Taylor Wimpey Says It Reached 2011 Completion Target, Sees Better Margins
Taylor Wimpey Plc (TW/), the U.K.’s second- largest homebuilder by volume, said it has met its target for home completions through 2011.
The order book stands at 6,265 homes for the 43 weeks through Nov. 7, compared with 5,496 in the same period a year earlier, the London-based company said today in a statement. The company’s target for completions this year was around 10,000 homes, Chief Executive Officer Peter Redfern said.
“We’d expect probably to get some volume growth next year,” Redfern said in an interview. “We’ve been very consistent in the last two or three years. We would reinforce a target for operating margin next year of hitting at least 10 percent.”
Home prices have failed to gain momentum this year as high unemployment, government budget cuts and rising inflation dampen consumer confidence and Europe’s sovereign-debt crisis pushes up financing costs. U.K. house prices rose for a second month in October, though values may slip again over the coming year, Nationwide Building Society said Nov. 1.
Taylor Wimpey was little changed in London trading at 37.5 pence as of 8:03 a.m. The stock has climbed 19 percent this year, lifting the company’s market value to 1.2 billion pounds ($1.9 billion.)
To contact the reporter on this story: Chris Spillane in London at email@example.com.