Taylor Wimpey have delivered further operational improvement in its UK business and, with an operating margin of 9.3% for the first half of 2011, are firmly on course to deliver a double digit UK operating margin in 2012.
The Group has delivered an operating profit from continuing operations of £67.2 million (H1 2010: £51.1 million).
Pete Redfern, Chief Executive, said:
“This has been a transformational six months for Taylor Wimpey, with the sale of our North American business and significant progress towards our double-digit operating margin target in the UK. We have a strengthened balance sheet, an increased financial capacity to invest in the UK and we are well positioned to deliver further improvement in margin and returns going forward.
"Although there is ongoing uncertainty in the wider economic environment, current conditions in the UK housing market remain stable. We expect this stability to continue for the remainder of 2011 and remain on course to deliver profits in line with the Board’s expectations for the continuing Group.”
Operational summary
- Completed 4,707 homes in the UK in the first half (H1 2010: 4,804), as we continue to prioritise margin improvement ahead of volume growth
- UK average selling prices remained flat at £168k (H1 2010: £168k)
- Strong operating margin progression in the UK to 9.3% (H1 2010: underlying operating margin: 6.1%)
- Approved the purchase of 5,289 plots on 55 sites in the UK maintaining our consistent, disciplined approach to land acquisition
- Continued success in obtaining planning permissions on strategic land, with c7,500 plots brought into the short term land portfolio over the last 18 months
- Ongoing initiatives to adapt our business to the changing planning environment
- Customer satisfaction increased to 89.5% (H1 2010: 83.1%) as measured by the National New Homes survey
- Further improvement to our health and safety performance with a reportable injury frequency rate of 0.09 per 100,000 hours worked (H1 2010: 0.14)
