Taylor Wimpey year-end profits to rise 75%

Aaron Morby 11 years ago

House builder Taylor Wimpey has delivered a sharp rise in operating profits despite completing just 2% more homes last year.

In a statement on end of year trading, Taylor Wimpey said margins had topped 10% again and forecast operating profit would soar 75% for 2011.

The firm also reported stronger trading at the end of the year and first two weeks of 2012.

This saw its order book rise 17% against last year giving the builder more confidence to boost housing starts in 2012.

Pete Redfern, group chief executive, said: “In 2011, we have taken the opportunity to focus on our strategy of driving value for shareholders through margin improvement and improving return on capital.

“It is pleasing to have reached our double digit operating margin target ahead of schedule and to be well-placed to deliver further improvement, providing that market conditions remain broadly stable.”

Home completions edged up to 10,180 from 9,962 in 2010, of which 20% were affordable housing (2010: 18%).

The house builder’s average selling prices on private sales rose marginally to £185k from £184k, against a backdrop of broadly stable house prices in the wider market.

The first two weeks of trading in 2012 had followed the encouraging patterns of the second half of 2011, with good visitor levels, healthy reservations and low cancellations, said Redferm

The house builder entered 2012 with 314 outlets compared to 301 at the start of last year.

“Our primary goal with new outlets continues to be to optimise planning consents and value-engineer sites prior to opening and we continue to prioritise margin performance over volume growth.

“However, we anticipate that our stronger order book, recent land acquisitions and planning approvals on strategic sites will enable us to increase our outlet numbers during 2012 and deliver further growth in completions, subject to ongoing stable market conditions.” said Redfern.

Taylor Woodrow’s landbank remains little changed  at 6.4 years judged on present building rates.

Latest news

CITB told to improve by Ofsted inspectors

Number of in-house apprentices drops as training body changes business model
2 hours ago

£9.3bn race starts for National Grid construction partners

Plan for Great Grid Upgrade Partnership to be set out at bidders day in early June
16 hours ago

Plan approved to redevelop major Glasgow shopping mall

Outline plan backed for demolition of St Enoch centre for over 900 homes, shops and leisure space
17 hours ago

Banned demolition boss wins appeal to remain a director

Paul Cluskey wins Court appeal to remain director of Cantillon but steps down as MD
1 day ago

B&K confirms £140m Leeds build to rent project

Work to start on Whitehall Riverside twin blocks for client Glenbrook
1 day ago

McLaren Property to revamp Liverpool roller skating site

242-bed student scheme unveiled for sensitive site
17 hours ago

Wates names Midlands construction chief

Matt Johnson promoted after just 10 months at family-owned builder
1 day ago

Glencar lands £28m Peel Ports Liverpool shed job

240,000 sq ft Alexandra Docks warehouse will be five football pitches long
2 days ago

Private equity giant buys United Living

US based investment group Apollo makes latest swoop on UK construction market
2 days ago

Quartet secure Thirteen Group £500m new homes deal

Esh, Morris & Spottiswood, ReGen and Henry Boot secure spots on new build framework
2 days ago

Luton Town FC to start new stadium before end of 2023

Talks already underway with contractors ahead of submission for detailed planning this summer
2 days ago

Plans for renovation of historic Cardiff Market

Subject to planning and final funding work could start next year
2 days ago

£53m race to cut Magnox reactor buildings down to size

Trawsfynydd reactor buildings to be reduced in height by a third
2 days ago

Cyclist dies in lorry collision outside Keltbray site

Work shut down after fatal collision with truck delivering to central London site
6 days ago

Another demolition director banned after bid rigging probe

Brown and Mason boss becomes fourth director disqualified after cartel investigation
6 days ago

Five hospitals at risk of collapse added to new build programme

Weak concrete crisis and soaring costs force £20bn hospital programme rethink
6 days ago

Scottish South West Hub names new partners

Balfour Beatty joins construction partners for first time
6 days ago

RC frame specialist Getjar revenue tops £100m again

Profit margins nearly halved in face of labour and material price rises
6 days ago

London’s Camden Council advances £470m King’s Cross scheme

Camley Street scheme to consist of 350 homes and 200,000 sq ft of offices
6 days ago

Vinci issues fraud alert to suppliers

Subcontractors targeted by scammers posing as main contractor
7 days ago

Solar panels set to cover commercial buildings

Latest government taskforce targets power potential of non-residential roofs
6 days ago

Quantum Construction collapse costs suppliers £4.3m

Liquidator reveals scale of debts at Staffordshire contractor
7 days ago

Jaguar Land Rover set to build huge gigafactory in Somerset

The vast battery plant would be one of the biggest buildings in the UK
7 days ago

Tender race starts for £95m Victoria Tower repair job

Up to five firms will be invited to bid with work set to start by end of next year
1 week ago

Go-ahead for Brum iconic curved truss HS2 bridge

Balfour Beatty Vinci will carry out one of the largest bridge launches in the UK
1 week ago

Green light for Trafford Waters 85-bed care home

Montpelier Estate advances specialist dementia nursing home at major regeneration site
7 days ago

Fusion21 awards £300m building and refurb framework

Over 60 firms secure places on national building and refurb deals
1 week ago

Supply chain owed £3.8m after collapse of London builder

ME Construction went into administration in March
1 week ago

Ferrovial Construction UK plunges to £30m loss

£54m provisions for Silvertown Tunnel fixed-price contract tip firm into the red
1 week ago

HG Construction hits record revenue but profit slides

Material and labour inflation halves operating margin
1 week ago

Contractor services