Welcoming the group's 25% rise in pre-tax profit to £125m for the year to 31 December 1999, analysts said management informed them of the decision to get out of the civils market in a meeting on Wednesday.
Taylor Woodrow also announced that it is to sell distribution business Greenham Trading, and that it is in discussions with the management regarding a buyout.
As predicted in Building, the company has also announced a further spate of job cuts in its contracting division.
About 500 jobs are set to go this year and the company will face £4.5m of restructuring costs – the same amount as last year, when it axed 250 jobs.