Record profits for Taylor Wimpey

Record profits for Taylor Wimpey

Housebuilder Taylor Wimpey notched up record profits last year and added 2016 had got off to an even stronger start.

It said pre-tax profits jumped 34.1% to £603.8m in 2015 as demand grew across all regions.

The FTSE 100 firm said it built 13,219 homes in the period, up 7.5% on a year ago, while average selling prices lifted by 8% to £230,000 over the period.

It also boasted a record order book, leaping 27% year-on-year to £1.8bn, representing 7,484 homes.

The firm said: "The UK housing market remained robust during late 2015 and has strengthened into the beginning of 2016."

Taylor Wimpey, in common with other housebuilders, is enjoying a recovery in the housing market, supported by rising incomes, low unemployment and low interest rates.

It has also benefitted from a range of Government support such as the Help to Buy scheme, which offers loans to buyers of newly built homes.

Chief executive Pete Redfern said: "2016 has continued to be positive across all of our regional markets, with demand strong and good access to mortgages."

The business said that while markets have shown good growth across its regions, London was characterised by "flat prices and sales rates returning to a more normal level".

The firm has made good progress since 2009, when it teetered on the brink of collapse due to oversupply and massive debts.

Analysts at Numis said: "Taylor Wimpey's full year results are in line with expectations, but to reflect a slightly stronger volume, price and margin outlook we have increased 2016 estimates by 4%."

Numis now expects Taylor Wimpey to post full-year 2016 profits up 16.6% to £704m.