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In a statement ahead of its full year results for the year ended 31 December 2011, which will be announced on 29 February 2012, the house builder said trading conditions were “robust”.
It expects to report “an increase of over 80% in group operating profit for the second half of 2011 (H2 2010: £49.1m)” and anticipates “achieving our target of double-digit operating margins in the UK in the second half of 2011”.
Net debt at 31 December 2011 was below previous expectations at £120m (2010: £654.5m).
Taylor Wimpey's home completions increased by 2% to 10,180 from 9,962 in 2010, of which 20% were affordable housing completions (2010: 18%).
The house builder completed 173 homes under the Government's FirstBuy initiative during 2011, but said it remains “sparing” in use of other shared equity incentives.
Average selling prices on private sales rose marginally to £185k from £184k.
Taylor Wimpey's land portfolio stands at 65,000 owned or controlled plots with planning or resolution to grant planning at the year end (2010: 63,556), equivalent to 6.4 years of supply at current completion levels (2010: 6.4 years). It purchased 11,756 new plots on 106 new sites during 2011.
Chief executive Peter Redfern said Taylor Wimpey had now finalised the strategy for its UK residential development business. The key elements of this strategy are:
- Prioritisation of both short and long term margin performance ahead of volume growth;
- Development of land portfolio in combination with targeted short term land acquisitions;
- Improving returns from existing land portfolio and newly acquired sites;
He added: "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."
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