Taylor Wimpey announces special dividend on profit jump

 
Harriet Green
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Taylor Wimpey is the latest house builder to report impressive results on the back of a surging housing market.

The developer saw profit before tax jump 47.6 per cent last year, to £268.4m.

It said it saw a “significant step in both interest levels and sales rates” because of Help to Buy. It said it worked with 2,928 households using Help to Buy, with almost 20 per cent completing in the year, and sales of 29 per cent in the period.

Revenue increased 13.7 per cent to £2.3bn, and it sold 11,696 homes in the year - up from 10,886 in 2012.

The average price for a home increased to £210,000 from £197,000 a year earlier.

The company increased its final dividend by 9.3 per cent for the year, to 47p per share.

Taylor Wimpey’s also reached its optimal landbank size, with 9,200 plots in the pipeline.

Upped dividend

The company said it’ll pay shareholders a special dividend of £50m in 2014, and £200m in 2015, with plans for further annual payments from 2016.

It’s proposed a final dividend by 9.3 per cent for the year, to 47p per share.

Pete Redfern, chief executive, commented:

In a housing market showing significant recovery for the first time in five years, we have strongly improved our operating performance, increasing operating profits by 39 per cent.
This strong platform and our clear operating and financial strategy leave the Group well positioned to continue to make further progress in the years ahead.

In a separate statement, the firm announced the retirement of independent non-executive director Tony Reading.

Shares are down over two per cent this morning.