Taylor Wimpey says it will complete fewer houses in the first half of 2011 compared to last year, but says its margins are up and it predicts continued stability in the housing market.
In the company’s trading statement, group chief exexutive Peter Redfern said the company expected to finish 4,550 houses in the first six months, against 4,808 in 2011. But he said the average selling price would be £170,000, up £2000 on the year.
“We remain focused on maximising the value achieved from each home completion and expect to report a strong improvement in the UK operating margin at the half year, which was 6.7% in 2010,” he said. “We’ve delivered a further improvement on sales in our order book and are now 79% sold for our targeted full-year completions.”
He added that the company was operating from 313 outlets, up 29.
This year it has approved purchase of 5,257 new plots on 55 sites and is now signed a parnership agreement with Harworth Estates, formerly UK Coal plc, on 16 sites with potential for 4,000 houses.
Taylor Wimpey’s Spanish operations continue to find the going tough, but it is approaching completion on the disposal of its North American arm.
Mr Redfern predicted a stable market through the rest of the year and continued improvement in profitability in 2012.
“We’re well positioned to deliver further margin improvement beynd our double digit target for next year,” he said.
Taylor Wimpey will announce its half-year results on August 3.
