Taylor Wimpey Plc Trading “At Upper End Of Expectations”

Shares in Taylor Wimpey (LSE: TW) lifted over 3% in early trade this morning, following a positive trading update for the first half of the year to 30 June 2013.

The housebuilder announced improvements across the board, with UK operating profit margin expected to increase to over 13% compared to H1 2012’s figure of 11.2%.

Management highlighted business in the South-East and Midlands as performing especially well, and a return to more seasonal patterns “with a strong spring selling season, driven by increased customer confidence and buoyed in the second quarter by the Government measures”.

Chief executive Pete Redfern commented:

“We have welcomed signs of significant improvement in the housing market in the first six months of 2013 where we have seen increased consumer confidence, underpinned by both generally improved access to and affordability of mortgage finance and by the recent Government measures. This has enabled us to continue our investment in local communities across the UK and play a leading role in the creation of new homes, employment opportunities and infrastructure.”

Like Carillion earlier this week, Taylor Wimpey’s results were boosted by the government’s Help To Buy scheme, with the option now available on 98% of its outlets across England. So far the scheme has helped over 1,000 households to reserve to date, with a further 232 currently going through the qualification process.

After rising more than 40% so far in 2013, the share price of Taylor Wimpey values the company at £3bn and 17 times expected earnings. The company is expected to hike its dividend by more than 60% this year, to 0.92p per share, which would offer a prospective dividend yield of around 1%.

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> Sam does not own shares in Taylor Wimpey.