Tuesday, 22 July 2014

Taylor Wimpey forecasts 75% surge in profit

Taylor Wimpey is expecting to report a 75 per cent increase in operating profit next month.

The house builder, in a trading statement for the year to 31 December published today, said its full year operating profit will increase by 75 per cent from the £88.3 million reported for 2010.

The company also said it is expecting to achieve a double-digit operating margin for the second half of 2011, ahead of schedule.

Completions by the house builder increased by 2 per cent to 10,180 last year and the percentage of completions which are affordable rose from 18 to 20 per cent.

The statement said: ‘Given the balance between a stable UK housing market and widespread economic uncertainty, we continue to maintain a positive but cautious view of the short term trading environment.

‘In addition to creating value in an improving market, our value-focused strategy, high quality land portfolio, increased order book and strong balance sheet all give us a strong defensive position should conditions weaken during 2012.’

Taylor Wimpey’s full results will be published on 29 February.

The builder is the latest to report a sharp rise in expected profits. Last week Persimmon said it was anticipating a 50 per cent rise, and Barratt reported a 40 per cent increase.

Readers' comments (10)

  • F451

    Completions up by 2%, profits up by 75% - what clearer picture is required of the naked profiteering enabled by deliberately keeping housing supply supressed and removing access to affordable social rents.

    Even the increase in proportion of the increased completions being of the Shapps near-market level rent tenure just adds evidence to the profiteeting potential and stock market return objectives.

    The conversion of affordable housing schemes into Shapps schemes has not added property numbers but has added property profit.

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  • Melvin Bone

    F451 surely you should congratulate the ConDem economics on this companies revival?

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  • F451

    I'm sure the shareholders will show their gratitude in the customary way Melvin - meanwhile, those unable to afford homes due to ever higher costs and continued shortage will be wondering about the call to congratulations.

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  • Completions up 2% and profit up 75%, but still not a double digit operating margin.

    Hardly the stuff of 'Naked Profiteering'.

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  • F451

    what value would you put as 'naked' then UnaPlanner?

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  • CBI suggest that a business must make betwwen 12% and 18% profit just to stand still, so well north of where TW are now.

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  • F451

    The CBI also suggested that Plan A was the only way to save the economy, but more recently have questioned the lack of growth, called for more government investment, and mentioned that lowering executive pay may not cause mass emigration.

    TW state that they are making 75% extra from 2% additional output - that is the point about affordability being sacrificed for shorter term gains - completely inconcealed, that appears naked to my eye.

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  • Rick Campbell

    Perhaps the 'nakedness' is a 'flash' in the pan.

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  • Fear & Loathing

    Good news for some but it's no consolation to us ex-Taylor Wimpey staff who were made redundant during the credit crunch.

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  • I seem to recall they sold the US arm of their business so suspect that this may be where an element of the additional profit for the last finanicla year has come from.

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