Taylor Wimpey's (74.5p and 4.5% of the JIC portfolio) trading statement for the year ended 31st December 2012 is excellent. The Company says that it expects full year results to be at the top end of expectations with Group operating profits up over 40%. Margins for the whole year were strong; ahead of the 11.1% achieved in the first half.
Market conditions are described as being stable and the Company says its starts 2013 in an excellent position with its 31st December 2012 order book some 14% higher than a year ago at £948m. The Company continues to prioritise margin performance over volumes.
In its outlook statement the Company says that consumer sentiment towards the housing market is more positive than anything they have seen in recent times and that its "well positioned sales outlets, high quality land portfolio, increased order book and strong balance sheet give us confidence to target further improvements and create increased value for our shareholders in 2013 and beyond".
The stock is up 55% since it was added to the JIC portfolio last May. As a business it has performed well during a difficult time for the housing market and is well placed should there be a sustainable improvement in market conditions. Earnings per share are expected to grow by 25% in 2013 and 35% in 2014. At 74.5p the shares are valued at 12.5x 2014 earnings and I think can make further progress especially as I suspect there may be some upward revisions to forecasts on the way. Happy holder.
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