Taylor Wimpey rises following results

Taylor Wimpey is up 3% after its six-month results came in at the top end of expectations.

The homebuilder also stated that it is confident of hitting its full-year targets.

The property market in the UK has turned around, in particular in the greater London area. The construction company said ‘our business in the south east and midlands regions performed particularly well in the first half of the year, when operating profits were up 13% compared with the same period in 2012'. Spanish operations are not going as well but it expects sales in 2014 to be strong.

The company’s net debt position currently stands at £70 million, which is 48% lower than last year. When a company has a smaller net debt position it is less reliant on loans for financing which takes the pressure off the firm, as interest repayments are compulsory.

Taylor Wimpey chart

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