Taylor Wimpey Interims.

[idpickering]

UK operational highlights:

· Group completions of 2,771 homes (H1 2019: 6,541) excluding joint ventures, impacted by site closure during Q2 2020

· Positive sales momentum and customer interest:

o H1 2020 net private sales rate of 0.70 (H1 2019: 1.00). Sales rate of 0.97 prior to shutdown, which reduced to 0.30 during the shutdown

o Sales prices during shutdown consistent with those achieved in Q1 2020

o Outlets increased to 252 at period end (H1 2019 period end: 246 outlets)

o Strong total order book as at 28 June 2020 representing 11,686 homes (30 June 2019: 10,137 homes), up 15%, with a value of £2,904 million (30 June 2019: £2,366 million), up 23%, excluding joint ventures

· NHS and care workers discount scheme well received with 1,206 homes reserved at w/e 26 July 2020

· All of our employees have returned to work from furlough and we have returned all furlough subsidies to Government

· Improved average Construction Quality Review score to 4.31, in the top quartile of large homebuilders (H1 2019: 4.05)

· 4 out of 5 star rating on Trustpilot and over 90% of customers would recommend us in H1 2020, according to the Home Builders Federation 8-week customer survey

· Successful equity raise, raising net proceeds of c.£510 million for investment in attractive land opportunities

And later;

Dividends

In order to conserve cash and increase flexibility at the outset of the pandemic we took the decision to cancel the 2020 final dividend of 3.80 pence per share (c.£125 million) which was due to be paid on 15 May 2020, and the planned special dividend payment of 10.99 pence per share (c.£360 million), which was due to be paid on 10 July 2020. Although our Ordinary Dividend Policy has been the subject of prudent and comprehensive stress testing against various downside scenarios, including a 20% reduction in prices and a 30% reduction in volumes, and is payable through a normal downturn, the COVID-19 pandemic represents a highly unusual set of circumstances. We expect to resume the payment of an ordinary dividend in 2021 (2020 final) and will review the special dividend in 2021 for payment in 2022.

https://www.investegate.co.uk/taylor-wi ... 00073965U/

[monabri]

10 months to the next TW divi ......

(and a possible special in 2022...pfft!)

[idpickering]

10 months to the next TW divi ......

(and the special in 2022...pfft!)

I am tempted to top up my TW. holdings while the sp is cheaper, but I'm not sure I can justify buying more, and be expected to wait 1o months for a dividend? It's about the income here, not value investing.

Ian.

[monabri]

Not surprisingly, the market is marking them down 6% at the moment.

[Wizard]

Without a view on the resumption of the Special dividend and at what level I can't see how anyone looking for income would be that attracted to Taylor Wimpey as the yield will be unattractive even t the current share price.

[monabri]

Missed dividends (payment dates)

May 2020 £125m - not paid
July 2020 £360m - not paid
Nov 2020* £140m (approx) - now not being paid.

Total saving = £625m

( * 3644408674 shares at 3.84p assuming dividend static from 2019)

And a shareholder dilution of £500m from the equity raise.

[idpickering]

It's tempting to just dump these and move on? That's not how I want to HYP, or even should do, and I should ignore this short term blip? They're 1 of 25 holdings after all, so it's not life threatening. How are other holders dealing with this dud of a holding?

Ian.

[monabri]

It's tempting to just dump these and move on? That's not how I want to HYP, or even should do, and I should ignore this short term blip? They're 1 of 25 holdings after all, so it's not life threatening. How are other holders dealing with this dud of a holding?

Ian.

Not enamoured by the dividend plans but I will "hold.

[idpickering]

Not enamoured by the dividend plans but I will "hold.

Thanks for your input monabri. I'm of the same mind as you I think. I said the other day "less is more" in HYPing. I meant being less active is the way to go in HYPing. It's cheaper with regards to dealing fees too. Also, I'm not happy about making my 25% loss on paper with my TW. holdings a reality by selling. No, they can sit in my HYP as is. I'm unlikely to buy more TW. until the dividend situation is sorted ie they're paying out again.
No knee-jerk reactions from me. I'm stepping away from the sell button.

Ian.

[Wizard]

Not enamoured by the dividend plans but I will "hold.

Thanks for your input monabri. I'm of the same mind as you I think. I said the other day "less is more" in HYPing. I meant being less active is the way to go in HYPing. It's cheaper with regards to dealing fees too. Also, I'm not happy about making my 25% loss on paper with my TW. holdings a reality by selling. No, they can sit in my HYP as is. I'm unlikely to buy more TW. until the dividend situation is sorted ie they're paying out again.
No knee-jerk reactions from me. I'm stepping away from the sell button.

Ian.

This is a psychological flaw I share. But if one can overcome that there is a more optimistic way to look at it. If since the date you purchased TW. a possible replacement holding has fallen by more one can try to view the 25% fall in TW. as a gain versus that other share. You can exchange the TW. shares for more of the alternative than you could have bought at the point you invested in TW.

My problem is that many of my HYP dogs (such as Stagecoach, BT, Royal Mail and Imperial brands) have crashed so far that there is not much out there that has performed worse over the period I have owned them

[Gersemi]

My problem is that many of my HYP dogs (such as Stagecoach, BT, Royal Mail and Imperial brands) have crashed so far that there is not much out there that has performed worse over the period I have owned them

I think the problem is that by definition they would be considered to be dogs as well!