Sales at Taylor Wimpey Boosted by Government Scheme

LONDON -- Shares of Taylor Wimpey  (LSE: TW  )  rallied 2% to 96 pence this morning after the FTSE 250 mid cap revealed sales had been at the upper end of the company's expectations since the start of the year.

The housebuilder reported customer interest had experienced a 15% improvement before the announcement of the government's new "Help to Buy" scheme in April, and had seen further significant increases following the announcement.

Taylor Wimpey's order book grew 27% to 1.2 billion pounds, while the number of homes in the pipeline was 14% higher than last year at 7,355.

Chief executive Pete Redfern commented:

We have made a strong start to 2013. Against a background of positive sentiment toward the housing market, we have seen an increase in visitor levels and reservations, driven by improved customer confidence and helped in recent weeks by the Government's Budget announcements

This, together with the quality of our locations and the inherent value in our landbank, is enabling us to drive improvement across all of our key performance measures.

However, the company maintained its cautious economic outlook:

We do not forget, however, that the macro uncertainty which has characterised the last few years still remains and as such we retain a cautious approach, even given the more optimistic outlook. With our strategy in place, we expect to deliver significantly improved and more sustainable returns across the housing cycle

After rising more than 40% so far in 2013, the share price of Taylor Wimpey values the company at 3 billion pounds and 17 times expected earnings. The company is expected to hike its dividend by more than 60% this year, to 0.92 pence per share, which would offer a prospective dividend yield of around 1%.

Of course, whether the current valuation and the prospects of the U.K. housing industry combine to make Taylor Wimpey a buy is something only you can decide.

However, if you already own Taylor Wimpey shares and are looking for another attractive growth opportunity, this exclusive in-depth report reviews a solid possibility within the FTSE 100.

Indeed, the blue chip in question has lifted its profits by 44% since 2009, owns subsidiaries that might contain considerable hidden value, and has just been declared "The Motley Fool's Top Growth Stock for 2013."

Just click here to download the report -- it's 100% free.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2388742, ~/Articles/ArticleHandler.aspx, 10/2/2014 6:48:59 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement