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Taylor Wimpey plc Builds On Improving Market

Taylor Wimpey (LSE: TW), the UK-focused residential housing developer with operations in Spain, published an interim management statement this morning for the just-over four month period from 1 July 2013 to today, and its share price has gained over 5% so far.

The company reports UK sales ahead of the equivalent period last year, with an average net private reservation rate of 0.65 sales-per-outlet-per-week in 2013 to date, up from 0.57 in 2012.  It also said that cancellations remain low, and fell to 13% for the year to date, down from 15% in 2012’s equivalent period.

Despite what is described as “subdued” consumer confidence in Spain overall, the company’s operation there saw a significant increase in sales and also in its order book on sites acquired in 2013, and it anticipates that the sites will “contribute positively” to its performance next year.

Overall, the company says that it expects to report improvements across all of its key financial metrics for the second half of 2013 against the comparable period last year.

Pete Redfern, Chief Executive, commented:

“The UK housing market has remained healthy in the second half of the year, with better mortgage availability and consistent demand for our homes, leading to an increase in sales rates against the same period last year. Help to Buy continues to prove popular and we are seeing our customers from Edinburgh to Exeter using the scheme to get onto or move up the housing ladder. In this improved environment, we remain focused on the longer term; increasing our investment in the training of the next generation of homebuilders and delivering on our commitments to local communities.”

At its current 108.5p, Taylor Wimpey’s share price has gained 65% so far in 2013, and over 85% since this time last year.

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> Jon doesn't own shares in Taylor Wimpey.