Titan Construction Insurance welcomes the news that the country’s second biggest house builder, Taylor Wimpey, has told the market that it expects a large rise in its operating profit for 2011.
Titan says that Taylor Wimpey made an operating profit of £88.3 million in 2010 and the company has announced that it now expects a 75% jump in that figure for last year.
Titan understands the improvement in operating profit is mainly due to cost cutting measures which have improved margins, but nonetheless says that this is a welcome sign in an otherwise gloomy picture.
The company’s management team are of the view that when it comes to house building, demand is “healthy”, but that that demand is constrained by a shortage of lending. That trend, they reckon, will be in play for some time yet.
Chief Executive Officer of Titan Construction Insurance, Basil Tsapralis, said:
“The construction sector is having a tough time in this economic downturn and good companies are fighting to survive. So, it’s good to see some good news at last and to read the announcement from Taylor Wimpey that they expect operating profits to have dramatically increased in 2011, is very good news indeed.
“Admittedly, much of this will have come about because of cost cutting, and that will have included letting staff go, but at least the company will be well set for the recovery when it comes. The danger is that with this downturn, when things get better, few companies will be positioned to reap the benefits.”
Titan Construction Insurance has clients throughout the sector and is respected for its high levels of customer service, as well as competitive pricing.