Taylor Wimpey slashes UK building costs

Aaron Morby 12 years ago
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Taylor Wimpey has slashed UK building costs to help rebuild business margins.

Britain’s second biggest house builder kicked off the latest round of half-year results with a return to the black, built on better selling prices and substantial cuts in construction costs.

In the first six months of 2010, operating profits rebounded to £79.3m as margins recovered to 7.5% on turnover slightly up at £1.2bn.

Taylow Wimpey said the recovery in margins stemmed from a strong focus on sales price rises, reduced building costs and cheaper land.

The house builder has driven building costs down 9% to £104 per square foot and said it remained confident it could deliver further savings over time.

During the same period average selling price per square foot for private completions increased by 7.3% to £177.

The overall improvement helped pre-tax profits recover to £19.6m compared with a loss of £68.9m a year ago.

Peter Redfern, group chief executive, said: “We have performed well in the first half of the year.

“I’m pleased with the progress we’ve made in reducing costs, improving the margin and developing the landbank.”

He added: “We have significantly strengthened our business and we are well-positioned to grow shareholder value.”

In the first half of 2010, Taylor Wimpey completed 4,804 homes in the UK, just 2% more than the same period last year.

Average selling prices for private homes rose 10.4% to £180,000 compared to 2009.

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