Taylor Wimpey H1 profit climbs, lifts dividend; confident of meeting outlook

In the period, the group completed 5,842 homes (excluding joint ventures) across the UK, with a 9.2% increase in total average selling price to £225,000 (H1 2014: 5,695 homes at £206,000).

Taylor Wimpey Plc. (TW.L), a UK-focused residential developer, reported Wednesday that its first-half profit before tax climbed to 237.2 million pounds from last year’s 197.3 million pounds.

The firm said it will return more cash to shareholders after pre-tax profit rose by a third to £238m in the first half and it said its land bank is big enough to sustain ambitions to build around 14,000 homes a year.

The company said it will pay an interim maintenance dividend of 0.49p per share.

Profit margins hit 19.2% and Taylor Wimpey now has a landbank of 77,000 plots.

The company also said that it does not expect a rise in interest rates by the BoE to significantly disrupt the housing market, dependent on the size of the hikes to come and on the basis that low unemployment and wage growth will support the market.

Sales rates have been above expectations and sales price growth has increased, the firm added.

LONDON Housebuilder Taylor Wimpey and London estate agent Foxtons said activity in the property market had stepped up since May’s general election, with buyers’ confidence boosted by sustainable levels of price inflation and low mortgage rates.

Taylor Wimpey was slightly more cautious, saying following a strong selling season in spring and early summer, it anticipates sales rates will moderate in the second half of 2015, in line with traditional trading patterns.

Chief executive Pete Redfern described the housing market as “stable and positive”.

It also added it would return £300 million to investors by next July, which will bring the total amount of cash it has returned to shareholders since it started this programme last year to £600 million.