Pete Redfern, Chief Executive, commented:
"2014 was an excellent year for Taylor Wimpey, delivering a 54% increase in operating profit* whilst contributing £300m to communities via planning obligations, providing key infrastructure, education and affordable housing.
The beginning of spring selling season has seen trading at the better end of expectations. Customer confidence is high with good levels of employment and an affordable mortgage environment. The UK housing market remains healthy and we are very confident in our ability to maximise returns on our investments whilst continuing to invest in the underlying quality of the business. We believe that the current strong performance can be sustained and improved and therefore we have proposed a doubling of the 2014 maintenance dividend pay-out to the top end of our dividend policy range."
Highlights
Completed 12,454 homes across the UK, up 6.5%, with an 11.5% increase in total average selling price to £213k (2013: 11,696 homes at £191k)
Excellent progress made towards the Group medium term targets:
o Operating profit* margin up 430 basis points to 17.9% (2013: 13.6%)
o Return on net operating assets** up 570 basis points to 22.5% (2013: 16.8%)
o Tangible net asset value per share† increased by 11.9% to 77.9 pence (2013: 69.6 pence), 15.8% growth in net assets before cash distributions
o £49.7 million cash returned to shareholders in 2014 (1.54 pence per share), with a further c.£250 million (7.68 pence per share) to be returned in July 2015 as previously announced subject to shareholder approval
o Maintenance dividend pay-out doubled to 2% of net assets reflecting both confidence in our performance and the resilience of the UK housing market:
Total maintenance dividend for 2014 of 1.56 pence per share (2013: 0.69 pence per share), with final dividend of 1.32 pence per share (2013: 0.47 pence per share) proposed
Pete Redfern, Chief Executive, commented:
"2014 was an excellent year for Taylor Wimpey, delivering a 54% increase in operating profit* whilst contributing £300m to communities via planning obligations, providing key infrastructure, education and affordable housing.
The beginning of spring selling season has seen trading at the better end of expectations. Customer confidence is high with good levels of employment and an affordable mortgage environment. The UK housing market remains healthy and we are very confident in our ability to maximise returns on our investments whilst continuing to invest in the underlying quality of the business. We believe that the current strong performance can be sustained and improved and therefore we have proposed a doubling of the 2014 maintenance dividend pay-out to the top end of our dividend policy range."
