Taylor Wimpey offered some rare cheer from the housebuilding sector today by revealing it expected full-year profits at the upper end of expectations.
The housebuilder, which was created from the merger of Solihull-based Taylor Woodrow and George Wimpey in 2007, said trading had been stable against a backdrop of economic uncertainty, with UK sales over the summer slightly ahead of hopes but the autumn marginally below as customers awaited news on government spending cuts.
Taylor Wimpey has seen an improvement in sales since the announcement but mortgage availability remains a constraint on industry volumes.
Shares were 4% higher in early trading as Taylor Wimpey also announced progress in discussions with banks over the refinancing of debt facilities.
It has agreed the terms of a revised £950 million credit facility and a new set of covenants, which removes a number of current operational restrictions and increases flexibility over future operational decisions.
The second stage of the refinancing process has still to be completed but Taylor Wimpey said it expected the task to be finished by the end of the first quarter of next year.
It added: “We expect to enter 2011 with a solid order book and we remain focused on our strategy of maximising margins and returns rather than looking to accelerate volume growth.”