Taylor Wimpey Share Discussion Threads

[gbh2] 28/1/2013 14:31

So we just ignore the Asset value and sell off...........you must in a different game !

[imastu pidgitaswell] 28/1/2013 09:47

And the way they reduced debt from £1.7bn to £60m was through the rescue rights issue (3 for 1) and the sale of the US operations for £600m+. Right actions and sensible enough, but not quite the incredble achievement you might think...

I still see it as overvalued at 70p, based on any sensible financial metric other than net asset value.

[gbh2] 28/1/2013 09:15

The article seems to ignore the fact that they were up to their neck in debt and had to come to the share holders for more money, imo they did right by paying off the debt rather than sinking the cash into Dividends!

[gambos49] 27/1/2013 20:44

Dont subscribe so cant read the full article but if he has reduced debt from £1.7 billion to £60 million that is quite an achievement would be good to get back to paying a decent dividend where i live 2 sites are sold out just the weather holding things up at the moment but should be ok this coming week,however still need to double share price to get back anywhere near 2006/2007 valuations.looking good to me.

[valedo] 27/1/2013 15:17

How Pete the builder kept up the house of Wimpey (extract from full page on Redfern in todays sunday times)


He put together two household names in construction as the market crashed. Yet Pete Redfern and Taylor Wimpey survived. So what will he do next?

The question on City analysts' lips is when will Taylor Wimpey start paying proper dividends again - and how much. Last May it paid a token 0.38p per share.

Berkeley Group, which focuses on London and affluent southeast England, has promised to hand out £1.7bn over the next nine years. Persimmon, more comparable with Taylor Wimpey because it builds homes nationwide, has pledged to distribute £1.9bn over a similar period. The new mantra among housebuilders is the refusal to chase growth for the sake of it.

So why is Redfern slow to make a commitment? His answer is detailed. The decision will be a "natural consequence of the right business strategy" rather than the starting point, he says. Taylor Wimpey reckons it could build 14,000 homes a year at most - almost 30% more than in 2012.

As the economy recovers and land prices rise, the company will ease off the throttle. "That's the point at which the business naturally throws off cash because you're not totally out of the land market but you may be producing 12,000 or 13,000 homes and buying only 9,000 new plots," Redfern says.

That is when Taylor Wimpey will start delivering the readies to investors in decent lumps. "Is it 12 months down the line? That's probably a minimum. We're not about to say it's going to be this date, but somewhere between 12 months and three years is probably realistic."

He adds: "During the last cycle, many companies didn't get the market judgment wrong, they just didn't have the courage and the strategy in place to take the actions to use the market judgment they have. So it's important to say we are going to try to judge the market."

Redfern's manifesto is all the more striking for the fact that George Wimpey and Taylor Woodrow misjudged the last cycle so spectacularly, destroying billions of pounds of shareholder value. Rigorous rounds of investor updates have helped to rebuild trust - the company held a dozen meetings with one big backer last year, Redfern says - and the watchword is caution.

"I don't think I go too far on that. If the market tanks, we've done all the groundwork to make sure the business is prepared and can respond well. It's strong in terms of its balance sheet and the quality of its land purchases. We can't completely ignore these market conditions."

Kevin Cammack, an analyst at Cenkos Securities, observes that Redfern endured a "baptism of fire", having had to integrate two fiefdoms while the industry was in chaos. Andrew Lyddon at Schroders, the company's biggest investor, says: "There aren't many CEOs who have gone through those lows and come out the other side in charge, let alone with a business that's beginning to thrive as Taylor Wimpey is."

Redfern levels a casual blow at Persimmon, which has tied itself to milestones by setting its dividend scheme over almost a decade. "I don't think I can predict 10 years. And I don't think I'm helping my investors by giving them that 10-year view."

The two companies are longstanding rivals. Two years ago an industry dispute broke out over the reporting of profit margins. Taylor Wimpey announced a first-half operating margin of 9.3% in August 2011, ostensibly better than the 9% turned out by Persimmon.

It transpired that Taylor Wimpey was flattered by a gain of almost £50m from the sale of land written down as an exceptional cost outside the margin. Stripping that out, Taylor Wimpey's figure fell to 3.3%.

Redfern will not be drawn on Persimmon's objection, but says: "All that the writedowns have done is give us a clear route to be able to invest properly and take the right decisions. If we were pretending we hadn't done them and they hadn't had an impact on the results people might have had a fair point, but that's not the case."

It is unusual to meet the boss of a housebuilder who barely talks about on London. Smaller rivals, such as Redrow and Galliford Try, have tilted their businesses towards the capital, which is having a seemingly endless housing boom.

Redfern is equivocal. Taylor Wimpey has not made pronouncements on London because it does not want to commit itself to buying certain volumes of land. "I'd rather buy a site that works in Scotland or Wales, or southwest England, than a site that doesn't work in London. You'll see a few more of our badges around but we don't like to make too much noise."

[chinese investor] 25/1/2013 10:16

Looking Good !

[scottishfield] 24/1/2013 17:25

Nice rebound. Sit & hold, and add on the dips, as 'they' say.

[battue2] 23/1/2013 10:25

homeboy35, reporting done, sector cooling off after brilliant run and TW trading above nav, all pionts to a bit of a pull back. Results 1/3rd and they are known to be good, so probably back on track by then.imho

[homeboy35] 23/1/2013 10:07

Big fall today!

[gbh2] 22/1/2013 08:26

Double the number of share that you have in circulation and its bound to have a positive impact on your debt, main attraction as far as I'm concerned is that this industry will be the first to bounce back once the National situation is allowed to recover.

[gambos49] 22/1/2013 00:32

i f taylor woodrow and wimpey had not joined up then neither would have still been operating as housebuilders

[nw99] 21/1/2013 10:23

Inland homes then it is

[davdreamer] 21/1/2013 10:22

If you buy a cheap company with cheap land already in the price then perhaps you are on to a winner

[slytherin] 21/1/2013 10:18

Agreed Jug, rarely does an acquisition prove good value for an acquirer. A big part of the attraction and therefore value at the moment is the low debt.

[jugears] 21/1/2013 09:38

Can't see why this would make the shares go down ,Obviously They Want to Much Money, So hope this shows TW have Learnt there lessons From paying to much for Taylor Woodrow.Better to keep borrowings Low & look for better Land deals to build more of there own Houses.

[gambos49] 20/1/2013 20:42

Still BOVIS and REDROW to have a go at

[uknighted] 20/1/2013 10:55

According to today's Sunday Times, TW have lost out on their attempt to buy Cala Homes.

[gbh2] 18/1/2013 21:26

72 - 75p until results, what's that if its not treading water ;)

[homeboy35] 18/1/2013 18:06

if 2% rise in a day is treading water, that will do nicely!

[gbh2] 18/1/2013 13:30

Poor volume, treading water till the results imo !

[homeboy35] 18/1/2013 13:18

back to 75...is this a double top?

[gbh2] 18/1/2013 07:35

Nothing to stop you (us) having a piece of each ;)

[gambos49] 17/1/2013 22:15

So the 3 big ones have all released statements,which one has put out the best statement and which one will be the best pick for investors,personally i think these then BDEV but the PSN divi is very inviting