| CATEGORY: NEWS AND ANNOUNCEMENTS SECTOR: HOUSEHOLD GOODS |
Taylor Wimpey results in line, warns of conditions |
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Tue 15 Jan 2008
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LONDON (SHARECAST) - Housebuilder Taylor Woodrow said it expects full year results to be in line with expectations but warned of poor conditions in the UK and US.
The group said in the UK it anticipates a subdued start to the Spring selling season due to lower consumer confidence, while in North America it is not expecting market conditions to improve in 2008.
Despite a challenging second half in 2007, the group said it improved UK housing margins. It expects the 2007 pro forma operating margin to be around 2 percentage points ahead of the 12.5% achieved on a pro forma basis in 2006.
Cost savings and other improvements in underlying performance enabled the group to achieve its target of a pro forma operating margin of over 14%, compared with 12.5% last year.
It completed 20,645 homes on a pro forma basis versus 21,910 last year, while full year average selling price came in at £190k compared with £185k before. Year end order book stood at £1,064m against £1,316m previously.
Market conditions in the United States remained challenging through the second half of 2007. Pro forma home completions in 2007 were 6,740 versus 8,839 last year at an average selling price of £172k against £212k.
Conditions remain stable in Gibraltar and Mallorca, though Spain continues to be challenging. In line with previous guidance, full year profits will be below the levels achieved in 2006.
Overall profitability of its Construction business before interest and tax is below the £8 million achieved last year.
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