LONDON (Alliance News) - UK house builder Taylor Wimpey PLC on Wednesday said it will report 2018 results in line with expectations, as well as reiterating its 2019 guidance.
Total completions were up 2.8% year-on-year in 2018 to 14,947 from 14,541, including joint ventures.
Moreover, average selling prices on private completions were up 1.7% to GBP301,000 from GBP296,000, while the overall average selling price stayed flat at GBP264,000.
The FTSE 100 constituent said trading had been "robust" despite some signs of "increasing customer caution" at the end of 2018 in London and the south east of England.
As at December 31, Taylor Wimpey's total order book was valued at GBP1.78 billion, rising from GBP1.63 billion a year before. This figure excludes joint ventures and represents 8,304 homes. This growth was attributed to affordable housing.
Including joint ventures, Taylor Wimpey delivered 3,416 affordable homes in 2018, rising from 2,809 affordable homes in 2017. Affordable homes represented 23% of total completions, up from 19% the year before.
Taylor Wimpey said it is entering 2019 with 256 outlets, down from 278 at the end of 2017, and traded from an average of 273 outlets in 2018, down from 287 the year prior.
Build cost inflation was between 3% and 4% in 2018, in line with the company's guidance.
At the end of 2018, Taylor Wimpey's cash balance stood at approximately GBP644 million, up from GBP511.8 million at the end of 2017 and ahead of expectations due to the "timing and quantum of land investment".
As a result of a legal judgement on pensions last October, which guaranteed equal pensions for men and women in UK defined-benefit pension plans, Taylor Wimpey is estimating an increase in its pension scheme liabilities of between GBP15 million and GBP20 million. This will be recorded as an exceptional charge in its 2018 results.
Taylor Wimpey said it intends to return GBP600 million to its shareholder by way of a total dividend in 2019, although this is subject to shareholder approval.
"As we enter 2019, we maintain our guidance for stable volumes although are mindful of market sensitivity. We are confident that our focused strategy of managing the business through the cycle and driving further operational improvements will enable us to continue to deliver a high-quality product and service to our customers, long term value for shareholders and growth into 2020,2 said Taylor Wimpey Chief Executive Pete Redfern.
The company said that while it was too soon for a definitive view of trading in 2019, it has continued to see "solid forward sales indicators" and is starting the year with a "very strong order book".
"We reiterate our previous guidance for 2019 for similar volumes to 2018, in current market conditions, with significant volume growth potential for 2020 onwards. We will provide further guidance on 2019 as the year progresses," Taylor Wimpey said.
The stock was up 3.5% at 145.35 pence in early trading in London on Wednesday.
Taylor Wimpey (TW.)
