TAYLOR Wimpey posted a sharp jump in half-year profits today as the housebuilder continued its recovery from near collapse in 2009.
Driven by an extra 8% home completions and a 5% rise in average selling prices, Taylor Wimpey’s UK revenues lifted 11.6% to £903.3m in the six months to July 1 and group profits more than doubled to £78.2m.
It said trading in recent weeks remained stable, while the Treasury and Bank of England’s Funding for Lending scheme is viewed by the firm as a welcome development in the battle to improve mortgage availability.
The group, which teetered on the brink of collapse in 2009 due to its massive debts, said it also expected an improved performance for the year as a whole.
Chief executive Pete Redfern added: "Although wider economic conditions remain uncertain, we have been reassured by the continued stability in trading conditions and the strength of our order book."
The company completed the final stage of its financial overhaul last summer when it sold its North American division, leaving it to focus on a UK business that sold 5,083 homes at an average price of £176,000 in the first six months of 2012.
The recovery in its trading performance was highlighted today in its UK operating margin, which increased to 11.4% from 8.4% a year earlier.