Taylor Wimpey Profit Rises on Demand for Larger HomesPatrick Gower and Jeffrey St.Onge
Taylor Wimpey Plc, the U.K.’s second-largest homebuilder by volume, said first-half profit rose 5.3 percent on demand for larger, more expensive homes.
Net income increased to 136.1 million pounds ($207 million) from 129.2 million pounds a year earlier, the High Wycombe, England-based company said today in a statement. Revenue increased 11 percent to 1 billion pounds as the company completed 5,191 homes compared with 5,083 a year earlier.
Like most of its U.K. competitors, Taylor Wimpey has boosted margins by focusing on homes rather than apartments and by building on land bought cheaply after the financial crisis. The company’s operating profit margin widened by 2 percentage points to 13.1 percent from a year earlier as the company sold more family-sized homes, Chief Executive Officer Pete Redfern said by telephone.
“The average square footage of our product has increased about 4 percent, now that’s a very large shift,” he said. “We’ve not seen a shift of that scale at any point in the 13 years I’ve been in the business.”
Taylor Wimpey advanced as much as 2.5 percent in London trading, giving the company a market value of 3.47 billion pounds. The stock was up 0.9 percent at 107.2 pence as of 9 a.m. Taylor Wimpey climbed 63 percent this year, the second-best performance after Persimmon Plc among companies on the Bloomberg EMEA Homebuilders index.
The government’s Help to Buy program to assist homebuyers resulted in 235 sales during the period, Redfern said. The company said it has made 1,300 reservations through Help to Buy since the program started in April.