Half-Year Profits Up 85% At Taylor Wimpey Plc

Taylor Wimpey plc (LON:TW) reports a strong set of six-month results.

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

Taylor Wimpey (LSE: TW), the homebuilding developer with operations in the UK and Spain, today released results for the six months to 30 June 2013 showing revenues increasing 11% to £1.0bn, operating profits up 34% to £132m and profits from continuing operations before exceptional items jumping 85% to £87m.  Without the benefit of the 2012 tax credit and financing rebate of £82m, overall profits amounted to £136m — a gain of 5%.

Revenues rose following a 2% increase in completions coupled with an average selling price up 7% to £188k.  The operating margin was up 230 basis points to 14%, compared with 11% in 2012.  Taylor Wimpey has an order book of 7,378 homes (as at 28 July 2013) valued at £1.3bn, and are nearly 90% sold for 2013.  Full-year results are now expected to be at the upper end of expectations.

5 Stocks For Trying To Build Wealth After 50

One notable billionaire made 99% of his current wealth after his 50th birthday. And here at The Motley Fool, we believe it is NEVER too late to start trying to build your fortune in the stock market. Our expert Motley Fool analyst team have shortlisted 5 companies that they believe could be a great fit for investors aged 50+ trying to build long-term, diversified portfolios.

Click here to claim your free copy now!

The reduction of net debt from £135m to £68m is also encouraging, as is the board’s decision to increase the interim dividend by 16% to 22 pence per share.

Pete Redfern, chief executive, commented:

“During the first half of 2013, there has been meaningful improvement in the housing market, with more positive consumer sentiment, a more available and affordable mortgage market, and the presence of Government mortgage schemes, all adding to a favourable outlook. Our business is ideally positioned to perform well in this environment with a strong land position and a very effective housebuilding operation. We continue to open all new outlets with implementable planning permission.”

Taylor Wimpey is confident on the outlook for the next few years.  There is a high level of demand for new homes, which the house builder will hope can convert into continued strong sales figures.  The implementation of a new IT system will also help to alleviate glitches in the buying process and lead to cost savings.  Overall, the prospects for growth at Taylor Wimpey are considerable.

Indeed, Taylor Wimpey has been a growth success story with an 144% gain in the last 12 months. If you are interested in tapping into similar opportunities take a look at this free report which could help you on your way.

The report explains how taking a contrarian view and backing unloved companies can be vital steps on the path to the magic £1,000,0000 milestone. Maybe one day, a resurgent Taylor Wimpey could be the share that transforms your wealth.

Just click here to download the report today. But hurry, all Fool reports are free for a limited time only.

> Barry does not own shares in Taylor Wimpey.

Is this little-known company the next ‘Monster’ IPO?

Right now, this ‘screaming BUY’ stock is trading at a steep discount from its IPO price, but it looks like the sky is the limit in the years ahead.

Because this North American company is the clear leader in its field which is estimated to be worth US$261 BILLION by 2025.

The Motley Fool UK analyst team has just published a comprehensive report that shows you exactly why we believe it has so much upside potential.

But I warn you, you’ll need to act quickly, given how fast this ‘Monster IPO’ is already moving.

Click here to see how you can get a copy of this report for yourself today

More on Company Comment

Aerial shot showing an aircraft shadow flying over an idyllic beach
Investing Articles

Rolls-Royce shares are trading for pennies. Should I buy them today?

Just because Rolls-Royce shares cost pennies doesn't make them cheap. Its troubles aren't over yet.

Read more »

Business development to success and FTSE 100 250 350 growth concept.
Investing Articles

8.5% and 9.5% dividend yields! 2 FTSE 100 stocks to buy today

The dividend yields at these brilliant blue-chips sit very close to double digits. I think they could be too good…

Read more »

Investing Articles

Tesco vs Royal Mail: which cheap FTSE 100 share should I buy?

The Tesco and Royal Mail share prices both seem to offer great value at recent levels. So which cheap FTSE…

Read more »

macro shot of computer monitor with FTSE 100 stock market data in trading application
Investing Articles

2 FTSE 100 dividend-paying stocks to buy in an ISA

The deadline for new money going into Stocks and Shares ISAs is just around the corner. Here are two FTSE…

Read more »

Business man on stock market crash financial trade indicator background.
Investing Articles

2 dividend paying banking stocks to combat inflation in 2022

With inflation taking off in the US, the Fed may have to raise rates. Stephen Bhasera believes these banking stocks…

Read more »

Various denominations of notes in a pile
Investing Articles

A high-dividend stock I’d buy now

Why this high-dividend stock is potentially more than just a sleepy cash-cow business and growth looks set to kick in…

Read more »

Investing Articles

2 FTSE 100 dividend stocks I’d aim to never sell

I wouldn't try to hold all my investments forever, but these two FTSE 100 dividend stocks both have many qualities…

Read more »

Scene depicting the City of London, home of the FTSE 100
Investing Articles

With £2,000 to invest, I’d buy these FTSE 100 shares with big dividends

Several FTSE 100 shares pay out big dividends, but I'd start my research with these defensive operators in a growing…

Read more »