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We are one of the UK's largest residential developers. As a responsible developer we are committed to working with local people and communities.



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Taylor Wimpey Fundamentals (TW.)

no reason why kit-built wood-frame houses should not last well
it's not exactly new technology

4 Jan: Deutsche raises its TP from 218p to 239p.

hangon - MarCity (MAR) were into that exact market, prefabricating sections of a house and then assembling on site. Although they still exist as a company, somehow they got the sums wrong and hit financial troubles.

Trading statement for the year ended 31 December 2016

Taylor Wimpey is issuing the following update on trading ahead of its full year results for the year ended 31 December 2016, which will be announced on 28 February 2017.

Overview
Pete Redfern, Chief Executive, commented:

"We are pleased to report good progress in 2016, with an increase in housing completions and robust trading despite wider macroeconomic uncertainty. In a market characterised by solid fundamentals, we ended the year with a strong forward order book and made good progress against our enhanced medium term targets. We expect to deliver full year profitability at the upper end of market consensus†. Looking ahead, we remain confident that our disciplined strategy will enable us to continue to deliver value over the long term."

UK current trading
Against the backdrop of a stable housing market in 2016, we continued to see good demand and solid trading into the second half of the year, despite wider macroeconomic uncertainty. Customers continue to benefit from a wide range of mortgage products and low interest rates with customer confidence remaining robust. We have continued to make good progress towards each of our enhanced medium term targets during 2016.

In 2016 total home completions increased by 4% to 13,881, including our share of joint venture completions (2015: 13,341). During 2016 we delivered 2,663 affordable homes (2015: 2,509), equating to 19% of total completions (2015: 19%). Our net private reservation rate for 2016 was 0.72 homes per outlet per week (2015: 0.73). Cancellation rates remained low at 13% (2015: 12%). The mix impact of better quality locations continued to have a positive impact with average selling prices on private completions increasing by 13% to £286k (2015: £254k). Our overall average selling price increased by 11% to £255k (2015: £230k).

We ended 2016 with a year end order book valued at £1,682 million as at 31 December 2016 (31 December 2015: £1,779 million), excluding joint ventures, with a small fall in the average selling price largely due to a number of high value Central London completions in December 2016. This order book represents 7,567 homes (31 December 2015: 7,484 homes). We enter 2017 with 285 outlets (31 December 2015: 297).

Land portfolio and planning
The short term land market continued to be positive throughout 2016. As planned, we operated at broadly replacement levels.

As at the end of December 2016, our short term landbank stood at c.76k plots (2015: c.76k plots), having successfully converted over 9k plots from the strategic pipeline into the short term landbank (2015: c.9k). Looking ahead, we remain mindful of the wider macroeconomic uncertainty created by the outcome of the EU Referendum. In line with our disciplined strategy and with the benefit of a long landbank and underpin of strategic pipeline, we will continue to be selective in further land investment.

Spain current trading
The Spanish market continued to be positive. We completed 304 homes in 2016 (2015: 251) at an average selling price of €358k (2015: €315k). The total order book as at 31 December 2016 stood at 293 homes (31 December 2015: 270 homes).

We expect to report a significantly improved operating profit* for the Spanish business in 2016 (2015: £10.0 million operating profit*).

Group financial position
In 2016, the first year of operating towards our enhanced medium term targets, the Group expects to report an improved operating profit* margin of c.20.8% (2015: 20.3%) and a return on net operating assets** of over 30% (2015: 27.1%).

We ended the year in a strong position with net cash of c.£365 million (31 December 2015: £223.3 million net cash), due to the strength in underlying trading and after the payment of £355.9 million of dividends to shareholders in 2016 (2015: £308.4 million).

We remain confident in our ability to pay significant dividends through the cycle, and are focused on our medium term target for dividends which is to pay a total of £1.3 billion of dividends in cash to shareholders over the period 2016-2018.

Outlook
We start the year in an excellent financial and operational position with significant embedded value in our short term landbank and strategic pipeline. We expect to demonstrate further progress throughout 2017 against all of our medium term targets, delivering increased returns for our shareholders and focusing on areas of the operational business where we can add value, including driving further improvements in our customer service processes and product quality.

Peel Hunt Buy 174.00 210.00 210.00 Retains

Shore Capital Hold 174.00 - - Reiterates

Liberum Capital Hold 174.00 150.00 150.00 Reiterates

Beaufort Securities Buy 171.15 - - Retains

Deutsche Bank Buy 171.15 239.00 244.00 Reiterates

I prefer the latter TP.

StockMarketWire.com

House builder Taylor Wimpey hiked its FY pretax profit to �732.9m, from �603.2m, in what it said was an excellent performance against a backdrop of political and economic uncertainty.

Revenue was �3.7bn, from �3.1bn.

The company said it had made a very good start to 2017 and was encouraged by robust trading and levels of demand. The UK housing market fundamentals remain good with strong customer confidence in core geographies.

"The market is underpinned by a competitive mortgage market and low interest rates. Customer interest remains high, with website visits solid and customers continuing to register interest in forthcoming developments and progress their home purchase plans," said Taylor Wimpey.

"Whilst the wider London market remains robust, prime central London is softer, as previously highlighted, however, house prices are stable, and there are good levels of underlying demand."

The net private sales rate for the year to date (w/e 19 February 2017) has increased to a very strong 0.91 (2016 equivalent period: 0.77).

Taylor Wimpey said it was continuing to focus on building a strong order book for the future. As at Feb. 19, it was about 49% forward sold for private completions for 2017, with a total order book value of �1.98bn, excluding joint ventures.

"This order book represents 8,573 homes (2016 equivalent period: 8,409). 58% of Central London private completions for 2017 are forward sold, as at 19 February 2017 (2016 equivalent period: 76%)," it said, adding it welcomed the measures set out in the Housing White Paper.

"We expect underlying build cost increases during 2017 to be at a similar level to 2016, at around 3-4%."

Taylor Wimpey said the early signs of stability and resilience of the market following the EU referendum, which were encouraging, continued and it believed the risk of material impact from this in the short term has significantly reduced.

"In line with our strategy, we will continue to closely monitor market risks, particularly around long term mortgage cost. However we believe that a cautiously regulated market and low interest rate environment is likely to prolong the period of stability that we are seeing in the UK housing market."





Story provided by StockMarketWire.com

Manuel,

Interesting article recalling what you posted some weeks ago.

"Builders turn to bolt-together homes in Brexit Britain"

http://uk.reuters.com/article/uk-britain-eu-construction-insight-idUKKBN16G1DC?feedType=nl&feedName=ukdailyinvestor&utm_source=Sailthru&utm_medium=email&utm_campaign=UK%20Technology%20Roundup%202017-03-09&utm_term=UK%20Technology%20Roundup



-=-=

I was thinking of reducing my hold of TW..

forgotten who that chap was who kept poo-pooing me about prefabs and housing from shipping containers etc
perhaps he's keeping his head below the parapet!

What accounts for the SP drop over last few days.

Is it :

1) x-div (9.2p Special Div)?
2) slow down in house prices?
3) election jitters?
4) or am I missing something?

By StockMarketWire | Wed, 31st May 2017 - 09:20
Deutsche Bank today reaffirms its buy investment rating on Taylor Wimpey PLC (LON:TW.) and raised its price target to 243p (from 241p).

SP drop due to a combination of the first 3, as for No 4 you are very short-sighted because you can't see past Corbyn.

I'd say principally 1 and 2. Often prices are driven up prior to a good divi and then tails off in the days/weeks after.

As my holding was bought at 26p many moons ago I'm not massively worried. :)

Thanks,

I have a lot too many of them.

-=--=-=

George,

May not be able to see past Corbyn, but can see through Mother Theresa.

Election jitters. Looking at my portfolio I have a variety of stuff where it's falling on low volume for no particular reason.

Low volume indicates people cutting risk and other sitting on sidelines waiting.

Construction figures good late last week
Manufacturing figures good today
Exchange rate going in correct direction

It's all about de-risking before the election I guess

My monitor has tlw followed by tw.

They seem to be falling together !

Is that your monitor or TLW.

Uggh,

I am holding. Hope I don't regret doing so.

Actually tempted to buy a few more. But. But. But.

We know it for some time now ......

UK construction growth drops to 11-month low -PMI

LONDON, Aug 2 (Reuters) - Growth in Britain's construction industry tumbled to an 11-month low in July, as a lacklustre outlook for the economy and heightened political uncertainty deterred new orders, a survey showed on Wednesday.

The Markit/CIPS UK Construction Purchasing Managers' Index PMI) fell to 51.9 from 54.8 in June, below all forecasts in a Reuters poll of economists that had pointed to a reading of 54.5.

The survey is another mixed signal for Bank of England policymakers meeting this week to set interest rates. A sister survey on Tuesday had shown British manufacturing growth improved last month thanks to an upturn in exports.

But Wednesday's PMI for construction, which accounts for around 6 percent of British economic output, showed a sector struggling to maintain momentum.

"The combination of weaker order books and sharply rising construction costs provides a concern that an extended soft patch for the construction sector may be on the horizon," said Tim Moore, senior economist at survey compiler IHS Markit.

Wednesday's PMI showed new business volumes declined for the first time since August 2016, hurt by a slowdown in the commercial construction sector.

Last week the Royal Institution of Chartered Surveyors said demand to rent British commercial property had fallen to a five-year low.

Growth in the housebuilding sector also cooled, reflecting other signs of a slowdown in the housing market, according to the PMI. On Monday, the Bank of England said mortgage approvals fell to a nine-month low in June.

The waning growth in activity took its toll on construction firms' confidence about the future, which fell to its lowest level in a year, IHS Markit said.

The Federation of Master Builders said on Monday that the fall in the sterling exchange rate was causing prices of materials to soar, squeezing margins for a third of small builders and forcing nearly a quarter to raise prices.

More important for BoE officials will be Thursday's PMI for the services industry, which accounts for about 80 percent of British economic output.

- Detailed PMI data are only available under licence from Markit and customers need to apply to Markit for a licence.

It's no surprise that the house-building sector is cooling mentor, when prospective first-time buyers are excluded from the market due to pricing pressures and the need for a sizable deposit.