TaylorWimpey Plc one of our KEY investments issued its 9 months trading update this week. It makes great reading with sales steadily increasing, profit margins rising faster than expected, sales prices rising and a forecast of further improvements and a very substantial rise in dividends for next year.
We believe the sales cycle of the past four decades is finally over with a sound base of house building and construction companies continuing to build properties at an increasing rate into the foreseeable future. Nothing is certain in business but the growth of TaylorWimpey is impressive and we may see it in the FTSE 100 in the not too distant future. No reason to sell this investment as both its dividends and share price is rising
Population growth is a major factor in our thinking and can only contribute to increasing demand for more bedrooms. An interesting trend now is for builders to include restaurant and hotel units in their major schemes as part of the development of lifestyle and sustainability features for the future.
Looking forward some three months we can I think be very optimistic for TW as one of our long term KEY investments and to prove to be a safe and profitable haven for funds from our recent hotel property disposals.