US arm helps build a profitable forecast

Housebuilder Taylor Wimpey has upgraded its profit forecast after a strong performance from the company's North American arm.

Volumes and margins in Canada and the United States helped drive group underlying operating profit and pre-tax profit above expectations, the group said yesterday.

Taylor Wimpey also posted lower-than-expected net debt of 660 million, although completions in 2010 were down slightly at 9,962.

Pete Redfern, chief executive, said: "We have delivered a much improved performance in 2010. We are now in a strong position to add significant value by maximising returns from our existing land portfolio and adding high quality new land on attractive terms."

Britain's second-largest housebuilder is currently seeking offers for its North American business, in order to reduce its debt and focus on boosting its sales margins and volumes in the UK, where it trades as Bryant Homes, Laing Homes and George Wimpey.

The company also reported a "surge in activity" in the west of Scotland, with new developments opened in Lochmaben near Dumfries, in Paisley and in Stepps. It said that following a successful roll-out across the west of Scotland, the new "Scotland range" would become available at developments throughout the east of the country over the coming months.

The company is due to report results for 2010 on March 3.