Taylor Wimpey expects to build on positive results

City Editor

Thursday 5 July 2012

HOUSEBUILDER Taylor Wimpey said market conditions remained stable as it completed 5083 homes across the UK in the first half of its financial year, some 376 more than for the same period last year.

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The company, which has 34 developments north of the Border where it employs more than 200 people, said that its average selling price has risen by around £7000 in the last year to £175,000 for the six months to July 1.

It said: "Despite the continued uncertainty in the eurozone and global economy, the UK housing market has remained stable throughout the first half of 2012."Taylor Wimpey, the UK's second-largest housebuilder, is preparing to open the first show houses on its 162-home development at Cavalry Park in Kilsyth.It has also started preparatory work on a 58-acre site at Pinkie Mains in Musselburgh where it plans to build another 473 homes.Taylor Wimpey said it expected an improvement in its financial results in the first half. Chief executive Pete Redfern said: "We think it is most likely the current conditions will continue, but that doesn't mean it's certain."The major risks were from outside the UK housing market, and mainly to do with the banking system, he said, adding that those risks had existed for some years without having a significant impact on the housing market. "We, like everybody else, will watch what's happening in southern Europe, and the impact on the banking system, closely," he said. Mr Redfern added that if conditions remained stable, he is "happy" with consensus analyst forecasts that put full-year operating profit at around £207 million, about 30% up on last year. While economic conditions remain tough, house- builders are still benefiting from a shortage in the supply of new homes.This is helping to offset the problems buyers still face in securing mortgages, Mr Redfern said, although Taylor Wimpey acknowledged that Government schemes to help first-time buyers are making a difference."The tightness of supply is reassuring," he added.Taylor Wimpey's order book grew to £960 million as of July 1, up from £932m a year ago. In the troubled Spanish market, where the group has a small operation, conditions remained challenging, Taylor Wimpey reported.It completed just 13 houses in the first half, at an average selling price of £172,000, down from 30 in the first half of 2011 at an average price of £266,000.Mr Redfern said the group would probably make a small profit in Spain this year, but was not adding to its projects there. "It's obviously not a market we would enter today," he said. Taylor Wimpey's shares fell 1.25p, or 2.5%, to 48.01p.

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Taylor Wimpey expects to build on positive results

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