Taylor Wimpey back in profit

3rd Aug 2010 07:37

Housebuilder Taylor Wimpey crept back into profit in the first half of 2010, but is concerned over the possible impact of government spending cuts going forward.The Anglo-US group posted a pre-tax profit of £19.6m in the six months to June against a loss of £673m last time. Underlying profits rose to £79m from £2.8m, while sales rose to £1.23bn from £1.13bn. Debt also fell sharply over the half to £634m.In the UK, Taylor Wimpey says it will continue its focus on margins rather than volumes, especially given the significant planning risk and wider economic uncertainty. "We remain concerned about the potential adverse impacts of proposed changes in planning policy," it added. UK orders at the end of the half were up 12% over last year at £952m.In the US, Taylor Wimpey expects clearer signs of sustainable recovery towards the end of this year as the impact of the cessation of the Homebuyer Tax Credit programme reduces. US orders are up 21% at £668m. The Canadian market has continued to perform well. "Although wider economic uncertainty remains, current trading is satisfactory and our forward order books and cautious approach to land valuation provide protection against downside scenarios," Taylor Wimpey concluded.