Taylor Wimpey Share Discussion Threads

[the flop] 03/8/2010 09:02

03/08 08:56 - UPDATE: Taylor Wimpey Returns To Profit; Trading Satisfactory

(Adds detail and comment.)


By Anita Likus and Simon Zekaria

Of DOW JONES NEWSWIRES


LONDON (Dow Jones)--House builder Taylor Wimpey PLC (TW.LN) Tuesday reported it swung to a net profit in the first half and said its current trading is satisfactory in an uncertain wider economic environment.

The group said its forward order book, cautious approach to land valuations and selective new land acquisitions provide protection against potential downside scenarios and position the company well as markets recover.

"Although conditions are not normal and mortgage availability is a constraint, we feel we are in good shape," Chief Executive Pete Redfern said.

Net profit for the six months to July 4 was GBP7.5 million compared with a loss of GBP681.9 million in the same period last year, when its results were hit by write-downs on land and work in progress.

Operating profit before exceptional items rose to GBP79.3 million from GBP2.8 million as margins improved, the group said. First-half U.K. operating margin grew to 7.5% from negative 1%, while the North America margin rose to 7.6% from 5.2%.

At 0728 GMT, Taylor Wimpey shares rose 1 penny, or 4.3%, to 30 pence, in a flat London market. The stock value gives the company a market capitalization of GBP951 million. Liberum Capital analyst Charlie Campbell said the update was "surprisingly strong," with U.K. margin performance much better than expected.

Revenue rose to GBP1.22 billion from GBP1.13 billion. Taylor Wimpey said it completed 4,804 homes in the U.K. at an average selling price of GBP168,000 and 1,843 homes in North America at an average selling price of GBP200,000.

The group said the U.K. housing market has remained "relatively robust" despite the market uncertainties arising from the election of the coalition government in May. The U.K order book was GBP952 million, up from GBP819 million at the end of 2009, with over 86% of its expected full-year completions secured.

The North America order book was GBP668 million, up from GBP604 million at the end of last year, with over 80% of its expected full-year completions secured.

Redfern reiterated that the company has no immediate plans to sell its North American business, but that it does see itself as a U.K.-focused company in two to three years' time.

Net debt narrowed to GBP633.9 million from GBP1.03 billion. The group is not proposing an interim dividend.

Taylor Wimpey said it has an ongoing focus on costs and cash in the short term. It is concerned that the shortage of consented land will artificially constrain the recovery in industry volumes, while the shortfall of new-build housing and strong demand will underpin pricing.

U.K. house builders have just been through one of the worst downturns in decades, with tight mortgage financing pushing sales lower and reducing house prices. But as the situation improves, builders should be stocking up on cheap land, to enable strong margins when they start building.


-By Anita Likus and Simon Zekaria, Dow Jones Newswires; [phone]; [e-mail]

[barf2] 03/8/2010 08:57

Can't see anything,including broker rec's, having a positive impact on this until the hedgies step aside having made buckets of profit by holding the share price down or the FSA take heed of the calls they are getting and start asking a few questions about why the trading is not transparent.

[trendfloor] 03/8/2010 08:54

Missed this broker reco from yesterday, going to see plenty of upgrades in next 48 hours I believe......

Taylor Wimpey PLC

FORECASTS 2010 2011
Date Rec Pre-tax (£) EPS (p) DPS (p) Pre-tax (£) EPS (p) DPS (p)

Panmure Gordon
02-08-10 BUY -23.40 -0.53 46.90 1.04

[ludders] 03/8/2010 08:49

28p real soon chaps

[ludders] 03/8/2010 08:49

mustafa , i see your cousin mustafa slash was here to , party time

[the_analyst] 03/8/2010 08:48

Well I'll stick my neck out and say 29.5 is the bottom and that we'll finish 30.5. Too many dark forces at work. No doubt Telegraph will have it's usual contribution to make 2moro!

[barf2] 03/8/2010 08:39

I'm still of a firm belief that powerful funds are controlling this and it will only turn significantly when they decide.

I can find no other reason for the way trades are being 'managed' to impact or not on the share price

I've raised my concerns several times over the last 5 weeks with the FSA but they couldn't give a flying f... and the hedgies know that.

[the_beagle] 03/8/2010 08:35

If they had announced yesterday the share price would have gone a lot higher. Market poor across the board today. Not sure why.

[ludders] 03/8/2010 08:34

Grab one of these from .. www.youve-been-shafted.com

[sir brainy] 03/8/2010 08:32

Gather energy...regroup...ATTACK!!! boys, 32p the target for lunch

[barf2] 03/8/2010 08:25

They've been doing for 5 weeks so far.At some point they will run out of p'ss.

[ludders] 03/8/2010 08:23

i reckon someones p'ssing on your fireworks chaps

[sir brainy] 03/8/2010 08:22

Back to 46p this August

[mknight] 03/8/2010 08:21

RI could be an answer as to why you have all buys and the share price doesnot move up.

[barf2] 03/8/2010 08:18

Looking a bit samey.
Massive buys go through as 'o' trades and don't touch the book and other decent buys sent to PLUS.

WHO is selling all these shares and not reporting it?

Still well held.

[sir brainy] 03/8/2010 08:18

6 million traded and all buys

[trendfloor] 03/8/2010 08:18

Quite a few shorters here to close out so should over next few days add to market share price momentum.......

[fewdollarsmore] 03/8/2010 08:16

I will not be remotely happy until TW is trading above 40p, NAV is 47 and that is conservative..

[newkid] 03/8/2010 08:15

Think you are right barf2. That near 32p buy went on the plus book. If it had gone on the LSE would it not have trigger a lot of stop losses for the shorters?

[trendfloor] 03/8/2010 08:15

Off to a flyer.

[barf2] 03/8/2010 08:10

Full on attempt by the shorters to retain their grip on this.How long before they turn tail and run?

They've had the assistance of the mm's all the way through so fragile times this morning

[the flop] 03/8/2010 08:05

Lets get squeezing ;-))))))))))))))))))))