Taylor Wimpey Raises Dividend After Full-Year Profit Soars

Taylor Wimpey Plc, the U.K.’s third-largest homebuilder by market value, doubled its dividend after full-year profit climbed by 38 percent.

The payout rose to 1.56 pence a share, from 0.69 pence a year earlier, the High Wycombe-based company said in a statement Tuesday. Net income increased to 374.4 million pounds ($576 million) or 11.5 pence a share, from 271.4 million pounds, or 8.3 pence, a year earlier.

“The conditions that we’re operating in are quite different than what I’ve seen in my 15 years in the industry,” Chief Executive Officer Pete Redfern said by phone. “You’ve got low interest rates that will remain low for an extended period, increasing competition from banks that will help keep rates that consumers pay low, and you’re seeing modest house-price inflation, which is a healthy place to be.”

Prime Minister David Cameron on Monday pledged to double the number of homes built for first-time buyers by the end of the next parliamentary term in a bid to tackle Britain’s housing shortage. The pledge follows policies such as state-backed loans and mortgage guarantees as the government tries to boost supply.

Taylor Wimpey’s final dividend increased to 1.32 pence a share from 0.47 pence a year earlier. The number of homes completed climbed 6.5 percent to 12,454, while the average selling price climbed 11.5 percent to 213,000 pounds, according to the statement.

Before it's here, it's on the Bloomberg Terminal.