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Wed October 30 2024

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Taylor Wimpey recovers ahead of schedule

29 Feb 12 Housebuilder Taylor Wimpey has seen its UK operating margin reach double digit levels in the second half of 2011 " ahead of the company’s own schedule.

Chief executive Pete Redfern
Chief executive Pete Redfern

Taylor Wimpey said that market conditions in 2011 “exceeded our expectations”. After achieving an operating margin of 6.4% in 2010, the company was aiming for double digits by 2012. With improving market conditions, it managed 10.1% in H2 2011 and 9.7% for the full year.

Group operating profit for the year to 31 December 2011 was up 81% to £159.5m (2010: £88.3m) on revenues up 2.3% to £1.81bn (2010: £1.77bn). A pre-tax loss of £27.9m in 2010 became a pre-tax profit of £65.7m in 2011.

Net debt was reduced from £654.5m to £116.9m during the year.

A total of 10,180 homes were completed in the UK during the year, up 2.2% from 2010’s 9,962. Average selling price was £171k, the same as in 2010.

Chief executive Pete Redfern said: "Our performance is the result of a continued focus on driving value by prioritising a further improvement in margins and return on capital. In 2011, we saw significant progress in our operational performance and I am pleased that we have reached our double digit operating margin target ahead of schedule.

“While wider economic conditions remain uncertain, the UK has seen a period of continued stability in the underlying housing market and strong growth across a number of areas as shown by our order book. We feel well-positioned to deliver further improvement through our value-driven strategy."

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MPU
MPU

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