Taylor Wimpey sees positive first half

Despite the recession in the UK economy, home builder Taylor Wimpey reported growth in revenues, net profit and operating margin for the first six months of 2012.

Revenues were up from £818 million (€1 billion) in the first half of last year to £906 million (€1.2 billion) between January and June this year. Net profit stood at £130 million (€165 million) - a strong turnaround compared to the loss of £4.2 million (€5.3 million) it recorded for the same period last year. The operating margin rose to 11.1%, from 8.2% in the first six months of 2011.

The average selling price of Taylor Wimpey's houses increased from £168,000 (€213,470) last year to £176,000 (€223,636).

Chief executive Pete Redfern said the results demonstrated that the company's strategic focus on margin growth and return on capital, as well as a tight focus on costs, had paid off.

"Although wider economic conditions remain uncertain, we have been reassured by the continued stability in trading conditions and the strength of our order book. Looking ahead, we expect to deliver further improvements in performance," he said, echoing a previous trading forecast issued by the company in July.

Taylor Wimpey's order book stood at £688 million (€874 million) at the end of the first half, up 18% year-on-year.