Operating profit and margin both up for 2012

Pete Redfern

Housebuilder Taylor Wimpey has reported an increase in its operating profit of 40%.

In a statement to the City ahead of its full results for the year to 31 December 2012 it said its operating margin for the year would be over 11%.

The firm reported a 6% increase in selling price to £181,000 and home competitions increased 7% to 10,886.

It added that despite “challenging market conditions” in Spain, the firm’s Spanish arm had turned a small profit with 156 completions.

The firm said that currently “consumer sentiment towards the housing market is more positive than we have seen in recent times”.

Pete Redfern, chief executive of Taylor Wimpey, said: “We are delivering on the strategy that we set out in 2011, including a return to UK double digit operating margin ahead of schedule. As we look forward to 2013, we are confident that we will continue to deliver against our key objectives and target further improvement.”

The firm said it was seeing some improvement in mortgage rates fro ma number of lenders and expected this to spread to others.