Business
Trading Update
Trading Update.
About this update from Taylor Wimpey Plc
[{"type":"text","content":"\n \nRNS Number : 5771L Taylor Wimpey PLC 07 July 2014 \n \n\n \n \n \n \n7 July 2014 \nTaylor Wimpey plc\n \nTrading update for the period ended 29 June 2014 \n \nTrading update ahead of the half year results for the period ended 29 June 2014, to be announced on 30 July 2014. \n \nOverview \n \nWe have performed strongly in the first half of 2014, with sales rates and pricing at the upper end of our expectations. We expect to report improvements in all of our key financial objectives, with good progress made towards each of our medium term targets, which we announced in May. We expect operating profit margin for the first half of 2014 to be c.16% (H1 2013: 13.1%). We remain on track to deliver an increase in operating margin of at least 300 basis points in 2014. \n \nUK current trading \n \nWe are operating in a balanced housing market, with sales rates in the first half of 2014 showing the benefit of the traditionally strong spring selling season. After several years where a weak economy has reduced the number of customers able to get a mortgage, we have seen market-led house price increases across all of our regional markets. Customer confidence remains good, with increased employment security and a more affordable and accessible mortgage market underpinning demand. Visitor levels are strong, even against high year-on-year comparators.\n \nDuring the first half of 2014, we achieved an average private net reservation rate of 0.71 per outlet per week (H1 2013: 0.67) and we completed 5,766 homes (H1 2013: 5,191), an increase of 11%. Of this, 4,755 were private completions (H1 2013: 4,229), 940 were affordable (H1 2013: 930) and 71 were joint venture completions (H1 2013: 32). \n \nThe average selling price of completions also increased to c. £206k (H1 2013: £188k). The average selling price on private completions increased by 9% to £224k (H1 2013: £205k). This increase is due to our continued weighting towards better quality locations and the benefit of the wider housing market improvement.\n \nCancellation rates rem...