Profits surge for house builder Taylor Wimpey

Higher-quality locations combined with an increase in the average selling price underpinned a 40 per cent rise in the group operating profit of house builder Taylor Wimpey in 2012.

Average selling prices on private completions increased by 6% to £197,000, according to the group's trading statement for the year ending December 31st.

The overall average selling price increased by 6% to £181,000 and home completions increased by 7% to 10,886.

Overall, the group's net private reservation rate for the full year was 0.58 homes per outlet per week, up from 0.54 in 2011. Cancellation rates were below the long-term average at 15.2%, down from 15.8% in 2011.

Pete Redfern, Chief Executive Officer of Taylor Wimpey, commented: "2012 was another year of significant progress for Taylor Wimpey with an increase of over 40% in Group operating profit. We are delivering on the strategy that we set out in 2011, including a return to UK double digit operating margin ahead of schedule. As we look forward to 2013, we are confident that we will continue to deliver against our key objectives and target further improvement."

MF