Taylor Wimpey's half-year results grow on improved housing market

UK housebuilder Taylor Wimpey saw its revenue in the first half rise 11.1 per cent to 1.0bn pounds as consumer sentiment grew and the property market improved. Gross profit, before exceptional items, increased 21.8% to £197.0m, which included a £22.4m contribution relating to realisation of written down inventory above its originally estimated net realisable value. Adjusted earnings per share was up 80% to 2.7p as the company completed 5,191 homes at an average selling price of £188,000, compared to 5,083 homes at £176,000.Taylor achieved a record order book of £1.3bn, up from last year's £960.1m, up 35% in value and 24% in volume to 7,101 homes.The operating margin jumped by 210 basis points to 13.1%.The company said the market has been stable since 2009 and is now showing sustainable improvement, in part thanks to government schemes including Help to Buy which is designed to aid first-time homeowners.Pete Redfern, Chief Executive, said: "During the first half of 2013, there has been meaningful improvement in the housing market, with more positive consumer sentiment, a more available and affordable mortgage market, and the presence of government mortgage schemes, 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."Group asset turn rose to 1.09 times as a result of improved profitability offset by lower pension deficits. Net debt decreased to £68.4m at the end of the period from £135.2, at July 1st 2012, as profit growth offset the costs further investment in the business. The group raised its interim dividend to 0.22p from 0.19.RD