Taylor Wimpey (TW.) delivered another impressive performance last year, boosting operating profits by 44 per cent to £230m and rewarding shareholders with a hefty hike in the, albeit, still modest dividend. Net debt has been halved to £59m, and the total order book at the year-end was up 14 per cent at £948m.
Average selling prices increased almost 6 per cent to £181,000 and completions were up 6.9 per cent at 10,886 units, both of which helped to lift operating margins from 9.0 per cent to 11.5 per cent, with 327 sales outlets open at the end of the year. Around a fifth of all completions involved one of the several incentive schemes like FirstBuy and NewBuy, and the group has accumulated £91.4m of mortgage debtors which will contribute to future cash flows as first-time buyers move on or repay the subsidy.
The housebuilder also spent £427m on acquiring 14,172 new plots, taking the controlled land bank to 65,409 plots. In addition, the group has 100,340 plots in the strategic land bank, and the plan is to pull more of this through for use by gaining planning consent.
Numis is forecasting 2013 adjusted pre-tax profits of £245m and EPS of 5.6p (from £185m and 4.7p in 2012), rising to £305m and 7.2p in 2014.
| TAYLOR WIMPEY (TW.) | ||||
|---|---|---|---|---|
| ORD PRICE: | 82p | MARKET VALUE: | £2.65bn | |
| TOUCH: | 81-82p | 12-MONTH HIGH: | 82p | LOW: 40p |
| DIVIDEND YIELD: | 0.8% | PE RATIO: | 11 | |
| NET ASSET VALUE: | 62p | NET DEBT: | 3% | |
| Year to 31 Dec | Turnover (£bn) | Pre-tax profit (£bn) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2008 | 3.47 | -2.0 | -133.0 | nil |
| 2009 | 2.60 | -0.7 | -25.1 | nil |
| 2010 | 2.60 | -0.1 | 8.1 | nil |
| 2011 | 1.81 | 78.6 | 1.8 | 0.38 |
| 2012 | 2.02 | 207.7 | 7.3 | 0.62 |
| % change | +12 | +164 | +306 | +63 |
Ex-div: 17 Apr Payment: 21 May | ||||
