13th May 2014 07:45
LONDON (Alliance News) - Taylor Wimpey PLC Tuesday saw its shares rise early Tuesday after it said it expects to deliver an operating margin increase of at least 300 basis points in 2014 and a return on net operating assets of at least 20% in the year, as it looks to exceed its key financial targets by the end of 2015.
Taylor Wimpey said it is operating in a much improved housing market and the strength and quality of its landbank and strategic pipelines, gives it the confidence to set additional challenging medium-term targets across each of its key financial objectives.
It has now set targets for the period 2015 to 2017, which include achieving an average operating margin of 20% over the three year period, a return on net operating assets of at least 20% a year, and an average increase in net assets of 15% a year over the three year period.
The company also hopes to achieve an average conversion of at least 65% of operating profit into operating cashflow over the three year period.
As previously announced, Taylor Wimpey plans to return additional cash flow to investors over the medium term, starting with GBP50 million in July 2014 and GBP200 million in July 2015. Future payments have the potential to exceed GBP200 million a year, the firm said. These returns will be set on an annual basis, in line with the cash generation of the business.
Taylor Wimpey shares were quoted up 5.7% at 112.40 pence Tuesday morning, making it the biggest gainer on the FTSE 250.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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