Taylor Wimpey cites encouraging demand in second half

As Taylor Wimpey updates the market Graham Spooner, investment research analyst at The Share Centre, explains what it means for investors.

Taylor Wimpey cites encouraging demand in second half

In a trading update released to the market this morning, housebuilder Taylor Wimpey highlighted a strong performance during the second half, as demand for new housing remained high. Sales for the period were also encouraging, averaging at 0.81 per outlet per week, compared to 0.75 in the year previous.

Investors should appreciate however, that its order book was slightly lower year-on-year whilst cancellation rates ‘remain low’.

The group nodded to the fact that it is making good progress against its operational targets in what it described as ‘favourable’ market conditions. Indeed, the FTSE 100 company reported that the all-important London market was stable, which is reassuring given that others in the sector have reported a slight slowing in this area.

Despite its confidence however, the group highlighted today that possible risks remain from increased political and economic uncertainties. Nevertheless, the group remain on track to meet full year expectations and it believes it is well placed to deliver further growth next year.

Investors should also appreciate that Taylor Wimpey confirmed a total dividend for 2018 of around £500m and reiterated its intention to make further material capital returns in 2019 and beyond.

 

Please remember, no news or research item is a recommendation or advice to buy. Every Investor is not responsible for accuracy and may not share the author’s views. If you are unsure of the suitability of any investment for your circumstances please contact an adviser. All investments can fall as well as rise in value so you could get back less than you invest and tax policies may change.

 

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