Taylor Wimpey lifts dividend 180%
Housebuilder Taylor Wimpey has doubled its dividend payment after unveiling 54% profits growth in 2014 and enjoying better than expected trading in the new year.
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Revenue rose 17% to £2.69bn on the back of average selling prices surging 11.5% and UK volumes 6.5%, with the FTSE 100 group still able to drive a 68% increase in profit before tax and exceptional items to £450.1m despite an increase in build costs. Adjusted earnings per share were up 68% to 11.2p.
Buoyed by the underlying resilience of the market, directors have proposed swelling the final regular 'maintenance' dividend 181% to 1.32p per share, at the top end of previous guidance, giving a total dividend for the year of 1.56p on top of the £250m cash return previously proposed for the coming July.
Chief executive Pete Redfern reiterated previous positive comments about the strong economics of the housing market and its position of high importance on the political agenda for all parties ahead of the general election and said management believed that the current strong performance can be "sustained and improved".
"The beginning of spring selling season has seen trading at the better end of expectations," he said.
"Customer confidence is high with good levels of employment and an affordable mortgage environment. The UK housing market remains healthy and we are very confident in our ability to maximise returns on our investments whilst continuing to invest in the underlying quality of the business."
As of 1 March 2015, Taylor Wimpey has sold 51% of its houses due for completion in the year ahead with a strong total order book of £1.66bn.and therefore we have proposed a doubling of the 2014 maintenance dividend pay-out to the top end of our dividend policy range."
The company expects to benefit from reduced pricing pressure on materials in 2015, anticipating that build cost inflation should somewhat reduce as the industry adjusts to the increased labour and material demand.