Homebuilder Taylor Wimpey posted rising full-year profits with housing activity continuing to hold firm following the Brexit vote – as the company said Scotland remained a “strong” market.
Pre-tax profits rose 22 per cent to £733 million in the year to 31 December, while revenue ticked up 17 per cent to £3.7 billion.
Taylor Wimpey, one of the UK’s biggest housebuilders,said that the UK’s “housing market fundamentals remain good with strong customer confidence”, supported by “robust trading and levels of demand”.
The group completed a total of 14,112 homes in the year, an increase of 5 per cent. Its total average selling price increased by 10.9 per cent to £255,000, helping boost revenue.
Tayor Wimpey, which has 28 outlets in Scotland, said total home completions north of the Border rose 3.5 per cent in 2016 to 1,148, compared with 1,109 in the previous 12 months.
The total average selling price in Scotland last year climbed 6.3 per cent to £218,000. That compared with £205,000 in the previous year.
Pete Redfern, Taylor Wimpey’s chief executive, said: “In 2016 we delivered an excellent performance set against an uncertain political and economic environment that stabilised in the final quarter.
“The outlook for 2017 is for ongoing stability and incremental price growth, which is a healthy backdrop for our business and our customers.”
The company added that, while it saw a small increase in the average cancellation rate immediately following the EU referendum, the number was low compared with long-term historic trends and quickly returned to pre-referendum levels.
Taylor Wimpey said that it has made a “very good start to 2017” and that it backed government plans to ramp up housebuilding.
George Salmon, equity analyst at Hargreaves Lansdown, said: “After strong numbers from its peers in the sector, it is not at all surprising that Taylor Wimpey has delivered a good set of results. What is of interest though, is the detail it has provided.
“While the group acknowledges the importance of managing the cycle in such an economically sensitive industry, it is confident enough to say that much of the risk and uncertainty around the Brexit vote is disappearing into the rear view mirror.”
The company’s projects in Scotland include Wallace Grange in Dunfermline, which is part of the wider Dunfermline Eastern Expansion project located in Duloch.