Britain's third largest homebuilder Taylor Woodrow Plc has announced that its first half profits have been better than expected and have managed to cross the level predicted by analysts. The company said that this was possible due to the boom in the U.S market, which was able to cover-up for the losses in the UK one.
Consequently, the company will now focus on the U.S market and cut back on its UK activities since the UK markets have been declining steadily. Taylor Woodrow said that the first half profits are expected to cross 178 million pounds ($309.2 million).
These were the initial estimations of the market. The company is set to release its first half report on September 6. Taylor Woodrow's sales in the UK fell by 17 percent, while the average prices took a 3 percent dip. Currently these stand at 194,000 pounds ($338,000).
But the average selling prices in the US market rose by 11 percent to $398,000 and thus took off some pressure on the domestic front. The US market showed a good potential and demand from California, Arizona and Florida was only expected to increase.
Taylor Woodrow Chief Executive Officer Iain Napier said as much, "We have really huge growth potential in North America, with better returns. Our other markets give us a good hedge to some of the pressures in the U.K. market."
The company admitted that its annual outlook would be severely tested by the conditions in the UK markets. "However, our balance of profit generation between the UK, North America and Spain, together with a record order book and land bank, means that we remain well placed to deliver future growth," Taylor Woodrow said in a trading update.
Posted
on : Mon, 11 Jul 2005 15:25 GMT | Business News
By : Mike Lawson
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