KHL Group - Construction Europe

Taylor Wimpey optimistic for 2012

Written by Helen Wright - 17 Jan 2012

UK-based house builder Taylor Wimpey has forecast robust results for 2011, and is cautiously optimistic for prospects in 2012 after getting off to a strong start.

The company said it expected to report an increase in operating profit of 75% year-on-year for 2011. It reported operating profit of £88.3 million (€106 million) last year excluding one-off pension curtailment credit of £12 million (€14.4 million).

"Market conditions in 2011 exceeded our expectations," the company said, adding that it ended the year with a total order book value of £835 million (€1 billion), up 17% year-on-year.

In the UK, the company said it supported the government's FirstBuy initiative and completed 173 homes under the scheme during 2011. Taylor Wimpey also welcomed the development of the government and house builder-backed mortgage indemnity guarantee scheme.

In contrast, the company said housing market conditions in Spain remained challenging, although it said the Spanish housing business generated cash and made a marginal profit during 2011.

The company also sold its North American business for US$1.2 billion (€937 million) to TMM Holdings in 2011.

"While it remains too early to judge the market for the year, the first two weeks of trading in 2012 have followed the encouraging patterns of the second half of 2011," Taylor Wimpey 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."