Taylor Wimpey - On Track For Guidance With Robust Demand, Bu...| MENAFN.COM

Wednesday, 18 May 2022 03:17 GMT

Taylor Wimpey - On Track For Guidance With Robust Demand, But Cost Inflation Lingers


(MENAFN- ValueWalk)

Taylor Wimpey plc (LON:TW) expects to report full year results in-line with guidance. Operating profit is expected to be around £820m, with operating margins of 21-22%. The group has benefited from strong demand thanks to low interest rates and good mortgage availability. Higher house prices offset rising building costs over the year.

Get The Full Series in PDF

Get the entire 10-part series on Charlie Munger in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues.

Q4 2021 hedge fund letters, conferences and more

More information on shareholder returns will be released with the full-year results in March.

The shares rose 1.4% following the announcement.

Taylor Wimpey's Strong Foundations

Matt Britzman, Equity Analyst at Hargreaves Lansdown:

“The foundations were strong throughout 2021 for housebuilder Taylor Wimpey, as interest rates remained low and the availability of mortgages was high. Total UK home completions were up 47% compared to the previous year with the average selling price continuing to rise, now up to £332,000 for the group.

The bold move to keep buying land throughout the pandemic continues to look like the right one, with just shy of 30,000 plots added to the short-term landbank over the past 18 months. And the group's making further use of its strong cash position to reward shareholders, we're expecting a buyback to be announced in March along with the standard dividend.

Management seemed cautiously optimistic in their outlook statements, with the group on track for full-year guidance but making reference to economic uncertainty and continued build cost inflation. Higher selling prices are enough to offset the rising costs for now, but there's a limit to how long that can continue – especially if broader costs of living and mortgage rates increase.”

About Hargreaves Lansdown

Over 1.67 million clients trust us with £138.0 billion (as at 30 September 2021), making us the UK's number one platform for private investors. More than 98% of client activity is done through our digital channels and over 600,000 access our mobile app each month.

MENAFN18012022005205011743ID1103559888


Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.