Housebuilder sees 81% increase in operating profit and pre-tax return to the black

Housebuilder Taylor Wimpey has increased its operating margin by 50% according to its full-year figures for 2011.

The company said its margin had increased from 6.4% in 2010 to 9.7% in 2011, on revenue of £1,808.0m, up from £1,767.7m the previous year.

Operating profit was up 81% to £159.5m, pre-tax profit was £89.9m, compared with a loss of £27.9m in 2010.

Chief executive Pete Redfern said the figures had been the result of a continued focus on driving value by improving margins and return on capital.

“We saw significant progress in our operational performance and I am pleased that we have reached our double digit operating margin target ahead of schedule,” he said.

“While wider economic conditions remain uncertain, the UK has seen a period of continued stability in the underlying housing market and strong growth across a number of areas as shown by our order book.

“We feel well-positioned to deliver further improvement through our value-driven strategy.”

The company said 11,756 new plots had been approved for purchase up from 8,713 in 2010.