Taylor Wimpey shares spike despite sales slip

Added 14th November 2016

Taylor Wimpey was among the top ten FTSE 100 risers Monday morning after it put out a trading update, rising by 3.7% to 151p per share.

Taylor Wimpey shares spike despite sales slip

The British housebuilder reported slightly weaker sales for the year to date at 0.75 sales per outlet per week, compared with 0.76 over the equivalent period last year. Sales rates concentrated in the second half, post-EU referendum, were lower still, down 5.4% at 0.70. Cancellations were also marginally higher at 13% (2015: 11%).

Nevertheless, chief executive Pete Redfern was pleased with the “robust housing market” and “resilient trading” during the second half of 2016, which was reflected in “good levels of customer confidence” at Taylor Wimpey. While he admitted prices had ‘softened slightly’ at the upper end of the London housing market post-Brexit, he emphasised that the group was still seeing “high levels of demand.”

The builder confirmed in Monday’s update that it had fully sold its £2.3bn order book in 2016, which spans 8,981 homes, excluding joint ventures. And it has already sold close to 23% of its expected private completions in 2017.

Taylor Wimpey was similarly positive about its operating profit for the year, even after factoring in 3 to 4% higher building costs from a shortage in skilled labour. By the group’s estimation, it will deliver an improvement in operating profit margin in 2016 and a 30% return on net operating assets.

Total dividend payments to shareholders in 2017 remained unchanged at £450m.

Kames Income Hub

home_research_centre

Vincent McEntegart, manager of the Kames Diversified Monthly Income Fund, explains how he aims to deliver a stable and sustainable income of 5% p.a.*, paid monthly, by investing in a range of asset classes

Square Mile Research

Fidelity Emerging Markets Fund
Fidelity Emerging Markets...

Talking Factsheets is a video service for users...

Visitor's Comments Add your comment

Add Your Comment

We won't publish your address

Profiles

Viewpoint

Investment Strategy

Feature

Tweets

Events

PA Emerging Markets 2017
PA Emerging Markets 2017

Tuesday 7 February
Bloomsberry Street Hotel, London

Sponsored Content

Investment Strategy

OTHER STORIES FROM LAST WORD...