FTSE 100 housebuilders Taylor Wimpey (LON: TW) (TW.L) and Barratt (LON: BDEV) (BDEV.L) have released share price news in the past month.
Taylor Wimpey released a trading statement on 22 April to coincide with its AGM. It stated that its net private sales for the year to 18 April were 1.00. This is higher than the 0.9 figure reported in the same period of the previous year. Cancellation rates were similar at 14% versus 16% from a year earlier. The firm reported that it has achieved growth on sales prices realised at the end of last year.
The firm’s total order book stood at around £2.8 billion as at 18 April. This is equivalent to almost 11,000 homes. The housebuilder went on to say that it is making good progress on its strategy, including delivering its operating profit margin target of 21-22% over the medium term and improving its cost control.
Taylor Wimpey increased the size of its landbank in the first part of the financial year. Its short term landbank stood at 82,000 plots versus 78,000 plots at the same time last year. Its strategic pipeline stood at 143,000 potential plots at the end of March.
The company confirmed that it plans to return around 7.5% of net assets to investors annually in the form of two equal dividend payments. It also intends to return excess capital to investors, but is not expecting to do so in 2021.
In the past month there have been several relatively small director dealings in Taylor Wimpey shares. They are part of the company’s all-employee share incentive plan. It is expected to next update the stock market on 4 August when it will release its half-year results.
Over the past year the Taylor Wimpey share price is up 18%. Over the past five years it is down 1%. The FTSE 100 index is up 13% and up 12%, respectively, over the same time periods.
Meanwhile, FTSE 100 housebuilding peer Barratt has released relatively little news in the past month concerning its share price. It released details regarding its senior management performance targets on 1 April. They were due to be released in November 2020, but were delayed by Covid-19.
The company’s remuneration committee has decided to use performance targets of total shareholder return against a comparator group, total shareholder return against a housebuilder index, earnings per share and underlying return on capital employed to determine executive pay. They will have weightings of between 20% and 40% apiece. More details on the specifics of the executive pay structure can be found here.
The Barratt share price has risen by 42% in the past year. In the past five years it is up by 45%. The company is due to release a trading update on 6 May.
Not Investment Advice
Note: Views expressed are those of the writer. The author does not own any stocks mentioned. The article is information, not advice. Share prices can rise and fall. Past returns are not a guide to the future. Please do your own research.