Housebuilder reports pre-tax profit up 40% and revenue up 11% over first half of the year

Taylor Wimpey apartments

Taylor Wimpey has reported a 40% spike in profit over the first half of the year, with the housebuilder hailing a sustained upturn in the market.

In its results for the six months to 30 June 2013, Taylor Wimpey reported revenue of £1,007m, up 11% on £906m for the same period in 2012.

The firm posted pre-tax profit, before exception items, of £109m, up 42% from £77m the previous year.

Operating profit rose 34% to £132m.

The firm said it had achieved an operating margin of 13.5%, up from 11.2% the previous year.

Completions over the period stood at 5,191, compared to 5,083 in the first half of 2012, with the average selling price rising to £188,000 from £176,000.

The firm said its order book currently stood at 7,378 homes (as at 28 July 2013) and is valued at £1.3bn.

The housebuilder said the market has been “stable since 2009 and is now showing sustainable improvement”.

The firm said: “We are operating in a much improved and healthier housing market, showing sustainable improvement, supported by the general economic improvement, better mortgage availability and the direct impact of government schemes.”

Pete Redfern, Taylor Wimpey chief executive, said: “During the first half of 2013, there has been meaningful improvement in the housing market, with more positive consumer sentiment, a more available and affordable mortgage market, and the presence of government mortgage schemes, all adding to a favourable outlook.

“Our business is ideally positioned to perform well in this environment with a strong land position and a very effective housebuilding operation. We continue to open all new outlets with implementable planning permission.”