Excellent H1 and more to come for Taylor Wimpey
House builder Taylor Wimpey has reported extremely positive results for the first six months of 2013.
The construction firm reported that group operating margin increased to 13.1 per cent - it was 11 per cent in H1 2012 - while there has also been an 80 per cent increase in adjusted earnings per share to 2.7 pence.
Part of the reason for the boost in orders has been the government's Help to Buy scheme. Launched in April, the initiative sees potential homeowners with a five per cent deposit given a loan worth 20 per cent of the value of the house they want to purchase and a 75 per cent mortgage.
Indeed, 235 homes have already been completed by Taylor Wimpey under the scheme and the order book currently sits at 7,378 properties - these projects are valued at £1.3 billion.
Chief executive Pete Redfern said: "More positive consumer sentiment, a more available and affordable mortgage market and the presence of government mortgage schemes [are] 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."
The future is bright for the company, as it has managed to trade at the upper end of its expectations throughout the first six months of the year.
Mr Redfern revealed the buoyant housing market has offered the firm the chance to invest in the in the creation of new properties, jobs and infrastructure.
In the first six months of the year, Taylor Wimpey completed 5,191 homes in the UK at an average selling price of £188,000 - this is up slightly on the same time last year. There has also been a 49 per cent reduction in net debt to £68.4 million.
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