LONDON, July 31 (Reuters) - Housebuilder Taylor Wimpey posted a 42.1 percent jump in first-half profit, helpedby government schemes to spur Britain's housing market which thecompany said was now a much improved and healthier one.
The company, Britain's second-largest housebuilder by marketvalue, said on Wednesday profit before tax for the six months toJune 30 rose to 109 million pounds ($166 million), while revenueincreased by 11.1 percent to 1.01 billion pounds.
It said earlier this month that it was likely to meet fullyear expectations after improved buyer sentiment helped it totrade at the upper end of forecasts in the first half.
Group operating margin increased to 13.1 percent, comparedto 11.1 percent for the same period last year, as the companycontinued to develop land that it had bought cheaply during thefinancial crisis.
Taylor Wimpey said its order book at July 28 stood at arecord 7,378 homes, valued at 1.3 billion pounds, and that itexpected the strong market conditions to boost full year volumesto be towards the upper end of expectations.
"During the first half of 2013, there has been meaningfulimprovement in the housing market," Chief Executive Pete Redfernsaid.
"Looking forward to 2015 and beyond, we believe that thestructural undersupply of UK homes will be only partly mitigatedby the slightly improved planning system which, coupled with thehigh level of underlying demand for our homes, will contributeto a positive trading environment," he said.
British housebuilders have experienced an uplift in demandfor their homes since the April launch of a government scheme tohelp struggling housebuyers purchase properties with as littleas a five percent deposit.
The 'Help to Buy' scheme has since attracted criticism fromindustry players, the International Monetary Fund and lately,Britain's Business Secretary Vince Cable, who say it risksfuelling a new housing bubble by driving up prices.
Taylor Wimpey increased its interim dividend to 0.22 penceper share from 0.19 pence.
Shares in the firm closed at 106.2 pence on Tuesday, valuingthe company at 3.46 billion pounds.
Taylor Wimpey (TW.)
