LONDON (dpa-AFX) - Taylor Wimpey Plc. (TW.L) said that it will report fiscal year 2017 results in line with expectations, and expects to achieve further growth and performance improvement in 2018.
For fiscal year 2017 the Group will deliver an improved operating profit margin of about 21.2% and a return on net operating assets of over 32%. It will pay a total dividend in fiscal year 2018 of 500 million pounds, subject to shareholder approvals, and reiterate intention to make further material capital returns in 2019 and beyond, with details to be provided at our Strategy Day scheduled for the first-half of 2018.
Pete Redfern, Chief Executive, said, 'We go into 2018 with positive momentum and expect to achieve further progress against our medium term targets. Our focused strategy of managing the business through the cycle, while also driving further operational improvements, will enable us to continue to deliver long term value for shareholders.'
In the UK, total home completions in fiscal year 2017 increased by 5% to 14,541, including joint ventures. During 2017 wit e delivered 2,809 affordable homes, including joint ventures, equating to 19% of total completions.
The short term land market continued to be positive in 2017. The company operated at broadly replacement levels given landbank is around optimal scale.
The Spanish market remained strong in 2017. The company completed 301 homes in 2017 at an average selling price of €352k. The total order book as at 31 December 2017 stood at 329 homes (31 December 2016: 293 homes). It expects to report a significantly improved operating profit for the Spanish business in 2017, compared to 20.6 million pounds operating profit in 2016. The business is well positioned for further growth in 2018.
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