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Taylor Wimpey reports 'strong start' to 2021 ahead of AGM
StockMarketWire.com
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Taylor Wimpey has reported a 'strong' start to 2021 as customer demand, low interest rates, good mortgage availability and ongoing Government support pushed the total order book value to £2,808 million.
This represents 10,995 homes, excluding legal completions to date.
Net private sales for the year to 18 April was strong at 1.00 (2020 equivalent period: 0.90) with a cancellation rate of 14% (2020 equivalent period: 16%) and the company also achieved growth on sales prices realised at the end of last year.
Taylor Wimpey said it has made 'good early progress' on 2021 priorities, including driving operating profit margin and an enhanced cost control mindset across the business, with a continued focus on delivering its operating profit margin target of c.21-22% in the medium term.
At the end of March 2021, its short term landbank stood at around 82k plots (2020 equivalent period: c.78k plots) and its strategic land pipeline stood at 143k potential plots.
Pete Redfern, CEO at Taylor Wimpey, said: 'The UK housing market continues to be resilient and we are trading in line with our full year expectations. With strong market fundamentals, customer demand for our high-quality homes remains robust and we are achieving a strong sales rate and building a healthy forward order book.
'We are a cash generative business with a strong balance sheet and remain focused on our strategic priorities to drive operating profit margin while creating long term value for our customers and shareholders.'
Since last year's AGM, Kate Barker stepped down at the end of her tenure after serving commendably on the board since 2010. Two new non-executive directors, Scilla Grimble and Jitesh Gadhia, joined the board on 1 March 2021.
As previously announced, Taylor Wimpey intends to pay a 2020 final ordinary dividend of 4.14 pence per share on 14 May 2021 (2019 final dividend: nil), subject to shareholder approval, and a 2021 interim dividend of around 4.14 pence per share in November, in line with its Ordinary Dividend Policy to return 7.5% of net assets annually, in two equal instalments.
The company said it remains its intention to return excess capital to shareholders in line with its policy, adding that it is not planning to make a capital return in 2021 and will review the potential level of excess capital at the time of its 2021 full year results in March 2022, for payment in 2022.
Story provided by StockMarketWire.com
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