Taylor Wimpey completions up just 6%

Aaron Morby 8 years ago
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Top-two ranked house builder Taylor Wimpey raised completions by just 6% last year, while average selling prices climbed 11%.

The house builder, which has been cautiously expanding with a focus on improved profitability and margins, lifted total completions from 11,690 in 2013 to 12,454 last year. Of these 17% were affordable homes.

In an end of year trading update this morning, Taylor Wimpey added that operating margin had jumped from 13.6% to 17.6% across 2014.

Average selling prices on private completions increased by 11% to £234k (2013: £210k).

Chief executive Pete Redfern said this increase was both a result of the group’s underlying shift to better quality locations and capturing market sales price increases.

He added: “We enter 2015 with a record order book, which has increased in value by 12% to £1,397m as at 31 December 2014, excluding joint ventures, driven largely by the strength of private reservations.

“This order book represents 6,601 homes (31 December 2013: 6,627 homes). We view this as the optimum size for the business at this point in the cycle.”

Taylor Wimpey ended the year with net cash of £113m, slightly ahead of expectations and significantly ahead of the prior year  at £5.4m.

Redfern said: “We are encouraged by the more balanced market conditions, with a lower rate of price growth, which should create a healthy and more sustainable housing market.

“This is good news for homebuyers and underpins our confidence in developing and growing our business.

“Overall we believe that the market and political risk for our sector is balanced and will allow Taylor Wimpey to continue to make significant progress towards our medium term targets.”

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