as normal during 2024, we will give
particular focus to certain key areas which we
believe are important for the coming year. These
are set out on page 113.
These areas are key from a Group perspective
because they will influence our ways of working on a
day to day basis from an IT service perspective and
the assurance we have over our control environment.
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Audit Committee report continued
Committee activities during 2023
The February 2024 meeting concluded the Committee’s activities with regard to the Group’s 2023 reporting cycle which have accordingly been included in the table below.
Topic
Activity/review
February
2023
July
2023
December
2023
February
2024
Topic
Activity/review
February
2023
July
2023
December
2023
February
2024
Financial
reporting
Reviewed year end matters including the
draft Annual Report and Accounts (and
assessed the processes which ensure it
is fair, balanced and understandable),
significant accounting and audit issues,
the draft full year results announcement
and the going concern statement
Reviewed the draft half year statement,
including significant accounting issues,
materiality, and the external Auditors’
report on the statement
Reviewed accounting issues and
Accounting Standards in preparation
for year end reporting
External
audit
Recommended to the Board the
re-appointment of
PricewaterhouseCoopers LLP (PwC)
as external Auditors
Reviewed PwC’s plan for the scope of
the audit of the Annual Report and
Accounts 2023, including key audit risks
and regional checks conducted around
the business, and the progress of the
audit to date
Disclosed relevant audit information to
the external Auditors and the required
evidence in support of it
Conducted a review of the effectiveness
of the year end external audit process
and reporting outcome for 2022,
including PwC’s performance, and
oversaw certain improvements and
enhancements flowing from the
review’s outcome
Reviewed and approved the external
Auditors Non-Audit Services Policy
116
Internal
control
and risk
Reviewed the fraud risk assessment
incident and response report
Concluded the prior year’s risk review
including agreeing Principal Risks,
consideration of emerging risks, and
monitoring progress on mitigation
actions
Completed a detailed review of Principal,
Key and emerging risks, together with
mitigation and assessment against the
Company’s risk appetite
Reviewed the viability model
Reviewed the Governance assurance
map
Monitored the developing BEIS
recommendations and the preparations
by the Company to comply with its
expected new requirements in terms of
legislation and amendments to the Code
Committee
governance
Reviewed the Committee’s performance
against its Terms of Reference and
objectives for the previous year and set
objectives for the next year
Reviewed progress on the Committee’s
areas of focus
Reviewed and agreed the Committee’s
annual plan for the next year
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Audit Committee report continued
Committee activities during 2023 continued
Topic
Activity/review
February
2023
July
2023
December
2023
February
2024
Internal
audit
Data and
systems
security
Received activity reports
from Internal Audit
Agreed Internal Audit’s
programme of work for
the year
Reviewed progress against
Internal Audit’s priorities
and work plan for the year
Reviewed the effectiveness
of the Internal Audit
Received an update on the
Group’s data and systems
security, technology, cyber
resilience and further
protective measures in
relation to key business
systems
Compliance Received an update on
legal and regulatory
compliance requirements
across the Group and
confirmation that these
continued to be met
117
In carrying out these activities, the Committee relies
on regular reports from Management, Internal Audit
and from the external Auditors. In monitoring the
financial reporting practices, the Committee reviewed
accounting policies, areas of judgement highlighted
by Management and the external Auditors, the going
concern assumptions and compliance with accounting
standards and the requirements of the Code.
Committee meetings
The Committee met individually and privately with
the Head of Internal Audit and with representatives
from the external Auditors during appropriate
Committee meetings in 2023, in order to provide
a forum to raise and discuss any matters which
either may wish to raise in confidence.
The Committee considers guidance as to the
number of Audit Committee meetings considered
to be appropriate for FTSE 100 companies such as
ours, in relation to the Committee’s annual plan for
each year. We currently believe 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,
as it has done so on occasion in the past.
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, when
assessing performance against each one, to ensure
that they remain appropriate.
Committee competence
One of the key requirements of the FRC’s guidance
on Audit Committees is that each Committee
member should have sufficient knowledge, training
and expertise to contribute effectively to the
Committee’s deliberations, and that the Committee
as a whole should have sufficient recent and
relevant financial experience as required by the Code.
Humphrey Singer, the Committee Chair, has been
a member of the Audit Committee since December
2015 and its Chair since February 2018. He has
extensive experience of the financial reporting
requirements of FTSE 100 companies; of financial
reporting preparation and compliance for public
companies, and of dealing with internal and
external auditors, from his current role as Chief
Financial Officer of Belron Group and from previous
roles with Marks and Spencer Group plc and
Dixons Carphone plc. This depth of experience
has given Humphrey insight into key areas of
shareholder concern and independent experience
of robustly challenging and holding Management,
and the external and internal auditors, to account.
The Committee Chair is assisted on the Committee
by the knowledge and experience of two other
Non Executive Directors:
Mark Castle has significant operational experience
in all aspects of the construction sector from his
time as Chief Operating Officer of Mace Finance Ltd
and previously from executive roles at Structuretone
Inc and Wates Group Ltd. This particularly assists
the Committee in its assessment of operational risk.
Scilla Grimble has over 17 years’ executive
experience in corporate finance; is currently the
Chief Financial Officer at Deliveroo plc; and brings
significant financial and risk-related experience.
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Audit Committee report continued
Prior to stepping down from the Committee,
in accordance with good governance, upon his
appointment as Chair of the Board, Robert Noel
brought considerable experience of the property
sector and wide commercial experience as Chair of
Hammerson plc and previously as Chief Executive
of Land Securities Group PLC.
When Robert Noel stepped down from the
Committee, its composition was considered in
relation to its annual plan, areas of focus, and
expertise, and it was decided that an additional
appointee was not necessary.
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.
As described in the Nomination and Governance
Committee Report on page 110, there is a formal
process of induction for new Directors, which
includes specific reference to supporting
competence in relevant Committee areas through
exposure to the appropriate areas of the Group’s
operations and performance. This same thorough
induction process, suitably tailored as appropriate
to the appointee’s experience and expertise, will be
undertaken by any new Non Executive Directors
appointed to the Committee.
118
Committee evaluation
The Board Evaluation for 2023, which is described
more fully on page 111, and which was externally-
facilitated by Manchester Square Partners, included
an appraisal of the performance of the Audit
Committee and individually of its Chair and other
members.
The outcome of the appraisal was that the
Committee was considered to continue to operate
effectively; with the necessary level of expertise;
with no specific actions arising requiring further
improvement; and is chaired effectively and in a
way that ensures a good level of debate and
positive challenge.
External Auditors
Re-appointment
PwC’s audit of the Company’s 2023 accounts and
reports was its third since appointment as the
external Auditors at the 2021 AGM. The Audit
Partner is Sonia Copeland, who has held the role
since PwC were 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.
As in previous years, a full evaluation of PwC’s
performance in relation to the audit of the full year
results for 2022 was performed. The process
followed was as set out below:
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 the nature and
extent of the non-audit work performed
by PwC during the year.
The Committee considered whether PwC had
appropriately challenged Management’s
estimates and judgements.
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.
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Audit Committee report continued
The Committee considered the responses to all
these areas of assessment, and concluded that the
audit process continues to be effective; that the
quality and sufficiency of the resources provided by
PwC’s engagement team remains appropriate; that
PwC remains independent; and that there continues
to be effective and independent reporting lines
available to the external Auditors direct to the
Committee and its Chair.
The Committee also assessed Management’s
proposals for incorporating into the Annual
Report and Accounts consideration of material
climate-related matters. More details appear on
pages 53 to 68.
Based upon its assessment, as set out above,
the Committee recommended to the Board, which
in turn is recommending to shareholders in
Resolution 12 at the 2024 AGM (in the Notice of
AGM on page 229), that PwC should continue as
external Auditors to the Company.
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 2024.
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.
Appointment of the external Auditors for
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
119
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.
A review of the policy has been undertaken and it
was confirmed that the policy is in accordance with
the Revised Ethical Standard 2019 (the Standard)
issued in December 2019 by the Financial
Reporting Council (FRC), which limits the non-audit
services which the external Auditors may provide to
the Company.
In all circumstances where it is proposed to engage
the external Auditors to perform non-audit work in
accordance with this policy, this is subject to the
approval of the Audit Committee after it has
properly assessed potential threats to the
independence of the external Auditors and the
safeguards applied in the Standard.
The Board, acting on guidance from the Committee
following its review of the continuing effectiveness
of this policy, is satisfied that it meets the Standard,
and will be conducive to the maintenance of good
governance, best practice and auditor
independence and objectivity.
PwC undertook non-audit services:
• In the form of assurance work carried out in
connection with the announcement of the
Company’s 2023 half year results. This non-audit
service is of direct benefit to shareholders.
• By 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, at a notional value of £2,000.
• By 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.
The Committee recognises and supports the
importance of the independence of auditors.
It reviewed each separate proposed non-audit
procedure; and PwC’s overall performance of
non-audit services during 2023; and is satisfied that
it did not, and will not going forward, impair the
independence of the external Auditors. The value
of non-audit services work by PwC was £0.1 million
in 2023 (2022: £0.1 million) which represents
approximately 9% (2022: 10%) of the audit fee as
set out in Note 6 to the Accounts on page 184.
Internal Audit
Internal Audit’s primary role is to support the Board
and the Group Management Team (GMT) to protect
the assets, reputation and sustainability of the
Group. 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, and has regular
direct contact with the Chair of the Board, the
Chief Executive and other senior Management, as
required. The reporting line to the Chair of the Audit
Committee 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. Continuous improvement initiatives
agreed at that time, have been implemented, to
ensure the Internal Audit function continues to meet
both current best practice and the evolving needs
of the Group.
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information effective; that they meet the requirements of the
Code; and that their implementation and
embedding into the Company’s processes is
progressing satisfactorily.
Further details on how the Company will comply
with these new measures for reporting periods
2025 and 2026 will be included in next year’s
Audit Committee Report.
Risk management and internal control
During 2023, the Board, assisted and advised by
the Audit Committee, has carried out a robust
assessment of the Company’s emerging and
Principal risks.
The Group has an established ongoing process
of risk management, which is detailed further on
pages 71 to 77. The Committee monitors the
Group’s 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.
Audit Committee report continued
Internal Audit reviews the effectiveness and
efficiency of the systems of internal control in place
to safeguard the assets; to quantify, price, transfer,
avoid or mitigate risks; and to monitor the activities
of the Group in accomplishing established
objectives. Internal Audit’s mandate is Group-wide
and their reviews during 2023 have considered
financial, operational and compliance controls.
The Internal Audit plan, and the individual audits
conducted in line with that plan, are driven
primarily by the Group’s strategy and its key risks.
Following each review, an Internal Audit report is
provided to both the Management responsible for
the area reviewed and the GMT. These reports
outline Internal Audit’s opinion of the management
control framework in place together with actions
proposed or made, as appropriate, where
improvements are recommended. The Chief
Executive, the GMT and Senior Management
consider the reports on a regular basis and are
responsible for ensuring that improvements are
made as agreed. A database of audit
recommendations and improvement initiatives is
maintained. Follow-up and escalation processes
ensure that such improvements are implemented
and fully embedded in a timely manner. Summaries
of all Internal Audit reviews and other key activity
and resulting reports are also provided to the
Audit Committee for review and discussion.
The Group belongs to and participates in
industry-wide forums and other initiatives aimed
at combating fraud within the housebuilding and
construction industry.
The Internal Audit function also reviews proposed
related-party transactions, including employees’
house purchases from the Group, to provide
assurance that the formal policy and proper
procedures are followed.
120
Preparation for planned financial
governance changes
The Committee has overseen preparations to
comply with the recently-published UK Corporate
Governance Code 2024, which embodies regulatory
changes, including the minimum standards for
Audit Committees, resulting from the BEIS
consultation into restoring trust in audit and
corporate governance. The likely general
requirements have been clear for some time
previously, and accordingly preparatory work has
been taking place throughout 2023 and into 2024,
overseen by the Committee, to ensure the
Company is ready to comply from the required
application timescale of 1 January 2025
(1 January 2026 for certain measures).
These preparations involved establishing a project
dedicated to preparing for the Corporate Governance
Reform requirements. The project steering committee
is chaired by the Group Finance Director and its
membership includes the Group General Counsel
and Company Secretary, Group Financial Controller,
IT Director and Head of Internal Audit.
The initial scope of the project focused on internal
controls over financial reporting, which confirmed
that there continue to be strong processes in place,
including the Operating Framework and a
comprehensive Finance Manual.
The scope of the project has evolved in response
to FRC updates and will move into preparing for the
known requirements. This will be an area of focus
for the Committee in 2024 as noted on page 113.
These actions have been overseen and monitored
by the Committee during 2023 and will continue
to be monitored into 2024, to ensure that they are
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Audit Committee report continued
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; and
• To consider emerging risks that could impact
on the Group’s longer term strategy.
sufficiency of the associated provision, and
reviewing updates on usage and the balance of
the provision during the year.
Updates were received on key IT risks, including
the resilience of the Group’s systems to cyber
attack and action taken to maintain and improve
the security of systems and data.
The Board was advised by the Committee in its
assessment of emerging risks, including potential
velocity and impact on the Group’s longer term
strategy, further details of which can be found on
page 73.
The Committee also oversaw the further
embedding of improvements in the area of risk.
These related to:
To achieve these objectives, the Committee
undertook the following during 2023:
Cyber security
Detailed risk reviews were conducted twice during
the year, at the Committee’s July (half year) and
December (full year) meetings and covered both
the systems used and the reported risks. These
considered the outputs from a bottom-up and
top-down review of risk in all areas of the business
and included taking account of ESG considerations,
and climate change, over various time horizons.
These assessments use an established
methodology and include regularly reviewing the
effectiveness of the Group’s system of internal
control in providing a responsible assessment and
mitigation of risks.
Regular updates were received on the continuing
review of relevant historical and current
developments and actions taken by the Group to
comply with the Government guidance on fire
safety. This included assessing and advising the
Board on the continuing appropriateness and
Recognising the evolving threat landscape, we have
strategically allocated resources to further
strengthen our cyber defences and resilience.
Investments have been made in advanced threat
detection and incident response capabilities which
both formed part of the Cyber Security Roadmap
which set out the programme of activity for the
coming years. Internal Audit, with external subject
matter expert support, reviewed the development
of the roadmap and their conclusion was that it was
comprehensive and delivery of the roadmap
initiatives is well managed. We have also focused
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 have seen the
completion rate improve year on year both from
Internal Audit’s support and the benefits of our
awareness programmes.
Production processes
The programme to digitalise our production
processes made good progress during 2023. Its
objective is to deliver an improvement in production
build quality, efficiency and productivity, and site
staff wellbeing through the better use of technology,
including simple applications and user-friendly
devices. Internal Audit attends the programme board
meetings and updates the committee on progress.
The Committee also receives updates directly on
these important initiatives from the IT Director.
Change programme
The Group delivered a change programme at the
beginning of 2023, the objective of which was to
right-size the business in response to the changing
and uncertain market conditions. The Committee
sought assurance that key business controls, in
particular segregation of duties and delegation of
authority remain effective. Internal Audit considered
this in their workplan and has confirmed that key
business controls remain effective.
Action to mitigate the effect of each risk is led by
the Chief Executive in conjunction with the relevant
member of the GMT.
Risk management and mitigation systems cannot
eliminate risks but rather seek to manage both the
likelihood of their occurrence and the extent of their
impact and can only provide reasonable and not
absolute assurance against material misstatement
or loss.
The Principal Risks facing the Company and the
Group, as assessed by the Board, are set out on
pages 74 to 77 together with information on the
mitigations for each risk.
121
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Audit Committee report continued
The Committee also oversees the actions being
taken to monitor IT initiatives which aim to either
directly protect against and reduce the risk of
cyber-related attacks and fraud; support and
enhance the current IT environment including data
protection; or that are crucial in their contribution
to key business initiatives aiming to enhance the
experience of customers, suppliers and/or employees.
At its meeting in February 2024, the Board, having
conducted its own review and after reviewing more
detailed assessments from the Audit Committee,
remained satisfied that the system of internal
control continued to be effective in identifying,
assessing, and ranking the various risks facing the
Group; and in monitoring and reporting progress in
mitigating their potential impact on the Group.
The Board also approved the statement of the
Principal Risks and uncertainties set out on pages
71 to 77 of this Annual Report and Accounts.
IT operating environment
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 2023 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 reviewed details of the proposed
enhancements to the Group’s cyber resilience and
assured itself, prior to their introduction, that they
were appropriate and could reasonably be
expected to deliver enhanced protection to the
Group’s key operating systems.
122
The Head of Internal Audit attends the IT Steering
Committee meetings; and Internal Audit is
represented on key project teams, including the
upgrade of the financial consolidation and reporting
system and the bank payment system.
Internal Audit has taken on the function of Business
Continuity and will be improving response planning
to a business impacting level incident in 2024.
Both our Logistics and financial consolidation and
reporting solutions were upgraded during 2023
with both hardware and software improvements
completed.
Other improvements included:
• Increased resources and improved approach to
working with projects to ensure security is
embedded by design.
• Extending our security controls to cover a wider
range of IT services.
• A step improvement in monitoring vulnerabilities
and remediating them promptly.
• Introducing a more extensive testing regime for
security vulnerabilities in legacy systems.
Plans for further enhancements to cyber resilience
during 2024 include:
Group assurance approach
The overall structure of the Group’s internal controls and assurance processes
are as set out below:
• Available online for all employees,
with controls to ensure compliance
or appropriate pre-approval of
any variation
• Includes clear levels of delegated
authority, responsibility and
accountability
Operating Framework
• 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
Detailed process manuals
• Relating to the operation of the
main functions of the Group
• Support the Operating Framework
at a more granular level of detail
• Further development of our business continuity
readiness plan, being undertaken by Internal Audit.
GMT
Internal Audit
• Transition to a new approach for managing
IT services within the Group, including new
security services.
• Improving our monitoring of key suppliers’
cyber security ratings.
Read more about cyber risks and our response and
mitigation processes on page 77
• Consider and, if appropriate,
• Independently assess
approve matters requiring prior
approval under the Operating
Framework
appropriateness of, and
compliance with the Operating
Framework and detailed manuals
• Monitor adherence to the
Operating Framework and
detailed manuals
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Audit Committee report continued
Key processes and controls
Going concern
Viability statement
The Group has prepared forecasts, including
various sensitivities, and has taken account of
the Principal Risks and uncertainties identified
on pages 71 to 77. 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 71 to 77
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 they 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 82 to 83 together
with details of the processes, assumptions and
testing which underpin it.
Another key area of focus for the Committee during
2023 was gaining assurance on required changes
to key processes and controls that might have been
affected by known legislative changes impacting
the industry through 2023 and into 2024, in
particular the requirements of the New Homes
Quality Code (NHQC), Parts L and F of the Future
Homes Standard and expected requirements of the
FRC’s Corporate Governance reforms.
Key processes to enable the Company to comply
with the NHQC and the New Homes Ombudsman
Service, were successfully introduced across the
business. These included mandatory training for
employees and subcontractors; updating
procedures and systems to reflect the NHQC
requirements; and automation of the processes.
Internal Audit will continue to monitor performance of,
and compliance with, NHQC mandatory requirements.
Group assurance map
A Group assurance map has been developed to
provide a summary of the three lines of assurance:
management, oversight function and Internal Audit;
to the GMT, 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.
123
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Audit Committee report continued
Annual Report and Accounts 2023
Fair, balanced and understandable
The Committee considered whether, in its opinion,
the Annual Report and Accounts 2023, taken as
a whole, is fair, balanced and understandable,
and that it included the information necessary
for shareholders to assess the Group’s position,
performance, business model and strategy.
The process followed in making that assessment
was as follows:
The Committee monitors the integrity
of the Group’s reporting process and
financial management and the work
of the external Auditors.
The Committee challenges any
significant financial judgements and
estimates made by Management and
the external Auditors’ review of them.
The Committee ensured that there
is a clear and unified link between
the Annual Report and Accounts
and the Company’s other external
reporting, and between the three
main sections of the Annual Report
and Accounts.
The review of the Company’s
Annual Report and Accounts 2023
took the form of a detailed
assessment of the collaborative
process of drafting them, which
involves the Company’s Investor
Relations; Company Secretariat;
and Finance functions, with
guidance and input from other
relevant functions and external
advisers, all overseen by the
Executive Directors and
Group General Counsel and
Company Secretary.
The Committee considers the
output from the review process and
reviews the full year and half year
financial statements before
proposing them to the Board for
consideration and approval.
In particular, the Committee
considered the following in
relation to this Annual Report
and Accounts:
• Reviewed all material matters,
including the significant items
set out on page 115.
• 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.
• Considered the Directors’
statements as to the amount
and availability of distributable
reserves in relation to dividends
proposed by the Board.
• Ensured that it correctly reflected
the Group’s performance in the
reporting year.
• Ensured that it presented a
consistent message throughout.
• Ensured that it correctly reflected
the Group’s business model.
• Ensured that it correctly
described the Group’s strategy.
• Considered whether it
presented the information in
a clear and concise manner,
illustrated by appropriate KPIs,
to facilitate shareholders’
access to relevant information.
124
Recommendation to
the Board
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 156, that the Annual Report and
Accounts 2023, 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 this
Audit Committee report.
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 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Compliance statement
Our compliance statement sets out how the principles of the 2018 UK Corporate Governance Code (the Code) have been applied for the year ended 31 December 2023.
The Company complied with all provisions of the Code throughout the year, having eliminated at the end of 2022 the non-compliance with Provision 38 (executive director pension contributions)
as reported in last year's Annual Report and Accounts, save for Code Provision 32 (Remuneration Committee composition) in respect of which the non-compliance ended with the appointment
of two additional independent Non Executive Directors, Mark Castle and Clodagh Moriarty to the Remuneration Committee on 27 April 2023. More information can be found on page 152.
1. Board leadership and Company purpose
Principle
Application
A. A successful company is led by an effective
and entrepreneurial board, whose role is
to promote the long term sustainable
success of the company, generating value
for shareholders and contributing to
wider society.
B. The board should establish the company’s
purpose, values and strategy, and satisfy
itself that these and its culture are aligned.
All directors must act with integrity, lead by
example and promote the desired culture.
C. The board should ensure that the necessary
resources are in place for the company to
meet its objectives and measure performance
against them. The board should also
establish a framework of prudent and
effective controls, which enable risk to be
assessed and managed.
D. In order for the company to meet its
responsibilities to shareholders and
stakeholders, the board should ensure
effective engagement with, and encourage
participation from, these parties.
E. The board should ensure that workforce
policies and practices are consistent with the
company’s values and support its long term
sustainable success. The workforce should
be able to raise any matters of concern.
125
The Taylor Wimpey plc Board is collectively responsible for creating the 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.
The Company’s clear and effective governance structure is a key foundation to success. This framework is clearly documented in the Articles of
Association, Division of Responsibilities, Schedule of Matters Reserved for the Board and Terms of Reference for each Board Committee, which
can all be found on our website. Our governance structure ensures that the Board and its Committees, the Group Management Team (GMT)
and Senior Management are able to make decisions effectively for the benefit of all of our stakeholders.
The Board ensures that the Company’s purpose, values, strategy and culture are aligned.
Our purpose is to build great homes and create thriving communities and our values are to be respectful and fair, take responsibility, create a
better tomorrow and to be proud. The Board recognises the importance of a healthy culture and considers the Company’s culture of ‘doing the
right thing’ as a key strength of the business.
The Board is responsible for defining and setting the Company’s culture from the top, and the Board and GMT as a whole are responsible for
leading by example.
Our Chief Executive leads the GMT in the execution of our strategy and the day to day management of the Company’s operations. The GMT is
a vastly experienced team that has operated in challenging market conditions, with collectively over 150 years of service at Taylor Wimpey and
even longer in the housebuilding industry.
At each Board meeting, the Board receives updates from each GMT member, along with key Heads of Functions to 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.
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.
The Company has a number of workforce policies and practices which are available on our website.
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. All whistleblowing cases are investigated by the Head of Internal Audit, Group HR
Director, the Head of HSE and /or the Group General Counsel and Company Secretary, depending on the nature of the matter. The Board
receives half yearly whistleblowing updates which set out any issues raised during the period and interim updates on significant matters.
The updates provided are anonymous and summarise the result of any investigation.
The Company has policies on its zero tolerance approach to bribery and corruption which are shared across the business annually. Individuals
are requested to review training videos on anti-corruption; anti money laundering and competition law and are asked to confirm continued
compliance with the policies.
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Compliance statement continued
2. Division of responsibilities
Principle
Application
F. The chair leads the board and is responsible
for its overall effectiveness in directing the
company. They should demonstrate objective
judgement throughout their tenure and
promote a culture of openness and debate.
In addition, the chair facilitates constructive
board relations and the effective contribution
of all non executive directors, and ensures
that directors receive accurate, timely and
clear information.
G. The board should include an appropriate
combination of executive and non executive
(and, in particular, independent non executive)
directors, such that no one individual or small
group of individuals dominates the board’s
decision making. There should be a clear
division of responsibilities between the
leadership of the board and the executive
leadership of the company’s business.
H. Non executive directors should have sufficient
time to meet their board responsibilities.
They should provide constructive challenge,
strategic guidance, offer specialist advice
and hold management to account.
I. The board, supported by the company
secretary, should ensure that it has the
policies, processes, information, time and
resources it needs in order to function
effectively and efficiently.
The roles and responsibilities of the Chair, Chief Executive, Senior Independent Director and Employee Champion are reviewed annually and
signed by the relevant parties. The Division of Responsibilities document is available on our website.
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.
The Chair is also in contact with the Group Finance Director and Non Executive Directors on a regular basis between meetings.
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 2024.
The roles of the Chair and the Chief Executive are separate; clearly defined in detail; and reviewed annually.
The Board and individual Directors are supported by the Group General Counsel and Company Secretary, to whom they have access at
all times.
In between Board meetings, Non Executive Directors have access to Senior Management at all times. Non Executive Directors are encouraged
to visit regional businesses and sites. In 2023, the Non Executive Directors completed 30 regional business visits and 20 site visits. In 2024,
each Non Executive Director is requested to visit at least one regional business or site per quarter.
The Directors receive information one week before meetings take place to allow sufficient time for a detailed review of the documentation.
126
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Compliance statement continued
3. Composition, succession and evaluation
Principle
Application
J. Appointments to the board should be subject
to formal, rigorous and transparent procedure,
and an effective succession plan should be
maintained for board and senior
management. Both appointments and
succession plans should be based on merit
and objective criteria and, within this context,
should promote diversity of gender, social
and ethnic backgrounds, cognitive and
personal strengths.
K. The board and its committees should have
a combination of skills, experience and
knowledge. Consideration should be given to
the length of service of the board as a whole
and membership regularly refreshed.
L. Annual evaluation of the board should
consider its composition, diversity and how
effectively members work together to achieve
objectives. Individual evaluation should
demonstrate whether each director continues
to contribute effectively.
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 Nomination and Governance Committee considers the succession plans for the Board, GMT, Heads of Functions as well as wider
workforce planning for certain roles including our regional businesses’ managing directors.
The Board members’ skills, experience and knowledge are considered to be varied and appropriately balanced.
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.
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.
4. Audit, risk and internal control
Principle
Application
M. The board should establish formal and
transparent policies and procedures
to ensure the independence and
effectiveness of internal and external audit
functions and satisfy itself on the integrity
of financial and narrative statements.
N. The board should present a fair, balanced
and understandable assessment of the
company’s position and prospects.
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. Continuous
improvement initiatives agreed at that time, have been implemented, to ensure the Internal Audit function continues to meet both current best
practice and the evolving needs of the Group.
The Audit Committee considered whether, in its opinion, the Annual Report and Accounts 2023, taken as a whole is fair, balanced and
understandable, and that they include the information necessary for shareholders to assess the Group’s position, performance, business model
and strategy. The Audit Committee completed a review process and recommended to the Board the approval of the Annual Report and
Accounts 2023.
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Compliance statement continued
4. Audit, risk and internal control continued
Principle
Application
O. The board should establish procedures to
manage risk, oversee the internal control
framework, and determine the nature and
extent of the Principal risks the company is
willing to take in order to achieve its long term
strategic objectives.
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.
5. Remuneration
Principle
Application
P. Remuneration policies and practices should
be designed to support strategy and promote
long term sustainable success. Executive
remuneration should be aligned to company
purpose and values, and be clearly linked to
the successful delivery of the company’s
long term strategy.
Q. A formal and transparent procedure
for developing policy on executive
remuneration and determining director and
senior management remuneration should be
established. No director should be involved in
deciding their own remuneration outcome.
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.
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 his or her own remuneration.
R. Directors should exercise independent
judgement and discretion when authorising
remuneration outcomes, taking account of
company and individual performance, and
wider circumstances.
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 Remuneration Policy and that the maximum levels available under any relevant plans would
not be exceeded. There would be full disclosure in the following Directors’ Remuneration Report and major shareholders would be consulted
if appropriate.
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Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Governance structure
The Company’s
clear and effective
governance structure
is a key foundation
of our strong corporate
governance.
Our governance structure ensures that the Board
and its Committees, the Group Management
Team (GMT) and Senior Management are able
to make decisions effectively.
129
Shareholders
Our shareholders are the ultimate owners of the Company and play an important role in the governance structure.
More information about engagement with our shareholders can be found on page 101
The Board
The Board is collectively responsible for promoting the long term sustainable success of the Company and generating value
for all stakeholders.
More information about the Board’s responsibilities can be found in the Matters Reserved for the Board document on our website
The Board’s Committees
Audit Committee
Nomination and Governance Committee
Remuneration 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.
Read more on page 113
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.
Read more on page 107
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.
Read more on page 131
Group Management Team
The Company’s Executive Committee, the Group Management Team (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.
Supporting Committees
• Disclosure Committee
• Treasury Committee
• Group Operations Committee
• IT Steering Committee
• Land Strategy Committee
• Legacy, Engagement and Action for the
Future (LEAF) Committee
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Role of the Board
In line with the Code, the Company’s Division of Responsibilities document was reviewed in 2023 and signed by Robert Noel, Jennie Daly and Humphrey Singer in their roles as Chair,
Chief Executive and Senior Independent Director respectively. 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.
Non Executive Directors
Chair
Robert Noel
Executive Directors
Chief Executive
Jennie Daly
• Lead and ensure the effectiveness of the Board in directing the Group
• Ensure effective leadership and day to day running of
• Chair Board and Nomination and Governance Committee meetings, set meeting agendas and
the Group
ensure Directors receive accurate, timely and clear information
• Lead the GMT and oversee key functions
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
• 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
to the Group
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
• 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
• 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
Humphrey Singer
• 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, Irene Dorner, Lord Jitesh Gadhia, 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
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Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Remuneration Committee report
Management has delivered a
good financial performance
with profit at the top end of our
guidance and completions in
line with guidance. We also
delivered good progress against
our ESG measures in 2023.”
Lord Jitesh Gadhia
Chair of the Remuneration Committee
Key activities of the Remuneration
Committee in 2023
• Implemented the Directors’ Remuneration Policy (the Policy)
following shareholder approval at the 2023 AGM
• Determined the 2023 salary levels for the Chief Executive and
Group Finance Director
• Agreed the targets applicable to the 2023 Executive Incentive
Scheme and 2023 Performance Share Plan Awards
• Reviewed base salary levels for Senior Management
• Considered wider workforce remuneration arrangements
• Considered how the Policy should be applied in 2024
“ The Committee reviewed
the approach taken in
respect of wider workforce
remuneration in light of the
continuing cost of living
challenges and approved
a tiered approach to salary
increases during 2023
with higher percentage
increases for lower paid
employees. The Committee
was pleased with the
positive feedback received
from the NEF members
regarding the approach
taken by the Committee.”
Lord Jitesh Gadhia
Chair of the Remuneration
Committee
Committee members
1. Lord Jitesh Gadhia (Chair)
2. Robert Noel
3. Mark Castle(a)
4. Clodagh Moriarty(a)
5. Irene Dorner(b)
(a) Appointed to the Committee on 27 April 2023.
(b) Stood down from the Committee on 27 April 2023.
Meeting
attendance
5/5
5/5
2/2
2/2
3/3
Quick links
134 Remuneration at a Glance
136
Summary of the Remuneration Policy
140
Implementation in 2023
144 Approach to remuneration in 2024
149 Wider workforce remuneration
131
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Remuneration Committee report continued
Dear Shareholder
As Chair of the Remuneration Committee
(the Committee), I am pleased to present our
2023 Directors’ Remuneration Report on behalf
of the Board.
Remuneration Policy
Following our detailed policy review in late 2022
and early 2023, our current Policy was approved by
shareholders at the 2023 AGM with over 91% of
shareholders voting in favour. I would like to thank
you all for your engagement throughout the Policy
review process and your continued support.
The Committee considers that the Policy continues
to remain appropriate and should therefore continue
to operate in the same manner during 2024.
Executive Director remuneration decisions
and outcomes
Variable incentive schemes
In 2023, Taylor Wimpey and the wider housebuilding
sector’s volumes and earnings were impacted by
the reduction in customers’ affordability as a result
of increased mortgage rates. Under the 2023
Executive Incentive Scheme (EIS), Management has
delivered a good financial performance with profit
at the top end of our guidance and completions in
line with guidance and has also delivered good
progress against our ESG measures in 2023.
Based on the performance assessment set out on
page 142, this resulted in an overall outcome of
91% of maximum. In line with the Policy, one third
of the 2023 EIS will be deferred into shares for
three years.
The Performance Share Plan (PSP) awarded in
2021, measuring performance in the 2021 to 2023
period, will vest at 40% of maximum. The Company
did not meet threshold performance for return on
net operation assets (RONOA), operating profit
margin and customer service but Taylor Wimpey’s
total shareholder return (TSR) of +7.7% placed the
Company in the top quartile of the housebuilding
peer group over this period. The shares vesting
will be subject to a two year post-vesting
holding period.
No discretion was used or deemed to be required
by the Committee under either the EIS or PSP.
The Committee noted the delay to the EIS and PSP
target-setting process in 2023 as a result of the
market conditions at the time. The later 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 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.
Furthermore, 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 and reflective of
strong management performance in the face of
significant headwinds, with a rigorous focus on
cost discipline and volumes in order to deliver
profit for the year at the top end of guidance.
The Committee also considered shareholder and
broader stakeholder experience over the year.
In particular, the differentiated dividend policy
underpinning shareholder returns and the payout
levels under the broader all employee bonus plans
which is broadly reflective of the 2023 EIS.
Accordingly, the Committee did not exercise any
discretion to adjust any formula driven outturn in
relation to the EIS.
The Committee has also determined that the
PSP Award value on vesting was in line with
underlying performance and there was no windfall
gain due to market share price movements.
The Committee did not adjust the EIS or PSP
performance targets during 2023. Further details
on both the EIS and PSP outcomes can be found
on page 142.
Looking ahead to 2024
Salary and pension
The salaries for the Executive Directors will be
increased by 3% with effect from 1 April 2024. This
is in line with the Senior Management population,
and lower than the 5% average increase for the
wider workforce.
EIS
Executive Directors will continue to be able to earn
up to 150% of salary under the 2024 EIS. The EIS
performance measures for 2024 remain unchanged
from 2023, 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 144 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.
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Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Remuneration Committee report continued
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 2023 Award, the measures for the
2024 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 145
together with the strategic rationale.
To the extent the awards vest, any shares will be
subject to a two year holding period.
Chair and Non Executive Director
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% with
effect from 1 April 2024. Further information on the
Chair and Non Executive Director fees is set out on
page 147.
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 again 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.
133
The Committee reviewed the approach taken in
respect of wider workforce remuneration in light
of the continuing cost of living challenges and
approved the continuation of the tiered approach
to the salary review process for 2024, ensuring that
lower paid employees receive a higher percentage.
The salary increases approved by the Committee
range from 3% to 6%, and as previously mentioned,
the Executive Directors and Senior Management
will all receive 3%. The average workforce increase
is 5%. We are confident that the variable incentive
arrangements available for the wider workforce are
aligned to Senior Management, including the
Executive Directors.
For more information on our approach to wider
workforce remuneration, see pages 149 to 151.
Stakeholder engagement
As part of the Policy review process undertaken
in 2023, I wrote to 26 institutional shareholders
representing circa 60% of our issued share capital
to provide an overview of the proposed minor
amendments. The feedback received was positive
and constructive.
The Employee Champions Robert Noel and
subsequently Mark Castle (who are also members
of the Committee) engaged with the workforce via
the National Employee Forum (NEF) through the year
and brought this perspective into the Committee
discussions. The NEF received three updates on
remuneration during the year; one relating to the
Policy review process and two relating to wider
workforce remuneration where the NEF received
an overview of the 2023 bonus payment and
2023 salary review process. The Committee were
pleased with the positive feedback received from
the NEF members regarding the tiered approach
taken by the Committee for the 2023 salary review.
Closing remarks
On behalf of the Committee, I would like to thank
shareholders for their engagement to date and look
forward to their support for the decisions and
rationale set forth in this report.
Lord Jitesh Gadhia
Chair of the Remuneration Committee
27 February 2024
Introduction
The 2023 Remuneration Committee report includes disclosures which
reflect in full the Regulations (as defined below) on remuneration
reporting, divided into three sections:
• The annual statement from the Committee Chair.
• 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.
• Annual Report on Remuneration: this sets out how the current
Policy was applied during 2023 and how the Policy will be operated
during 2024.
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 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Remuneration Committee report continued
Remuneration at a glance
Overview of key elements included in the Directors’ Remuneration Policy
Our remuneration strategy
Fixed pay
Our remuneration strategy is centred around
three core objectives:
Attraction
Attracting talent to our Company through
a competitive compensation package
Engagement
Incentivising, motivating, and
recognising success
Retention
Remaining agile to employee needs
and market changes
1
2
3
134
Remuneration element
Element timeline (years)
Implementation in 2023
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 2023
Variable pay
Element timeline (years)
Implementation in 2023
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
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
2023 EIS outcome
Two
thirds
cash
One third
deferred into
shares for
three years
15%
15%
30%
Maximum potential
Actual outcome
11%
20%
Operating profit
Operating profit margin
Cash conversion
Build quality
Customer service
0
1
2
3
4
5
2021 PSP Award outcome
Performance
period
Holding
period
post-
vesting
40%
Maximum potential
Actual outcome
TSR vs peer group
Operating profit margin
RONOA
Customer service 9-month
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Remuneration Committee report continued
Proposed application of the Policy in 2024
Key wider workforce highlights in 2023:
Link to
strategic
cornerstone
Link to
Group
financial
target
Link to
Group
KPI / APM
Link to
stakeholder
Measure
Rationale
EIS
Operating profit
Maximise aggregate profit
Operating profit margin Optimise sales prices and
Cash conversion
Build quality
Customer service
(8-week)
PSP
TSR v peer group
improve cost discipline
Maximise the generation of
cashflow from profits
Deliver high quality homes with
the need for less remediation
Maintain customer trust and
endorse Company reputation
Align the rewards received by
executives with the returns
received by shareholders
Operating profit margin Optimise sales prices and
RONOA
Customer service
(9-month)
Carbon emissions
reduction
improve cost discipline
Maintain focus on driving
increased capital efficiency
Maintain customer trust and
endorse Company reputation
Support the Company’s
strategy on carbon emissions
reductions across our
operations
Read more about our strategic cornerstones and KPIs on pages 30 to 38; our financial targets on page 8; our APMs
on page 81; and our stakeholders on pages 84 to 86
Key to our strategic cornerstones
Land
Operational excellence
Sustainability
Capital allocation
135
59%
of employees are
either shareholders
or participate in an
all-employee share plan
(2022: 58%)
Real Living
Wage
employer
accreditation
7.6%
increase in average
salary below the GMT
Read more about wider workforce remuneration on pages 149 to 151
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information
Remuneration Committee report continued
Summary of the Remuneration Policy
This alignment is achieved through a combination of:
The current Directors’ Remuneration Policy (the Policy) was approved by 91.7% of shareholders
at the 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 Company’s website and in the 2022 Annual Report
and Accounts.
When the Committee designed the Policy and its operation, it has considered the factors in
Provision 40 of the 2018 UK Corporate Governance Code (the Code). Full details on how clarity,
simplicity, risk, predictability, proportionality and alignment to culture are addressed can be
found on page 140.
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.
• Performance measures for the EIS and PSP aligned with Key Performance Indicators,
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.
The above 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.
136
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Remuneration Committee report continued
Element
Salary
Purpose and link to strategy Operation
Maximum
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 housebuilders.
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.
Performance targets
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 housebuilders.
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
137
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Remuneration Committee report continued
Element
Purpose and link to strategy Operation
Maximum
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.
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.
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.
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.
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.
The Company aims to
provide competitive
retirement benefits.
Executive
Incentive
Scheme
(EIS)
Performance
Share Plan
(PSP)
Pension
138
Performance targets
The EIS measures
are based on a
scorecard of
designated key
annual financial,
operational and
environmental,
social, or
governance
measures.
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.
N/A
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Remuneration Committee report continued
Element
Purpose and link to strategy Operation
Maximum
The Sharesave plan and SIP have standard terms under which all UK employees
with at least three months’ service can participate.
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).
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.
Performance targets
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 re-election by shareholders.
Service contracts for each Executive Director and letters of appointments 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
Jennie Daly(a)
Chris Carney
139
Service contract
commencement
date
26 April 2022
20 April 2018
Unexpired term
(months)
12
12
Non Executive Director
Robert Noel(b)
Mark Castle
Irene Dorner
Jitesh Gadhia
Scilla Grimble
Clodagh Moriarty
Humphrey Singer
Date of appointment
15 December 2022
1 June 2022
1 December 2019
1 March 2021
1 March 2021
1 June 2022
9 December 2015
Notice period
by Company
and Director
(months)
6
6
6
6
6
6
6
(a) Jennie Daly signed a new service contract when she was appointed as Chief Executive that superseded her original service
agreement dated 20 April 2018.
(b) Robert Noel signed a new letter of appointment when he was appointed as Chair that superseded his original service agreement
dated 1 October 2019.
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Remuneration Committee report continued
Annual Report on Remuneration
This section sets out how the Policy was applied for the year ended 31 December 2023. The
Annual Report on Remuneration, including the Chair’s annual statement on pages 131 to 133,
will be put to an advisory shareholder vote at the AGM on 23 April 2024. Details of the
resolution are set out in the Notice of Meeting on page 231.
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 and the
Committee has not used discretion or adjusted performance measures and the respective
targets during the year.
Complying with the UK Corporate Governance Code in 2023
• 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 133.
• Executive Director remuneration arrangements have
been designed to be as simple as possible.
• The tables on pages 134 and 135 show the different
elements of Executive Director remuneration and how
the performance measures are linked to our strategic
cornerstones, KPIs and stakeholders.
• 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.
• The range of likely performance outcomes is
considered when setting performance target ranges
and discretion is used where necessary.
Clarity – remuneration
arrangements should be
transparent and promote effective
engagement with shareholders and
the workforce.
Simplicity – remuneration
structures should avoid complexity
and their rationale and operation
should be easy to understand.
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.
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.
140
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.
Alignment to culture –
incentive arrangements should drive
behaviours consistent
with Company purpose, values
and strategy.
• 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.
• Our overall reward framework embeds our purpose and
values. Decisions on executive pay are taken in the
context of the wider stakeholder experience.
Implementation in 2023
Total remuneration received (£000) (audited)
The chart below compares the 2023 single figure total remuneration for each of the Executive
Directors with the equivalent figure for 2022.
Jennie Daly
Chief Executive
(promoted from Group Operations
Director on 26 April 2022)
Chris Carney
Group Finance Director
2023
2022
2023
2022
39%
45%
36%
43%
48%
13%
£2,185
45%
10%
£1,629
45%
19%
£1,590
43%
14%
£1,344
£0
£500
£1,000
£1,500
£2,000
£2,500
£000
Fixed pay
EIS
PSP
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Remuneration Committee report continued
Single total figure of remuneration for Executive Directors (audited)
Directors’ pension entitlements (audited)
The table below sets out the single total figure of remuneration received by each Executive
Director for their service and performance in 2023 and 2022.
£000
Base salary
Benefits(b)
Pension(c)
Total fixed pay
EIS(d)
PSP(e)
Total variable pay
Total pay
Jennie Daly(a)
2023
767
13
77
857
1,054
274
1,328
2,185
2022
642
19
71
732
730
167
897
1,629
Chris Carney
2023
516
13
52
581
710
299
1,009
1,590
2022
501
12
73
586
575
183
758
1,344
With effect from 1 January 2023, the Executive Directors’ pension contributions was 10%,
which is the same rate available to the majority of the workforce (10%) and as such, the
Company was compliant with Provision 38 of the Code from 1 January 2023.
The value of Company pension contributions in 2023 for Jennie Daly and Chris Carney was:
Director
Jennie Daly
Chris Carney
2023
(£)
8,500
8,500
2022
(£)
3,974
3,994
Jennie and Chris also received pension allowances of £68,183 (2022: £67,407) and £43,103
(2022: £68,600) 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.
(a) Jennie Daly – Jennie became Chief Executive on 26 April 2022 and her 2022 EIS payment was pro-rated to time as Group
Operations Director and Chief Executive.
(b) Benefits – corresponds to the value of taxable benefits in respect of the year ended 31 December 2023, as set out in the table
EIS in 2023 (audited)
below.
(c) Pension – these figures represent pension contributions up to the amount permissible under HMRC rules and cash allowances
beyond that level.
(d) EIS – the 2023 EIS outcome was 91% and further details can be found on this page and page 142. The 2022 EIS outcome was
76%. For both years, one third of the Executive Directors bonus is deferred into shares for three years. These shares will not be
subject to any further performance or non-performance measures.
(e) PSP – the outcomes of the 2020 and 2021 PSP Awards included in the 2022 and 2023 columns can be found on page 143.
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 2022
figure has been restated to reflect the share price on the date the Award vested. The 2023 figure has been calculated using a share
price of 123.30 pence as this was the average share price for the dealing days in the last three months of the financial year.
Salaries in 2023 (audited)
The Committee awarded Jennie Daly and Chris Carney a 3% increase, with effect from 1 April
2023, which was lower than the average increase for the general workforce.
Benefits (audited)
£000
Benefits
Car
Healthcare
Life assurance
All-employee share schemes(a)
Total
Jennie Daly
2023
5
2
4
2
13
Chris Carney
2023
2
6
3
2
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.
141
At the start of the year, the Committee carefully considered the approach to target setting for
the 2023 EIS, in light of the sharp and sudden downturn in market conditions during Autumn
2022, relating to volume and the continuing volatility in build cost inflation.
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 was increased from 60% to 70% of the overall bonus opportunity. It was
also noted that the finalisation of the precise weightings and targets would be delayed slightly
until after the publication of the 2022 Annual Report and Accounts.
The Committee finalised the weightings and targets in early April 2023. Within the 70% financial
element, the balance between operating profit, operating profit margin and cash conversion
changed slightly from the 2022 EIS, to give a higher proportionate focus on margin and cash
conversion. 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 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.
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Remuneration Committee report continued
The outcome of the 2023 EIS is 91% of the maximum and the chart below shows the
performance against the targets set and the payout level under each element.
PSP in 2023 (audited)
2021 PSP Award outcome
Performance measure
Weighting
Entry (10%)
Target (50%)
Stretch (100%)
Summary of targets
Result
Payout
(%)
Operating profit
30%
£353m
£413m
£453m
£470.2m
30%
Operating profit margin
20%
10.0%
11.8%
13.0%
13.4%
20%
Cash conversion
20%
160%
180%
200%
181.8%
11%
Build quality(a)
15%
92.0%
93.0%
94.0%
95.6%
15%
Customer service 8-week(b)
15%
90.5%
91.0%
92.0%
92.1%
15%
The PSP awarded in 2021, measuring performance in the 2021 to 2023 period, will vest at 40%
of maximum. The Company did not meet threshold performance for RONOA, operating profit
margin and customer service but Taylor Wimpey’s TSR of +7.7% placed the Company in the
top quartile of the housebuilding peer group over this period. The Committee determined that
the outcome was not inflated by windfall gains as the 2021 Award was granted using a share
price of 174.02 pence.
The chart below shows the performance against the 2021 PSP Award measures.
Performance measure
Weighting
Threshold
(20% vesting)
TSR v peer group(a)
40%
Median
Maximum
(100% vesting)
Upper quartile
Result
% of
maximum
TW: 7.7%
Upper quartile: 7.3%
40%
RONOA(b)
20%
22.0%
91%
Operating profit margin(b)
20%
18.5%
Customer service 9-month(c)
20%
78.0%
Total
100%
25.0%
20.5%
81.0%
21.1%
0%
17.9%
0%
77.7%
0%
40%
(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. 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 trading in the shares
was suspended (11 November 2022).
(b) The target ranges for the RONOA and operating profit margin measures, which 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 8-week survey.
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.
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 and reflective of strong
management performance with a rigorous focus on cost discipline and volumes delivering full
year profit at the top end of guidance in light of significant market uncertainty. The Committee
also considered shareholder and broader stakeholder experience over the year. In particular,
the differentiated dividend policy underpinning shareholder returns and the payout levels under
the broader all employee bonus plans which is broadly reflective of the 2023 EIS. Accordingly,
the Committee did not exercise any discretion to adjust any formula driven outturns in relation
to the EIS.
One third of the Executive Directors’ EIS will be paid in shares and be required to 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.
142
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Remuneration Committee report continued
PSP Awards included in the 2022 and 2023 single total figure of remuneration table
The table below sets out the number of shares each Executive Director received after the vesting of the 2020 and 2021 PSP Awards.
2023(a)
2022(b)
Name
Jennie Daly
Chris Carney
Jennie Daly
Chris Carney
Number of
shares granted
459,726
503,400
391,581
429,368
Value of
award at grant
(£000)
800
877
800
877
End of
performance
period
31/12/2023
31/12/2023
31/12/2022
31/12/2022
Proportion of
award vesting
40.0%
40.0%
32.3%
32.3%
Number of
shares vesting
183,890
201,360
126,480
138,685
Number of
dividend
equivalent
shares
37,898
41,499
16,395
17,977
Total number
of shares
221,788
242,859
142,875
156,662
Vesting date
28/02/2024
28/02/2024
02/03/2023
02/03/2023
Value
attributable
to share price
increase
–
–
–
–
Value of
proportion
of PSP
(single figure)
(£000)
274
299
167
183
(a) The 2021 PSP Award is included in the 2023 single total remuneration figure. The performance against each of the performance measures is noted in the graph on page 142. A share price of 123.30 pence was used to calculate the value of the Award vesting on 28
February 2024 as this was the average share price for the dealing days in the last three months of the financial year. This figure will be recalculated in the Annual Report and Accounts 2024 to reflect the share price on the date the Award vests. Dividend equivalents
will be paid in shares.
(b) The 2020 PSP Award is included in the 2022 single total remuneration figure. The overall performance of the Award can be seen on page 139 of the Annual Report and Accounts 2022. The closing share price on the date the Award vested (116.75 pence) has been
used to recalculate the Award. Dividend equivalents were paid in shares.
PSP Awards granted during 2023
The tables below set out the PSP Awards granted during the year and the performance measures for the Award. The Committee consider that they 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.
Recognising the outlook over the performance period for lower profitability across the entire housing sector and continuing economic uncertainty, the Committee set the target ranges for operating
profit margin and RONOA at lower levels and with a broader range between threshold and maximum than in previous years, to provide the appropriate balance between setting targets that are
achievable, but at the same time stretching. The target ranges for all measures are, in the view of the Committee, equivalently challenging to the ranges set in prior years. Operating profit margin
and RONOA will be assessed based on performance in 2025. This was considered preferable to measuring performance based on a three-year average, due to continued unusually high volatility
in the market in 2023 and which was considered likely to continue into 2024.
Executive Director
Jennie Daly(a)
Chris Carney(a)
Award type
Nil-cost option
Nil-cost option
% of salary
200
200
Grant date
28/04/2023
28/04/2023
Face value
of award at
maximum vesting
£1,500,000
£1,009,400
Number of
shares granted
1,207,243
812,394
End of
performance
period
31/12/2025
31/12/2025
(a) The share price (124.25 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 (25, 26 and 27 April 2023).
Performance measure
TSR v peer group(a)
Operating profit margin in 2025
RONOA in 2025
Customer service in 2025(b)
Carbon reduction in 2025 (from a 2019 baseline)(c)
Weighting
40%
15%
15%
15%
15%
Threshold
(25%)
Median
13%
14%
78.5%
-34%
Maximum
(100%)
Upper quartile
18%
19%
81.5%
-38%
(a) The peer group comprises Barratt Developments, Bellway, Berkeley Homes, Crest Nicholson, Persimmon, Redrow and Vistry Group.
(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, therefore is measured on a different basis to the 2023 EIS customer service measure.
(c) This will be based on a reduction in absolute Scope 1 and 2 carbon emissions based on the 2019 baseline.
143
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Remuneration Committee report continued
Payments for loss of office and payments to former Directors (audited)
2024 EIS
No payments have been made for loss of office during 2023.
Pete Redfern, former Chief Executive, received a 2021 PSP Award of 1,004,687 shares, which
has been pro-rated to the date he left the business on 8 December 2022. The basis for the
treatment of this Award, together with other elements of his remuneration, was set out in the
Annual Report and Accounts 2022 and as set out on page 142 of this report, the Award will
vest at 40% of maximum based on performance from 1 January 2021 to 31 December 2023.
Accordingly, Pete will receive 309,665 shares (which includes accrued dividend shares) on
28 February 2024, which are equivalent in value to £381,817. Pete will be required to retain
the vested shares for a two year holding period. This is consistent with Pete’s remuneration
arrangements as disclosed in the Annual Report and Accounts 2022.
Approach to remuneration in 2024
2024 salary review
The Committee has approved a tiered approach to the Group salary review process for 2024,
ensuring that lower paid employees receive a higher percentage. The salary increases approved
by the Committee range from 3% to 6%, and the Executive Directors and Senior Management
will all receive 3%.
Executive Director
Jennie Daly
Chris Carney
As at
1 April 2023
£772,500
£519,841
As at
1 April 2024
£795,675
£535,436
% Change
3%
3%
Directors will be able to earn up to 150% of salary under the 2024 EIS. The EIS performance
measures for 2024 also remain in line with 2023, with a 70% weighting on financial performance
recognising the importance in a challenging market. 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. Detailed retrospective disclosure of the
weightings, targets and performance against them will be provided next year in the usual way.
Performance measure
Operating profit
Operating profit margin
Cash conversion
Build quality(a)
Customer service
(8-week)(b)
Weighting Rationale
30% Maximise aggregate profit
20% Optimise sales prices and improving cost discipline
20% Maximise the generation of cashflow from profits
15% Deliver high quality homes with the need for less remediation
15% Maintain customer trust and endorse the Company’s
reputation
(a) Build quality is measured externally through the NHBC CQR.
(b) Percentage of customers who would recommend Taylor Wimpey to a friend from the independently measured NHBC 8-week survey.
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Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Remuneration Committee report continued
2024 PSP Awards
The 2024 PSP awards will operate in accordance with the Policy as set out on page 138. 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 the 2023 Awards, which for the first time included an ESG measure based on a reduction to our Scope 1 and 2 targets linked to our zero carbon
strategy. This provides a balanced approach to assessing long-term performance including financial, shareholder and customer metrics.
Performance measure
TSR v peer group(a)
Operating profit margin (2026)(b)
RONOA (2026)
Customer service (2026)(c)
Carbon reduction (from a 2019 baseline) (2026)(d)
Rationale
Align the rewards received by executives with the returns received by shareholders
Optimise sales prices and improving cost discipline
Maintain focus on driving increased capital efficiency
Maintain customer trust and endorse Company reputation
Support the Board’s strategy on carbon emissions reductions across our operations
Weighting
40%
15%
15%
15%
15%
Threshold
(25%)
Maximum
(100%)
Median Upper quartile
17%
19%
81.5%
-40%
13%
14%
78.5%
-34%
(a) The peer group comprises Barratt Developments, Bellway, Berkeley Homes, Crest Nicholson, Persimmon, Redrow and Vistry Group. Should the proposed acquisition of Redrow PLC by Barratt Developments complete, Redrow would be removed from the peer
group. It may be replaced by another housebuilder and the basis for measuring TSR performance may change from a peer group approach to a different methodology, including basing the performance assessment on an index of the housebuilding sector.
(b) An operating profit margin measure will also operate in both the EIS and PSP in 2024. As there continues to be uncertainty in relation to the housing market, we believe that 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 as an aggregate across the full three-year 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) This will be based on the single question ‘Would you recommend your builder to a friend?’ from the independently measured NHBC 9-month survey, therefore is measured on a different basis to the 2024 EIS customer service measure. 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 customer service element of the EIS will continue to be based on the one key question in the shorter term NHBC
8-week survey focusing on the customers’ service before and moving in experience. The customer service element of the PSP will continue to be based on the one key question in the longer term NHBC 9-month survey focusing on the customers’ experience of
living longer term in one of our developments. In this way we will be capturing different aspects of our customer service performance, measured over different timeframes and measuring different customer experiences and there is no doubling up of reward for the
same performance.
(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 2026.
145
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information 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:
Jennie Daly
Deferred shares (EIS)(b)
PSP(c)
Sharesave plan(d)
Total
Chris Carney
Deferred shares (EIS)(b)
PSP(c)
Sharesave plan(d)
Total
Additional
maximum
potential shares
awarded
during the
year
–
1,207,243
–
1,207,243
–
812,394
–
812,394
Maximum
potential
shares as at
01/01/2023
98,670
1,992,859
36,057
2,127,586
108,191
1,682,481
45,488
1,836,160
Exercised/
released
during the
year
98,670
126,480
–
225,150
108,191
138,685
–
246,876
Lapsed
during the
year
–
265,101
–
265,101
–
290,683
9,431
300,114
Maximum
potential
shares as at
31/12/2023(a)
–
2,808,521
36,057
2,844,578
–
2,065,507
36,057
2,101,564
Maximum shares vesting / available in:
2024
2025
2026
2027
–
459,726
–
459,726
–
503,400
–
503,400
–
1,141,552
–
1,141,552
–
1,207,243
–
1,207,243
–
749,713
–
749,713
–
812,394
–
812,394
–
–
36,057
36,057
–
–
36,057
36,057
(a) All outstanding awards are options. The Directors do not hold any vested but unexercised share options.
(b) The Executive Directors exercised an EIS deferred share award on 27 March 2023 when the share price was 117.13 pence. These shares were awarded on 25 March 2020 using a share price of 116.30 pence to calculate the number of shares awarded. From
March 2022, all EIS deferred shares are now beneficially owned from the outset and are included in the table on page 147. The beneficially owned EIS deferred shares are not subject to further performance conditions.
(c) The Executive Directors exercised their 2020 PSP Award on 2 March 2023 when the share price was 117.7 pence. These shares were awarded on 4 March 2020 using a share price of 204.30 pence to calculate the Award.
(d) Chris Carney had 9,431 Sharesave options lapse on 31 May 2023. Jennie Daly and Chris 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 29 December 2023 was 147.05 pence and the range during the year was 99.70 pence to 147.05 pence.
146
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Remuneration Committee report continued
Single total figure of remuneration for the Chair and Non Executive Directors (audited)
Statement of Directors’ shareholdings and share interests (audited)
Robert Noel(a)
Mark Castle(a)(b)
Irene Dorner(a)
Jitesh Gadhia(c)
Scilla Grimble
Clodagh Moriarty(b)
Humphrey Singer(a)
Total fees (£000)
2023
257
72
152
83
65
65
94
2022
89
38
335
77
65
38
83
In line with the Policy, 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 139. In addition, a post-employment shareholding guideline requires Executive Directors
to retain shares worth 200% of their base salary, or their shareholding at the time of cessation if
their shareholding requirement has not yet been met, for at least two years. Executive Directors
are required to retain any shares received from shares in the Employee Benefit Trust.
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.
(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) Mark Castle and Clodagh Moriarty both joined the Board on 1 June 2022.
(c) Jitesh Gadhia became Chair of the Remuneration Committee with effect from 26 April 2022 and therefore received the additional
Remuneration Committee Chair fee for the remainder of the year.
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
Chair of the Board
Independent Non Executive Director
Senior Independent Director
Audit/Remuneration Committee Chair
Employee Champion
As at 1 April
2023
£335,000
£65,000
£17,500
£17,500
£10,000
As at 1 April
2024
£345,050
£66,950
£18,025
£18,025
£10,300
% change
3%
3%
3%
3%
3%
147
Beneficially owned
Outstanding interests in
share schemes
Value of
beneficially
owned
shares as at
31/12/2023(c)
Share
interests
expressed
as a % of
shareholding
requirement
PSP(b)
Sharesave
Director
Robert Noel
Jennie Daly(d)
Chris Carney(d)
Mark Castle
Irene Dorner
Jitesh Gadhia
Scilla Grimble
Clodagh Moriarty
Humphrey Singer
at
01/01/2023
84,100
423,374
625,770
41,678
164,952
100,000
15,000
25,025
31,896
at
31/12/2023(a)
311,187
679,767
870,153
44,711
164,952
100,000
15,000
25,025
31,896
2,808,521
2,065,507
–
–
–
–
–
–
36,057
£999,597
36,057 £1,279,560
–
–
–
–
–
–
–
–
–
–
–
–
129%
246%
–
–
–
–
–
–
(a) Shares owned outright includes the net-of-tax shares received by the Executive Directors in March 2022 and March 2023
following the one third deferral of the EIS paid in respect of 2021 and 2022 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 29 December 2023 (147.05 pence) has
been used to calculate Jennie Daly and Chris Carney’s share interest expressed as a percentage of salary as at 31 December 2023.
(d) 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 2023 and 27 February 2024 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 410 shares each.
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information 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.
The graph also shows the Chief Executive’s single total figure of remuneration over the same ten-year period.
TSR versus CEO Total Single Figure
)
d
e
s
a
b
e
r
(
)
£
(
l
e
u
a
V
–
R
S
T
300
250
200
150
100
50
0
Taylor Wimpey
FTSE350
Housebuilders Index
CEO Total Rem
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
C
E
O
T
o
t
a
l
R
e
m
(
£
0
0
0
)
31/12/2013
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
Single total figure (£000)
Jennie Daly
Pete Redfern
Annual bonus (% of maximum)
Jennie Daly
Pete Redfern
PSP (% of maximum)
Jennie Daly
Pete Redfern
2014
–
6,250
–
90
–
94
2015
–
6,888
–
78
–
100
2016
–
4,072
2017
–
3,697
2018
–
3,272
–
80
–
81
–
66
–
78
–
96
–
50
2019
–
3,247
–
50.6
–
62.8
2020
–
1,120
–
–
–
6.6
2021
–
2,710
–
95
–
22.1
2022
1,175(a)
925(b)
2023
2,185
–
76
76
32.3
32.3
91
–
40
–
(a) Relates to the period Jennie Daly was Chief Executive from 26 April 2022.
(b) Relates to the period Pete Redfern was Chief Executive from 1 January 2022 to 26 April 2022.
148
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Remuneration Committee report continued
Wider workforce remuneration in 2023
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 2023, 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
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
Eligible to participate in a long term incentive plan,
SIP and Sharesave. Shareholding requirements are in
place
Salary
Bonus
Deferred shares
Increases of 3% to 6% approved by the Committee
All employees eligible for a bonus. Performance measures
aligned with strategy
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
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 receive private medical healthcare
Private healthcare
All employees receive private medical healthcare
149
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Remuneration Committee report continued
Wider workforce salary review
Gender pay gap
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
2023(b)
Method
Option B
CEO single
figure(a)
£2,185,041
2022
2021
2020
2019
2018
Option B
Option B
Option B
Option B
Option B
£2,100,044
£2,764,290
£1,120,451
£3,023,654
£3,151,748
Ratio
Salary
Total pay
and benefits
Ratio
Ratio
Ratio
Ratio
Ratio
Lower
quartile
68:1
£27,693
£32,355
62:1
87:1
39:1
93:1
103:1
Median
42:1
£37,877
£52,296
Upper
quartile
32:1
£56,025
£68,305
41:1
60:1
26:1
73:1
77:1
26:1
40:1
20:1
48:1
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 2023.
Under Option B, using the hourly rate from our 2023 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 2023 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 2023, 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 2023, all three ratios have increased. The increase
in the CEO single figure was predominately a result of a higher annual bonus payout (91% outcome
in 2023 versus 76% in 2022) coupled with the 2022 CEO single figure having been calculated
on a pro-rated basis taking into account the appointment of Jennie Daly as CEO in April 2022.
150
As part of its review of wider workforce remuneration, 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 is 6%, which means that the mean pay is 6% higher for males than females.
The movement compared to last year is largely down to a reduction in the number of
employees during the year with a larger percentage decrease in male employees. Additionally,
we have seen more highly paid women leave than men, as well as lower commissions being
paid reflecting the downturn in our external market which impacts our sales teams which are
mostly female.
Our median pay gap is 2% higher for males than females. The gap is slightly larger than last
year and again is impacted by the reduction in headcount.
Further information can be found in our Diversity and Inclusion Report which is available on our website.
6%
Gender pay gap (mean)
(2022: -2%)
2%
Gender pay gap (median)
(2022: 1%)
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information
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 2023.
Average pay of a Taylor Wimpey employee(b)
Jennie Daly(c)
Chris Carney(c)
Robert Noel(d)
Irene Dorner(e)
Mark Castle(f)
Jitesh Gadhia(g)
Scilla Grimble(g)
Clodagh Moriarty(f)
Humphrey Singer(h)
2023
8%
19%
3%
189%
(55)%
n/a
8%
–
n/a
13%
Salary/fee(a)
2022
4%
58%
7%
11%
2%
n/a
n/a
n/a
n/a
4%
2021
6%
13%
18%
23%
32%
n/a
n/a
n/a
n/a
14%
Benefits
Annual bonus scheme(a)
2020
–
(10)%
(10)%
n/a
n/a
n/a
n/a
n/a
n/a
(10)%
2023
4%
(32)%
8%
–
–
–
–
–
–
–
2022
3%
(55)%
(40)%
–
–
–
–
–
–
–
2021
3%
12%
(11)%
–
–
–
–
–
–
–
2020
–
(6)%
(55)%
–
–
–
–
–
–
–
2023
10%
44%
23%
–
–
–
–
–
–
–
2022
(10)%
26%
(14)%
–
–
–
–
–
–
–
2021
163%
n/a
n/a
–
–
–
–
–
–
–
2020
(46)%
n/a
n/a
–
–
–
–
–
–
–
(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 annual bonus (EIS) was also cancelled.
(b) Taylor Wimpey plc does not have any employees and these figures 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 Company’s 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 Company’s
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 and Clodagh Moriarty were appointed to the Board on 1 June 2022. Mark was appointed Employee Champion on 27 April 2023.
(g) Jitesh Gadhia and Scilla Grimble were appointed to the Board on 1 March 2021. Jitesh was appointed Chair of the Remuneration Committee on 26 April 2022.
(h) Humphrey Singer was appointed as the Company’s Senior Independent Director on 27 April 2023.
Relative importance of spend on pay
Change in Company performance relative to change in remuneration (audited)
Operating profit(a)
Distributions to shareholders
Aggregate dividends paid during the year
Share buyback
Employee pay in aggregate(b)
Employee pay average per employee(b)
2023
£470.2m
£337.9m
–
£285.8m
£60,564
2022
£923.4m
Change (%)
(49)
£323.8m
£150.0m
£305.4m
£58,327
4
n/a
(6)
4
(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 184.
151
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Remuneration Committee report continued
The Remuneration Committee
The Remuneration Committee members in 2023
There were five Committee meetings during 2023 and all Committee members attended the
meetings they were eligible to attend. The Committee met the Code requirement to have three
independent Non Executive Directors as members of the Committee following the appointment
of Mark Castle and Clodagh Moriarty to the Committee on 27 April 2023.
Name
Jitesh Gadhia
Mark Castle(a)
Clodagh Moriarty(a)
Robert Noel
Irene Dorner(b)
Title
Committee Chair and Independent Non Executive Director
Independent Non Executive Director
Independent Non Executive Director
Chair of the Board
Non Executive Director
(a) Mark Castle and Clodagh Moriarty were appointed to the Committee on 27 April 2023.
(b) Irene Dorner stood down from the Committee on 27 April 2023.
Internal attendees consisted of the Chief Executive, Group HR Director, Head of Reward 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 2023
Over the course of the year since the last Annual Report and Accounts, the Committee has:
• Determined the 2022 EIS and 2020 PSP outcomes.
• Determined the 2023 salary levels for the Chief Executive and Group Finance Director.
• Agreed the targets applicable to the 2023 EIS scheme and 2023 PSP Awards.
• Reviewed base salary levels for Senior Management.
• Considered wider workforce remuneration arrangements.
• Considered how the Policy should be applied in 2024.
Committee’s performance
The Committee reviewed its Terms of Reference in 2023 and evaluated its own performance
against them. Following this review, the Committee confirmed that the Terms of Reference
remain appropriate.
As part of the 2023 externally facilitated Board Evaluation it was concluded that the Committee
was fulfilling its Terms of Reference effectively and the Committee Chair was effective.
152
Advice to the Committee in 2023
The Committee keeps itself fully informed on developments and best practice in the field of
remuneration and it 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. During 2023 Korn Ferry also provided
other ad hoc remuneration services outside the scope of the Committee to the Company.
Korn Ferry were appointed following a comprehensive tender process. Korn Ferry do not have
any connection with the Company or any of the individual Directors.
The Committee also receives legal advice from Slaughter and May as and when necessary.
During 2023 this advice related to the renewal of the Company’s Sharesave Plan and Share
Incentive Plan.
The Committee has considered the advice provided by Korn Ferry and Slaughter and May
during the year, and is comfortable that the advice has been objective and independent.
The fees paid to the Committee’s advisers in 2023 were: Korn Ferry £120,197 (including VAT)
on a time and materials basis (2022: £139,689); and Slaughter and May £27,000 (including
VAT) (2022: £nil).
Shareholding voting
The table below sets out the voting by shareholders in respect of Directors’ remuneration
resolutions.
Resolution
Directors’ Remuneration
Report for 2022 (2023 AGM)
Directors’ Remuneration
Policy (2023 AGM)
For
2,202,778,799
(93.70%)
2,155,740,993
(91.69%)
Against
Total votes cast
148,139,405 2,350,918,204
Withheld
587,640
(6.30%)
195,311,797 2,351,052,790
453,054
(8.31%)
Lord Jitesh Gadhia
Chair of the Remuneration Committee
27 February 2024
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Statutory, regulatory and other information
Introduction
Articles of Association
This section contains the remaining matters on which the Directors are required to report 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
Strategic report, specifically:
– Likely future developments in the business of the Company
– Carbon footprint reporting
– Greenhouse gas emissions reporting
– Stakeholder engagement
– A description of the Company’s employee engagement practices
– A statement of the Company’s engagement with employees in relation to
financial and economic factors that affect the performance of the Company
– Charitable donations
– Research and development activities
– Viability statement
2018 UK Corporate Governance Code compliance statement
Directors
A description of how the Board assesses and monitors culture
Retirement and re-election of Directors
Remuneration Committee report
Profit before taxation and profit after taxation
Changes in asset values
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
Subsidiaries and associated undertakings, including branches outside the UK
Directors’ dividend recommendation
Web communications with shareholders
Registrar
Specific disclosures required under Listing Rule 9.8.4 as appropriate to the Company:
Details of the Company’s long term incentive schemes
Shareholder waiver of future dividends
Page(s) in this
Annual Report
1 to 88
1 to 88
53 to 68
68
84 to 88
85 and 102
85
42
1 to 88
82
125
92 to 94
105
99
131 to 152
168
170
193 to 196
219 to 225
229
239
241
131 to 152
154
The Company’s 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. Board membership and biographical details of the Directors are
provided on pages 92 to 94. However, Directors follow the Code and stand for re-election
annually, as described on pages 232 to 233.
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 156.
Annual General Meeting
The Annual General Meeting (AGM) will be held at 10:30am on 23 April 2024 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 227 to 238 and on the Company’s website.
153
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Statutory, regulatory and other information continued
Capital structure
Substantial interests
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 203.
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 of Association.
• 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 last year’s Annual Report, the Company retained 25 million of 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 2023 the Company re-issued 3,548,829 Treasury Shares for that purpose and to the
latest practicable date prior to finalising this Annual Report, a further 1,077,173 Treasury Shares
had been re-issued during 2024.
The Company currently holds 20.373,998 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.
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 27 February 2024, no change in these holdings had been notified nor, according to the
Registrar of Members, did any other shareholder at that date have a disclosable holding of the
Company’s issued share capital.
Directors’ interests in the Company’s shares are shown in the Remuneration Committee report
on page 147.
As at 31 December 2023
Number of
shares held
(millions)
423.0
164.7
98.5
96.4
Percentage of
issued voting
share capital
11.95%
4.51%
3.02%
3.02%
As at 27 February 2024
Number of
shares held
(millions)
423.0
164.7
98.5
96.4
Percentage of
issued voting
share capital
11.95%
4.51%
3.02%
3.02%
BlackRock Inc
The Capital Group Companies, Inc
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Standard Life Investments Limited
Dividend
The 2022 final ordinary dividend of 4.78 pence per share was paid to shareholders on
12 May 2023 and the 2023 interim ordinary dividend of 4.79 pence per share was paid to
shareholders on 17 November 2023.
Subject to shareholder approval at the 2024 AGM, the 2023 final ordinary dividend of 4.79
pence per share will be paid on 10 May 2024 to shareholders on the register at the close of
business on 2 April 2024. More information can be found on pages 231 and 232. The
Company will be operating a Dividend Re-Investment Plan (DRIP) for shareholders in the United
Kingdom and more information can be found on page 231.
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 466,204 shares, as at 27 February 2024. More
information about the ESOT can be found in Note 26 on page 205.
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Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information Statutory, regulatory and other information continued
Important events since the year end
Employment of people with disabilities
There have been no important events affecting the Company or any of its subsidiary
undertakings since 31 December 2023.
Political donations
The Company has a policy of not making donations to political parties; has not made any
during 2023; and does not intend to do so, going forward. More information can be found on
page 235.
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 MSA with the seriousness it deserves and
requires. The Company will shortly be publishing its eighth 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 rules of the Company’s two all-employee share plans
were renewed at the 2023 AGM. More information can be found on page 139.
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 2023 resulted in 481,837 shares (2022: 614,176) being acquired by 184
employees (2022: 218).
Details of how these plans operate appear in the Remuneration Committee report on pages 131
to 152.
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 59% (2022: 58%).
155
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 achieved Level 2 Disability Confident Employer status during 2023.
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.
• Prepare the financial statements on the going concern basis unless it is inappropriate to
presume that the Group and Company will continue in business.
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information 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 2023 - Fair, balanced and understandable
The outcome of the process undertaken by the Audit Committee and described on page 124,
was that the Board confirmed that the Annual Report and Accounts 2023, 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 113 to 124.
Directors’ confirmations
Each of the Directors, whose names and functions are listed in the Board of Directors
biographies, on pages 92 to 94, 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
27 February 2024 and is signed on its behalf by:
Ishaq Kayani
Group General Counsel and Company Secretary
27 February 2024
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Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportDirectors’ reportFinancial statementsShareholder information In this section
158
Independent auditors’ report
168 Consolidated income statement
169
Consolidated statement of comprehensive income
170 Consolidated balance sheet
171
Consolidated statement of changes in equity
172
Consolidated cash flow statement
173
Notes to the consolidated financial statements
211 Company balance sheet
212
Company statement of changes in equity
213
Notes to the Company financial statements
219
Particulars of subsidiaries, associates and joint ventures
226 Five year review
Financial
statements
157
Strategic reportDirectors’ reportFinancial statementsShareholder informationTaylor Wimpey plc Annual Report and Accounts 2023 Independent auditors’ report to the members of Taylor Wimpey plc
Report on the audit of the financial statements
Independence
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 2023 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 sheets as
at 31 December 2023; the Consolidated income statement, the Consolidated statement of
comprehensive income, the Consolidated cash flow statement and the Consolidated and
Company statements of changes in equity for the year then ended; and the notes to the
financial statements, which include a description of the significant accounting policies.
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.
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 88% of total
revenue in 2023, 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 encompassed in Taylor Wimpey UK Limited, consolidated with the Group’s Spanish
operations, Taylor Wimpey de España S.A.U., 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 and, in accordance with International
Standard on Review Engagements (UK and Ireland) 2410, performed a review of the half year
financial information. Following this work, we performed a significant amount of early audit
procedures in advance of the year end, covering the Business Units and the Group functions.
The objective of this audit work was:
• to perform initial testing in relation to the design and operating effectiveness of the controls
we planned to place reliance on;
• to ensure that we had a clear plan as to what work needed to be done when and where at
year-end;
• to perform initial substantive testing, particularly where larger samples were required or where
there had been one off transactions; and
• to enable early consideration of the key sources of estimation uncertainty before the year-end.
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Strategic reportDirectors’ reportFinancial statementsShareholder informationTaylor Wimpey plc Annual Report and Accounts 2023 Independent auditors’ report to the members of Taylor Wimpey plc continued
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.
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. 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 the most significant
area and therefore have included this as a key audit matter; and
• we considered current Government legislation and announcements, particularly in relation to
cladding fire safety, 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 90% of revenue, over 80% of profit before tax and over 90% of
net assets.
• We also performed a desktop review over Taylor Wimpey de España S.A.U., as well as audit
procedures over specified balances and transactions across 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: £36.4 million (2022: £45.3 million) based on 5% of a 3 year average
of profit before tax and exceptional items.
• Overall Company materiality: £32.7 million (2022: £40.7 million) based on 1% of net assets
but capped at 90% of overall Group materiality.
• Performance materiality: £27.3 million (2022: £33.8 million) (Group) and £24.5 million (2022:
£30.5 million) (Company).
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Key audit matter
How our audit addressed the key audit matter
Margin recognition and site forecasting (Group)
Refer to page 115 (Audit Committee report) and page 181 (Critical accounting judgements
and key sources of estimation uncertainty) in the Group’s Annual Report.
As at 31 December 2023 the Group’s inventory balance is £5,169.6 million (31 December
2022: £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 sales prices and costs to date as well as estimated sales prices and 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 and reflective of the actual final margin that will be
recognised on a site. As a result, excess profit margins would 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.
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, or build cost inflation. There is higher uncertainty
when a site is scheduled to be completed over a longer timeframe.
Management has implemented 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, including changes to forecast costs as a result of new
climate related regulations, e.g. Parts L and F of the Building Regulations. There is a risk that
these controls do not operate effectively in ensuring the accuracy and completeness of the
forecasts.
We consider the accuracy and completeness of forecasting and the appropriateness of
margin recognition across the life of the site to be a significant financial reporting risk, and
hence audit risk, for the Group.
160
Our audit procedures focused in particular on assessing the judgemental elements used to
determine an accurate margin, being forecast costs and forecast revenues. 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;
– review, approval and recognition of cost variations against the original site budgets;
– surveyor valuations assessing the stage of completion of individual plots across all sites; and
– review and approval of initial site budgets.
• We assessed management’s historical forecasting accuracy on all active sites in 2023,
through comparison to historical forecasts from 2022, 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;
• We tested a sample of forecast sales prices to the actual sales prices attained on similar
properties;
• We understood a sample of risks and opportunities identified in relation to sites to ensure
completeness of costs within the site forecast, including consideration of the impact of
future climate related regulation and requirements and uncontracted inflation;
• To ensure accuracy we tested a sample of actual costs incurred to third party evidence,
as well as testing the allocation of costs to the correct sites;
• We tested a sample of actual revenue recognised in the period to third party contracts,
completion statements and bank statements;
• We verified, by recalculating the margins, that the accounting system correctly recalculates
the margin following each cost or sales price amendment made by management; and
• We tested that the 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 sites where we considered the
margin to be materially inappropriate. We also assessed the disclosures in respect of margin
recognition and site forecasting and considered these to be appropriate.
Strategic reportDirectors’ reportFinancial statementsShareholder informationTaylor Wimpey plc Annual Report and Accounts 2023 Independent auditors’ report to the members of Taylor Wimpey plc continued
Key audit matter
How our audit addressed the key audit matter
Cladding fire safety provision (Group)
Refer to page 115 (Audit Committee report) and page 181 (Critical accounting judgements
and key sources of estimation uncertainty) in the Group’s Annual Report.
In March 2021, the Group announced it would support owners of buildings constructed by the
Group going back 20 years from January 2021, including apartment buildings below 18 metres,
in completing remediation works required to achieve RICS EWS1 certification levels.
The cost of providing this financial support was estimated at £125.0 million, and a provision
was recorded in the 2021 financial statements on the grounds that the announcement created
a constructive obligation.
In April 2022, the Group signed up to the 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.
Consequently, the Group announced that the additional cost associated with the Pledge, over
and above that already recorded from the previous constructive obligation, was £80.0 million,
bringing the total amount provided for cladding fire safety remediation to £245.0 million.
The Group signed the long-form legal contracts for the remediation of buildings in England
and Wales in March 2023 and April 2023 respectively, and expects to sign the equivalent for
Scotland in 2024.
The provision is identified as a source of estimation uncertainty as there are several factors
that could drive changes to the level of financial support required to be given in future periods.
The key assumptions are the number of buildings requiring work and the cost of remediation
works for each relevant building as at the balance sheet date.
Future industry guidance or regulation could also potentially change the obligation, and
therefore the financial support, required to be provided.
Management continues to assess the appropriateness of the provision and as more tendering
takes place, there is greater clarity on how the buildings will be remediated and the associated
cost. There are still a significant number of buildings for which tenders have not been obtained
and therefore a high level of estimation uncertainty. 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.
161
In addressing the risk that the provision was valued incorrectly as at the year-end date, our
audit procedures included, but were not limited to, the following:
• We enquired with management, including the Group Management Team, to understand the
rationale behind the provision and whether it met the requirements of IAS 37 ‘Provisions,
Contingent Liabilities and Contingent Assets’ for the recognition of a constructive obligation;
• We recalculated and checked the integrity of management’s schedules, to assess the
accuracy of the calculation;
• We assessed the completeness of the buildings included by reference to information
provided by the Government as well as publicly available information on Taylor Wimpey
constructed buildings;
• We tested the completeness of the provision by testing a sample of properties included on
the Land Registry database stating that they were built by Taylor Wimpey or Taylor Wimpey
acquired companies to validate that they have been correctly included or excluded in
management’s list of properties;
• 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 as well as to
understand why the expected remediated costs have or have not changed year on year.
Examples of audit evidence included internal QS assessments, tenders received and
support for actual costs incurred;
• We also tested the overhead component of the provision by obtaining management’s most
recent budget for the internal cladding remediation team, assessed the appropriateness of
the projected timeline and agreed key inputs back to supporting evidence;
• We obtained an understanding of management’s updated delivery model for future remediation
projects which will be performed by the Group rather than by management companies and
assessed the implications to the provision;
• We assessed the technical capabilities and expertise of the Group’s employees involved in
assessing the expected work and costs;
• We assessed the ability of management to forecast remediation costs accurately by comparing
original internal estimates to subsequent tendered or completed works;
• We read recent government guidelines and announcements, including the Self-Remediation
Terms and Deed of Bilateral Contract for England and Wales and discussed them with
management to confirm that their 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
assessment of the quantum of the provision 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 materially in line with the requirements of IAS 37.
Strategic reportDirectors’ reportFinancial statementsShareholder informationTaylor Wimpey plc Annual Report and Accounts 2023 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 215 (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 £4,509.5 million (2022: £4,500.6 million) and
£747.0 million (2022: £572.4 million), respectively.
The key estimate is whether the carrying values of the investments and intercompany
receivables are supported by the net asset position and/ or forecast future cash flows of
the underlying Group undertakings. As such 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.
Audit procedures included, but were not limited to, the following:
• We assessed the net assets of the underlying investments to determine whether they were
in excess of the carrying value of the Company’s investment in Group undertakings;
• We verified that the forecast future cash flows supported the carrying value of the
Company’s investment in Group undertakings;
• We confirmed that the market capitalisation of the Group as at 31 December 2023
exceeded the carrying value of the investment in 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 intercompany receivables and whether, in accordance with IFRS 9, an
expected credit loss was required.
We have no issues to report in respect of this work.
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Independent auditors’ report to the members of Taylor Wimpey plc continued
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 2023 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 further testing purposes. In addition, we performed detailed audit
work over the consolidation journals and specific financial statement line items within the
Group’s joint ventures and we performed a desktop review of Taylor Wimpey de España S.A.U.
Our work covered over 90% of revenue, over 80% of profit before tax and over 90% of 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 56.
The Group announced its Net Zero target and associated transition plan during 2023 and
aligned its executive bonus scheme accordingly. 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 Parts L and
F of the Building 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 2023.
163
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:
Overall materiality
How we determined it
Rationale for
benchmark applied
Financial statements – Company
£32.7 million
(2022: £40.7 million).
1% of net assets but capped at
90% of overall Group materiality.
We believe that total assets is
the primary measure used by
the shareholders in assessing
the performance of the entity,
which acts solely as a holding
company, and is a generally
accepted auditing benchmark.
Financial statements – Group
£36.4 million
(2022: £45.3 million).
5% of profit before tax and
exceptional items, using a 3 year
average (2022: 5% of profit before
tax and exceptional items).
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.
In 2023, we have assessed
materiality based on a 3 year
average given the volatility in the
market has driven a decline in
volume and profitability without
any fundamental changes in the
balance sheet or operating model.
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
£19.0 million to £32.7 million. Certain components were audited to a local statutory audit
materiality that was also less than our overall Group materiality.
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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% (2022: 75%) of
overall materiality, amounting to £27.3 million (2022: £33.8 million) for the Group financial
statements and £24.5 million (2022: £30.5 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 £1.8 million (Group audit) (2022: £2.3 million) and £1.6 million (Company
audit) (2022: £2.0 million) 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 checked the approval of the forecasts by the
Board. We agreed that the model demonstrated sufficient liquidity and headroom during the
going concern forecast period;
• We tested the key assumptions used in the model, including comparison to third party
market information where appropriate, reviewing the fixed term borrowings refinancing
agreement and checking that the assumptions used in the “severe but plausible” scenario
were sufficiently severe to model potential future economic downturn, in line with those
observed in the global financial crisis in 2007-8;
• We considered the historical accuracy of management forecasting by comparing 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 in the going concern
assessment period; and
• We reviewed the disclosures relating to going concern, 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.
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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 2023 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 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 and
Company 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 Company and their 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.
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Strategic reportDirectors’ reportFinancial statementsShareholder informationTaylor Wimpey plc Annual Report and Accounts 2023 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 Group, 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 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 their 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 provisions;
and
• 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.
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.
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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 3 years, covering
the years ended 31 December 2021 to 31 December 2023.
Other matter
As required by the Financial Conduct Authority Disclosure Guidance and Transparency Rule
4.1.14R, these financial statements form part of the ESEF-prepared annual financial report filed
on the National Storage Mechanism of the Financial Conduct Authority in accordance with the
ESEF Regulatory Technical Standard (‘ESEF RTS’). This auditors’ report provides no assurance
over whether the annual financial report has been prepared using the single electronic format
specified in the ESEF RTS.
Sonia Copeland (Senior Statutory Auditor)
for and on behalf of PricewaterhouseCoopers LLP
Chartered Accountants and Statutory Auditors
London
27 February 2024
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Strategic reportDirectors’ reportFinancial statementsShareholder informationTaylor Wimpey plc Annual Report and Accounts 2023 Consolidated income statement
for the year to 31 December 2023
Continuing operations
Revenue
Cost of sales
Gross profit
Net operating expenses
Profit on ordinary activities before financing
Finance income
Finance costs
Share of results of joint ventures
Profit before taxation
Taxation (charge)/credit
Profit for the year
Basic earnings per share
Diluted earnings per share
Adjusted basic earnings per share
Adjusted diluted earnings per share
All of the profit for the year is attributable to the equity holders of the Parent Company.
Before
exceptional
items
2023
£m
Exceptional
items
2023
£m
3,514.5
(2,798.0)
716.5
(248.7)
467.8
29.5
(25.9)
2.4
473.8
(124.8)
349.0
–
–
–
–
–
–
–
–
–
–
–
Note
4
6
8
8
13
9
Total
2023
£m
3,514.5
(2,798.0)
716.5
(248.7)
467.8
29.5
(25.9)
2.4
473.8
(124.8)
349.0
Before
exceptional
items
2022
£m
Exceptional
items
2022
£m
4,419.9
(3,287.5)
1,132.4
(224.9)
907.5
8.6
(24.1)
15.9
907.9
(201.9)
706.0
Note
10
10
10
10
–
–
–
(80.0)
(80.0)
–
–
–
(80.0)
17.6
(62.4)
2023
9.9p
9.9p
9.9p
9.9p
Total
2022
£m
4,419.9
(3,287.5)
1,132.4
(304.9)
827.5
8.6
(24.1)
15.9
827.9
(184.3)
643.6
2022
18.1p
18.0p
19.8p
19.7p
168
Strategic reportDirectors’ reportFinancial statementsShareholder informationTaylor Wimpey plc Annual Report and Accounts 2023 Consolidated statement of comprehensive income
for the year to 31 December 2023
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translation of foreign operations
Movement in fair value of hedging instruments
Items that will not be reclassified subsequently to profit or loss:
Actuarial gain on defined benefit pension schemes
Tax (charge)/credit on items taken directly to other comprehensive income
Other comprehensive (expense)/income for the year
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.
Note
25
25
21
14
2023
£m
(2.4)
1.2
0.8
(0.2)
(0.6)
349.0
348.4
2022
£m
6.6
(3.5)
3.2
0.7
7.0
643.6
650.6
169
Strategic reportDirectors’ reportFinancial statementsShareholder informationTaylor Wimpey plc Annual Report and Accounts 2023 Equity
Share capital
Share premium
Own shares
Other reserves
Retained earnings
Total equity
Note
23
24
26
25
2023
£m
291.3
777.9
(29.7)
544.4
2,939.5
4,523.4
2022
£m
291.3
777.9
(43.1)
545.6
2,930.4
4,502.1
The financial statements of Taylor Wimpey plc (registered number: 296805) were approved by
the Board of Directors and authorised for issue on 27 February 2024. They were signed on its
behalf by:
J Daly
Director
C Carney
Director
Consolidated balance sheet
at 31 December 2023
Non-current assets
Intangible assets
Property, plant and equipment
Right-of-use assets
Interests in joint ventures
Trade and other receivables
Other financial assets
Deferred tax assets
Current assets
Inventories
Trade and other receivables
Cash and cash equivalents
Total assets
Current liabilities
Trade and other payables
Lease liabilities
Bank and other loans
Tax payables
Provisions
Net current assets
Non-current liabilities
Trade and other payables
Lease liabilities
Bank and other loans
Retirement benefit obligations
Provisions
Total liabilities
Net assets
170
Note
11
12
19
13
16
21
14
15
16
16
18
19
17
22
18
19
17
21
22
2023
£m
2.6
22.0
37.8
70.5
28.1
10.3
23.4
194.7
5,169.6
124.4
764.9
6,058.9
6,253.6
(992.8)
(8.8)
–
(1.6)
(124.9)
(1,128.1)
4,930.8
(295.8)
(31.0)
(87.0)
(26.5)
(161.8)
(602.1)
(1,730.2)
2022
£m
4.2
17.3
26.3
74.0
12.2
10.0
26.0
170.0
5,169.6
191.2
952.3
6,313.1
6,483.1
(1,130.8)
(7.3)
(88.5)
(7.2)
(106.7)
(1,340.5)
4,972.6
(407.3)
(19.7)
–
(29.9)
(183.6)
(640.5)
(1,981.0)
4,523.4
4,502.1
Strategic reportDirectors’ reportFinancial statementsShareholder informationTaylor Wimpey plc Annual Report and Accounts 2023
Note
23
29
14
31
29
14
31
Share
capital
£m
292.2
–
–
–
–
(0.9)
–
–
–
–
–
291.3
–
–
–
–
–
–
–
–
291.3
Share
premium
£m
777.5
–
–
–
0.4
–
–
–
–
–
–
777.9
–
–
–
–
–
–
–
–
777.9
Own
shares
£m
(14.6)
–
–
–
–
(33.8)
5.3
–
–
–
–
(43.1)
–
–
–
13.4
–
–
–
–
(29.7)
Other
reserves
£m
541.6
3.1
–
3.1
–
0.9
–
–
–
–
–
545.6
(1.2)
–
(1.2)
–
–
–
–
–
544.4
Retained
earnings
£m
2,717.3
3.9
643.6
647.5
–
(117.5)
–
(5.5)
14.0
(1.6)
(323.8)
2,930.4
0.6
349.0
349.6
–
(12.6)
8.9
1.1
(337.9)
2,939.5
Total
£m
4,314.0
7.0
643.6
650.6
0.4
(151.3)
5.3
(5.5)
14.0
(1.6)
(323.8)
4,502.1
(0.6)
349.0
348.4
13.4
(12.6)
8.9
1.1
(337.9)
4,523.4
Consolidated statement of changes in equity
for the year to 31 December 2023
Total equity at 1 January 2022
Other comprehensive income for the year
Profit for the year
Total comprehensive income for the year
New share capital subscribed
Own shares acquired and cancelled
Utilisation of own shares
Cash cost of satisfying share options
Share-based payment credit
Tax charge on items taken directly to statement of changes in equity
Dividends approved and paid
Total equity at 31 December 2022
Other comprehensive (expense)/income for the year
Profit for the year
Total comprehensive (expense)/income for the year
Utilisation of own shares
Cash cost of satisfying share options
Share-based payment credit
Tax credit on items taken directly to statement of changes in equity
Dividends approved and paid
Total equity at 31 December 2023
171
Strategic reportDirectors’ reportFinancial statementsShareholder informationTaylor Wimpey plc Annual Report and Accounts 2023 Financing activities
Lease capital repayments
Cash received on exercise of share options
Purchase of own shares
Repayment of borrowings
Proceeds from borrowings
Dividends paid
Net cash used in financing activities
Net (decrease)/increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Effect of foreign exchange rate changes
Cash and cash equivalents at end of year
Note
19
31
27
2023
£m
(7.9)
3.0
–
(87.0)
87.0
(337.9)
(342.8)
(185.8)
952.3
(1.6)
764.9
2022
£m
(7.6)
0.3
(151.3)
–
–
(323.8)
(482.4)
28.7
921.0
2.6
952.3
Note
Consolidated cash flow statement
for the year to 31 December 2023
Profit on ordinary activities before financing
Adjustments for:
Depreciation and amortisation
Pension contributions in excess of charge to the income
statement
Share-based payment charge
Loss on disposal of property, plant and equipment
Increase in provisions excluding exceptional payments
Operating cash flows before movements in
working capital
Increase in inventories
Decrease/(increase) in receivables
(Decrease)/increase in payables
Cash generated from operations
Payments related to exceptional charges
Income taxes paid
Interest paid
Net cash generated from operating activities
Investing activities
Interest received
Dividends received from joint ventures
Proceeds on disposal of property, plant and equipment
Purchase of property, plant and equipment
Purchase of software
Amounts (invested in)/repaid by joint ventures
Net cash generated from investing activities
8
12
11
2023
£m
467.8
12.7
(3.8)
8.9
0.3
17.3
503.2
(148.7)
40.2
(105.8)
288.9
(20.8)
(126.5)
(12.0)
129.6
26.4
11.7
–
(6.8)
(0.1)
(3.8)
27.4
2022
£m
827.5
14.5
(4.8)
14.0
0.3
90.9
942.4
(280.4)
(9.9)
52.9
705.0
(45.9)
(176.9)
(4.7)
477.5
6.9
3.1
1.5
(1.7)
(0.4)
24.2
33.6
172
Strategic reportDirectors’ reportFinancial statementsShareholder informationTaylor Wimpey plc Annual Report and Accounts 2023 Notes to the consolidated financial statements
1 Accounting policies
Basis of preparation
The consolidated financial statements have been prepared on a going concern basis and under
the historical cost convention, except as otherwise stated below.
The significant accounting policies adopted, which have been applied consistently, except as
otherwise stated, are set out below.
Adoption of new and revised standards
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 financial
statements.
• IAS 1 ‘Presentation of Financial Statements’ (amendments) – disclosure of accounting
policies
• IAS 12 ‘Income Taxes’ (amendments) – deferred tax related to assets and liabilities arising
from a single transaction and international tax reform – Pillar Two model rules
• IAS 8 ‘Accounting Policies, Changes in Accounting Estimates and Errors’ (amendments) –
definition of accounting estimates
• IFRS 17 ‘Insurance Contracts’
At the date of authorisation of these financial statements, the Group has not applied the
following new or revised standards and interpretations that have been issued but are not
yet effective:
• 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’ & IAS 7 ‘Statement of Cash Flows’ (amendments)
– supplier finance arrangements
The Directors do not expect that the adoption of the standards, amendments and
interpretations listed above will have a material impact on the financial statements of the Group.
173
Going concern
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 volumes compared with that experienced during 2023.
To arrive at the stress test the Group has drawn on experience gained managing the business
through previous economic downturns and the COVID-19 pandemic. 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 (e.g. Future Homes Standard).
• Volume – a further decline in total volumes of 10% in 2024 from 2023 levels, before
recovering back to 2023 levels by 2026
• Price – a reduction to current selling prices of 10%, remaining at these levels across 2024
and 2025 before recovering to 2023 levels by 2026
• 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 2024
Strategic reportDirectors’ reportFinancial statementsShareholder informationTaylor Wimpey plc Annual Report and Accounts 2023 1 Accounting policies continued
Basis of consolidation
Mitigations to this sensitivity analysis include a continued 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 work in progress, the sale of assets,
reducing the dividend, and/or raising debt.
At 31 December 2023, the Group had a cash balance of £765 million and had access to
£600 million from a fully undrawn revolving credit facility, together totalling £1,365 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 have been prepared on a going concern basis.
Basis of accounting
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 Act 2006.
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 Group. All intra-Group transactions, balances, income and expenses are
eliminated on consolidation.
174
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Revenue
Joint ventures
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.
Segmental reporting
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:
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.
• United Kingdom
• Spain
175
Notes to the consolidated financial statements continuedStrategic reportDirectors’ reportFinancial statementsShareholder informationTaylor Wimpey plc Annual Report and Accounts 2023 1 Accounting policies continued
Finance costs
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 purchase price offered to the acquirer and are therefore accounted for as a reduction
to revenue.
Cost of sales
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 case they are recognised in the income statement at the point of sale.
Exceptional items
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’. Should these items be reversed, disclosure of this would also be as
exceptional items.
Finance income
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.
Capitalised finance costs are held in other receivables and amortised over the period of the facility.
Foreign currencies
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
overseas subsidiaries.
176
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Leases
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:
Intangible assets
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 amortisation and any accumulated impairment losses.
• the contract involves the use of an identified asset;
Property, plant and equipment
• 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.
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.
At the commencement of a lease, the Group recognises a right-of-use asset along with a
corresponding lease liability.
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.
This difference is recognised in the income statement.
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 termination option.
Right-of-use assets are initially measured at cost, comprising the initial measurement of the
lease 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
liabilities depending on the length of the lease term.
177
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Impairment of tangible and intangible assets
Financial instruments
Financial assets
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 an impairment loss is recognised as income immediately in the income statement.
Dividends paid
Dividends are charged to retained earnings 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
final dividend.
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.
The Group currently has no financial assets measured at FVOCI.
Trade and other receivables
Trade and other receivables are measured at amortised cost, less any loss allowance.
Shared equity loans
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 income statement within net operating expenses.
178
Notes to the consolidated financial statements continuedStrategic reportDirectors’ reportFinancial statementsShareholder informationTaylor Wimpey plc Annual Report and Accounts 2023 Derivative financial instruments and hedge accounting
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 other comprehensive income is transferred to the income statement for the period.
Provisions
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 balance sheet date and are discounted to present value where the effect
is material.
1 Accounting policies continued
Cash and cash equivalents
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 in value.
Financial liabilities
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 measured at FVTPL.
Borrowings
Borrowings are initially recognised at fair value, net of transaction costs incurred and
subsequently measured at amortised cost.
Trade and other payables
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 repayment is due more than one year after initial recognition or the impact is material.
Customer deposits
Customer deposits, measured at amortised cost, are recorded as a liability on receipt and
released to the income statement as revenue upon legal completion.
Equity instruments
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 proceeds are received, net of direct issue costs.
179
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Inventories
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 and written off to the income statement when it is probable that the option will not
be exercised.
Taxation
The tax charge represents the sum of the tax currently payable and deferred tax.
Current 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 enacted at the balance sheet date.
Deferred tax
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 foreseeable future.
Deferred tax is measured on a non-discounted basis using the tax rates and laws that have
been 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 deferred tax is also dealt with in other comprehensive
income or equity.
Share-based payments
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 vest after adjusting for the effect of non-market vesting conditions.
Employee benefits
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 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.
Payments to defined contribution schemes are charged as an expense as they fall due.
180
Notes to the consolidated financial statements continuedStrategic reportDirectors’ reportFinancial statementsShareholder informationTaylor Wimpey plc Annual Report and Accounts 2023 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, which was increased in 2020 to reflect the latest
estimate of costs to complete the planned works. Following the guidance issued by RICS in
2021, the Group announced an additional £125.0 million provision to fund cladding fire safety
improvements. In 2022 the Group signed up to the Government’s Building Safety Pledge for
Developers and recognised an additional provision of £80.0 million. 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 QS estimates, which have increasingly been supported by
externally sourced quotations, where available, both of which contain inherent estimation
uncertainty. However, it is not 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 impacted by
future industry guidance or regulations.
3 General information
Taylor Wimpey plc is a public company limited by shares, incorporated and domiciled in the
United Kingdom under the Companies Act and is registered in England and Wales. The
Company’s registered office is Taylor Wimpey plc, Gate House, Turnpike Road, High Wycombe,
Buckinghamshire, HP12 3NR. The nature of the Group’s operations and its principal activities
are set out in the Strategic Report on pages 1 to 88.
These financial statements are presented in pounds Sterling as the currency of the primary
economic environment in which the Group operates.
2 Critical accounting judgements and key sources of
estimation uncertainty
Preparation of the 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 forming the financial statements and highlight 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 financial statements. Changes in these assumptions
over time and differences to the actual outcome will be reflected in the statement of
comprehensive income. Note 21 details the main assumptions in accounting for the Group’s
defined benefit pension scheme, along with sensitivities of the liabilities to changes in these
assumptions.
Other sources of estimation uncertainty
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.
181
Notes to the consolidated financial statements continuedStrategic reportDirectors’ reportFinancial statementsShareholder informationTaylor Wimpey plc Annual Report and Accounts 2023 4 Revenue
An analysis of the Group’s continuing revenue is as follows:
Private sales
Partnership housing
Land & other
2023
£m
3,103.5
395.6
15.4
3,514.5
2022
£m
3,886.1
476.4
57.4
4,419.9
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.
Recognised at a point in time
Recognised over time
2023
£m
3,101.7
412.8
3,514.5
2022
£m
3,983.1
436.8
4,419.9
At 31 December 2023, the aggregate amount of the transaction price allocated to unsatisfied
performance obligations on construction contracts was £812.4 million (2022: £677.6 million),
of which approximately 40% is expected to be recognised as revenue during 2024.
5 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:
Revenue
External sales
Result
Profit before joint ventures,
finance income/(costs) and
exceptional items
Share of results of joint
ventures
Operating profit (Note 32)
Exceptional items (Note 6)
Profit before net finance
income/(costs)
Net finance income/(costs)
Profit before taxation
Taxation charge
Profit for the year
2023
Spain
£m
UK
£m
Total
£m
2022
Spain
£m
UK
£m
Total
£m
3,371.7
142.8
3,514.5
4,295.5
124.4
4,419.9
432.5
35.3
467.8
874.9
32.6
907.5
2.4
434.9
–
–
35.3
–
434.9
35.3
2.4
470.2
–
470.2
3.6
473.8
(124.8)
349.0
15.9
890.8
(80.0)
–
32.6
–
810.8
32.6
15.9
923.4
(80.0)
843.4
(15.5)
827.9
(184.3)
643.6
182
Notes to the consolidated financial statements continuedStrategic reportDirectors’ reportFinancial statementsShareholder informationTaylor Wimpey plc Annual Report and Accounts 2023 5 Operating segments continued
2023
Spain
£m
UK
£m
Total
£m
2022
Spain
£m
UK
£m
Assets and liabilities
Segment operating assets
Joint ventures
Segment operating liabilities
Net operating assets
Net current taxation
Net deferred taxation (Note 14)
Net cash (Note 27)
Net assets
5,153.2
70.5
(1,494.0)
3,729.7
94.0
241.6
–
5,394.8
70.5
(147.6) (1,641.6)
3,823.7
(1.6)
23.4
677.9
4,523.4
5,222.9
74.0
(1,767.2)
3,529.7
207.9
–
(118.1)
89.8
Other information
Property, plant and
equipment additions
Right-of-use asset additions
Software additions
Property, plant and
equipment depreciation
Right-of-use asset depreciation
Amortisation of intangible assets
2023
Spain
£m
UK
£m
6.6
20.7
0.1
(1.7)
(8.9)
(1.7)
0.2
0.4
–
(0.1)
(0.3)
–
Total
£m
6.8
21.1
0.1
(1.8)
(9.2)
(1.7)
2022
Spain
£m
0.1
0.1
–
(0.1)
(0.2)
–
UK
£m
1.6
7.1
0.4
(4.2)
(7.2)
(2.8)
183
Total
£m
5,430.8
74.0
(1,885.3)
3,619.5
(7.2)
26.0
863.8
4,502.1
Total
£m
1.7
7.2
0.4
(4.3)
(7.4)
(2.8)
6 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):
Administration expenses
Other expenses
Other income
Exceptional items
Net operating expenses
2023
£m
232.7
101.7
(85.7)
–
248.7
2022
£m
220.7
70.1
(65.9)
80.0
304.9
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.
Exceptional items:
Provision in relation to cladding fire safety
Exceptional items
Cladding fire safety
2023
£m
–
–
2022
£m
80.0
80.0
In 2018 the Group established an exceptional provision for the cost of replacing ACM on a
small number of legacy developments, which was increased in 2020 to reflect the latest
estimate of costs to complete the planned works. Following the guidance issued by RICS in
2021, the Group announced an additional £125.0 million provision to fund cladding fire safety
improvements and, in line with Group policy, recognised it as an exceptional item.
In April 2022 the Group signed up to the Government’s Building Safety Pledge for Developers,
extending the period covered to all buildings constructed by the Group since 1992, as well as
committing to reimburse any funds allocated or used for Taylor Wimpey buildings over 18 metres
from the Building Safety Fund. In the year to 31 December 2022 the Group recognised an
increase in the provision of £80.0 million, as an exceptional expense; no further amounts were
recognised in the year to 31 December 2023.
Notes to the consolidated financial statements continuedStrategic reportDirectors’ reportFinancial statementsShareholder informationTaylor Wimpey plc Annual Report and Accounts 2023 6 Net operating expenses and profit on ordinary activities before
financing continued
7 Staff costs
Profit on ordinary activities before financing has been arrived at after charging:
Cost of inventories recognised as an expense in cost of sales
Property, plant and equipment depreciation (Note 12)
Right-of-use asset depreciation (Note 19)
Amortisation of intangible assets (Note 11)
The remuneration paid to the Group’s external auditors is as follows:
Fees payable for the audit of the Company’s annual accounts
and consolidated financial statements
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
Total audit fees
Other assurance services
Total non-audit fees
Total fees
2023
£m
2,646.8
1.8
9.2
1.7
2022
£m
3,155.7
4.3
7.4
2.8
2023
£m
0.2
0.9
1.1
0.1
0.1
1.2
2022
£m
0.2
0.8
1.0
0.1
0.1
1.1
Non-audit services in 2023 and 2022 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 2023 and 2022 the fees relating to other assurance
services primarily related to the review of the interim statements and also included £2,000 for a
subscription service providing factual updates and changes to applicable law, regulation or
accounting and auditing standards. In 2023 £2,000 was also incurred for agreed upon
procedures work performed in Spain.
184
Monthly average number employed
United Kingdom
Spain
Remuneration
Wages and salaries
Redundancy costs
Social security costs
Other pension costs
2023
Number
2022
Number
4,618
101
4,719
2023
£m
270.7
6.0
29.4
15.1
321.2
5,140
96
5,236
2022
£m
290.0
0.4
31.8
15.4
337.6
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 131 to 152 in the Directors’ Remuneration Report.
8 Finance income and finance costs
Finance income
Interest receivable
Finance costs
Interest on bank and other loans
Foreign exchange loss
Unwinding of discount on land creditors and other items
Interest on lease liabilities (Note 19)
Net interest on pension liability (Note 21)
2023
£m
29.5
29.5
2023
£m
(8.3)
(0.5)
(8.8)
(14.8)
(1.0)
(1.3)
(25.9)
2022
£m
8.6
8.6
2022
£m
(4.8)
–
(4.8)
(18.3)
(0.4)
(0.6)
(24.1)
Notes to the consolidated financial statements continuedStrategic reportDirectors’ reportFinancial statementsShareholder informationTaylor Wimpey plc Annual Report and Accounts 2023 9 Taxation charge
Tax (charged)/credited in the income statement is analysed as follows:
Current tax:
UK:
Overseas:
Deferred tax:
UK:
Overseas:
Current year
Adjustment in respect of prior years
Current year
Adjustment in respect of prior years
Current year
Adjustment in respect of prior years
Current year
Adjustment in respect of prior years
2023
£m
(116.6)
1.8
(6.7)
0.1
(121.4)
(2.5)
(0.2)
(0.7)
–
(3.4)
(124.8)
2022
£m
(179.3)
0.5
(5.4)
(0.5)
(184.7)
0.4
(0.1)
(1.7)
1.8
0.4
(184.3)
Corporation tax is calculated at 27.5% (2022: 22.0%) of the estimated assessable profit for the
year in the UK. This includes corporation tax at the rate of 23.5% (2022: 19.0%) for the year
and residential property developer tax (RPDT) at the rate of 4.0% (2022: 4.0% with effect from
1 April 2022) 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
prior year includes an exceptional credit of £17.6 million relating to the cladding fire safety
provision.
The charge for the year can be reconciled to the profit per the income statement as follows:
Profit before tax
Tax at the UK corporation tax rate of 27.5% (2022: 22.0%)
Net over provision in respect of prior years
Net impact of items that are not taxable or deductible
Recognition of deferred tax asset relating to Spanish business
Other rate impacting adjustments
Tax charge for the year
2023
£m
473.8
(130.3)
1.7
0.1
1.0
2.7
(124.8)
2022
£m
827.9
(182.1)
1.7
(5.6)
1.0
0.7
(184.3)
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. As a result, the legislation was not effective for the current year and the Group has no
related current tax exposure. 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. Although work to assess the
impact of the new provisions is ongoing, it is expected that the Group will meet the safe
harbour provisions, meaning that no additional tax is expected to be due once the provisions
become effective.
185
Notes to the consolidated financial statements continuedStrategic reportDirectors’ reportFinancial statementsShareholder informationTaylor Wimpey plc Annual Report and Accounts 2023 11 Intangible assets
Cost
At 1 January 2022
Additions
At 31 December 2022
Additions
At 31 December 2023
Accumulated amortisation
At 1 January 2022
Charge for the year
At 31 December 2022
Charge for the year
At 31 December 2023
Carrying amount
At 31 December 2023
At 31 December 2022
Brands
£m
Software
£m
140.2
–
140.2
–
140.2
(140.2)
–
(140.2)
–
(140.2)
–
–
23.3
0.4
23.7
0.1
23.8
(16.7)
(2.8)
(19.5)
(1.7)
(21.2)
2.6
4.2
Total
£m
163.5
0.4
163.9
0.1
164.0
(156.9)
(2.8)
(159.7)
(1.7)
(161.4)
2.6
4.2
The amortisation of software is recognised within administration expenses in the income statement.
10 Earnings per share
Basic earnings per share
Diluted earnings per share
Adjusted basic earnings per share
Adjusted diluted earnings per share
Weighted average number of shares for basic earnings
per share – million
Weighted average number of shares for diluted earnings
per share – million
2023
9.9p
9.9p
9.9p
9.9p
2022
18.1p
18.0p
19.8p
19.7p
3,530.4
3,564.8
3,537.5
3,576.5
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.
Earnings for basic and diluted earnings per share
Adjust for exceptional items (Note 6)
Adjust for tax on exceptional items
Earnings for adjusted basic and adjusted diluted earnings
per share
Weighted average number of shares for basic earnings
per share
Dilution from share options
Weighted average number of shares for diluted earnings
per share
2023
£m
349.0
–
–
349.0
2023
Million
3,530.4
7.1
2022
£m
643.6
80.0
(17.6)
706.0
2022
Million
3,564.8
11.7
3,537.5
3,576.5
186
Notes to the consolidated financial statements continuedStrategic reportDirectors’ reportFinancial statementsShareholder informationTaylor Wimpey plc Annual Report and Accounts 2023 12 Property, plant and equipment
13 Interests in joint ventures
Share of net assets
Loans to joint ventures
Total interests in joint ventures
2023
£m
35.3
35.2
70.5
2022
£m
43.5
30.5
74.0
Loans to joint ventures includes £(9.7) million (2022: £(8.5) 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 four (2022: five) 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. Chobham Manor completed the majority of its
development in the prior year and as a result is no longer considered to be a material joint venture.
The particulars of the material joint ventures for 2023 are as follows:
Country of
incorporation
Joint venture
United Kingdom
Greenwich Millennium Village Limited
Winstanley and York Road Regeneration LLP
United Kingdom
Whitehill & Bordon Development Company Phase 1a Limited United Kingdom
United Kingdom
Whitehill & Bordon Regeneration Company Limited
* Interests held by subsidiary undertakings.
Interest in the
issued ordinary
share capital*
50%
50%
50%
50%
Further information on the particulars of joint ventures can be found on pages 220 to 221.
Freehold
land and
buildings
£m
Plant,
equipment
and leasehold
improvements
£m
16.5
–
(2.2)
–
14.3
–
–
–
14.3
(4.1)
(0.5)
0.4
–
(4.2)
(0.5)
–
–
(4.7)
9.6
10.1
29.8
1.7
–
0.1
31.6
6.8
(1.4)
–
37.0
(20.5)
(3.8)
–
(0.1)
(24.4)
(1.3)
1.1
–
(24.6)
12.4
7.2
Total
£m
46.3
1.7
(2.2)
0.1
45.9
6.8
(1.4)
–
51.3
(24.6)
(4.3)
0.4
(0.1)
(28.6)
(1.8)
1.1
–
(29.3)
22.0
17.3
Cost
At 1 January 2022
Additions
Disposals
Exchange movements
At 31 December 2022
Additions
Disposals
Exchange movements
At 31 December 2023
Accumulated depreciation
At 1 January 2022
Charge for the year
Disposals
Exchange movements
At 31 December 2022
Charge for the year
Disposals
Exchange movements
At 31 December 2023
Carrying amount
At 31 December 2023
At 31 December 2022
187
Notes to the consolidated financial statements continuedStrategic reportDirectors’ reportFinancial statementsShareholder informationTaylor Wimpey plc Annual Report and Accounts 2023 13 Interests in joint ventures continued
The following two tables show summary financial information for the material joint ventures and in total for the immaterial joint ventures. Unless specifically indicated, this information represents
100% of the joint venture before intercompany eliminations.
Greenwich
Millennium
Village
2023
£m
–
50.7
22.6
(6.2)
(1.3)
(2.6)
63.2
31.6
–
31.6
50.9
–
(2.6)
8.6
4.3
Winstanley and
York Road
Regeneration
2023
£m
4.5
82.2
2.1
(3.5)
–
(104.6)
(19.3)
(9.7)
43.2
33.5
27.9
(4.9)
–
(2.2)
(1.1)
Whitehill
& Bordon
Development
Company
Phase 1a
2023
£m
0.1
29.1
0.2
(2.0)
–
(24.6)
2.8
1.4
–
1.4
0.9
(0.2)
0.1
(0.2)
(0.1)
Whitehill
& Bordon
Regeneration
Company
2023
£m
53.3
6.3
–
(24.7)
–
(31.7)
3.2
1.6
0.1
1.7
15.1
(0.3)
0.1
(0.2)
(0.1)
Immaterial
Joint Ventures
2023
£m
0.8
24.6
4.5
(13.2)
–
(14.7)
2.0
0.7
1.6
2.3
6.9
(1.7)
0.4
(1.1)
(0.6)
Total
2023
£m
58.7
192.9
29.4
(49.6)
(1.3)
(178.2)
51.9
25.6
44.9
70.5
101.7
(7.1)
(2.0)
4.9
2.4
Non-current assets
Current assets excluding cash
Cash and cash equivalents
Current financial liabilities
Current other liabilities
Non-current financial liabilities*
Net assets/(liabilities) (100%)
Group share of net assets/(liabilities)
Loans to joint ventures
Total interests in joint ventures
Revenue
Interest expense
Income tax (expense)/credit
Profit/(loss) for the year
Group share of profit/(loss) for the year
* Non-current financial liabilities include amounts owed to joint venture partners.
188
Notes to the consolidated financial statements continuedStrategic reportDirectors’ reportFinancial statementsShareholder informationTaylor Wimpey plc Annual Report and Accounts 2023 13 Interests in joint ventures continued
Non-current assets
Current assets excluding cash
Cash and cash equivalents
Current financial liabilities
Current other liabilities
Non-current financial liabilities*
Net assets/(liabilities) (100%)
Group share of net assets/(liabilities)
Loans to joint ventures
Total interests in joint ventures
Revenue
Interest expense
Income tax (expense)/credit
Profit/(loss) for the year
Group share of profit/(loss) for the year
Greenwich
Millennium
Village
2022
£m
–
54.8
21.3
(13.3)
–
(8.2)
54.6
27.3
–
27.3
78.6
(0.4)
(3.3)
13.9
7.0
Chobham
Manor
2022
£m
–
7.8
21.5
(1.4)
–
(0.4)
27.5
13.8
–
13.8
103.5
–
–
17.3
8.6
Winstanley and
York Road
Regeneration
2022
£m
4.4
70.9
8.1
(5.3)
–
(95.1)
(17.0)
(8.5)
37.4
28.9
17.7
(5.0)
–
(4.4)
(2.2)
Whitehill
& Bordon
Development
Company
Phase 1a
2022
£m
0.5
8.6
2.3
(0.6)
(1.2)
(6.5)
3.1
1.6
–
1.6
25.4
(0.3)
(1.2)
5.2
2.6
Whitehill
& Bordon
Regeneration
Company
2022
£m
41.0
6.5
0.6
(10.7)
(0.2)
(33.8)
3.4
1.7
0.1
1.8
24.5
(0.2)
(0.2)
0.7
0.4
Immaterial
Joint Ventures
2022
£m
0.6
21.4
2.2
(10.0)
–
(15.6)
(1.4)
(0.9)
1.5
0.6
–
(1.1)
0.3
(0.9)
(0.5)
Total
2022
£m
46.5
170.0
56.0
(41.3)
(1.4)
(159.6)
70.2
35.0
39.0
74.0
249.7
(7.0)
(4.4)
31.8
15.9
* Non-current financial liabilities include amounts owed to joint venture partners.
During the current and prior year, no entity charged depreciation or amortisation. No entity had discontinued operations or items of other comprehensive income.
189
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payments
£m
3.9
(1.7)
–
(1.6)
–
0.6
0.2
–
1.1
–
1.9
Capital
allowances
£m
2.4
0.4
–
–
–
2.8
(0.8)
–
–
–
2.0
Temporary
differences on
overseas
provisions
£m
5.5
0.2
–
–
0.3
6.0
(0.6)
–
–
(0.1)
5.3
Retirement
benefit
obligations
£m
8.8
(0.9)
0.7
–
–
8.6
(0.7)
(0.2)
–
–
7.7
Losses and
other
temporary
differences
£m
5.6
2.4
–
–
–
8.0
(1.5)
–
–
–
6.5
Total
£m
26.2
0.4
0.7
(1.6)
0.3
26.0
(3.4)
(0.2)
1.1
(0.1)
23.4
The Group has not recognised temporary differences relating to tax losses carried forward and
other temporary differences amounting to £2.0 million (2022: £2.4 million) in the UK and
£19.4 million (2022: £23.8 million) in Spain. The UK temporary differences have not been
recognised as they are predominantly non-trading in nature and insufficient certainty exists as
to their future utilisation. The temporary differences in Spain have not been recognised due to
uncertainty of sufficient taxable profits in the future against which to utilise these amounts.
At the balance sheet date, the Group has unused UK capital losses of £269.7 million
(2022: £269.5 million). No deferred tax asset has been recognised in respect of the capital
losses at 31 December 2023 (2022: £nil) because the Group does not believe that it is probable
that these capital losses will be utilised in the foreseeable future.
14 Deferred tax
At 1 January 2022
(Charge)/credit to income
Credit to other comprehensive income
Charge to statement of changes in equity
Foreign exchange
At 31 December 2022
Credit/(charge) to income
Charge to other comprehensive income
Credit to statement of changes in equity
Foreign exchange
At 31 December 2023
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 2022:
between 25% and 29%). Deferred tax on Spanish temporary differences has been calculated
at 25% (31 December 2022: 25%).
The net deferred tax balance is analysed into assets and liabilities as follows:
2023
£m
25.0
(1.6)
23.4
2022
£m
27.4
(1.4)
26.0
Deferred tax assets
Deferred tax liabilities
190
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Land
Development and construction costs
Part exchange and other
2023
£m
3,269.5
1,871.0
29.1
5,169.6
2022
£m
3,428.3
1,725.9
15.4
5,169.6
Cash and cash equivalents
Cash and cash equivalents
2023
£m
764.9
2022
£m
952.3
£15.7 million (2022: £10.7 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. Further information on financial assets can be found in Note 20.
17 Bank and other loans
€100.0 million 2.02% Senior Loan Notes 2023
€100.0 million 5.08% Senior Loan Notes 2030
Amounts due for settlement within one year
Amount due for settlement after one year
Total borrowings
Further information on loan facilities can be found in Note 20.
2023
£m
–
87.0
87.0
2023
£m
–
87.0
87.0
2022
£m
88.5
–
88.5
2022
£m
88.5
–
88.5
The markets in our core geographies, which are the primary drivers of our business, continue to
trade positively. At 31 December 2023, 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 2023, the provision held in the United Kingdom
was £26.5 million (2022: £16.0 million) and £32.4 million in Spain (2022: £35.5 million). The
table below details the movements on the inventory provision recorded in the year.
1 January
Net additions/(utilised)
Foreign exchange
31 December
16 Other financial assets
Trade and other receivables
Trade receivables
Other receivables
2023
£m
51.5
8.0
(0.6)
58.9
2022
£m
54.8
(5.1)
1.8
51.5
Current
2023
£m
82.5
41.9
124.4
2022
£m
136.8
54.4
191.2
Non-current
2023
£m
21.7
6.4
28.1
2022
£m
9.6
2.6
12.2
Included within trade receivables are mortgage receivables of £6.3 million (2022: £10.2 million),
including shared equity loans. Shared equity loans were provided to certain customers to
facilitate their house purchase and are measured at fair value through profit or loss. Included
within trade receivables is £33.0 million (2022: £34.5 million) of contract assets arising on
construction contracts.
191
Notes to the consolidated financial statements continuedStrategic reportDirectors’ reportFinancial statementsShareholder informationTaylor Wimpey plc Annual Report and Accounts 2023 18 Trade and other payables
Trade payables
Land creditors
Social security and other taxes
Customer deposits
Accruals
Deferred income
Other payables
Current
2023
£m
299.9
301.2
8.3
80.3
266.4
25.5
11.2
992.8
2022
£m
376.4
395.0
9.6
89.7
230.8
23.7
5.6
1,130.8
Non-current
2023
£m
21.8
214.9
–
11.8
1.7
38.1
7.5
295.8
2022
£m
17.1
330.6
–
10.4
–
39.2
10.0
407.3
Revenue recognised in the current year that was included in the customer deposit balance
brought forward at the beginning of the period was £89.7 million (2022: £82.4 million). Other
payables include £9.2 million (2022: £11.1 million) of repayable grants.
Land creditors are denominated as follows:
Sterling
Euros
2023
£m
478.2
37.9
516.1
2022
£m
696.1
29.5
725.6
Land creditors of £397.4 million (2022: £493.0 million) are secured against land acquired for
development.
Further information on financial liabilities can be found in Note 20.
19 Leases
The Group as a lessee
The Group’s leases consist primarily of premises and equipment.
Right-of-use assets:
At 1 January 2023
At 31 December 2023
Additions during the year
Premises
£m
17.0
25.7
12.7
Equipment
£m
9.3
12.1
8.4
Lease liabilities:
At 1 January
Additions
Disposals
Interest charge
Payments
Foreign exchange
At 31 December
Current
Non-current
Total
Amounts recognised in the income statement:
Depreciation charged on right-of-use premises
Depreciation charged on right-of-use equipment
Interest on lease liabilities
Total
2023
£m
27.0
21.1
(0.5)
1.0
(8.9)
0.1
39.8
8.8
31.0
39.8
2023
£m
4.0
5.2
1.0
10.2
Total
£m
26.3
37.8
21.1
2022
£m
27.4
7.2
–
0.4
(8.0)
–
27.0
7.3
19.7
27.0
2022
£m
3.2
4.2
0.4
7.8
192
Notes to the consolidated financial statements continuedStrategic reportDirectors’ reportFinancial statementsShareholder informationTaylor Wimpey plc Annual Report and Accounts 2023 20 Financial instruments and fair value disclosures
Capital management
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
financial statements. The Ordinary Dividend Policy is to return c.7.5% of net assets to
shareholders annually, which will be at least £250 million per annum, in two equal instalments.
Financial assets and financial liabilities
Categories of financial assets and financial liabilities are as follows:
Financial assets
Cash and cash equivalents
Land receivables
Other financial assets
Trade and other receivables
Mortgage receivables
Fair value
hierarchy
a
a
a
a
b
Carrying value
Fair value
31 December
2023
£m
764.9
2.8
10.3
100.1
6.3
884.4
31 December
2022
£m
952.3
16.3
10.0
136.4
10.2
1,125.2
31 December
2023
£m
764.9
2.8
10.3
100.1
6.3
884.4
31 December
2022
£m
952.3
16.3
10.0
136.4
10.2
1,125.2
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 £43.3 million (2022: £40.5 million) of
non-financial assets.
Financial liabilities
Bank and other loans
Land creditors
Trade and other payables
Lease liabilities
Fair value
hierarchy
a
b
b
b
Carrying value
Fair value
31 December
2023
£m
87.0
516.1
608.4
39.8
1,251.3
31 December
2022
£m
88.5
725.6
639.9
27.0
1,481.0
31 December
2023
£m
84.6
516.1
608.4
39.8
1,248.9
31 December
2022
£m
87.2
725.6
639.9
27.0
1,479.7
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 £164.1 million (2022: £172.6 million) of non-financial
liabilities.
The Group has designated the carrying value of €79.0 million of foreign currency borrowings
(2022: €79.0 million) as a net investment hedge, equating to £68.7 million (2022: £69.9 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.
Forward contracts have been entered into to offset the foreign exchange movements on
intra-Group loans to buy/(sell) against Sterling: €30.5 million (2022: €30.5 million), equivalent to
£26.5 million (2022: £27.0 million). The fair value of the forward contracts is not material as they
were entered into on or near 31 December in each year and mature less than one month later,
hence the value of the derivative is negligible.
193
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Market risk
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 1.00%
(2022: 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.
1.00% (2022: 1.00%) increase in interest rates
1.00% (2022: 1.00%) decrease in interest rates
(b) Foreign currency risk management
Income
sensitivity
2023
£m
7.6
Equity
sensitivity
2023
£m
7.6
Income
sensitivity
2022
£m
9.5
Equity
sensitivity
2022
£m
9.5
Income
sensitivity
2023
£m
(7.6)
Equity
sensitivity
2023
£m
(7.6)
Income
sensitivity
2022
£m
(9.5)
Equity
sensitivity
2022
£m
(9.5)
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.
194
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Hedge accounting
Hedging activities are evaluated periodically to ensure that they are in line with Group policy.
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.
The Group has designated the carrying value of €79.0 million of foreign currency borrowings
(2022: €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 £68.7 million (2022: £69.9 million).
The change in the carrying value of £(1.2) million (2022: £3.5 million) of the borrowings
designated as a net investment hedge offset the exchange movement on the foreign currency
net investments and are presented in the statement of comprehensive income.
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 to credit risk at the reporting date assuming that any security held has no value.
Foreign currency sensitivity
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%
(2022: 10%) 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.
Euro weakens against Sterling
Euro strengthens against Sterling
Credit risk
Income
sensitivity
2023
£m
(0.4)
0.5
Equity
sensitivity
2023
£m
2.9
(3.2)
Income
sensitivity
2022
£m
(0.9)
1.0
Equity
sensitivity
2022
£m
5.5
(6.8)
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.
Liquidity risk
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 on a monthly basis and funding headroom is maintained above
forecast peak requirements to meet unforeseen events. At 31 December 2023, the Group’s
borrowings and facilities had a range of maturities with a weighted average life of 4.8 years
(2022: 1.9 years).
In December 2022 the Group entered into an agreement to refinance the €100 million 2.02%
senior loan notes due June 2023 with €100 million 5.08% senior loan notes due June 2030.
In July 2023 the Group renewed its revolving credit facility, increasing it to £600 million with a
maturity of July 2028 and the option to request an extension for two further years. 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 (2022: £550.0 million) and cash
and cash equivalents were £764.9 million (2022: £952.3 million).
195
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21 Retirement benefit obligations
The maturity profile of the anticipated future cash flows including interest, using the latest
applicable 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:
Total retirement benefit obligations of £26.5 million (2022: £29.9 million) comprise a defined
benefit pension liability of £26.3 million (2022: £29.6 million) and a post-retirement healthcare
liability of £0.2 million (2022: £0.3 million).
On demand
Within one year
More than one year and
less than two years
More than two years and
less than five years
More than five years
31 December 2023
On demand
Within one year
More than one year and
less than two years
More than two years and
less than five years
More than five years
31 December 2022
Bank and
other loans
£m
–
4.4
Land
creditors
£m
–
307.7
Trade
and other
payables
£m
–
577.4
Lease
liabilities
£m
–
10.1
Total
£m
–
899.6
4.4
139.2
15.2
9.8
168.6
13.3
93.5
115.6
58.1
30.5
535.5
12.0
3.8
608.4
15.4
9.7
45.0
98.8
137.5
1,304.5
Bank and
other loans
£m
–
89.4
Land
creditors
£m
–
401.5
Trade
and other
payables
£m
–
612.8
Lease
liabilities
£m
–
7.7
Total
£m
–
1,111.4
–
216.6
14.8
7.0
238.4
–
–
89.4
100.6
31.0
749.7
9.1
3.2
639.9
11.0
2.6
28.3
120.7
36.8
1,507.3
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.
Defined contribution pension plan
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 £15.1 million in the
year (2022: £15.4 million), which is included in the income statement charge.
196
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Defined benefit pension scheme
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. 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 2019. The table below sets out the key assumptions agreed as part of
this valuation.
Assumptions
Discount rate
(pre-retirement)
Discount rate
(post-retirement)
RPI inflation
CPI inflation
Mortality
2.35% per annum above the yield on the nominal gilt yield curve. Illustrative
rate of 3.51% using the 15-year spot rate from the curve
0.50% per annum above the yield on the nominal gilt yield curve. Illustrative
rate of 1.66% using the 15-year spot rate from the curve
Implied inflation gilt yield curve. Illustrative rate of 3.40% using the 15-year
spot rate from the curve
RPI less 0.8%. Illustrative rate of 2.60% using the 15-year spot rate from
the curve
104% of S3PxA tables, CMI_2019 improvements with 1.50% long term trend
rate, a smoothing factor of 7 and an initial addition parameter of 0.5%
The result of this valuation was a Technical Provisions deficit at 31 December 2019 of
£36.0 million. In March 2021, a new funding arrangement was agreed with the TWPS Trustee
that committed the Group to paying up to £20.0 million per annum into an escrow account
between April 2021 and March 2024. The first six months of contributions (£10.0 million)
between 1 April 2021 and 30 September 2021 were guaranteed. From 1 October 2021,
payments into the escrow account are subject to a quarterly funding test with the first funding
test having an effective date of 30 September 2021. Contributions to the escrow are
suspended should the TWPS Technical Provisions funding level at any quarter-end be 100% or
more and would restart only if the funding level subsequently falls below 98%. The funding test
at 30 September 2021 showed a funding level of 103% and it has remained above 98% since
then and therefore escrow payments were suspended on, and from, 1 October 2021. The
Group continues to contribute £5.1 million per annum from the Pension Funding Partnership
and £2.0 million per annum to cover scheme expenses.
During 2023, the Group has engaged with the TWPS Trustee on the triennial valuation of the
pension scheme with a reference date of 31 December 2022. At the current time, discussions
are ongoing with the TWPS Trustee to agree the valuation as well as future contributions
(if applicable). Legislation requires that the valuation must be concluded by 31 March 2024.
The escrow account, over which the TWPS Trustee holds a fixed charge, is recognised in other
financial assets and at 31 December 2023 was £10.3 million (31 December 2022: £10.0 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.
On an IAS 19 accounting basis the underlying surplus in the TWPS at 31 December 2023 was
£76.7 million (2022: £76.6 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 £103.0 million
(2022: £106.2 million), resulting in an IFRIC 14 deficit of £26.3 million (2022: £29.6 million),
which represented the present value of future contributions under the funding plan.
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Notes to the consolidated financial statements continuedStrategic reportDirectors’ reportFinancial statementsShareholder informationTaylor Wimpey plc Annual Report and Accounts 2023 21 Retirement benefit obligations continued
In 2013, the Group introduced a £100.0 million Pension Funding Partnership 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. The assets held within the Pension
Funding Partnership 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 2023 there was £79.9 million of
property and £32.7 million of cash held within the structure (2022: £75.2 million of property and
£39.8 million of cash). The current terms of the Funding Partnership are such that, should the
TWPS be in a Technical Provisions deficit at 31 December 2028, then a bullet payment will be
due to the TWPS equal to the lower of £100.0 million or the Technical Provisions deficit at
that time.
The Group continues to work closely with the Trustee in managing pension risks, including
management of interest rate, inflation and longevity risks. The TWPS assets are approximately
98% (2022: 96%) 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 12 years (2022: approximately 12 years).
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_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%. The mortality
assumption used in 2022 was 102% of S3PxA tables, CMI_2021 improvements with a 1.25%
long term trend rate, a smoothing factor of 7, an initial addition parameter of 0.25% and a
w2020 and w2021 parameter of 10%.
Accounting valuation assumptions
At 31 December:
Discount rate for scheme liabilities
General pay inflation
Deferred pension increases
Pension increases*
2023
2022
4.60%
n/a
2.15%
4.95%
n/a
2.30%
1.90%-3.70% 2.10%-3.65%
* 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:
Life expectancy
Member currently aged 65
Member currently aged 45
2023
Male
86
87
Female
89
90
2022
Male
87
88
Female
89
91
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.
Assumption
Discount rate
Rate of inflation*
Life expectancy
Change in assumption
Decrease by 0.5% p.a.
Increase by 0.5% p.a.
Members live 1 year longer
Impact on
scheme liabilities
Increase by £90m
Increase by £51m
Increase by £66m
* Assumed to affect deferred revaluation and pensioner increases in payment.
Impact on
scheme
liabilities
(%)
5.4
3.0
3.9
The sensitivity of increasing life expectancy has been reduced by the medically underwritten
buy-in. See the section on risks and risk management at the end of this note.
198
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31 December 2023
Fair value of scheme assets of the TWPS
Equity(a)
Diversified growth funds(b)
Multi-asset credit
Direct lending
Fixed income
Liability driven investment(d)
Insurance policies in respect of certain members
Cash
31 December 2022
Fair value of scheme assets of the TWPS
Equity(a)
Diversified growth funds(b)
Hedge funds(c)
Property
Multi-asset credit
Direct lending
Fixed income
Liability driven investment(d)
Insurance policies in respect of certain members
Cash
Level 1
£m
–
–
6.5
3.9
2.8
56.6
–
7.0
76.8
Level 1
£m
–
–
–
0.1
32.5
0.1
6.0
165.0
–
4.8
208.5
Level 2
£m
76.4
228.5
202.3
–
193.3
615.7
–
–
1,316.2
Level 2
£m
38.3
139.3
–
–
152.1
–
172.2
428.8
–
–
930.7
Level 3
£m
–
–
–
124.5
–
–
136.0
–
260.5
Level 3
£m
–
–
220.3
2.3
–
142.5
–
–
142.0
–
507.1
Total
£m
76.4
228.5
208.8
128.4
196.1
672.3
136.0
7.0
1,653.5
Total
£m
38.3
139.3
220.3
2.4
184.6
142.6
178.2
593.8
142.0
4.8
1,646.3
Percentage of
total scheme
assets
4.6%
13.8%
12.6%
7.8%
11.9%
40.7%
8.2%
0.4%
100.0%
Percentage of
total scheme
assets
2.3%
8.5%
13.4%
0.1%
11.2%
8.7%
10.8%
36.1%
8.6%
0.3%
100.0%
(a) This amount relates to Volatility Controlled Equities (VCE). This fund has 2.5 – 8x leverage exposure, with a target of 4x. The leverage at 31 December 2023 was 3.5x (31 December 2022: 5.2x).
(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 2023 was 1.4x (31 December 2022: 0.2x) and 1.0x. The latter fund was a new investment over 2023. The net
leverage on the previous DRP fund as at 31 December 2022 was 0.5x.
(c) The leverage on this fund at 31 December 2022 was 0.7x. As at 31 December 2023 the Scheme was no longer invested in this fund.
(d) 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 2023 was approximately 2.8x (31 December 2022: 3.7x).
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.
There are no investments in respect of the Group’s own securities.
199
Notes to the consolidated financial statements continuedStrategic reportDirectors’ reportFinancial statementsShareholder informationTaylor Wimpey plc Annual Report and Accounts 2023 21 Retirement benefit obligations continued
The table below details the movements in the TWPS pension liability and assets recorded through the income statement and other comprehensive income.
Present value
of obligation
£m
(1,675.9)
–
(80.3)
(80.3)
–
27.1
(34.9)
(29.5)
8.4
(28.9)
–
–
105.3
(1,679.8)
2023
Fair value of
scheme assets
£m
1,646.3
(3.3)
79.0
75.7
29.7
–
–
–
–
29.7
7.1
–
(105.3)
1,653.5
Asset/(liability)
recognised on
balance sheet
£m
(29.6)
(3.3)
(1.3)
(4.6)
29.7
27.1
(34.9)
(29.5)
8.4
0.8
7.1
–
–
(26.3)
Present value
of obligation
£m
(2,482.3)
–
(44.9)
(44.9)
–
(20.0)
758.8
(73.6)
84.1
749.3
–
–
102.0
(1,675.9)
2022
Fair value of
scheme assets
£m
2,445.3
(2.3)
44.3
42.0
(746.1)
–
–
–
–
(746.1)
7.1
–
(102.0)
1,646.3
2023
£m
1,653.5
(1,576.8)
76.7
(103.0)
(26.3)
Asset/(liability)
recognised on
balance sheet
£m
(37.0)
(2.3)
(0.6)
(2.9)
(746.1)
(20.0)
758.8
(73.6)
84.1
3.2
7.1
–
–
(29.6)
2022
£m
1,646.3
(1,569.7)
76.6
(106.2)
(29.6)
At 1 January
Administration expenses
Interest (expense)/income
Total amount recognised in income statement
Remeasurement gain/(loss) on scheme assets
Change in demographic assumptions
Change in financial assumptions
Experience loss
Adjustment to liabilities for IFRIC 14
Total remeasurements in other comprehensive income
Employer contributions
Employee contributions
Benefit payments
At 31 December
Accounting valuation
Fair value of scheme assets
Present value of scheme obligations
Surplus in scheme
IFRIC 14 limitation on recognition of surplus
Deficit after IFRIC 14 adjustment
200
Notes to the consolidated financial statements continuedStrategic reportDirectors’ reportFinancial statementsShareholder informationTaylor Wimpey plc Annual Report and Accounts 2023 21 Retirement benefit obligations continued
Risks and risk management
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 Group’s 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
Asset volatility
Changes in bond yields
Investing in foreign
currency
Asset/liability mismatch
Description
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, the Company and Trustee have rebalanced the portfolio into more liquid assets
with the appointment of two new managers during the year, both of which have daily dealing terms and which are reflected in the asset allocation at the end of the
reporting period.
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 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.
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. 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.
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 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 mis-match 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.
201
Notes to the consolidated financial statements continuedStrategic reportDirectors’ reportFinancial statementsShareholder informationTaylor Wimpey plc Annual Report and Accounts 2023 21 Retirement benefit obligations continued
Risk
Liquidity
Life expectancy
Climate risk
Description
The TWPS requires sufficient liquidity to meet benefit payments, and to ensure sufficient collateral to support the liability-hedging programme. Market volatility in
Q3/Q4 2022 required use of TWPS’ liquid assets to ensure sufficient collateral was maintained. Although the existing processes ensured sufficient liquidity throughout
the volatility, these processes were updated to provide further liquidity, and now include holding 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, 75% 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 7% are invested in pooled funds with monthly
redemption dates. Of the remaining assets, 2% 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 include commercial real estate debt and direct lending bonds).
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.
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.
202
Notes to the consolidated financial statements continuedStrategic reportDirectors’ reportFinancial statementsShareholder informationTaylor Wimpey plc Annual Report and Accounts 2023 22 Provisions
At 1 January 2022
Additions
Utilisation
Released
Foreign exchange
At 31 December 2022
Additions
Utilisation
Released
Foreign exchange
At 31 December 2023
Current
Non-current
31 December
Cladding
fire safety
£m
144.5
80.0
(15.8)
–
–
208.7
–
(16.8)
–
–
191.9
Leasehold
£m
53.6
–
(30.1)
–
–
23.5
–
(4.0)
–
–
19.5
Other
£m
47.0
23.9
(7.6)
(5.4)
0.2
58.1
24.3
(7.0)
–
(0.1)
75.3
2023
£m
124.9
161.8
286.7
Total
£m
245.1
103.9
(53.5)
(5.4)
0.2
290.3
24.3
(27.8)
–
(0.1)
286.7
2022
£m
106.7
183.6
290.3
In 2018 the Group established an exceptional provision for the cost of replacing ACM on a
small number of legacy developments, which was increased by £10.0 million in 2020 to reflect
the latest estimate of costs to complete the planned works. Following the guidance issued by
RICS in 2021, the Group announced an additional £125.0 million provision to fund cladding fire
safety improvements and in 2022 recognised a further £80.0 million (see Note 6). It is expected
that around a third of the remaining provision will be utilised over the next 12 months.
In 2017 the Group launched an 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 take to reach settlement.
203
23 Share capital
Authorised:
22,200,819,176 (2022: 22,200,819,176) ordinary shares of
1p each
1,158,299,201 (2022: 1,158,299,201) deferred ordinary shares
of 24p each
31 December
2023
£m
222.0
278.0
500.0
Issued and fully paid:
31 December 2022
31 December 2023
Number of
ordinary shares
Number of
deferred
ordinary shares
3,556,985,103
3,556,985,103
1,065,566,274
1,065,566,274
2022
£m
222.0
278.0
500.0
£m
291.3
291.3
The Placing, Retail and Subscription shares placed rank pari passu in all respects with the
existing ordinary shares of the Company, including, without limitation, the right to receive all
dividends and other distributions declared, made or paid after the date of issue.
During the year, the Company issued nil (2022: 0.3 million) ordinary shares to satisfy option
exercises. During the prior year, the Group purchased 116,942,362 of its own ordinary shares,
of which 25,000,000 were transferred to be held in treasury and the remainder cancelled.
The average share price of the purchased shares was 128.27 pence for a total cost, including
expenses, of £151.3 million.
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.
Notes to the consolidated financial statements continuedStrategic reportDirectors’ reportFinancial statementsShareholder informationTaylor Wimpey plc Annual Report and Accounts 2023 24 Share premium
At 1 January
Shares issued in year
At 31 December
2023
£m
777.9
–
777.9
2022
£m
777.5
0.4
777.9
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.
25 Other reserves
Other reserves
£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.
Balance at 1 January 2022
Exchange differences on translation
of foreign operations
Movement in fair value of hedging
instruments
Shares repurchased and cancelled
in year
Balance at 31 December 2022
Exchange differences on translation
of foreign operations
Movement in fair value of hedging
instruments
Balance at 31 December 2023
Capital
redemption
reserve
£m
31.5
Translation
reserve
£m
6.1
Other
£m
504.0
Total other
reserves
£m
541.6
–
–
0.9
32.4
–
–
32.4
6.6
(3.5)
–
9.2
(2.4)
1.2
8.0
–
–
–
504.0
6.6
(3.5)
0.9
545.6
–
(2.4)
–
504.0
1.2
544.4
204
Notes to the consolidated financial statements continuedStrategic reportDirectors’ reportFinancial statementsShareholder informationTaylor Wimpey plc Annual Report and Accounts 2023 26 Own shares
Balance at 1 January 2022
Shares acquired
Disposed of on exercise of options
Balance at 31 December 2022
Disposed of on exercise of options
Balance at 31 December 2023
£m
14.6
33.8
(5.3)
43.1
(13.4)
29.7
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 to satisfy options and conditional share awards under the Group’s share plans.
Million shares
Ordinary shares held in trust and treasury for bonus, option and
performance award plans
2023
21.9
2022
30.9
During the current and prior year, Taylor Wimpey plc purchased none of its own shares to be
held in the ESOTs and in the prior year purchased £33.8 million of its own shares to be held in
treasury. The market value of the shares held in the ESOT and treasury at 31 December 2023 was
£32.2 million (2022: £31.4 million) and their nominal value was £0.2 million (2022: £0.4 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 2023 were
covered by outstanding options and conditional awards over shares at that date.
27 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
Balance at 1 January 2022
Net cash flow
Foreign exchange
Balance at 31 December 2022
Net cash flow
Foreign exchange
Balance at 31 December 2023
Cash and cash
equivalents
£m
921.0
28.7
2.6
952.3
(185.8)
(1.6)
764.9
Bank and
other loans
£m
(84.0)
–
(4.5)
(88.5)
–
1.5
(87.0)
Total
net cash
£m
837.0
28.7
(1.9)
863.8
(185.8)
(0.1)
677.9
In December 2022, the Group entered into an agreement to refinance the €100 million loan
notes maturing in June 2023. The new loan notes were issued in June 2023, maturing
June 2030. For movements in lease liabilities in the year see Note 19. Inventory working capital
movements in the cash flow statement include the related movements in land debtors and
land creditors.
28 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 significant capital commitments at 31 December 2023 (2022: none).
205
Notes to the consolidated financial statements continuedStrategic reportDirectors’ reportFinancial statementsShareholder informationTaylor Wimpey plc Annual Report and Accounts 2023 29 Share-based payments
Equity-settled share option plan
Details of equity-settled share-based payment arrangements are set out in the Directors’ Remuneration Report on pages 131 to 152. The tables below show the movements in the schemes in
the year as well as their weighted average exercise price (WAEP).
Sharesave (SAYE):
Outstanding at the beginning of the year
Granted during the year
Forfeited during the year
Exercised during the year
Outstanding at the end of the year
Exercisable at the end of the year
2023
2022
Options
29,408,740
7,746,227
(7,516,682)
(3,725,149)
25,913,136
2,294,076
WAEP (in £)
0.95
0.91
1.03
0.98
0.91
1.00
Options
24,020,334
15,785,250
(9,591,033)
(805,811)
29,408,740
2,245,075
WAEP (in £)
1.11
0.83
1.11
1.30
0.95
1.24
The remaining Sharesave options outstanding at 31 December 2023 had a range of exercise prices from £0.83 to £1.42 (2022: £0.83 to £1.59) and a weighted average remaining contractual life
of 2.91 years (2022: 3.03 years).
Share Incentive Plan (SIP):
Outstanding at the beginning of the year
Granted during the year
Forfeited during the year
Exercised during the year
Outstanding at the end of the year
Exercisable at the end of the year
2023
2022
Options
7,288,698
1,866,218
(883,601)
(995,545)
7,275,770
3,419,633
WAEP (in £)
–
–
–
–
–
–
Options
6,496,507
2,012,970
(713,665)
(507,114)
7,288,698
3,288,991
WAEP (in £)
–
–
–
–
–
–
The table above represents shares that are granted to employees on a matching basis; when the employee joins the scheme, purchased shares are matched on a 1:1 basis and these awards do
not expire.
Performance Share Plan (PSP):
Outstanding at the beginning of the year
Granted during the year
Forfeited during the year
Exercised during the year
Outstanding at the end of the year
Exercisable at the end of the year
2023
2022
Options
10,543,277
2,019,637
(4,845,594)
(1,838,605)
5,878,715
–
WAEP (in £)
–
–
–
–
–
–
Options
15,731,848
1,891,265
(5,700,993)
(1,378,843)
10,543,277
–
WAEP (in £)
–
–
–
–
–
–
The conditional awards outstanding at 31 December 2023 had a weighted average remaining contractual life of 1.77 years (2022: 1.24 years).
206
Notes to the consolidated financial statements continuedStrategic reportDirectors’ reportFinancial statementsShareholder informationTaylor Wimpey plc Annual Report and Accounts 2023 29 Share-based payments continued
The average share price at the date of exercise across all options exercised during the period was £1.25 (2022: £1.32). For share plans granted during the current and preceding year, the fair
value of the awards at the grant date was determined as follows:
Model
Weighted average share price
Weighted average exercise price
Expected volatility
Expected life
Risk-free rate
Expected dividend yield
Weighted average fair value of options granted in year
Share awards with
no market conditions
Share awards with
market conditions
2023
Binomial
£1.17
£0.79
36%
3/5 years
4.4%
7.65%
£0.42
2022
Binomial
£0.93
£0.77
41%
3/5 years
4.2%
4.24%
£0.34
2023
Monte Carlo
£1.28
Nil
42%
3 years
3.79%
0.0%
£0.76
2022
Monte Carlo
£1.30
Nil
42%
3 years
1.46%
0.0%
£0.72
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 £11.1 million in the year (2022: £14.1 million), which was composed of £8.9 million in relation to equity settled schemes and £2.2 million
in relation to cash settled elements (2022: £14.0 million and £0.1 million).
207
Notes to the consolidated financial statements continuedStrategic reportDirectors’ reportFinancial statementsShareholder informationTaylor Wimpey plc Annual Report and Accounts 2023 30 Related party transactions
31 Dividends
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.
Trading transactions
During the year, Group sales to joint ventures totalled £5.2 million (2022: £17.2 million) and
purchases totalled £7.0 million (2022: £5.4 million). Interest received from joint ventures
was £2.0 million (2022: £1.8 million). At 31 December 2023 receivables from joint ventures
were £45.7 million (31 December 2022: £40.5 million) and payables were £0.2 million
(31 December 2022: £0.9 million).
Remuneration of key management personnel
The key management personnel of the Group are the members of the Group Management
Team (GMT) as presented on page 95.
The remuneration information for the Executive Directors is set out in the Remuneration Report
on page 141. The aggregate compensation for the other members of the GMT is as follows:
Short term employee benefits
Post-employment benefits
Total (excluding share-based payments charge)
2023
£m
4.5
0.3
4.8
2022
£m
4.2
0.3
4.5
In addition to the amounts above, a share-based payment charge of £1.0 million (2022:
£2.1 million) related to share options held by members of the GMT.
Proposed
Interim dividend 2023: 4.79p (2022: 4.62p) per ordinary share
of 1p each
Final dividend 2023: 4.79p (2022: 4.78p) per ordinary share
of 1p each
Amounts recognised as distributions to equity holders
Paid
Final dividend 2022: 4.78p (2021: 4.44p) per ordinary share
of 1p each
Interim dividend 2023: 4.79p (2022: 4.62p) per ordinary share
of 1p each
2023
£m
169.1
169.4
338.5
168.8
169.1
337.9
2022
£m
162.9
169.0
331.9
160.9
162.9
323.8
The Directors recommend a final dividend for the year ended 31 December 2023 of 4.79 pence
per share (2022: 4.78 pence per share) subject to shareholder approval at the Annual General
Meeting, with an equivalent final dividend charge of c.£169 million based on the number of
shares in issue at the end of the year (2022: £168.8 million). The final dividend will be paid on
10 May 2024 to all shareholders registered at the close of business on 2 April 2024.
In accordance with IAS 10 ‘Events after the Reporting Period’, the proposed final dividend has
not been accrued as a liability at 31 December 2023.
208
Notes to the consolidated financial statements continuedStrategic reportDirectors’ reportFinancial statementsShareholder informationTaylor Wimpey plc Annual Report and Accounts 2023 32 Alternative performance measures
Net operating assets
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.
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.
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.
Profit on ordinary activities before financing (£m)
Adjusted for:
Share of results of joint ventures (£m) (Note 13)
Exceptional items (£m) (Note 6)
Operating profit (£m)
Revenue (£m) (Note 4)
Operating profit margin
2023
467.8
2.4
–
470.2
3,514.5
13.4%
2022
827.5
15.9
80.0
923.4
4,419.9
20.9%
Basic net assets (£m)
Adjusted for:
Cash (£m) (Note 16)
Borrowings (£m) (Note 17)
Net taxation (£m)
Accrued dividends (£m)
Net operating assets (£m)
Average basic net assets (£m)
Average net operating assets (£m)
Return on net operating assets
2023
4,523.4
2022
4,502.1
2021
4,314.0
(764.9)
87.0
(21.8)
–
3,823.7
4,512.8
3,721.6
(952.3)
88.5
(18.8)
–
3,619.5
4,408.1
3,535.1
(921.0)
84.0
(26.4)
–
3,450.6
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.
Operating profit (£m)
Average net operating assets (£m)
Return on net operating assets
2023
470.2
3,721.6
12.6%
2022
923.4
3,535.1
26.1%
209
Notes to the consolidated financial statements continuedStrategic reportDirectors’ reportFinancial statementsShareholder informationTaylor Wimpey plc Annual Report and Accounts 2023 32 Alternative performance measures continued
Net cash
Tangible net assets per share
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.
Basic net assets (£m)
Adjusted for:
Intangible assets (£m) (Note 11)
Tangible net assets (£m)
Ordinary shares in issue (millions)
Tangible net assets per share (pence)
2023
4,523.4
(2.6)
4,520.8
3,557.0
127.1
2022
4,502.1
(4.2)
4,497.9
3,557.0
126.5
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.
Revenue (£m) (Note 4)
Average net operating assets (£m)
Net operating asset turn
2023
3,514.5
3,721.6
0.94
2022
4,419.9
3,535.1
1.25
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.
Cash generated from operations (£m)
Operating profit (£m)
Cash conversion
Adjusted gearing
2023
288.9
470.2
61.4%
2022
705.0
923.4
76.3%
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.
Cash (£m) (Note 16)
Loans (£m) (Note 17)
Net cash (£m)
Land creditors (£m) (Note 18)
Adjusted net debt (£m)
Basic net assets (£m)
Adjusted gearing
2023
764.9
(87.0)
677.9
(516.1)
161.8
4,523.4
(3.6)%
2022
952.3
(88.5)
863.8
(725.6)
138.2
4,502.1
(3.1)%
33 Post balance sheet events
There were no material subsequent events affecting the Group after 31 December 2023.
210
Notes to the consolidated financial statements continuedStrategic reportDirectors’ reportFinancial statementsShareholder informationTaylor Wimpey plc Annual Report and Accounts 2023 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 £278.4 million
(2022: £897.6 million).
The financial statements were approved by the Board of Directors and authorised for issue on
27 February 2024. They were signed on its behalf by:
J Daly
Director
C Carney
Director
Note
4
5
5
6
7
6
7
8
9
10
11
12
2023
£m
4,509.5
67.6
4,577.1
686.2
666.4
1,352.6
(798.8)
–
(798.8)
553.8
5,130.9
–
(87.0)
(1.0)
5,042.9
291.3
777.9
(29.7)
536.0
3,467.4
5,042.9
2022
£m
4,500.6
63.4
4,564.0
512.9
868.3
1,381.2
(766.5)
(88.5)
(855.0)
526.2
5,090.2
–
–
(1.0)
5,089.2
291.3
777.9
(43.1)
536.0
3,527.1
5,089.2
Company balance sheet
at 31 December 2023
Non-current assets
Investments in Group undertakings
Trade and other receivables
Current assets
Trade and other receivables
Cash and cash equivalents
Current liabilities
Trade and other payables
Bank and other loans
Net current assets
Total assets less current liabilities
Non-current liabilities
Trade and other payables
Bank and other loans
Provisions
Net assets
Equity
Share capital
Share premium
Own shares
Other reserves
Retained earnings
Total equity
211
Strategic reportDirectors’ reportFinancial statementsShareholder informationTaylor Wimpey plc Annual Report and Accounts 2023
Company statement of changes in equity
for the year to 31 December 2023
Total equity at 1 January 2022
Profit for the year
Total comprehensive income for the year
New share capital subscribed
Own shares acquired and cancelled
Utilisation of own shares
Cash cost of satisfying share options
Capital contribution on share-based payments
Dividends approved and paid
Total equity at 31 December 2022
Profit for the year
Total comprehensive income for the year
Utilisation of own shares
Cash cost of satisfying share options
Capital contribution on share-based payments
Dividends approved and paid
Total equity at 31 December 2023
Note
8
15
15
Share
capital
£m
292.2
–
–
–
(0.9)
–
–
–
–
291.3
–
–
–
–
–
–
291.3
Share
premium
£m
777.5
–
–
0.4
–
–
–
–
–
777.9
–
–
–
–
–
–
777.9
Own
shares
£m
(14.6)
–
–
–
(33.8)
5.3
–
–
–
(43.1)
–
–
13.4
–
–
–
(29.7)
Other
reserves
£m
535.1
–
–
–
0.9
–
–
–
–
536.0
–
–
–
–
–
–
536.0
Retained
earnings
£m
3,060.4
897.6
897.6
–
(117.5)
–
(3.6)
14.0
(323.8)
3,527.1
278.4
278.4
–
(9.1)
8.9
(337.9)
3,467.4
Total
£m
4,650.6
897.6
897.6
0.4
(151.3)
5.3
(3.6)
14.0
(323.8)
5,089.2
278.4
278.4
13.4
(9.1)
8.9
(337.9)
5,042.9
212
Strategic reportDirectors’ reportFinancial statementsShareholder informationTaylor Wimpey plc Annual Report and Accounts 2023 Notes to the Company financial statements
1 Accounting policies
Investments in Group undertakings
The following 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 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.
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.
Going concern
Taxation
The Group, which the Company heads, has prepared forecasts, including certain sensitivities,
taking into account the Principal Risks identified on pages 74 to 77. 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.
The tax charge represents the sum of the tax currently payable and deferred tax.
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.
213
Strategic reportDirectors’ reportFinancial statementsShareholder informationTaylor Wimpey plc Annual Report and Accounts 2023 1 Accounting policies continued
Own shares
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.
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.
2 Particulars of employees
Directors
2023
Number
2
2022
Number
2
The Executive Directors received all of their remuneration, as disclosed in the Annual Report on
Remuneration on pages 131 to 152, from Taylor Wimpey UK Limited. This remuneration is
reflective of the Directors’ service to the Company and all its subsidiaries.
3 Auditors’ remuneration
Total audit fees
Non-audit fees
Total
2023
£m
0.2
–
0.2
2022
£m
0.2
–
0.2
A description of other services is included in Note 6 of the Group financial statements.
214
Notes to the Company financial statements continuedStrategic reportDirectors’ reportFinancial statementsShareholder informationTaylor Wimpey plc Annual Report and Accounts 2023 4 Investments in Group undertakings
6 Trade and other payables
Cost
At 1 January 2023
Capital contribution relating to share-based payments
At 31 December 2023
Provision for impairment
At 1 January 2023
At 31 December 2023
Carrying amount
At 31 December 2023
At 31 December 2022
Shares
£m
7,425.2
8.9
7,434.1
(2,924.6)
(2,924.6)
4,509.5
4,500.6
All investments are unlisted and information about all subsidiaries is listed on pages 219 to 225.
Due to Group undertakings
Other payables
Corporation tax creditor
Current
2023
£m
789.9
1.0
7.9
798.8
2022
£m
762.6
3.2
0.7
766.5
Non-current
2023
£m
–
–
–
–
2022
£m
–
–
–
–
Amounts due to Group undertakings are unsecured, repayable on demand and are
predominantly interest bearing.
7 Bank and other loans
€100.0 million 2.02% Senior Loan Notes 2023
€100.0 million 5.08% Senior Loan Notes 2030
2023
£m
–
87.0
87.0
2023
£m
–
87.0
87.0
2022
£m
88.5
–
88.5
2022
£m
88.5
–
88.5
5 Trade and other receivables
Due from Group undertakings
Other receivables
Current
2023
£m
683.0
3.2
686.2
2022
£m
510.1
2.8
512.9
Non-current
2023
£m
64.0
3.6
67.6
2022
£m
62.3
1.1
63.4
Amounts due for settlement within one year
Amount due for settlement after one year
Total borrowings
Amounts due from Group undertakings are unsecured, repayable on demand and are
predominantly interest bearing.
215
Notes to the Company financial statements continuedStrategic reportDirectors’ reportFinancial statementsShareholder informationTaylor Wimpey plc Annual Report and Accounts 2023 8 Share capital
Authorised:
22,200,819,176 (2022: 22,200,819,176) ordinary shares of
1p each
1,158,299,201 (2022: 1,158,299,201) deferred ordinary shares
of 24p each
2023
£m
222.0
278.0
500.0
9 Share premium
2022
£m
222.0
278.0
500.0
At 1 January
Shares issued in year
At 31 December
10 Own shares
Number of
ordinary shares
Number of
deferred
ordinary shares
£m
Own shares
2023
£m
777.9
–
777.9
2023
£m
29.7
2022
£m
777.5
0.4
777.9
2022
£m
43.1
Issued and fully paid:
31 December 2022
31 December 2023
The Company has two classes of shares:
3,556,985,103
3,556,985,103
1,065,566,274
1,065,566,274
291.3
291.3
• 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 (2022: 0.3 million) ordinary shares to satisfy option
exercises. During the prior year the Company purchased 116,942,362 of its own ordinary
shares, of which 25,000,000 were transferred to be held in treasury and the remainder
cancelled. The average share price of the purchased shares was 128.27 pence for a total cost,
including expenses, of £151.3 million.
These comprise ordinary shares of the Company:
Ordinary shares held in trust and treasury for bonus, option and
performance award plans
Number
Number
21.9m
30.9m
During the current and prior year, Taylor Wimpey plc purchased none of its own shares to be
held in the ESOTs and in the prior year purchased £33.8 million of its own shares to be held in
treasury. The market value of the shares held in the ESOT and treasury at 31 December 2023
was £32.2 million (2022: £31.4 million) and their nominal value was £0.2 million (2022:
£0.4 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 2023 were
covered by outstanding options and conditional awards over shares at that date.
216
Notes to the Company financial statements continuedStrategic reportDirectors’ reportFinancial statementsShareholder informationTaylor Wimpey plc Annual Report and Accounts 2023 11 Other reserves
14 Contingent liabilities
At 1 January
Shares repurchased and cancelled in year
At 31 December
2023
£m
536.0
–
536.0
2022
£m
535.1
0.9
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 (2022: £32.4 million) in respect of the redemption of the Company’s
shares, which is non distributable.
12 Retained earnings
Retained earnings of £3,467.4 million (2022: £3,527.1 million) includes profit for the year
of £278.4 million (2022: £897.6 million), of which £266.0 million (2022: £1,010.5 million)
is dividends received from subsidiaries. Included in retained earnings is £934.4 million
(2022: £923.7 million) which is not distributable.
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 £76.7 million at 31 December 2023
(2022: £76.6 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. Following the 2019 valuation, Taylor Wimpey UK Limited is required
to contribute up to £20.0 million per annum into an escrow account between April 2021 and
March 2024. The first six months of contributions (£10.0 million) between 1 April 2021 and
30 September 2021 were guaranteed. From 1 October 2021, payments into the escrow
account are subject to a quarterly funding test with the first funding test having an effective date
of 30 September 2021. In addition, £5.1 million per annum from the Pension Funding
Partnership and £2.0 million per annum to cover scheme expenses is due.
13 Share-based payments
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 Group financial statements. The Company did not recognise any expense
related to equity-settled share-based payment transactions in the current or preceding year.
217
Notes to the Company financial statements continuedStrategic reportDirectors’ reportFinancial statementsShareholder informationTaylor Wimpey plc Annual Report and Accounts 2023 15 Dividend
Proposed
Interim dividend 2023: 4.79p (2022: 4.62p) per ordinary share
of 1p each
Final dividend 2023: 4.79p (2022: 4.78p) per ordinary share of
1p each
Amounts recognised as distributions to equity holders
Paid
Final dividend 2022: 4.78p (2021: 4.44p) per ordinary share
of 1p each
Interim dividend 2023: 4.79p (2022: 4.62p) per ordinary share
of 1p each
2023
£m
169.1
169.4
338.5
168.8
169.1
337.9
2022
£m
162.9
169.0
331.9
160.9
162.9
323.8
The Directors recommend a final dividend for the year ended 31 December 2023 of 4.79 pence
per share (2022: 4.78 pence per share) subject to shareholder approval at the Annual General
Meeting, with an equivalent final dividend charge of c.£169 million based on the number of
shares in issue at the end of the year (2022: £168.8 million). The final dividend will be paid on
10 May 2024 to all shareholders registered at the close of business on 2 April 2024.
In accordance with IAS 10 ‘Events after the Reporting Period’, the proposed final dividend has
not been accrued as a liability at 31 December 2023.
218
Notes to the Company financial statements continuedStrategic reportDirectors’ reportFinancial statementsShareholder informationTaylor Wimpey plc Annual Report and Accounts 2023 Particulars of subsidiaries, associates and joint ventures
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
219
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
J.R. Young (Assemblies) 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
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
Strategic reportDirectors’ reportFinancial statementsShareholder informationTaylor Wimpey plc Annual Report and Accounts 2023 Particulars of subsidiaries, associates and joint ventures continued
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.
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
Academy Central LLP
Bordon Developments Holdings Limited
Chobham Manor LLP
Chobham Manor Property Management Limited
Falcon Wharf Limited
GWNW City Developments Limited
Paycause Limited
Taylor Wimpey Pension Trustees Limited
Triumphdeal Limited
Vumpine Limited
Whitehill & Bordon Development Company BV Limited
Whitehill & Bordon Development Company Phase 1a Limited
Whitehill & Bordon Regeneration Company Limited
Wimpey Laing Overseas Limited
Wimpey Laing Limited
Winstanley & York Road Regeneration LLP
Company Name
Bryant Homes Scotland Limited
George Wimpey East Scotland Limited
George Wimpey West Scotland Limited
London and Clydeside Estates Limited
London and Clydeside Holdings Limited
Strada Developments Limited
Taylor Wimpey (General Partner) Limited
Taylor Wimpey (Initial LP) Limited
Taylor Wimpey Scottish Limited Partnership
Whatco England Limited
Wilcon Homes Scotland Limited
% Owned
62%
50%
50%
50%
50%
50%
66.67%
99%
50%
50%
50%
50%
50%
50%
50%
50%
% Owned
100%
100%
100%
100%
100%
50%
100%
100%
100%
100%
100%
220
Strategic reportDirectors’ reportFinancial statementsShareholder informationTaylor Wimpey plc Annual Report and Accounts 2023 Particulars of subsidiaries, associates and joint ventures continued
Other entities incorporated in the United Kingdom, unless otherwise stated, and the Group’s ownership share are shown below.
% Owned Registered Office
50% 11 Tower View, Kings Hill, West Malling, ME19 4UY
33.14% Bath House, 6-8 Bath Street, Bristol, BS1 6HL
50% Kent House, 14-17 Market Place, London, W1W 8AJ
50% Countryside House, The Drive, Great Warley, Brentwood, CM13 3AT
54.44% 250 Aztec West, Almondsbury, Bristol, BS32 4TR
50% Gallagher House, Gallagher Business Park, Warwick, CV34 6AF
50% Countryside House, The Drive, Great Warley, Brentwood, CM13 3AT
19.27% 6 Drakes Meadow, Penny Lane, Swindon, SN3 3LL
100% 9366, 49 St NW, Edmonton, AB T6B 2L7, Canada
50% 3rd Floor Citygate, St. James’ Boulevard, Newcastle upon Tyne, NE1 4JE
28.35% 6 Drakes Meadow, Penny Lane, Swindon, SN3 3LL
50% Second Floor, Arena Court, Crown Lane, Maidenhead, SL6 8QZ
50% 250 Aztec West, Almondsbury, Bristol, BS32 4TR
50% Berkeley House, 19 Portsmouth Road, Cobham, KT11 1JG
100% C/Aragón 223-223A, 07008 Palma de Mallorca, Spain
100% 17 Bayside Road, Gibraltar
100% 190 Elgin Avenue, George Town, KY1-9008, Cayman Islands
Company Name
Bishops Park Limited
Bishop’s Stortford North Consortium Limited
Bromley Park (Holdings) Limited
Bromley Park Limited
Countryside 27 Limited
Emersons Green Urban Village Limited
Gallagher Bathgate Limited
Greenwich Millennium Village Limited
Haydon Development Company Limited
Morrison Land Development Inc
Newcastle Great Park (Estates) Limited
North Swindon Development Company Limited
Padyear Limited
Quedgeley Urban Village Limited
St George Little Britain (No.1) Limited
St George Little Britain (No.2) Limited
Taylor Wimpey de España S.A.U.
Taylor Woodrow (Gibraltar) Limited
Wisley Property Investments Limited
221
Strategic reportDirectors’ reportFinancial statementsShareholder informationTaylor Wimpey plc Annual Report and Accounts 2023 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.
Company Name
Ada Gardens Resident Management Company Limited
Admiral Park (Tongham) Management Company Limited
Albion Lock (Sandbach) Management Company Limited
Alyn Meadows Management Company Limited
Apsham Grange (Topsham) Management Company Limited
Barker Butts Lane Management Company Limited
Barry Waterfront Residents Management Company Limited
Battersea Exchange Management Company Limited
Biggleswade Management Company Limited*1
Billington Grove (SM) Management Company Limited
Bishop Stortford NPB Limited
Bishop Stortford NPE Limited
Bramcote Residents Management Company Limited
Bramley Park Management Company Limited
Brantham Residential Estate Management Company Limited
Broadleaf Park (Rownhams) Management Company Limited
Broadway Fields Residents Management Company Limited
Broken Stone Road (Blackburn) Residents Management Company Limited
Broughton Gate (Milton Keynes) Management Company Limited
Brunswick Dock (Liverpool) Management Company Limited*
Buckingham Park (Weedon Hill) Management Company Limited
Buckton Fields (Northampton) Apartment Management Company Limited
Buckton Fields (Northampton) Estate Management Company Limited
Burdon Lane (Ryhope) Residents Management Company Limited
Canford Vale Management Company Limited
Capital Court Property Management Limited*2
Cherrywood Gardens Residents Management Company Limited
Cliddesdon Reach Management Company Limited
Clipstone Park (Leighton Buzzard) Management Company Limited
Clover House (Cranbrook) Management Company Limited
Coatham Vale and Berrymead Gardens Residents Management Company Limited
Coed Issa Management Company Limited
Colney Manor Resident Management Company Limited
Concept (EA) Management Company Limited
Coopers Grange (Bishop Stortford) Residents Management Company Ltd
Coppice Place Management Company Limited
Coronation Square Residents Management Company Limited
Cotswold View Residents Association Limited
222
Reference
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12
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1
4
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2
3
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28
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1
4
1
17
3
25
3
18
18
18
17
10
29
1
3
4
18
8
8
3
8
3
3
1
Company Name
Cromwell Place Residents Management Company Limited
Crookham Park (Church Crookham) Management Company Limited*6
Cwm Gelli (Blackwood) Residents Management Company Limited
Denne Road Management Company Limited
Diglis Water Estate Management Company Limited
Dunton Green Management Company (No.1) Limited
Dunton Green Management Company (No.2) Limited
Earls Court Farm Worcester Residents Management Company Limited
Edlogan Wharf Community Interest Company
Elgar Place Management Company Limited
Emberton Grange Management Company Limited
Evergreens (Beaufort Park) Management Company Limited
Forge Wood (Crawley) Management Company Limited
Foxwood Garden Village Residents Management Company Limited
Franklin Park (Stevenage) Residents Management Company Limited
Glasdir Management Company Limited
Great Hall Park Residents Association Limited
Greenfields Park (EA) Management Company Limited
Gresley Meadow Management Company Limited
Handley Chase (Sleaford) Residents Management Company Limited
Handley Gardens (Lancaster Avenue) Block Management Company Limited
Handley Gardens Management CIC
Hanwell Fields 3B Management Company Limited
Harebell Meadows and Hartburn Grange Residents Management Company Limited
Hastings Manor (Hugglescote) Residents Management Company Limited
Hay Common Management Company Limited
Haybridge (Wells) Management Company Limited
Hayes Green Management Company Limited
Heritage Park Gravesend Residents Association (No.1) Limited
Heritage Park Gravesend Residents Association (No.2) Limited
Heritage Park Gravesend Residents Association (No.3) Limited
Heritage Park Gravesend Residents Association (No.4) Limited
Heritage Park Gravesend Residents Association (No.5) Limited
Herrington View Residents Management Company Limited
Hethersett Residents Management Company Limited
Humberstone Residents Estate Management Company Limited
Hunters Meadow Residents Association Limited
Jasmine Park (Whirley) Management Company Limited
Reference
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26
1
1
1
1
1
14
1
1
19
28
30
17
15
1
1
5
16
13
3
6
1
17
7
4
4
3
1
1
1
1
1
18
8
7
3
1
Strategic reportDirectors’ reportFinancial statementsShareholder informationTaylor Wimpey plc Annual Report and Accounts 2023 Particulars of subsidiaries, associates and joint ventures continued
Company Name
K Reach (EA) Management Company Limited
Kentmere Place Residents Association Limited
Kesgrave K Management Company Limited
Kingsbourne (Nantwich) Community Management Company Limited
Kingsley Grange (Wickford) Residents Association Limited
Leawood (Management) Company Limited*
Lindridge Chase Residents Management Company Limited
Lion Mills (EA) Management Company Limited
Longridge Farm and Greendale Park Residents Management Company Limited
Longshore and Shoreview Residents Management Company Limited
Macintosh Mills Car Park (Management) Limited
Maidenfields Estate Residents Management Company Limited
Manor Court (Prescot) Management Company Limited
Manor Park Sprowston Residents Management Company Limited
Manor Rise Block C Management Company Limited
Manor View (East Grinstead) Residents Management Company Limited
Mayfield Gardens Management Company Limited
Melton Manor (Melton Mowbray) Residents Company Limited
Millers Brow Management Company Limited
Millstream Meadows (Middlewich) Management Company Limited
Monmore Grange Management Company Limited
Mountbatten Mews (Honiton) Management Company Limited
Netherton Grange Residents Management Company Limited
Newbridge Gardens Management Company (No 1) Limited
Newbridge Gardens Management Company (No 2) Limited
Newcastle Great Park (Estates) Limited*3
Newcastle Great Park Management Company Limited*5
NGP Management Company (Cell A) Limited*3
NGP Management Company (Cell D) Limited*3
NGP Management Company (Cell E) Limited*3
NGP Management Company (Cell F) Limited*3
NGP Management Company (Commercial) Limited*3
NGP Management Company (Town Centre) Limited*3
NGP Management Company Residential (Cell G) Limited*
Nightingale Park Residents Association Limited
North Wharf Gardens Management Company Limited
Nunnery Fields (Management No.1) Limited
Nunnery Fields (Management) Limited
Oak Park (Cheddar) Management Company Limited
Oakapple 2 Resident Management Company Limited
Oaklands Residents Management Company Limited
223
Reference
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1
1
8
8
1
16
3
18
18
1
19
1
8
26
31
3
7
1
35
3
4
3
5
5
20
20
20
20
20
20
20
20
20
8
1
5
5
3
11
19
Company Name
Ockley Park (Hassocks) (Block E) Residents Management Company Limited
Ockley Park (Hassocks) (Blocks A & B) Residents Management Company Limited
Ockley Park (Hassocks) Residents Management Company Limited
Orchard Grove (Comeytrowe) Management Company Limited
Orsett Village Residents Association Limited
Pages Priory Phase Two (Leighton Buzzard) Management Company Limited
Palace View Apartments Management Company Limited
Parc Nedd Residents Association Limited
Park Farm (South East) Management Company Limited
Parklands (Woburn Two) Management Company Limited
Parsons Chain Residents Management Company Limited
Pathfinder Place (Melksham) Management Company Limited
Peartree Village Management Limited
Plas Brymbo Landscaping Management Company Limited
Plas Brymbo Management Company Limited
Poppyfields (Benwick) Residents Association Limited
Postmark Residents Management Company Limited
Q.Hill (EA2) Management Company Limited
Queen Eleanor's Heights Residents Association Limited
Redhill Gardens Residents Management Company Limited
Redhill Park Limited*3
Regency Place (Shiplake) Management Company Limited
Robin Gardens Management Company Limited
Romans Gate (Old Stratford) Residents Association Limited
Saxon Park Management Company Limited
Seagrave Park Residents Management Company Limited
Sherdley Green Residents Management Company Limited
Sherford 1A Parcel 4 Management Company Limited
Sherford 1A Parcel 5 Management Company Limited
Sherford 1B Parcel EFGJ Management Company Limited
Sherford Estate Management Company Limited
Shopwyke Lakes Chichester (Management) Company Limited
Southgate Maisonettes (27 and 28) Limited
Speakman Gardens Residents Association Limited
St Augustines Place Herne Bay Management Company Limited
St Crispin Area H Management Company Limited
St Dunstans Apartment Management Company Limited*
Stanbury View (Parklands) Management Company Limited
Stanhope Gardens (Wellesley) (Block A) Residents Management Company Limited
Stanhope Gardens (Wellesley) (Blocks B-D) Residents Management Company Limited
Stanhope Gardens (Wellesley) (Block F) Residents Management Company Limited
Reference
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26
26
4
8
3
1
1
21
3
16
4
9
33
1
1
1
8
1
1
27
1
7
1
1
7
17
3
3
3
3
4
1
1
4
1
1
26
26
26
26
Strategic reportDirectors’ reportFinancial statementsShareholder informationTaylor Wimpey plc Annual Report and Accounts 2023 Particulars of subsidiaries, associates and joint ventures continued
Company Name
Stanhope Gardens (Wellesley) (Block G) Residents Management Company Limited
Stonebrooke Gardens Management Company Limited
Stortford Fields Estate Management Company Limited
Stour Valley Management Phase 1 Limited
Summer Downs Residents Management Company Limited
Sunderland House (Handley Gardens) Resident Management Company Limited
Telford Millennium Management Company Limited
Tent 1 Management Company Limited
Thamesview (Plots 425 to 560) Residents Association Limited
The Apartments at Lindridge Chase Residents Management Company Limited
The Arboretum (Haverhill) Residents Management Company Limited
The Asps Residents Management Company Limited
The Atrium (Overstone) Residents Management Company Limited
The Avenue Number 4 Management Company Limited
The Avenue Number 5 Management Company Limited
The Beaumont Park Management Company Limited*
The Breme Park (Bromsgrove) Management Company Limited
The Burleigh Rise Management Company Limited*
The Coach Houses (Northampton) Residents Association Limited
The Copse (Mawsley) Management Company Limited
The Grange at Newton Management Company Limited
The Grange Number One Desborough Management Company Limited
The Heath RMC Limited
The Highgate (Durham) Management Company Limited*
The Junction Flat Management Company Limited*
The Laurels (Kirby Cross) Management Company Limited
The Merriemont Management Company Limited*
The Middlefield Springs Management Company Limited
The Orchard (Hadham) Residents Management Company Limited
The Orchard (Willow Street) Management Company Limited
The Orchard Grove (Playground) Management Company Limited*
The Pennington Wharf Community Management Company Limited
The Quarters Quedgeley Management Company Limited
The Ruxley Towers Management Company Limited*
The Seasons Residents Association Limited
The Silverdale 9 Flats Management Company Limited
The Silverdale 9 Houses Management Company Limited
The Skylarks (Warfield) Management Company Limited
The Spinney Residents Management Company Limited*
The Swan Gardens Management Company Limited*
The Vale RMC Limited
224
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1
1
1
26
1
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3
Company Name
The Weekley Wood Management Company Limited*
The Wharf Lane (Solihull) No.1 Management Company Limited
The Willowfields Management Company Limited*
The Woodlands At Shevington Management Company Limited
The Woodway Gate Management Company No.1 Limited
Vision at Meanwood Residents Management Company Limited
Watton Management Company Limited*4
Webheath (Redditch) Management Company Limited
Wellington Paddocks (Walmer) Management Company Limited
Westbridge Park (Auckley) Management Company Limited
Whalley Road (Barrow) Management Company Limited
White House Farm (Emersons Green) Management Company Limited
Whitehouse Farm Apartments (Emersons Green) Management Company Limited
Willow Lake (Bletchley One) Management Company Limited
Willow Lake (Bletchley Two) Management Company Limited
Willowcroft (SM) Management Company Limited
Windermere Grange Residents Management Company Limited
Winnington Village Community Management Company Limited
Woodside Vale (Leeds) Residents Management Company Limited
Wool Gardens (Crewkerne) Management Company Limited
Wootton Meadows Residents Association Limited
Worlebury House Apartments Residents Management Company Limited
Wrexham Road Garden Village Management Company Limited
Wyrley View Residents Management Company Limited
Reference
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1
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12
1
17
32
3
1
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19
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* Private Limited Company.
1 60% Ownership.
2 17.2% Ownership.
3 50% Ownership.
4 33.3% Ownership.
5 11.11% Ownership.
6 Group representatives on Board only.
Strategic reportDirectors’ reportFinancial statementsShareholder informationTaylor Wimpey plc Annual Report and Accounts 2023 Particulars of subsidiaries, associates and joint ventures continued
Reference
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Registered Address
Gate House, Turnpike Road, High Wycombe, Buckinghamshire, HP12 3NR
Newton House, 2 Sark Drive, Newton Leys, Milton Keynes, MK3 5SD
Queensway House, 11 Queensway, New Milton, BH25 5NR
Fisher House, 84 Fisherton Street, Salisbury, SP2 7QY
94 Park Lane, Croydon, CR0 1JB
1 London Road, Brentwood, Essex, CM14 4QP
2 Hills Road, Cambridge, CB2 1JP
RMG House, Essex Road, Hoddesdon, EN11 0DR
Countryside House, The Drive, Great Warley, Brentwood, Essex, CM13 3AT
4 Capital Court, Bitten Road, Sowton Industrial Estate, Exeter, EX2 7FW
Gateway House, 10 Coopers Way, Southend-On-Sea, SS2 5TE
Chiltern House, 72-74 King Edward Street, Macclesfield, Cheshire, SK10 1AT
Unit 2, The Osiers Business Park, Laversall Way, Leicester, LE19 1DX
Redrow House, St Davids Park, Ewloe, Flintshire, CH5 3RX
Imperial Place, Building 2, Maxwell Road, Borehamwood, WD6 1JN
Second Floor, Fore 2, Fore Business Park, Solihull, B90 4SS
Unit 7, Portal Business Park, Easton Lane, Tarporley, Cheshire, CW6 9DL
Cheviot House, Beaminster Way, Newcastle upon Tyne, NE3 2ER
Reference
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Registered Address
Vantage Point, 23 Mark Road, Hemel Hempstead, HP2 7DN
3rd Floor, Citygate, St. James' Boulevard, Newcastle upon Tyne, NE1 4JE
Foundation House, Coach & Horses Passage, Tunbridge Wells, TN2 5NP
Boulton House, 17-21 Chorlton Street, Manchester, M1 3HY
730 Waterside Drive, Aztec West, Almondsbury, Bristol, BS32 4SD
137 Newhall Street, Birmingham, B3 1SF
384a Deansgate, Manchester, Greater Manchester, M3 4LA
Victoria House, 178-180 Fleet Road, Fleet, GU51 4DA
5 Market Yard Mews, 194-204 Bermondsey Street, London, SE1 3TQ
Suite 35, Interchange Business Centre, Howard Way, Newport Pagnell, MK16 9PY
Unit 2, Tournament Court, Edgehill Drive, Warwick, CV34 6LG
Unit 8, The Forum, Minerva Business Park, Peterborough, PE2 6FT
One Eleven, Edmund Street, Birmingham, West Midlands, B3 2HJ
11th Floor, Two Snow Hill, Birmingham, B4 6WR
Carvers Warehouse, 77 Dale Street, Manchester, M1 2HG
13a, Building Two, Canonbury Yard, 190 New North Road, London, N1 7BJ
1 Lumsdale Road, Stretford, Manchester, M32 0UT
225
Strategic reportDirectors’ reportFinancial statementsShareholder informationTaylor Wimpey plc Annual Report and Accounts 2023 Trade and other payables excluding
land creditors
Land creditors
Retirement benefit obligations
Lease liabilities
Provisions
Non-current liabilities (excluding debt)
Cash and cash equivalents
Bank and other loans
Taxation balances
Basic net assets
Statistics
Basic earnings per share
Adjusted basic earnings per share
Tangible net assets per share
Dividends paid (pence per share)
Number of ordinary shares in issue at
the year end (millions)
UK short term landbank (plots)
UK average selling price (£000)
UK completions (homes including JVs)
2023
£m
2022
£m
2021
£m
2020
£m
2019
£m
(80.9)
(214.9)
(26.5)
(31.0)
(161.8)
(515.1)
764.9
(87.0)
21.8
4,523.4
9.9p
9.9p
127.1p
9.57
3,557.0
80,323
324
10,438
(76.7)
(330.6)
(29.9)
(19.7)
(183.6)
(640.5)
952.3
(88.5)
18.8
4,502.1
18.1p
19.8p
126.5p
9.06
3,557.0
82,830
313
13,773
(137.1)
(492.2)
(37.3)
(20.4)
(119.7)
(806.7)
921.0
(84.0)
26.4
4,314.0
15.3p
18.0p
118.1p
8.28
3,648.6
85,376
300
14,087
(131.8)
(328.0)
(89.5)
(21.6)
(59.9)
(630.8)
823.0
(103.6)
32.6
4,016.8
6.3p
6.5p
110.0p
–
3,645.4
77,435
288
9,609
(110.4)
(389.3)
(85.0)
(20.3)
(55.7)
(660.7)
630.4
(84.7)
(38.1)
3,307.8
20.6p
20.3p
100.5p
18.34
3,283.1
75,612
269
15,719
Five year review (unaudited)
Revenue
Profit on ordinary activities before
financing
Adjust for: Share of results of joint
ventures
Adjust for: Exceptional items
Operating profit
Net finance income/(costs)
Profit for the financial year before
taxation and exceptional items
Exceptional items
Taxation charge including taxation on
exceptional items
Profit for the financial year
Balance sheet
Intangible assets
Property, plant and equipment
Right-of-use assets
Interests in joint ventures
Other financial assets
Non-current trade and other
receivables
Non-current assets (excluding tax)
Inventories
Other current assets (excluding tax
and cash)
Trade and other payables excluding
land creditors
Land creditors
Lease liabilities
Provisions
Net current assets (excluding tax
and net cash)
226
2023
£m
3,514.5
2022
£m
4,419.9
2021
£m
4,284.9
2020
£m
2,790.2
2019
£m
4,341.3
467.8
827.5
698.2
282.4
856.8
2.4
–
470.2
3.6
473.8
–
15.9
80.0
923.4
(15.5)
907.9
(80.0)
(124.8)
349.0
(184.3)
643.6
2.6
22.0
37.8
70.5
10.3
4.2
17.3
26.3
74.0
10.0
5.4
125.0
828.6
(24.0)
804.6
(125.0)
(124.1)
555.5
6.6
21.7
26.5
85.4
10.0
7.9
10.0
300.3
(25.9)
274.4
(10.0)
(47.4)
217.0
8.1
24.0
27.5
82.2
–
8.0
(14.3)
850.5
(28.9)
821.6
14.3
(162.0)
673.9
7.0
25.6
27.4
55.3
–
28.1
171.3
5,169.6
12.2
144.0
5,169.6
27.5
177.7
4,945.7
26.3
168.1
4,534.7
43.7
159.0
4,196.0
124.4
191.2
168.2
189.1
161.0
(691.6)
(301.2)
(8.8)
(124.9)
(735.8)
(395.0)
(7.3)
(106.7)
(587.7)
(314.2)
(7.0)
(125.4)
(571.4)
(347.9)
(6.4)
(70.6)
(634.9)
(339.9)
(7.6)
(72.7)
4,167.5
4,116.0
4,079.6
3,727.5
3,301.9
Strategic reportDirectors’ reportFinancial statementsShareholder informationTaylor Wimpey plc Annual Report and Accounts 2023 Notice of Annual General Meeting
Dear Shareholder
Annual General Meeting (AGM)
The 2024 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 Tuesday 23 April 2024
at 10:30am.
Attending the AGM
If you wish to attend and vote at the AGM in person, please bring with you the notice of
availability letter. 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.
Audiocast
This year we are pleased to provide an electronic facility for shareholders who are unable to
attend the AGM in person, to follow the AGM remotely and submit questions to the Board on
the business of the meeting, should they wish to do so. This can be accessed through the
AGM section of our website at www.taylorwimpey.co.uk/2024AGM and following the link to the
audiocast on the day of the AGM.
You will then be prompted to enter your 11-digit ‘Investor Code’ (IVC), including any leading
zeros, and ‘PIN’. Your PIN is the last four digits of your IVC. This will authenticate you as a
shareholder. More information on how to join the AGM can be found on page 228.
Please note that shareholders joining the audiocast will not be able to vote in real time via the
audiocast platform. To ensure your vote is counted, you are encouraged to appoint the Chair
of the AGM as your proxy as early as possible. Further information on how to submit your proxy
can be found in the ‘how to vote’ section opposite.
227
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 Friday 19 April 2024. 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 236 to
238. 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 Friday 19 April 2024. 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
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportFinancial statementsShareholder informationDirectors’ report Notice of Annual General Meeting continued
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.
How to join the audiocast
We are pleased to be able to provide an electronic facility for shareholders unable to attend the
AGM in person to follow the AGM remotely and submit questions to the Board on the business
of the meeting, should they wish to do so. This can be accessed through the AGM section of
our website at www.taylorwimpey.co.uk/2024AGM and following the link to the audiocast on
the day of the AGM.
Once you have followed the link, you will then be prompted to enter your unique 11 digit ‘Investor
Code’ (IVC), including any leading zeros, and ‘PIN’. Your PIN is the last 4 digits of your IVC. This
will authenticate you as a shareholder. Your IVC can be found on your share certificate, or Signal
Shares users (www.signalshares.com) will find this under ‘Manage your account’ when logged in
to the Signal Shares portal. You can also obtain this by contacting Link Group, our Registrar, by
calling +44 (0)371 277 1020. Lines are open from 9:00am to 5:30pm Monday to Friday, calls are
charged at the standard geographic rate and will vary by provider. Calls outside the UK will be
charged at the applicable international rate.
Access to the audiocast will be available 30 minutes before the start of the AGM, although you
will not be able to submit questions until the meeting is declared open.
If you wish to appoint someone to join the audiocast on your behalf, please contact Link Group
on +44 (0)371 277 1020 in order to obtain their IVC and PIN. It is suggested that you do this
as soon as possible and at least 48 hours (excluding non-business days) before the meeting.
If your shares are held within a nominee and you wish to attend the AGM via the audiocast,
you will need to contact your nominee as soon as possible. Your nominee will need to have
completed a corporate letter of representation and presented this to Link Group, our Registrar,
no later than 72 hours before the start of the meeting in order that they can obtain your unique
IVC and PIN to enable you to attend the audiocast.
Audiocast
The electronic meeting will be broadcast in audio format with presentation slides. Once logged in,
and at the commencement of the meeting, you will be able to listen to the proceedings of the
meeting on your device, as well as being able to see the slides of the meeting (which will include
the resolutions to be put forward to the meeting); these slides will progress automatically as the
meeting progresses.
Questions
Shareholders listening to the AGM via the audiocast will be invited to ask questions by the Chair.
Shareholders may submit a question via the Q&A box which is found on the bottom right hand
side of the player. Once you have typed your question please click the ‘Submit’ button.
Shareholders are also welcome to submit questions in advance of the meeting by email
to CoSec@taylorwimpey.com. Please provide any advance questions by 10:30am on
Friday 19 April 2024. A full transcript of the questions asked at the AGM and the answers
provided will be made available on the Company’s website as soon as practicable following
the conclusion of the AGM.
Requirements
An active internet connection is required at all times in order to allow you to join the meeting,
submit questions and listen to the audiocast. It is your responsibility to ensure you remain
connected for the duration of the meeting.
228
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportFinancial statementsShareholder informationDirectors’ report Notice of Annual General Meeting continued
Notice of Annual General Meeting
Notice is hereby given of the eighty ninth Annual General Meeting (the AGM) of the Company
to be held on Tuesday 23 April 2024 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 Auditor’s Report and Financial Statements for the year ended 31 December 2023.
2. To declare due and payable on 10 May 2024 a final dividend of 4.79 pence per ordinary
share of the Company for the year ended 31 December 2023 to shareholders on the
register at close of business on 2 April 2024.
3. To re-elect as a Director, Robert Noel.
4. To re-elect as a Director, Jennie Daly.
5. To re-elect as a Director, Chris Carney.
6. To re-elect as a Director, Humphrey Singer.
7. To re-elect as a Director, Irene Dorner.
8. To re-elect as a Director, Lord Jitesh Gadhia.
9. To re-elect as a Director, Scilla Grimble.
10. To re-elect as a Director, Mark Castle.
11. To re-elect as a Director, Clodagh Moriarty.
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.
229
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 £11,788,539 (such amount to be reduced by any
allotments or grants made under paragraph b below, in excess of £11,788,539); and
b. comprising equity securities (as defined in the Companies Act 2006) up to a nominal
amount of £23,577,078 (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.
ii.
to ordinary shareholders in proportion (as nearly as may be practicable) to their
existing holdings; and
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 22 July 2025)
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
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportFinancial statementsShareholder informationDirectors’ report Notice of Annual General Meeting continued
ii.
to holders of other equity securities, as required by the rights of those securities,
or as the Board otherwise considers necessary,
b.
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 £3,536,561.
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 Section 28 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 22 July 2025) 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 £3,536,561; 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
230
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 Section 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 22 July 2025) 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.
b.
c.
d.
e.
the maximum number of ordinary shares hereby authorised to be purchased shall be
353,656,100;
the minimum price (exclusive of expenses) which may be paid for ordinary shares is
1 pence per ordinary share;
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;
the authority hereby conferred shall expire at the earlier of the conclusion of the next
Annual General Meeting of the Company and 22 October 2025 unless such authority
is renewed prior to such time; and
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.
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportFinancial statementsShareholder informationDirectors’ report Notice of Annual General Meeting continued
Special business
Ordinary resolutions:
Explanatory notes to the resolutions
The notes on the following pages explain the proposed resolutions.
18. That the Directors’ Remuneration Report for the year ended 31 December 2023, as set out
on pages 131 to 133 and 140 to 152 of the Annual Report and Accounts for the financial
year ended 31 December 2023, be approved in accordance with Section 439 of the
Companies Act 2006.
Resolutions 1 to 14 and 18 to 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.
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
27 February 2024
231
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 2018 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 2023 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 4.79 pence per ordinary share in
respect of the year ended 31 December 2023. If approved at the AGM, the dividend will be
paid on 10 May 2024 to shareholders who are on the Register of Members at the close of
business on 2 April 2024.
Dividend Re-Investment Plan
Subject to shareholders approving the dividend as set out in resolution 2 at the AGM scheduled
for 23 April 2024, the Company will be offering residents in the United Kingdom a Dividend
Re-Investment Plan (DRIP). The DRIP is provided and administered by the DRIP plan
administrator, Link Market Services Trustees 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.
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportFinancial statementsShareholder informationDirectors’ report Notice of Annual General Meeting continued
The DRIP will operate automatically in respect of the final dividend for 2023 (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 2023 final dividend) and
any special dividends, are available at www.signalshares.com or on request from the Registrar,
Link Group, Central Square, 29 Wellington Street, Leeds, LS1 4DL, email: shares@linkgroup.co.uk
or call +44 (0)371 664 0391. 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 re-election, as appropriate, by shareholders at the AGM.
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
131 to 152 of this Annual Report and Accounts. Full biographical information concerning each
Director can be found on pages 92 and 94.
The following summary information is given in support of the Board’s proposal for each Director
standing for re-election.
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 – 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.
Humphrey Singer – offers himself for re-election
Humphrey has been a Non Executive Director since 9 December 2015. The Board is satisfied
that he is independent in character and judgement in applying his expertise at meetings of the
Board, the Audit Committee (which he Chairs) and the Nomination and Governance Committee,
and that he will be able to allocate sufficient time to the Company to discharge his
responsibilities effectively. Humphrey’s detailed knowledge and experience of financial reporting
by major listed companies makes him well-qualified to hold to account the external Auditors
and properly assess the Group’s internal audit and control processes.
Lord Jitesh Gadhia – offers himself for re-election
Jitesh has been a Non Executive Director since 1 March 2021. 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. Jitesh’s executive and non executive
experience and involvement in public affairs has added 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.
232
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportFinancial statementsShareholder informationDirectors’ report Notice of Annual General Meeting continued
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 from 26 February 2020 to 27 April 2023 and Chair of the
Nomination and Governance Committee in that time. 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. 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.
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 twenty years of varied customer-focused experience across retail,
strategy, digital transformation and e-commerce.
The Board confirms that each of the above Directors has recently been subject to formal
performance evaluation, externally conducted, details of which are set out in the Nomination
and Governance Committee report in the Annual Report on pages 107 to 112, 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 2024 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 2023 are given in Note 6 on page 183 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 27 April 2023 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 £11,788,539 (representing
1,178,853,900 ordinary shares). This amount represents approximately one third of the issued
ordinary share capital of the Company as at 20 February 2024, 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 £23,577,078 (representing
2,357,707,800 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 2024, the latest
practicable date prior to publication of this Notice of Meeting.
The Company holds 20,423,334 shares in treasury.
The authorities sought under paragraphs a and b of resolution 14 will expire at the earlier of
22 July 2025 and the conclusion of the next Annual General Meeting of the Company.
233
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportFinancial statementsShareholder informationDirectors’ report Notice of Annual General Meeting continued
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.
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:
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;
the allotment of shares and treasury shares for cash up to an aggregate nominal value of
£3,536,561 being approximately 10 percent of the issued ordinary share capital (excluding
treasury shares) at 20 February 2024, the latest practicable date prior to publication of this
Notice of Meeting; and
the allotment of shares and treasury shares for cash up to an aggregate nominal value of
£707,312, being approximately 2 percent of the issued ordinary share capital (excluding
treasury shares) at 20 February 2024, 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 Section 2B of the Pre-emption Principles.
a.
b.
c.
234
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 £3,536,531, being approximately 10 percent of the issued
ordinary share capital (excluding treasury shares) at 20 February 2024, the latest
practicable date prior to publication of this Notice of Meeting; and
(ii) an aggregate nominal value of £707,312, being approximately 2 percent of the issued
ordinary share capital (excluding treasury shares) at 20 February 2024, 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 Section 2B of the Pre-emption Principles.
If given, these authorities will expire at the conclusion of the Annual General Meeting in 2025 or
at the close of business on 22 July 2025, 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 Act.
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 2024.
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.
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportFinancial statementsShareholder informationDirectors’ report Notice of Annual General Meeting continued
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 2024, the
Company holds 20,423,334 shares in treasury.
This is a standard resolution, sought by the majority of public listed companies at Annual
General Meetings.
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, as described in more detail in Note 26
on page 205.
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 2024 was 32,005,991, representing
approximately 0.9% of the issued ordinary share capital of the Company as at that date and
approximately 1.0% 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 22 October 2025 and the conclusion of the Company’s
next Annual General Meeting.
235
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 42 of the
Annual Report and Accounts.
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportFinancial statementsShareholder informationDirectors’ report Notice of Annual General Meeting continued
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 Friday 19 April 2024 (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 2024 (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 20,423,334 shares in treasury. Therefore,
the total voting rights in the Company as at 20 February 2024 were 3,536,561,769.
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).
236
4. To be valid, any proxy appointment must be received by Link Group at FREEPOST PXS,
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 Friday 19 April 2024. 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
Link Group, by email at shareholderenquiries@linkgroup.co.uk, 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.
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportFinancial statementsShareholder informationDirectors’ report Notice of Annual General Meeting continued
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 Ireland 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 Friday 19 April 2024. 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 Friday 19 April 2024 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. Under Section 527 of the Companies Act 2006 members meeting the threshold
requirements set out in that section 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 not 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
Link Group, by email at shareholderenquiries@linkgroup.co.uk, 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).
237
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportFinancial statementsShareholder informationDirectors’ report Notice of Annual General Meeting continued
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.
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:
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.
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 2023, including the Directors’ Remuneration Report referred to in
resolution 18. This document is also available on our corporate website.
Since shareholders will be able to follow the AGM remotely via an audiocast, these
documents will be made available on the electronic facility for the duration of the meeting.
The documents will also be available to view on the AGM section of our website at
www.taylorwimpey.co.uk/2024AGM.
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.
i.
ii.
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
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.
b.
c.
(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),
it is defamatory of any person, or
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 11 March 2024, 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.
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Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportFinancial statementsShareholder informationDirectors’ report Shareholder facilities
Web communications
Dividend Re-Investment Plan
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.
Residents in the United Kingdom 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 Link Group.
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.
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 Link Group’s shareholder portal,
which can be accessed online at www.signalshares.com.
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.
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 2023 final
dividend) and any special dividends, are available at www.signalshares.com or on request from
the Registrar, Link Group, Central Square, 29 Wellington Street, Leeds, LS1 4DL, email:
shares@linkgroup.co.uk, tel: +44 (0)371 664 0391. 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 Link Group.
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Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportFinancial statementsShareholder informationDirectors’ report Shareholder facilities continued
Duplicate share register accounts
Unsolicited approaches to shareholders and ‘Boiler Room’ scams
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 Link Group 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 Link Group or approach ShareGift directly at www.sharegift.org or
telephone them on +44 (0)20 7930 3737.
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.
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Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportFinancial statementsShareholder informationDirectors’ report Addresses
Annual General Meeting
10:30am on 23 April 2024 at:
The Gerrards Suite at the Crowne Plaza Gerrards Cross, Oxford Road, Beaconsfield, HP9 2XE.
Proxy instructions must be received by 10:30am on Friday 19 April 2024.
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:
Link Group
Central Square
29 Wellington Street
Leeds
LS1 4DL
Email: shareholderenquiries@linkgroup.co.uk
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
241
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
Taylor Wimpey plc Annual Report and Accounts 2023Strategic reportFinancial statementsShareholder informationDirectors’ report 242
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on the IUCN Red List of Threatened Species.
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