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Taylor Wimpey financial results show record £2.1bn order book as sales rise

Taylor Wimpey has posted a record order book of £2.1bn amounting to more than 8,500 homes ahead of its full-year results.

In a trading update to the City, the housebuilder’s forward orders rose to £2.1bn from £1.7bn at the same point a year earlier.

The number of homes in its order book rose 9.4 per cent to 8,546, compared with 7,814 homes the year before.

For the second half of the year to 8 November 2015, Taylor Wimpey’s sales rates were 22 per cent ahead of the same period in 2014.

The firm said build costs had risen by around 5 per cent during 2015, but added that pressures on costs should ease throughout 2016.

The housebuilder expects to add more than £100m to its net cash position by the end of 2015.

This will see its net cash rise to around £220m, up from £112.8m at the same point a year earlier.

Taylor Wimpey chief executive Pete Redfern (pictured) said: “We have seen an excellent summer selling season strengthen further in the autumn period, with customer confidence high and demand underpinned by rising real wages and good access to a wide range of mortgage products.

“Against this backdrop, we are reporting record order book levels and expect to deliver an improvement in operating profit margin of over 200 basis points in 2015 and a return on net operating assets of over 25 per cent.”

Mr Redfern added that the firm had a “healthy outlook” for the year ahead.

“As we look forward, we are particularly pleased to see that the tighter lending requirements are helping to ensure that monthly payments remain affordable and sustainable, which contributes towards a healthy outlook for both homebuyers and homebuilders,” he said.

In its most recent full-year results, the housebuilder saw profit before tax surge by 68 per cent, with revenues hitting £2.7bn.

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