Major UK housebuilder’s shareholder windfall

Firm reports strong UK customer confidence

Taylor Wimpey shareholders are in line for a bumper £1.3 billion payout after the housebuilder revealed a 21.5% rise in full-year profits to £733.4 million

It has already paid out an ordinary dividend of £55m and a special dividend of £300m for 2016, making a total of 10.91 pence per share.

It said it will now pay a 2017 ordinary dividend of £150m and special dividend of £400m, for a total payout of 13.8 pence per share.

The remainder of the £1.3bn is being targeted for next year, but is yet to be confirmed.

The company reported total 2016 revenue up 17.1% at £3.67bn and profit before tax and exceptional items 21.5% higher at £733.4m.

On UK current trading and outlook, Taylor Wimpey said: “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.”

The company said the market is underpinned by competitive mortgages and low interest rates.

Customer interest remains high, with website visits solid and customers continuing to register interest in forthcoming developments and progress their home purchase plans.

It said the wider London market remained robust and prime central London softer, but house prices are stable and there are good levels of underlying demand.

Taylor Wimpey said it would continue to focus on building a strong order book for the future.

At February 19 it was about 49% forward sold for private completions for 2017, with a total order book worth £1,978m.