Taylor Wimpey has become the latest UK housebuilder to post impressive financial results after recording a 68 per cent jump in its profit before tax for 2014.
The housebuilder’s operating profit increased to £359.7m for the 12 months to December, up from £214.7m in 2013.
Operating margin rocketed to 17.9 per cent, from 13.6 per cent in 2013, while revenue jumped 17 per cent to £2.7bn, compared with £2.3bn the year before.
The group credited its strong margins on the short-term land market remaining “balanced and disciplined” over 2014.
The housebuilder acquired 8,315 plots in the short-term market over the year, compared with 9,560 plots the year before.
In a statement to the stock market it said: “Our success and expertise in sourcing and converting land which does not have residential planning consent at the time we take a commercial interest –our strategic pipeline – is a key part of our strategy and underpins our confidence in delivering sustainable margins through the cycle.”
Completions rose 6.5 per cent to 12,454 homes, up from 11,696 in 2013.
Build costs increased by around 5 per cent, which the housebuilder said was broadly spread between labour and materials.
But it said build cost inflation should reduce as the housebuilding industry adjusted to increasing supply and demand.
Taylor Wimpey chief executive Pete Redfern said: “2014 was an excellent year for Taylor Wimpey, delivering a 54 per cent increase in operating profit whilst contributing £300m to communities via planning obligations, providing key infrastructure, education and affordable housing.”
On the upcoming general election in May, Taylor Wimpey acknowledged there remained uncertainty around the outcome but said consumer confidence remained solid, supported by “healthy underlying demand, low interest rates and high levels of employment”.