Taylor Wimpey’s latest trading update to the City today shows that the housebuilder is on course to achieve an operating margin of at least 10% next year, despite a fall in UK home sales during the half of this year.
In a statement, Taylor Wimpey’s chief executive Pete Redfern said that the group’s full year profits will be ahead of current projections, with the group witnessing a significant improvement in operating margins from 6.7% in second half of 2010.
Redfern commented: “I am very pleased with our ongoing performance improvement in the UK. We are well positioned to deliver further margin improvement in the UK, beyond our double digit operating margin target for 2012, through the development of our extensive strategic land portfolio.”
The company, which is currently working on 313 sites across the UK, up from 284 last year, is expecting to complete 4,550 homes during the first half of 2011 at an average selling price of £170,000 compared to 4,804 last time for £168,000.
A company statement said: “We remain focused on maximising the value achieved from each home completion and expect to report a strong improvement in the UK operating margin at the half year results.”
Shares in Taylor Wimpey, a FTSE 250 listed company, increased by almost 1% to 37.4 pence this morning.