17th Apr 2008 11:00
Taylor Wimpey PLC17 April 2008 Taylor Wimpey plcInterim Management Statement Taylor Wimpey plc is holding its Annual General Meeting at 11:00 today, wherethe following comments will be made regarding current trading, financialperformance and the outlook for the financial year. This statement covers theperiod from 1 January 2008 to the date of this announcement and constitutesTaylor Wimpey plc's first Interim Management Statement as required by the UKListing Authority's Disclosure and Transparency Rules. UK Housing Market conditions in the UK have weakened since we reported our PreliminaryResults, with first time buyers and investors facing particular difficulties asa result of the increasingly restricted availability of mortgages. Sales ratesremain significantly below those of the equivalent period of 2007 on a pro formabasis, with higher levels of cancellations being experienced. On a pro forma basis we have 7% more active outlets than at the equivalent pointof 2007, however the current order book is 26% lower by value. We are seeingpressure on prices, driven primarily by transactions in the secondary market andby mortgage providers. We remain very cautious of the UK land market, where wehave seen prices starting to fall. We anticipate that the current subdued conditions will continue, with interestrates and mortgage availability being key determinants of customer confidence.Our focus remains on preserving value through maintaining a steady, but reduced,sales rate and controlling land and work in progress spend tightly. We arecontinuing to reduce costs, the benefits of which will come through during thesecond half of the year. North America Housing Trading conditions in the US remain weak, although we are seeing more stabilityin some markets. Sales rates are below those achieved in the equivalent periodof 2007 on a pro forma basis and cancellation rates remain above long termtrends. As we indicated at our Preliminary Results presentation last month, ongoingmarket weakness may result in further land and work in progress write downsduring 2008. However, the scale of these write downs is expected to besubstantially lower than those reported in 2007. We do not expect market conditions in the US to improve significantly during theremainder of 2008. In the short term, our strategy remains to focus on managingout existing sites and reducing the cost base. Our business in Canada continues to benefit from a stable operating environment,generating solid sales and experiencing normal cancellation rates. Spain, Gibraltar and Construction Housing markets in mainland Spain remain poor, whilst the Gibraltar marketremains robust. The Construction business is trading in line with expectations. Group Based on current market conditions in the UK and the US, we anticipate that fullyear results will be at the lower end of our expectations. We remain on course to deliver our previously stated synergy run rate targets of£70 million by the end of 2008 and £100 million in aggregate by the end of 2009and continue to expect further progress. Net debt stands at £1.9 billion and is in line with our forecast. There have been no other significant changes in the financial position of theGroup since the publication of the Annual Report for the year ended 31 December2007. -ends- For further information please contact: Pete Redfern, Group Chief Executive James MurgatroydPeter Johnson, Group Finance Director Faeth BirchJonathan Drake, Investor RelationsTaylor Wimpey plc FinsburyTel: +44 (0)7816 517 039 Tel +44 (0)20 7251 3801 Notes to editors: On 3 July 2007, Taylor Woodrow plc and George Wimpey Plc completed their mergerto form Taylor Wimpey plc. Taylor Wimpey plc is the UK's largest homebuilder. Taylor Wimpey plc builds homes in the UK, North America, Spain and Gibraltar. Itaims to be the homebuilder of choice for customers, employees, shareholders andcommunities. Taylor Wimpey also operates in the Construction sector under theTaylor Woodrow brand. For further information please visit the company's website -www.taylorwimpey.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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