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Taylor Wimpey end 2009 on a stronger note
Taylor Wimpey unveiled no surprises today as it said full-year results are expected to be in line, and echoed comments of stabilisation in the market from rivals last week.
The country's second largest housebuilder by market value said market conditions had improved in 2009 from 2008, though both the UK and North American markets remained "challenging."
Taylor Wimpey, said that both reservation rates and selling prices have improved in the UK in the past quarter.
TW completed 10,186 homes in 2009 (FY 2008: 13,394) of which 8,432 were private completions (FY 2008: 10,585) and 1,709 were affordable homes (FY 2008: 2,751) with 45 joint venture completions (FY 2008: 58). The overall average selling price for completions in the full year increased to £160k from £153k in the first half of 2009 (FY 2008: £171k), with private average selling prices increasing to £171k (H1 2009: £163k, FY 2008: £187k) and affordable average selling prices broadly flat at £108k (H1 2009: £109k, FY 2008: £108k).
TW enter 2010 with a very strong order book position. Including affordable housing reservations, TW year end order book was 5,431 homes, an increase of 28% from the order book position at the end of 2008.
Like other builders TW returned to the land market in H2 2009 and approved new land purchase commitments for 3,003 plots at 22 new sites . This has been possible because of the improvement in the balance sheet of the company following the restructuring of it's debt and the £510 million share placement last year.
As a result net debt has fallen from £1529 million at the end of 2008 to around £750 million at the year end. Like other builders the TW share price has rebounded in H2 2009, from virtually zero in TW's case to 41p at close of business on friday, though the high point of close to £4 in May 2007 will be a painful reminder to shareholders that their company barely survived 2009.
Last week, builders Barratt, Bovis and Bellway said trading had improved in recent months but all remained cautious given restricted mortgage availability.
The country's second largest housebuilder by market value said market conditions had improved in 2009 from 2008, though both the UK and North American markets remained "challenging."
Taylor Wimpey, said that both reservation rates and selling prices have improved in the UK in the past quarter.
TW completed 10,186 homes in 2009 (FY 2008: 13,394) of which 8,432 were private completions (FY 2008: 10,585) and 1,709 were affordable homes (FY 2008: 2,751) with 45 joint venture completions (FY 2008: 58). The overall average selling price for completions in the full year increased to £160k from £153k in the first half of 2009 (FY 2008: £171k), with private average selling prices increasing to £171k (H1 2009: £163k, FY 2008: £187k) and affordable average selling prices broadly flat at £108k (H1 2009: £109k, FY 2008: £108k).
TW enter 2010 with a very strong order book position. Including affordable housing reservations, TW year end order book was 5,431 homes, an increase of 28% from the order book position at the end of 2008.
Like other builders TW returned to the land market in H2 2009 and approved new land purchase commitments for 3,003 plots at 22 new sites . This has been possible because of the improvement in the balance sheet of the company following the restructuring of it's debt and the £510 million share placement last year.
As a result net debt has fallen from £1529 million at the end of 2008 to around £750 million at the year end. Like other builders the TW share price has rebounded in H2 2009, from virtually zero in TW's case to 41p at close of business on friday, though the high point of close to £4 in May 2007 will be a painful reminder to shareholders that their company barely survived 2009.
Last week, builders Barratt, Bovis and Bellway said trading had improved in recent months but all remained cautious given restricted mortgage availability.
Mon, 18th Jan 2010