17th Jun 2020 17:07
(Alliance News) - Taylor Wimpey PLC on Wednesday outlined plans for a GBP500 million placing, as the housebuilder looks to raise funds for "near term opportunities".
Taylor Wimpley plans to raise the funds through a bookbuild, subscription and retail offer. The price of the placing will be determined at the end of the bookbuild, the FTSE 100 firm explained.
Its stock closed 0.3% higher at 151.80 pence each in London on Wednesday.
"The company expects that the combined total proceeds from the placing, the subscription and the retail offer will be approximately GBP500 million. The proceeds of the placing, subscription and retail offer will provide the company with additional capacity to take full advantage of significant near term opportunities in the land market," Taylor Wimpey said.
The firm said "forward indicators remain strong" and added its order book has increased, as the housing market re-opened following the Covid-19 lockdown. The order book now stands at GBP2.85 billion, up 12% from GBP2.54 billion a year ago.
Website visits rose by 51% year-on-year in the three weeks since sales centres re-opened, appointments booked have also doubled.
Taylor Wimpey's total completions in the 24 weeks to June 14 were down 44% annually at 2,531, from 4,526, showing just how much the lockdown battered its trading.
"While at this stage it is too early to resume full guidance, the impact of the lockdown on build programmes will push the company's fourth-quarter 2020 completions into 2021, leading to a meaningful reduction in 2020 volumes. Dependent on government guidance, the company would expect improvement in 2021 capacity however this is unlikely to fully rebound to prior levels," Taylor Wimpey.
On the fundraising, the company added Chair Irene Dorner will acquire GBP100,000 worth of shares in the subscription. Chief Executive Pete Redfern will subscribe for GBP200,000, Finance Director Chris Carney GBP50,000, likewise Operations Director Jennie Daly.
Back in March, Taylor Wimpey cancelled its dividend amid the Covid-19 crisis, a move which it sai would save the housebuilder more than GBP500 million. On Wednesday, the group said it expects to resume ordinary dividend payments in 2021.
By Eric Cunha; [email protected]
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