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Taylor Wimpey pledges first dividend since 2007 as it returns to the black

Housebuilder which came close to collapse at height of recession reports profits of £65m in 2011 against loss of £59m in 2010

The housebuilder Taylor Wimpey, which came dangerously close to collapsing under a mountain of debts at the height of the recession, has cheered investors by pledging to pay its first dividend since 2007.

Like other housebuilders, the group is back in the black. It reported profits of £89.9m before tax and one-off items for 2011, against losses of £27.9m in 2010. Including exceptionals, it made a profit of £65.7m against a loss of £59.2m.

Formed from the merger of Taylor Woodrow and George Wimpey in 2007, the group sold its North American division last summer to focus on its UK business.

It sold 10,180 homes last year – up 2.2% on the year before – while the average selling price was flat at £171,000. It will pay a final dividend of 0.38p a share to shareholders.

The chief executive, Pete Redfern, was cautiously optimistic, saying: “While wider economic conditions remain uncertain, the UK has seen a period of continued stability in the underlying housing market and strong growth across a number of areas, as shown by our order book.”

The company builds a wide range of homes from apartments to five-bedroom houses, with prices ranging from under £100,000 to £500,000. As in recent years, most of the homes built last year cost between £100,000 and £200,000.

The Peel Hunt analyst Robin Hardy summed up the results as “solid trading but limited sparkle”. © 2012 Guardian News and Media Limited or its affiliated companies. All rights reserved. | Use of this content is subject to our Terms & Conditions | More Feeds