Strong order book cements comeback for Taylor Wimpey

By MARTIN FLANAGAN
Published on 01/08/2012 10:31

HOUSEBUILDER Taylor Wimpey has further cemented its ­robust turnaround after unveiling a 50 per cent leap in ­operating profits in the first six months of this year amid higher average selling prices.

The group, which has more than 200 staff in Scotland on 33 developments, including projects in Arbroath, Musselburgh and Stewarton, said its order book rose 18 per cent to £688 million.

Taylor Wimpey, which nearly collapsed with mountainous debts in 2009, also cheered shareholder today with an interim dividend of 0.19p, compared with no payout in the same period of 2011.

Dividends restarted last February with a 0.38p final payment, the first payout at the company since the last boom for the homebuilding industry in 2007.

The firm, now a mainly UK-focused business after quitting North America last summer as part of its restructuring, said its British revenues lifted 11.6 per cent to £903m in the six months to 1 July, while operating profits rose to £101m from £67.2m.

That fuelled a jump in profit margins to 11.4 per cent from 8.4 per cent a year earlier. Pre-tax profits leapt to £78.2m from £28.9m.

Pete Redfern, chief executive of Taylor Wimpey, said he was pleased to report another period of strong financial and operating performance.

“Although wider economic conditions remain uncertain, we have been reassured by the continued stability in trading conditions and the strength of our order book,” Redfern said.

The company welcomed the launch of the Treasury and Bank of England’s “Funding for Lending” scheme, designed to get banks to step up their loans to households and businesses.

Taylor Wimpey completed 5,083 homes in the first half, up from 4,707. Average selling prices of the completions climbed 5 per cent to £176,000 from £168,000.