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Taylor Wimpey Fundamentals (TW.)

For completeness :- Trading statement for the year ended 31 Dec 2017

Taylor Wimpey is issuing the following update on trading ahead of its full year results for the year ended 31 December 2017, which will be announced on 28 February 2018.

Overview

Pete Redfern, Chief Executive, commented:

"We achieved a strong financial and operational performance in 2017 and are continuing to deliver against our strategy. Despite wider macroeconomic uncertainty, housing market fundamentals remain solid and our trading performance has been good. We continue to increase housing completions, achieving 5% growth during the year, and ended 2017 with a good forward order book.

We were particularly pleased with the improvements in our customer satisfaction metrics during the year, which were the result of a number of changes made to our approach in 2016. In the last six months we recorded average customer satisfaction scores of over 90%, and we will continue to prioritise making further improvements in this area.

We go into 2018 with positive momentum and expect to achieve further progress against our medium term targets. Our focused strategy of managing the business through the cycle, while also driving further operational improvements, will enable us to continue to deliver long term value for shareholders."

UK current trading

Against the backdrop of a positive housing market in 2017, we continued to see good demand and trading throughout the year. Customers continued to benefit from a wide range of mortgage products, low interest rates and the Government's Help to Buy scheme. Employment trends continue to be healthy and customer confidence remains robust.

In 2017 total home completions increased by 5% to 14,541, including joint ventures (2016: 13,881). During 2017 we delivered 2,809 affordable homes (2016: 2,690), including joint ventures, equating to 19% of total completions (2016: 19%).

Our net private reservation rate for 2017 was 0.77 homes per outlet per week (2016: 0.72), and cancellation rates remained low at 13% (2016: 13%). Average selling prices on private completions increased by 3% to £296k (2016: £286k), with the overall average selling price increasing by 4% to £264k (2016: £255k).

We ended 2017 with an order book valued at £1,628 million as at 31 December 2017 (31 December 2016: £1,682 million), excluding joint ventures. This order book represents 7,136 homes (31 December 2016: 7,567 homes), which has fallen slightly, as we have increased the pace of production so as to meet market demand in the year.

We enter 2018 with 278 outlets (31 December 2016: 285) and traded from an average of 287 outlets in 2017 (2016: 290). Build cost inflation in 2017 was 3-4% and we expect a similar rate of inflation in 2018 given resourcing pressures in the sector.

Following the introduction of a number of changes to our customer service approach in 2016, we are pleased to note an improvement in customer satisfaction, averaging a score of over 90% in the last six months.

Land

The short term land market continued to be positive in 2017. As planned, we operated at broadly replacement levels given our landbank is around optimal scale. As at the end of December 2017, our short term landbank stood at c.75k plots (2016: c.76k plots). The strategic landbank has expanded further to c.117k plots (2016: c.108k plots), even after the successful conversion of c.8k plots from the strategic land pipeline into the short term landbank (2016: c.10k) in the year.

Spain current trading

The Spanish market remained strong in 2017. We completed 301 homes in 2017 (2016: 304) at an average selling price of €352k (2016: €358k). The total order book as at 31 December 2017 stood at 329 homes (31 December 2016: 293 homes). We expect to report a significantly improved operating profit* for the Spanish business in 2017 (2016: £20.6 million operating profit*). The business is well positioned for further growth in 2018.

Group financial position

We ended the year in a robust position with net cash of c.£512 million (31 December 2016: £365 million net cash), after the payment of £450 million of dividends to shareholders in 2017 (2016: £356 million).

We have now secured agreements with 90% of freeholders to enable our customers with a ten-year doubling ground rent lease to convert to an RPI-based structure, should they elect to participate in our assistance scheme. We continue to make good progress towards securing agreements with the other freeholders. Our estimate on the total cost remains in line with prior commentary.

Outlook

We will report FY 2017 results in line with our expectations, and we expect to achieve further growth and performance improvement in 2018. For FY 2017 the Group will deliver an improved operating profit* margin of c.21.2% (2016: 20.8%) and a return on net operating assets** of over 32% (2016: 30.7%). We will pay a total dividend in FY 2018 of c.£500 million, subject to shareholder approvals, and reiterate our intention to make further material capital returns in 2019 and beyond, with details to be provided at our Strategy Day scheduled for H1 2018.

We start this year in a strong financial and operational position with significant embedded value in our short term landbank and strategic pipeline. Whilst we are aware of potential political and economic risks, we expect to demonstrate further progress in 2018 against our medium term financial targets, whilst also driving further operational improvements where we can add value, including customer service and product quality.


* Operating profit is defined as profit on ordinary activities before net finance costs, exceptional items and tax, after share of results of joint ventures.

** Return on net operating assets is defined as 12-month operating profit divided by the average of the opening and closing net operating assets, which is defined as net assets less net cash less net tax balances, excluding any accrued dividends.



-Ends-

10 Jan 18 Numis Hold 197.40 - 221.00 Downgrades

10 Jan 18 Shore Capital Hold 197.40 - - Reiterates

10 Jan 18 Peel Hunt Hold 197.40 210.00 210.00 Downgrades

10 Jan 18 Liberum Capital Hold 197.40 200.00 200.00 Reiterates

08 Jan 18 JP Morgan Cazenove Overweight 197.40 220.00 220.00 Reiterates

http://www.moneyam.com/action/news/showArticle?id=5872808


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Taylor Wimpey underlying profit up 10.7% on higher home completions
StockMarketWire.com
Housebuilder Taylor Wimpey said its annual profit slipped due to a one-off charge related to leasehold compensation payments. Underlying profit rose, boosted by higher completion rates and selling prices.

Pre-tax profit fell 5.7% to £555.3m, while underlying pre-tax profit rose 10.7% to £812.0m.

The company said it had made a 'good start' to 2018 and was encouraged by the levels of demand coming into the spring selling season.

As at 18 February, the company was around 47% forward sold for private completions for 2018, with a total order book value of £1.97bn, compared to 1.98bn a year earlier.

As previously announced, Taylor Wimpey said it would pay a total dividend in 2018 of around £500 million, subject to shareholder approvals, and intended to pay 'further material capital returns in 2019 and beyond'.

'2017 was another strong year for Taylor Wimpey and we enter 2018 in a good position with positive forward momentum,' chief executive Pete Redfern said.

'We have been encouraged by early trading patterns at the start to the year and despite some wider macroeconomic uncertainty, consumer confidence remains robust and market fundamentals are solid.'

'We enter 2018 with a strong order book and are well positioned to make further progress against our medium term targets and in delivering long term value for shareholders.'



Story provided by StockMarketWire.com

Healthy dividends announced:

Subject to shareholder approval the 2017 final ordinary dividend of c.2.44 pence per share will be paid on 18 May 2018 to shareholders on the register at the close of business on 6 April 2018 (2016 final dividend: 2.29 pence per share). In combination with the interim dividend of 2.30 pence per share (2016 interim dividend: 0.53 pence per share) this gives a total ordinary dividend for the year of c.4.74 pence (2016 ordinary dividend: 2.82 pence per share).

In addition, on 14 July 2017, we returned £300.5 million to shareholders by way of a special dividend, equating to 9.2 pence per ordinary share. As previously announced in August 2017 we intend to return c.£340 million to shareholders in July 2018, equating to 10.4 pence per ordinary share, subject to shareholder approval at the AGM. This is proposed to be paid on 13 July 2018 as a cash dividend to all shareholders on the register at close of business on 1 June 2018.

damn capitalist housebuilder cashing in on the poor downtrodden proletariat .... even the kulaks are struggling with house prices at current levels .... no doubt the next neo-marxist gov't will put that to rights (lefts?) with CPO's and more

:0)

Are your knees knocking?

why would they be? .... we have electric gates; that should keep the mob at bay :-)

but is your ivory tower safe from attack?

Be careful you don't blow your own fuse.

if the gates fail to stop them, the usual barricades manned by loyal staff with garden forks and the like should scare 'em off

what defense systems do they have in ivory towers such as the one where you live?
for sure the ivory will be a very valuable commodity to help fund this new proletariat state

Are you sure the staff will defend you?

Perhaps, they may enable the hordes to strip you of any ill-gotten gains.

Erm....

i think fred believes owning your own home is "ill gotten"



sorry skinny (and others) ...... this has probably now been off-piste too long :-)

Manuel.

In the case of some, could be!

But once again you seem to be professing telepathic abilities.

-=-=-=-=

Skinny,

Apologies.

Should ignore trolls.

But Manuel is special.

Taylor Wimpey sales hit by poor weather
StockMarketWire.com
Taylor Wimpey's average private sales were 0.85 per outlet per week in the year to date, down from 0.93 the year before.

The group said the underlying housing market has remained stable in the first four months of 2018, with continued good accessibility to mortgages at competitive rates.

During the first few weeks of March, the poor weather conditions had a noticeable impact on sales and build rates but activity has since recovered.

Cancellation rates were 13% compared with 10% a year ago.

Pete Redfern, chief executive, said: "We have continued to see good demand for new housing through early 2018. Looking ahead, as we embark on the next stage of our strategy, our focus is on building our capability to deliver great quality homes and places for our customers over the long term."

As at 22 April 2018, the total order book value stood at approximately £2,155 million (2017 week 16: £2,210 million). This represents 9,050 homes (2017 week 16: 9,219 homes), excluding legal completions to date.

Subject to shareholder approval, Taylor Wimpey will be paying a final ordinary dividend of 2.44 pence per share on 18 May 2018 (2016 final dividend: 2.29 pence per share), giving a total ordinary dividend for the year of 4.74 pence per share (2016 total ordinary dividend: 2.82 pence per share).

The company said trading through the spring selling season has been good and customer demand for housing continues to be strong, with good access to mortgages, low interest rates and healthy employment prospects.

It remains on track to meet its expectations for the year, but expects completions for 2018 to be more second half weighted than 2017.

Build cost inflation is anticipated to be at similar levels to 2017, at around 3-4%.

Story provided by StockMarketWire.com


-=-=

Worth a look if there is a drop in Share Price.

StockMarketWire.com
House builder Taylor Wimpey booked a small fall in adjusted first-half profits after severe winter weather earlier in the year led to lower completions.

Pre-tax profit, excluding exceptional items fell 1.2% to £331.0m, as revenue fell 0.4% to £1.72bn.

Taylor Wimpey declared an interim dividend of 2.44p per share, up 6.1% on-year. From 2019, the company also confirmed it would pay a special dividend of around 10.7p per share, up from 10.4p per share paid in 2018.

'As employment prospects remain positive and mortgage availability is good, customer demand for our homes has been strong in spite of some wider macroeconomic uncertainty,' chief executive Pete Redfern said.

'With a strong order book in place, we are confident in our prospects for the remainder of the year and looking further ahead.'

The company completed 6,497 homes in the first half, down from 6,648 on-year.

The average selling price rose to £295k, up from £287k.

Taylor Wimpey sales rates improve in second half
StockMarketWire.com
Residential developer Taylor Wimpey said sales rates had grown in the second half, as the UK housing market remained resilient despite economic uncertainty.

Sales rates for the year to date remained strong at 0.81 sales per outlet per week, matching the 0.81 recorded in the previous corresponding period, the company said.

However, in the second half of the year to date, the company achieved a sales rate of 0.77, up from 0.71 in the previous corresponding period.

Cancellation rates for the year to date were 14%, which was slightly higher than 13% on-year.

The company's current order book, excluding joint ventures, represented 9,783 homes, which was 12% up on-year.

The order book stood at around £2.4bn, up 9% on-year and at the upper end of the company's expectations.

'We would expect this to reduce naturally towards the end of the year as more homes complete,' the company said.

Underlying prices in the period, and in the order book, remained in line with the first half of the year.

'We have delivered a strong performance during the second half of 2018, with very good sales rates supported by positive customer demand and a supportive lending environment,' chief executive Pete Redfern said.

'This builds on our strong forward order book and puts us on track to meet full year expectations.'

Customer demand continued to be underpinned by low interest rates, a wide choice of mortgage deals and the government's Help to Buy scheme, Taylor Wimpey said.

Looking to 2019, Redfern said: 'We remain mindful of wider political and economic risks and the potential impact on customer confidence.'

'However, with a strong balance sheet in place and a high-quality landbank, our business is well positioned to deliver further sustainable growth and cash flow over the medium term.'









Story provided by StockMarketWire.com

Six months ago this was ~£2, now ~£1.68 - yet politicians keep saying we need more houses, etc. BUT I wonder if the "houses" the politicians want are significantly cheaper then the average sold by TW ( or any other national house-builder). So could the Market be wary due to BREXIT, I wonder....with the risk that many low-paid service industries won't be operating from inner-cities? These are NOT the folks that can afford new-build houses in the conventional scenario - IMHO.
However, if the number of folks in the house-market does fall - this must affect selling-prices over time - so maybe it is this that the sp is reacting to.
Time will tell.

The headline price is the issue.

As you mention.