Taylor Wimpey Back to Profit £75.1m as Margins Strengthen to 7.5%

Housebuilder Taylor Wimpey plc reported a significant improvement in profitability in 2010, which the group said was driven by prioritising margin over volume.

 

Profit before tax and exceptionals was up 178.1% at £75.1m for the year to December, turning round from a previous loss of £96.1m. Revenue edged up 0.3% to £2.60bn from total completions of 14,272 homes, previously 15,166.

The group said that although completions fell in both the UK and North America, this was offset by growth in average selling prices.

Group operating margin rose to 7.5% from 1.7%. In the UK, operating margin was 7.1% against the previous 0.8%, while in North America the figure rose to 11.2% from 5.8%.

Adjusted EPS was 0.6p, against the previous loss per share of 4.3p. Net asset value per share increased to 57p from 47p.

No final dividend was declared. The group said it would continue to review its dividend policy in the light of its  financial position and future economic and market conditions.

The group said it had seen strong cash generation throughout the year, with net debt reduced to £654.5m from £750.9m.

CEO Pete Redfern said, ‘The significant improvement in our performance during 2010 reflects our disciplined focus on margin ahead of volume growth. ‘We have continued to improve the quality of our landbank and add value to our existing sites through replans and operational efficiency. We now have the financing  in place to enable us to continue that progress towards our aim of achieving double-digit margins in 2012.’

In the UK, the group said it had seen a positive start to 2011 with some price increases. In North America, markets appeared to have stabilised and there were signs of increasing consumer confidence. The group was evaluating proposals for the North American business and would update the market in due course.

 

A full copy of the statement from Taylor Wimpey can be obtained from their website http://www.taylorwimpeyplc.com/ or the following link Statement Report

 

Onyx Construction Consultants are pleased to count Taylor Wimpey as one of its valued clients working with its Bury St Edmunds, Milton Keynes and Borehamwood offices and glad to see that they are doing very well in the current market conditions.

 

If you are a house builder and need assistance with your commercial needs or a subcontractor looking for an introduction to major house builders then contact Andrew Fella at Onyx Construction Consultants Ltd

Introduction Leads to Contract Award for Quinn Brickwork

Key Introduction Leads to Contract Award for Quinn Brickwork

Onyx Construction Consultants Limited are pleased to announce that another introduction made by them, between a valued contact at a Southern Area House Builder and one of their clients Quinn Brickwork Ltd. led to Quinn Brickwork securing a 19 unit site contract in Peterborough last month. In addition the House Builder having seen how Quinn Brickwork has performed with regards to programme and quality now wishes to negotiate the next phase of 24 units due to start shortly.

This introduction is only one of many made in the last 4 years between Onyx Construction Consultants specialist subcontractor clients and the many key placed contacts both business and personal that the directors of Onyx have at many of the House Builders, Contractors and Developers in the East Anglia and Northern Home Counties areas, leading to tenders being issued and contracts secured by our clients.

Onyx Consultants Ltd – Onyx Construction Marketing Service

In the past introductions have only been made with specialist subcontractors who are already one of our respected clients using the Onyx Estimating and Surveying services. This will shortly change with the introduction of Onyx Consultants Ltd our sister company and it’s Marketing Service.

As part of the Onyx Construction Marketing service introductions to our many business and personal contacts in the industry will be made available to those subcontractors who sign up for the service and meet the criteria needed.

More details of contract awards resulting from our introductions both recent and past together with referral and recommendation letters will be posted on the Onyx Construction Marketing blog and soon the Onyx Consultants Ltd website.

In the meantime if you feel that you would benefit from this service or know someone that will please contact us via email info@onyxconsultants.co.uk or contact Andrew Fella on 07798 640022.

Bellway Homes – Interim Statement – Profits up 20%

Things are looking up at Bellway Homes including the number of sites opening and more importantly their profit. With their land buyers looking to buy new land on top of the 1260 plots bought already.

The full report:

Interim Management Statement

7 December 2010

Bellway is today issuing an Interim Management Statement (IMS) relating to the
period from 1 August to 30 November 2010.

As previously reported at the time of our annual results on 19 October,
reservations prior to the announcement of the Government’s Comprehensive
Spending Review (CSR) did not benefit from the usual degree of uplift normally
associated with the housing market in autumn. Since the CSR, however, home
reservations taken are ahead of the Board’s expectations, although still
slightly down compared with the same period last year. The decline in consumer
confidence appears to have levelled out and encouragingly, people are still
committing to purchase even at this time of year.

The Group currently has 3,614 sales (2009 – 3,486) secured for this financial
year and a further 400 (2009 – 598) for the next financial year. The average
selling price for all these sales is £167,600 which is 8.4% ahead compared to
this time last year, mainly as a result of the continuing change in product
mix. The Board anticipates that unit completions in the six months to 31
January 2011 will be similar to last year, albeit at a slightly higher average
selling price and that net profit before tax will rise by up to 20%.

Our divisions are gradually increasing investment in new site openings and it
is anticipated that the number of selling outlets will increase from 185 to
around 200 in early 2011. Having completed the acquisition of 1,260 plots in
the period and still maintaining a net cash position, the balance sheet remains
robust. The Group’s land teams are actively looking to secure further
opportunities at attractive margins and the divisions are concentrating on
bringing newly acquired sites to the market as quickly as possible to underpin
the operating margin going forward.

The outcome for the year to 31 July 2011 will be greatly dependent on the level
of consumer confidence during the 2011 spring selling season. This, in turn is
reliant on a reasonable supply of affordable mortgages combined with sensible
lending criteria.

The Board believes it is currently well positioned in what continues to be a
tough and testing market for UK housebuilding.

Berkeley Group Increases Land Bank

As Part of its Interim Statement  issued last Friday 3/11/2010 the Berkeley Group gave details of its increased land bank, including traditional sites (one assumes not classed as brown field) in St Albans, Oxford and Horsham. Other sites acquired as their report suggests are in Prime London locations.

An Extract of the Land Section of the Interim statement is given below:

Land Holdings

 At 31 October 2010, the Group (including joint ventures) controlled some 28,914 plots with an estimated gross margin of £2,301 million.  This compares with 28,099 plots and an estimated gross margin of £2,038 million at 30 April 2010. Of the total 28,914 plots, 28,647 plots (April 2010: 27,094) are owned and included on the balance sheet.  In addition, 226 plots (April 2010: 935) are contracted and 41 plots (April 2010: 70) have terms agreed. In excess of 95% of our holdings are on brown-field or recycled land.  

The increase in the land bank is a result of new land acquisitions in the period which has seen Berkeley agree 13 new sites, covering some 2,500 plots.  These new sites include prime London sites in Westminster and on Hammersmith Embankment, traditional sites in St Albans and Oxford and a site in Horsham for over 1,000 units acquired through strategic land in its long-term pipeline. All of the sites agreed are in excellent locations in London and the South East with strong underlying demand for quality new homes where Berkeley can create vibrant new communities and enhance value through its development expertise. 

In addition to the 28,914 plots in its land bank, and after accounting for the transfer of the site at Horsham acquired in the period to the land bank, Berkeley continues to have approximately 10,000 plots in its long-term pipeline, which it envisages delivering over the next ten years.  This includes the latter phases of Kidbrooke and Woodberry Down, strategic land and a number of sites being worked up within St Edward Homes, Berkeley’s joint venture with Prudential.  Of a more long-term nature; Berkeley hopes these sites will come through into the land bank but they currently have an uncertain outcome due to planning policy or vacant possession issues.

In terms of planning, Berkeley entered the year having achieved new or revised planning consents on 38 of its sites in the run up to the May Election.  It is therefore very pleasing to have had a number of further notable successes in the first half of this year.  These include sites in Belgravia, Westminster, Greenwich, Roehampton and Oxford, and revised consents for schemes in Battersea and Acton and the second phase of the student scheme being developed in Clapham for Imperial College.  Through the ongoing re-planning and re-assessment process, the land bank includes a net reduction of approximately 400 plots due to a combination of re-planning densities and increasing individual unit sizes and removing plots that are no longer commercially viable. 

St Edward Homes accounts for some 1,400 plots in the land bank across three sites.  These include: Stanmore Place, where the first phase is selling well and development on later phases progressing and 375 Kensington High Street, which has been successfully launched to the market and where demolition work has begun.  In addition, Berkeley continues to work with Prudential to identify further sites to which St Edward Homes can add value and three of these are in the long-term pipeline.

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