Taylor Wimpey trading in line

Housebuilder Taylor Wimpey said it remains firmly on track to deliver double-digit operating margin in the UK in 2012, as long as present stable market conditions continue.

"We expect to deliver further margin improvement in the UK beyond 2012, particularly through the development of our extensive strategic land portfolio in combination with targeted short term land acquisitions," said Taylor Wimpey, the UK's second largest housebuilder.

Commenting on current trading the group said housing market conditions in the UK have remained robust despite the ongoing uncertainty in the wider economy and while mortgage availability remains restricted, Taylor Wimpey has noted an ongoing incremental improvement since the half year results.

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The group, which sold off its US and Canadian divisions in March this year, said the more normal seasonal trading pattern over the autumn is encouraging.

The average private net reservation rate rose to 0.55 sales per outlet per week for the second half to date compared to 0.47 in the same period last year.

Cancellation rates remain at low levels and sales prices have been stable since the half year results, it added.

The group said it has approved the purchase of 3,793 new plots on 36 new sites since the half year and see more attractive opportunities in the land market.

Net debt at 30 September was £261m is expected to reduce by the year end in line with the normal seasonal pattern of home completions in the UK.

"Although we continue to monitor the uncertainty in the wider economy, conditions within the UK housing market remain stable. With our value-focused strategy, high quality land portfolio and strong balance sheet, we are well positioned for the future," the group said.

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