Taylor Wimpey reports strong year with record order book for 2016

Taylor Wimpey has indicated 2015 was a year of steady growth, and has indicated it is starting the new year with a strong order book.

In a trading statement released on Monday, the FTSE 100 housebuilder reported total home completions in the UK for the year to 31 December 2015 increased by 7% to 13,341, including 2,509 affordable homes.

The average selling price on private completions increased by 9% to £254,000 after the company y said it focused on better quality locations.

It also said it finished the year with a record order book in the UK, increasing by 27% to £1.779bn.

In Spain, Taylor Wimpey said it had seen a “meaningful improvement” with 251 homes completed, up from 164.

They sold for an average of €315,000, up from €250,000.

With a strong order book in place for 2016 as well as its strategy focused on long term delivery and sustainability and housing still high on the political agenda, the company said it expects to see more progress this year against its medium term targets.

"We have delivered a strong trading performance in 2015, in a positive housing market, building more homes than at any point in the last six years and delivering a record operating profit margin of over 20%,” said chief executive Pete Redfern.

“We are confident that the principles we are operating to will deliver long term sustainable value across the housing cycle, and we remain focused on working with communities and our customers, suppliers and employees to drive continual improvement in the quality and consistency of our operational business."

Hargreaves Lansdown’s head of equities Richard Hunter said the group is in excellent shape, and plans to pay a £300m special dividend to shareholders in July.

“The housing market is currently being supported by rising disposable incomes, low mortgage rates and government schemes such as Help-to-Buy, which are encouraging more people onto the housing ladder.”

He said the sector is a “sweet spot” for investors, with the sector trading at a significant premium to book value.

“This means share prices are likely to be vulnerable when the next housing downturn arrives.

“For now, market conditions look set to remain favourable, suggesting the house builders' purple patch could last a while longer.”