Housebuilder Taylor Wimpey to increase cash payout next year
British house builder Taylor Wimpey said on Wednesday it would return more money to shareholders after it built up its land bank in the first half and was boosted by strong demand in the property market.
The group, which pre-announced its results earlier this month, posted a 64pc jump in adjusted pretax profit to £178.4m for the six months to June 29, and said it would increase its payout to shareholders by £50m to £250m in 2015.
Chief Executive Pete Redfern said the group, which sold 5,766 homes in the period, 11pc more than a year ago, had invested significantly in land.
"The landbank has grown by about 10,000 plots over the last 12 months, with the biggest element of that over the last six months," he said in an interview on Wednesday.
"With a combination of an improved financial performance in the short term, and the fact that in the first half of 2014 we have got to the level of land that we think is the right strategic level for the business, we feel it's right to increase our planned cash return for 12 months from now."
Shares in Taylor Wimpey were trading up 1.8pc to 116.7 pence.
Analyst Gavin Jago at Peel Hunt said that with the capital return, the shares offered a yield of about 7.5pc from next year.