Profits at Taylor Woodrow were a touch below market expectations, the pre-tax figure showing a 7.3% increase to £57.6m.
But although there was a hint of disappointment, this was more than made good by the £58m surplus on revaluation of the property portfolio. The portfolio went up by a total of £100m to £409m, a rise of 32%. The increase was generated by a combination of value growth and expansion.
Property also made the largest contribution to profits, chipping in £20.8m (£16.3m) against the £15.3m (£18.9m) from contracting.
Sir Frank Gibb, chairman and chief executive, commented that the property strategy is bearing fruit, and the 27% increase in profits came from increased rents and trading income, and not from profits on disposal.
A sharp increase in profits is being forecast by the market for the current year. Stockbroker Wood Mackenzie predicts a rise at the pre-tax level to £70m followed by a further jump to £90m next year.
Meanwhile, a final dividend of 7.25p takes the year’s total to 9.5p against 8.625p.
