 posted promising results for 2016, with profits seeing a 20 percent boost in growth remaining optimistic for 2017.){kind=link}
Housebuilder Taylor Wimpey (LON:TW) posted promising results for 2016, with profits seeing a 20 percent boost in growth.
The FTSE 100 company saw pretax profits before exceptional items rise by 21.5 percent to £733.4 million for the year to December-end, compared to £603.8 million a year previously.
In addition, group revenue grew by 17.1 percent to £3,676 billion, an increase from £3.139 billion the year prior, following the completion of 14,112 homes in 2016. The company also noted that its saw a 10.9 percent rise in UK average selling prices to £255,000, up from 2015’s average of £230,000.
In respect to dividends to shareholders, this totalled £355.9 million for the year and are projected to rise to £450 million for 2017. Moreover, the development company remained positive in its outlook for 2017 and further growth. Commenting on current trading patterns, the company stated:
“We have made a very good start to 2017 and are encouraged by robust trading and levels of demand.
“The UK housing market fundamentals remain good with strong customer confidence in our core geographies.”
This follows a strong report from rival house builder Barratt Developments (LON:BDEV) last week, posting a 8.8 percent rise in annual profits. However, despite a rise in average house prices across the UK, Barratt did acknowledge that a slowdown in the London property market had begun to impact profit margins.
Nevertheless, Pete Redfern, Taylor Wimpey’s chief executive, remained optimistic about market conditions and Brexit thus far. He commented:
“In 2016 we delivered an excellent performance set against an uncertain political and economic environment that stabilised in the final quarter.
“The outlook for 2017 is for ongoing stability and incremental price growth, which is a healthy backdrop for our business and our customers.”
Currently, shares in Taylor Wimpey remain steady and preforming modestly after the news, up by 0.50 percent as of 10.37AM (GMT) as Brexit anxieties continue to weigh on wider markets.