Taylor Wimpey Full-Year Net Jumps as U.K. Rebound Adds SalesPatrick Gower
Taylor Wimpey Plc, the U.K.’s third-largest homebuilder by market value, said it will pay a special dividend this year and next after full-year profit rose 19 percent.
Net income increased to 271.4 million pounds ($452 million), or 8.3 pence a share, from 228.6 million pounds, or 7 pence, a year earlier, the High Wycombe-based company said in a statement today. Analysts expected profit of 233 million pounds, the average of three estimates compiled by Bloomberg.
The company is returning cash because it’s “at a point where operating performance is earning good quality returns, so we’re seeing the business shift away from a very significant land-investment phase,” Chief Executive Officer Peter Redfern said by phone.
U.K. homebuilders are benefiting from a surge in mortgage lending and the Help to Buy government support program for buyers. That helped the number of U.K. first-time homebuyers climb to the highest in more than six years in December, LSL Property Services Plc said on Jan 24.
Taylor Wimpey said shareholders will get a special dividend of about 50 million pounds this year and 200 million pounds in 2015 and it anticipates “making further significant cash returns” starting in 2016. The next payments will be made in July.
The company sold 11,696 homes at an average price of 191,000 pounds, according to the statement. That’s up from 10,886 homes at a price of 181,000 pounds a year earlier.
Taylor Wimpey fell 2.1 percent to 125.2 pence in London trading at 8:08 a.m., paring this year’s gain to about 12.4 percent.
Persimmon Plc, the U.K.’s largest homebuilder by market value, yesterday said full-year profit rose 54 percent, beating analysts’ expectations.