Taylor Wimpey share price edges higher after full-year profit rises
Britain’s third-largest homebuilder saw its share price climb higher on Wednesday after posting higher full-year pre-tax profit and said that demand for its properties remains strong in 2019.
Taylor Wimpey recorded higher pre-tax profit in its full-year 2018 results on Wednesday and remains optimistic about future demand for its homes.
The news was welcomed by investors, with the sentiment sending the share price of Britain’s third-largest homebuilder up more than 3% on Wednesday.
‘2018 was another strong year for Taylor Wimpey with good progress against our strategic priorities,’ Taylor Wimpey CEO Pete Redfern said. ‘We delivered in line with our expectations, achieving a strong sales rate and record revenues.’
‘Despite ongoing macroeconomic and political uncertainty, we have made a very positive start to 2019 and are encouraged to see continued strong demand for our homes,’ he added.
Taylor Wimpey results: key figures
Revenues rose by 2.9% to £4.1 billion in 2018, driven by an increase in overall home completions for the year, which grew by 3% to 14,933, up from 14,541 a year prior.
Its strong output helped increase its profit for the year to £657 million, up from £555 million in 2017, with Taylor Wimpey’s full-year results coming in line with expectations as the company made progress on its strategic goals.
‘We enter the year with a strong order book and a clear strategy in place to deliver long term value for shareholders,’ Redfern added. ‘We are very pleased with how our business is adapting to our customer-centred strategy.’
Taylor Wimpey declares dividend and net cash rises to record level
For 2018, Taylor Wimpey announced a dividend of £499.5 million. Even with the sizable pay-out to shareholders, the housebuilder's net cash managed to rise to a record level of £644.1 million, up from £511.8 million in 2017.
‘A pledge to pay circa GBP600 million in dividends during 2019 clearly won't be a problem to fulfil. And the cash-generative nature of its business means the housebuilder could still have plenty of money left over,’ AJ Bell investment director Russ Mould said.
‘Housebuilders in general haven't given any signals that they want to start making acquisitions, but they are in a strong enough financial position to change their minds,’ Mould added.
This information has been prepared by IG, a trading name of IG Markets Ltd and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
![](http://a.c-dn.net/c/content/dam/publicsites/igcom/uk/images/ContentImage/img4.jpg/jcr:content/renditions/original-size.webp)
See an opportunity to trade?
Go long or short on more than 17,000 markets with IG.
Trade CFDs on our award-winning platform, with low spreads on indices, shares, commodities and more.
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only