Taylor Wimpey pre-tax profits up 33%
Along with Rightmove who we had as a “Breaking News” item yesterday another major property industry company posted their half yearly results on wednesday, showing a strong 2015 first half performance with pre-tax profits up 33%.
Chief Executive Pete Redfern, commented,”We have used the opportunity of a stable and positive housing market to make significant progress towards our medium term financial and quality objectives. We are confident of achieving the three year financial targets that we established in 2014, and continue to invest in recruiting and developing our people and enhancing the quality of our homes.In line with our strategy, we have proposed a cash return of £300 million to be paid in July 2016, which takes our total cash returns to shareholders since we started the programme in 2014 to £600 million.”
The operational highlights were that 5,842 homes were completed (excluding joint ventures) across the UK, with a 9.2% increase in total average selling price to £225k (H1 2014: 5,695 homes at £206k), this in a resilient and growing housing market, record contribution of £55.9k per completion (H1 2014: £45.3k per completion).
Significant progress was made towards the Group’s three year medium term targets: Operating profit margin up 310 basis points to 19.2% (H1 2014: 16.1%) Return on net operating assets up 540 basis points to 23.2% (H1 2014: 17.8%) Tangible net asset value per share increased by 11.5% to 82.1 pence (H1 2014: 73.6 pence).with 15.6%
The company is well placed to deliver further sustainable growth in returns and completions during 2015 and beyond: Landbank strong at 77k plots, with over 50% sourced from the strategic land pipeline, acquired 3,620 high-quality plots in the UK short term land market, converted 5,666 plots from the strategic pipeline
Excellent order book as at 28 June 2015 representing 8,120 homes (29 June 2014: 7,587) and a record total value of £1,859 million (29 June 2014: £1,584 million)