Taylor Wimpey said that market conditions in 2011 “exceeded our expectations”. After achieving an operating margin of 6.4% in 2010, the company was aiming for double digits by 2012. With improving market conditions, it managed 10.1% in H2 2011 and 9.7% for the full year.
Group operating profit for the year to 31 December 2011 was up 81% to £159.5m (2010: £88.3m) on revenues up 2.3% to £1.81bn (2010: £1.77bn). A pre-tax loss of £27.9m in 2010 became a pre-tax profit of £65.7m in 2011.
Net debt was reduced from £654.5m to £116.9m during the year.
A total of 10,180 homes were completed in the UK during the year, up 2.2% from 2010’s 9,962. Average selling price was £171k, the same as in 2010.
Chief executive Pete Redfern said: "Our performance is the result of a continued focus on driving value by prioritising a further improvement in margins and return on capital. In 2011, we saw significant progress in our operational performance and I am pleased that we have reached our double digit operating margin target ahead of schedule.
“While wider economic conditions remain uncertain, the UK has seen a period of continued stability in the underlying housing market and strong growth across a number of areas as shown by our order book. We feel well-positioned to deliver further improvement through our value-driven strategy."
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