3rd Aug 2006 07:02
Taylor Woodrow PLC03 August 2006 TAYLOR WOODROW plc INTERIM RESULTS STATEMENT (for the six months to 30 June 2006) Taylor Woodrow plc, the international housing development company, todayannounces Interim Results for the six months to 30th June 2006. Headlines • Group revenues £1.49 billion (2005: £1.45 billion) • Housing profit from operations* £189.9 million (2005: £195.4 million) • Housing operating margin* 15.4% (2005: 16.8%) • Profit before tax £160.8 million (2005: £170.4 million) • Basic earnings per share 19.5 pence (2005: 20.8 pence) • Interim dividend 5.0 pence per share (2005 interim: 4.5 pence) • Net gearing 40.1% (2005: 44.1%) • Housing landbank 76,772 plots (Dec 2005: 75,160 plots) • Housing order book £1.62 billion (2005: £1.59 billion) * Throughout this announcement, profit from operations and operating margins arebefore joint ventures' interest and tax (see note 3). The Group's share of jointventure revenue is used in the margin calculation (see note 3). Iain Napier, Chief Executive of Taylor Woodrow, said today: "We have once again demonstrated the benefits of our portfolio strategy, with arecord first half profit from North America contributing 50 per cent of theGroup's profit from operations. Our UK business has grown both its unitcompletions and order book in the first half, despite operating off fewer sitesthan in the equivalent period last year. We continue to anticipate modest growth in home completions in the UK for thefull year due to a steady market and a small increase in the number of sites.Although some of our North American markets are softening, we continue to expectgood growth in both home completions and profits in North America for the fullyear." -ends- A presentation to analysts will be made at 10:00 hrs. This presentation will bebroadcast live on www.taylorwoodrow.com. Notes to editors: Taylor Woodrow is a housing development group. Its primary business is thedevelopment of sustainable communities of high quality homes across the UK andin selected markets in North America and Spain. The company is listed on theLondon Stock Exchange and in the year ending 31 December 2005 turnover increasedby 5 per cent to £3.5 billion. For further information please visit the company's website -www.taylorwoodrow.com For further information please contact: Taylor Woodrow Investor RelationsJonathan Drake 0121 600 8394 / 07816 517 039 Taylor Woodrow Media EnquiriesIan Morris 0121 600 8520 / 07816 518 767 Bell PottingerBen Woodford / Dan de Belder 020 7861 3232 Chairman and Chief Executive's Review Overall Taylor Woodrow operates a portfolio of three housing businesses, each in regionswhere underlying economic and demographic factors support long-term demand fornew housing. In the UK, the chronic undersupply of new housing continues. The Department forCommunities and Local Government estimates demand for an annual average of209,000 new household formations per annum in England alone between 2003 and2026, heavily outweighing the 155,000 new homes completed in England in the yearto April 2005 according to data from the Office of National Statistics.Continuing net inward migration from the EU will increase the imbalance betweendemand and supply. We have businesses in four States of the USA (Arizona, California, Florida andTexas) as well as in Ontario, Canada. All of these markets continue to benefitfrom both job and population growth, with Arizona, California and Florida alsopopular destinations for retirees. We also operate in Spain and Gibraltar, primarily building homes in popularholiday destinations that are well served by low-cost airlines from NorthernEurope. Results Total revenue for the six months to 30th June 2006 was up 3 per cent to £1.49bn(2005: £1.45bn). Profit before tax at £160.8m was 6 per cent lower than theequivalent period last year. The effective tax rate was 30.3 per cent, which isin line with the 2005 full year. Total equity before minority interests stood at £1,979.6m at 30th June 2006(2005: £1,789.9m). Net debt was £793.7m (2005: £789.5m) resulting in net gearingof 40.1 per cent (2005: 44.1 per cent). Basic earnings per share were 19.5 pence (2005: 20.8 pence). Equity per shareincreased by 9 per cent to 345.4 pence. Group Housing Overview H1 '06 H1 '05 FY '05 Revenue, including joint ventures £m 1,232.5 1,163.9 2,864.9Profit from Operations * £m 189.9 195.4 456.0Operating Margin * % 15.4% 16.8% 15.9%Home completions 5,052 5,065 12,516 Group housing delivered a solid performance in the first half, with recordprofits from our North American business helping to offset lower margins and areduced contribution from land sales in the UK. Housing profit from operations was £189.9m (2005: £195.4m) with 57 per cent ofthese profits coming from our overseas operations. The overall order book has grown by 2 per cent to £1.62bn (2005: £1.59bn). Theowned and controlled landbank with planning has also increased by 2 per cent to76,772 plots (December 2005: 75,160 plots). With both of these metrics at recordlevels, we are well-placed to deliver growth in the future as market conditionsallow. * Throughout the Chairman and Chief Executive's review, the profit fromoperations and operating margins are before joint ventures' interest and tax(see Note 3); joint venture revenue is used in the margin calculation (see Note3). UK Housing H1 '06 H1 '05 FY '05 Revenue, including joint ventures £m 742.2 681.2 1,647.4Profit from Operations * £m 82.0 108.1 233.4Operating Margin * % 11.0% 15.9% 14.2%Home completions 3,369 3,194 8,178UK Homes margin % 11.5% 14.1% 12.7% Our UK housing business achieved an increase of 5 per cent in home completions,despite operating off fewer sites than in the equivalent period last year. Weended the half-year with an order book of £649m, an increase of 8 per cent overthe same point last year. Average selling prices were slightly lower at £193k (2005: £195k), reflecting anincrease in the proportion of social housing completions from 9 per cent to 14per cent. Average selling prices per square foot increased by 3 per cent overthe same period. As expected, the UK homes margin was lower than the equivalent period last year,but broadly in line with that achieved in the second half of 2005. Whilst wehave sold a similar amount of land to the first half of 2005, there has been anincreased proportion of plots from more recently acquired larger sites, whichinevitably attract a lower margin. Land sales remain profitable, although at amargin lower than the sale of homes. In addition, the first half of 2005included the £7.1 million benefit of the one-off sale of the Quartermile projectin Edinburgh. We continue to focus on operational efficiencies in our UK housing business.Having grown through two major acquisitions in the last six years, we haveinherited a variety of planning consents based on a very wide range ofhousetypes. We have worked hard to rationalise this range and expect to see thebenefits in terms of build cost improvements coming through in future years aswe start to build on land with more recent consents. We have increased our landbank by 10 per cent to 38,498 plots (December 2005:34,985 plots). Our strategy of taking options on land and working with thevendor to promote the sites through the planning process has delivered furthersuccess over the last six months. 44 per cent of our landbank has been acquiredfrom these strategic sources (2005: 40 per cent). Benefits from this will berealised in future years. As previously announced, the performance of our residual commercial propertyportfolio is no longer being separately reported and has been incorporated intothe UK Housing results. North America Housing H1 '06 H1 '05 FY '05 Revenue, including joint ventures £m 446.7 445.3 1,141.8Profit from Operations * £m 96.0 74.4 199.6Operating Margin * % 21.5% 16.7% 17.5%Home completions 1,512 1,668 3,932 Our North American business has delivered another set of excellent results, witha record first half profit of £96.0m, up 29 per cent on the first half lastyear. Whilst we sold fewer homes in the first half of 2006, our land developmentbusiness achieved strong growth in lot completions as planned. Our averageselling price for homes was US$440k (2005: US$399k). We have achieved an exceptional level of operating margin in the first half. Ourorder book enabled us to capitalise on the strong market conditions for bothhomes and lots in the second half of 2005. Our order book at 30th June 2006stood at US$1.63bn, down 1 per cent. (2005: US$1.64bn). Excluding the impact ofour Florida high-rise condominium developments, where we have fewer activeprojects this year, the order book was up 16 per cent compared to June 2005. Once again, we have achieved an outstanding result in Arizona, completing 535homes (2005: 509) at an average selling price of US$281k (2005: US$206k). Lotcompletions in the region also grew strongly, as the State continues to offer amore affordable alternative to California. Completions in California were 230 homes (2005: 307) at an average selling priceof US$841k (2005: US$797k), whilst in Florida we completed 237 homes (2005: 297)at an average price of US$668k (2005: US$535k). Completions in both of theseStates were lower than last year's levels, as a result of delays in receivingplanning permissions and habitation certificates respectively. Whilst we are currently experiencing softer markets in Arizona, California andFlorida, the market in Texas is performing well after a number of years of flatperformance. We completed 128 homes (2005: 59) at an average selling price ofUS$426k (2005: US$408k) at our communities in Austin and Houston. In Canada, we sold 382 homes (2005: 496) in what remains a solid market, alongwith an increased number of lots. The average home selling price was Can$320k(2005: C$333k). Spain & Gibraltar Housing H1 '06 H1 '05 FY '05Revenue £m 43.6 37.4 75.7Profit from Operations £m 11.9 12.9 23.0Operating Margin % 27.3% 34.5% 30.4%Home completions 171 203 406 Spain and Gibraltar remain attractive destinations for UK purchasers and ourwell-respected British brand, combined with our experience of over 40 years inthese markets provides us with a competitive advantage. We sold 171 homes in the first half of 2006, at an increased average sellingprice of £190k (2005: £163k) as a result of changes in the geographical mix.Operating margins remain strong, albeit below the exceptional levels achieved inrecent years. During the first half, we have taken the opportunity to rebalancethe land portfolio by selling on some of our holding in the Malaga area. Our landbank of 2,238 plots remains at a similar level to that reported inDecember 2005 and the order book of £92m is 6 per cent above the £86m at the endof June 2005. Construction Construction has had a successful first half, with financial close beingachieved for the St. Helens and Knowsley Hospitals NHS Trust PFI scheme and theselection as preferred bidder for the Building Schools for the Future programmein Sheffield. The profit from operations was £5.2m (2005: £7.5m) and theexternal order book was increased by 40 per cent to £1.09bn (2005: £777m). Outlook Our geographic portfolio of businesses continues to provide us with alternativeinvestment and growth options. We continue to anticipate modest growth in home completions in the UK for thefull year due to a steady market and a small increase in the number of sites. Inthe longer term, the UK market remains attractive on fundamentals and we havethe landbank in place to deliver future growth as market conditions allow. In North America, although some of our markets are softening, our order bookprovides us with good visibility of performance in the second half. We continueto expect good growth in both home completions and profits for the full year.However, we have seen a reduction in reservations per site per week togetherwith an increase in cancellations and therefore the autumn selling season willbe critical in determining the level of our year-end order book. Spain and Construction remain on course to deliver stable performance in 2006. Overall we anticipate full year results to be in line with expectations. Dividends The Board has declared an interim dividend of 5.0 pence per share (2005 interim:4.5 pence per share), an increase of 11 per cent. This dividend will be paid on1 November 2006 to shareholders on the register at close of business on 29September 2006. The company offers shareholders the opportunity to use their dividends topurchase shares on the market under the terms of the Dividend Re-InvestmentPlan. Further details are available on the Company's website,www.taylorwoodrow.com, and will be included in the 2006 interim report andaccounts, which will be posted to ordinary shareholders (other than those whohave elected for electronic communications) on 29th August 2006. Copies of the2006 interim report will also be available from that date on the Company'swebsite and from the registered office at 2 Princes Way, Solihull, WestMidlands, B91 3ES. Pensions Having commenced discussions earlier this year on the shape of future fundingwith the Trustees of our main defined benefit pension scheme in the UK, theTaylor Woodrow Group Pension and Life Assurance Fund, we have now reached anagreement in principle on the basis of future funding. The Company proposes to increase its past service deficit funding payments from£4.8m per annum to £20m per annum for a period of 10 years. This increaserelates to cashflow, and profit from operations will not be affected. The intention is to close the Fund to future accrual for existing members. Thesemembers will be offered contributions on a defined contribution basis into theTaylor Woodrow Personal Choice Plan. This arrangement has been the pensionvehicle for all new employees since 2002. Future funding levels will remainequivalent with the existing arrangements. The Company has started consultation on these changes with employees through itsestablished Employee Consultation Committee process. The Company is workingtowards an implementation date for the changes of 1st December 2006. Other This report was approved by the Board of Directors on 2nd August 2006. The company wishes to encourage shareholders to receive certain companycommunications, including the annual report and accounts and interim reports,electronically via its website. For further information, and to register forelectronic communications, please go to www.taylorwoodrow.com. INDEPENDENT REVIEW REPORT TO TAYLOR WOODROW PLC Introduction We have been instructed by the company to review the financial information forthe six months ended 30 June 2006 which comprise the income statement, thestatement of recognised income and expense, the balance sheet, the cash flowstatement, related notes 1 to 8 and the reconciliation of movements inconsolidated equity. We have read the other information contained in the interimreport and considered whether it contains any apparent misstatements or materialinconsistencies with the financial information. This report is made solely to the company in accordance with Bulletin 1999/4issued by the Auditing Practices Board. Our work has been undertaken so that wemight state to the company those matters we are required to state to them in anindependent review report and for no other purpose. To the fullest extentpermitted by law, we do not accept or assume responsibility to anyone other thanthe company, for our review work, for this report, or for the conclusions wehave formed. Directors' responsibilities The interim report, including the financial information contained therein, isthe responsibility of, and has been approved by, the directors. The directorsare responsible for preparing the interim report in accordance with the ListingRules of the Financial Services Authority which require that the accountingpolicies and presentation applied to the interim figures are consistent withthose applied in preparing the preceding annual accounts except where anychanges, and the reasons for them, are disclosed. Review work performed We conducted our review in accordance with the guidance contained in Bulletin1999/4 issued by the Auditing Practices Board for use in the United Kingdom. Areview consists principally of making enquiries of group management and applyinganalytical procedures to the financial information and underlying financial dataand, based thereon, assessing whether the accounting policies and presentationhave been consistently applied unless otherwise disclosed. A review excludesaudit procedures such as tests of controls and verification of assets,liabilities and transactions. It is substantially less in scope than an auditperformed in accordance with International Standards on Auditing (UK andIreland) and therefore provides a lower level of assurance than an audit.Accordingly, we do not express an audit opinion on the financial information. Review conclusion On the basis of our review we are not aware of any material modifications thatshould be made to the financial information as presented for the six monthsended 30 June 2006. Deloitte & Touche LLPChartered AccountantsLondon2nd August 2006 Consolidated income statement for the six months to 30 June 2006 Year to 31 Six months to 30 June December 2006 2005 2005 Note £m £m £m Continuing operationsRevenue: Group and share of joint ventures 3 1,494.4 1,449.3 3,556.4 Less share of joint ventures (43.0) (28.1) (79.5) --------- --------- ---------Consolidated revenue 3 1,451.4 1,421.2 3,476.9Cost of sales (1,175.1) (1,150.5) (2,831.7) --------- --------- ---------Gross profit 276.3 270.7 645.2Profit on disposal of properties and investments 5.5 10.1 10.2Administrative expenses (97.8) (86.0) (195.4)Share of results of joint ventures 9.1 5.9 15.0 --------- --------- ---------Profit from operations 3 193.1 200.7 475.0 Interest receivable 3.6 3.9 8.3Finance costs (35.9) (34.2) (72.3) --------- --------- ---------Profit before tax 160.8 170.4 411.0 Tax 4 (48.8) (52.8) (124.5) --------- --------- ---------Profit for the period 112.0 117.6 286.5 ========= ========= =========Attributable to:Equity holders of the parent 111.5 117.1 285.7Minority interest 0.5 0.5 0.8 --------- --------- --------- 112.0 117.6 286.5 ========= ========= =========Earnings per shareFrom continuing operationsBasic 6 19.5p 20.8p 50.6p --------- --------- ---------Diluted 6 19.2p 20.6p 49.8p --------- --------- --------- Consolidated statement of recognised income and expense for the six months to 30 June 2006 Year to 31 Six months to 30 June December 2006 2005 2005 £m £m £m Net exchange differences on translation of foreign operations (23.9) 4.1 36.4Actuarial gains/(losses) on defined benefit pension schemes 16.3 - (73.3)Tax on actuarial gains/losses taken directly to equity (4.9) - 22.0 ------ ------ -------Net income recognised directly in equity (12.5) 4.1 (14.9)Profit for the period 112.0 117.6 286.5 ------ ------ -------Total recognised income and expense for the period 99.5 121.7 271.6 ------ ------ ------- Reconciliation of movements in consolidated equity for the six months to 30 June 2006 Year to 31 Six months to 30 June December 2006 2005 2005 £m £m £m Note Total recognised income for the period 99.5 121.7 271.6Dividends on equity shares 5 (51.0) (45.5) (71.3)New share capital subscribed 3.1 3.4 9.8Purchase of own shares (0.5) - -Proceeds from sale of own shares 3.1 4.1 7.3Share-based payments 3.5 2.4 5.9(Decrease)/increase in share-based payment tax reserve (2.7) 1.5 1.2Credit to equity relating to disposal of own shares - - 1.3Loss on disposal of own shares (3.2) - -Increase in other reserve (0.1) - 0.6Decrease in minority interests (0.5) (0.4) (0.9) -------- -------- --------Net increase in equity 51.2 87.2 225.5Opening equity 1,929.3 1,703.8 1,703.8 -------- -------- --------Closing equity 1,980.5 1,791.0 1,929.3 ======== ======== ======== Consolidated balance sheet at 30 June 2006 31 30 June 30 June December 2006 2005 2005 £m £m £mNon-current assetsGoodwill 363.4 363.5 363.9Property and plant 24.7 24.0 24.4Interests in joint ventures 53.6 91.8 92.1Trade and other receivables 65.1 37.0 37.2Deferred tax assets 79.3 71.7 101.2 --------- --------- --------- 586.1 588.0 618.8 --------- --------- ---------Current assetsInventories 3,147.0 2,756.7 2,699.6Trade and other receivables 314.2 336.0 281.9Cash and cash equivalents 84.7 97.1 197.3 --------- --------- --------- 3,545.9 3,189.8 3,178.8 -------- --------- ---------Total assets 4,132.0 3,777.8 3,797.6 --------- --------- ---------Current liabilitiesTrade and other payables (870.0) (754.4) (822.1)Tax liabilities (37.9) (40.2) (61.6)Debenture loans (4.1) (15.1) (6.5)Bank overdrafts and loans (49.5) (23.2) (9.0) --------- --------- --------- (961.5) (832.9) (899.2) --------- --------- ---------Net current assets 2,584.4 2,356.9 2,279.6 --------- --------- ---------Non-current liabilitiesTrade and other payables (123.3) (123.4) (76.2)Debenture loans (621.5) (633.1) (638.0)Bank loans (203.3) (215.2) (0.7)Retirement benefit obligation (206.9) (145.4) (222.5)Deferred tax liabilities (0.9) (4.2) (0.9)Long-term provisions (34.1) (32.6) (30.8) --------- --------- --------- (1,190.0) (1,153.9) (969.1) --------- --------- ---------Total liabilities (2,151.5) (1,986.8) (1,868.3) --------- --------- ---------Net assets 1,980.5 1,791.0 1,929.3 ========= ========= =========EquityShare capital 148.5 147.1 148.0Share premium account 759.0 750.8 756.2Revaluation reserve 0.5 0.7 0.5Own shares (51.4) (51.3) (53.9)Share-based payment tax reserve 1.3 4.3 4.0Capital redemption reserve 31.5 31.5 31.5Other reserve 5.3 4.9 5.4Translation reserve 6.0 (2.5) 29.9Retained earnings 1,078.9 904.4 1,006.8 --------- --------- ---------Equity attributable to equity holders of the parent 1,979.6 1,789.9 1,928.4Minority interests 0.9 1.1 0.9 --------- --------- ---------Total equity 1,980.5 1,791.0 1,929.3 ========= ========= ========= Consolidated cash flow statement for the six months to 30 June 2006 Year to 31 Six months to 30 June December 2006 2005 2005 Note £m £m £m Net cash from operating activities 7 (408.6) (256.2) 130.2 Investing activities Interest received 4.5 3.9 8.3Dividends received from joint ventures 15.6 1.7 3.0Proceeds on disposal of properties, plant and investments 43.8 4.3 13.9Purchases of properties, plant and investments (3.2) (2.8) (6.3)Amounts invested in joint ventures (5.5) (18.2) (22.8)Amounts repaid by joint ventures 3.4 21.4 27.2 ------ ------ ------Net cash from investing activities 58.6 10.3 23.3 ------ ------ ------Financing activitiesEquity dividends paid - - (71.3)Dividends paid by subsidiaries to minority shareholders (0.5) (0.4) (0.9)Issue of ordinary share capital by Taylor Woodrow plc 3.1 3.4 9.8Proceeds from sale of own shares 3.1 4.1 7.3Purchase of own shares (2.0) - -New debenture loans raised - - 1.8New bank loans raised 315.0 280.0 410.2Repayment of debenture loans (2.6) (1.3) (18.5)Repayment of bank loans (91.0) (65.1) (416.2)Increase/(decrease) in bank overdrafts 19.1 6.5 (2.3) ------- ------- -------Net cash from/(used in) financing activities 244.2 227.2 (80.1) ------- ------- -------Net (decrease)/increase in cash and cash equivalents (105.8) (18.7) 73.4Cash and cash equivalents at beginning of year 197.3 114.9 114.9Effect of foreign exchange rate changes (6.8) 0.9 9.0 ------- ------- -------Cash and cash equivalents at end of period 84.7 97.1 197.3 ======= ======= ======= Notes to the consolidated financial statements for six months to 30 June 2006 1. General information The interim report has been prepared in accordance with the recognition and measurement criteria of IFRS and the disclosure requirements of the Listing Rules. The information for the year ended 31 December 2005 does not constitute statutory accounts as defined in section 240 of the Companies Act 1985. A copy of the statutory accounts for that year prepared under IFRS has been delivered to the Registrar of Companies. The auditors' report on those accounts was unqualified and did not contain statements under section 237 (2) or (3) of the Companies Act 1985. 2. Accounting policies The accounting policies adopted are consistent with those followed in the preparation of the Group's annual financial statements for the year ended 31 December 2005. Trade debtors that fall due after more than one year were previously presented in current assets on the basis that they were not considered material in the context of the balance sheet. These have now been presented within non-current assets. The consolidated balance sheets as at 30 June 2005 and 31 December 2005 have been represented accordingly. Notes to the consolidated financial statements for six months to 30 June 2006 3. Business segments The following is an analysis of the revenue, results and capital employed, analysed by business segment, the Group's primary basis of segmentation. Housing Housing Housing United North Spain and Housing Kingdom America Gibraltar Total Construction Consolidated Six months to 2006 2006 2006 2006 2006 2006 30 June 2006 £m £m £m £m £m £m Revenue: External sales 713.3 432.6 43.6 1,189.5 261.9 1,451.4 Inter-segment sales - - - - 34.7 34.7 Eliminations - - - - (34.7) (34.7) ------ ----- ---- ------- ------ -------- Total revenue 713.3 432.6 43.6 1,189.5 261.9 1,451.4 Share of joint ventures' revenue 28.9 14.1 - 43.0 - 43.0 ------ ----- ---- ------- ------ -------- Group and share of joint ventures 742.2 446.7 43.6 1,232.5 261.9 1,494.4 ------ ----- ---- ------- ------ -------- Inter-segment construction revenue relates to construction contracts conductedon an arms-length basis. Result: Profit before joint ventures 77.3 89.7 11.9 178.9 5.1 184.0 Share of joint ventures' profit 4.7 6.3 - 11.0 0.1 11.1 ------- ----- ---- ------ ------ ------ Profit* 82.0 96.0 11.9 189.9 5.2 195.1 Share of joint ventures' interest and tax (1.7) (0.3) - (2.0) - (2.0) ------- ----- ---- ------ ------ ------ Profit from operations 80.3 95.7 11.9 187.9 5.2 193.1 Interest receivable 3.6 Finance costs (35.9) ------ Profit before tax 160.8 Tax (48.8) ------ Profit for the period 112.0 ------ Capital employed** 1,728.2 727.3 69.8 2,525.3 (114.5) 2,410.8 -------- ----- ----- -------- ------- Goodwill 363.4 Net debt (793.7) -------- Net assets 1,980.5 ======== *Profit is profit from operations before joint ventures' interest and tax. *\* The Group is unable to allocate the defined benefit pension scheme assets and liabilities on an actuarial basis by entity. However, for the purposes of the segmental analysis above the Group has allocated the deficit on the basis of contributing members. This allocation is performed solely for the purposes of providing more a meaningful segmental analysis and is not an appropriate apportionment in accordance with IAS 19. Notes to the consolidated financial statements for six months to 30 June 2006 3. Business and geographical segments continued Housing Housing Housing United North Spain and Housing Kingdom America Gibraltar Total Property Construction Consolidated Six months to 2005 2005 2005 2005 2005 2005 2005 30 June 2005 £m £m £m £m £m £m £m Revenue: External sales 672.6 426.1 37.4 1,136.1 52.5 232.6 1,421.2 Inter-segment sales - - - - - 44.5 44.5 Eliminations - - - - - (44.5) (44.5) ----- ----- ---- ------- ----- ------ -------- Total revenue 672.6 426.1 37.4 1,136.1 52.5 232.6 1,421.2 Share of joint ventures' revenue 8.6 19.2 - 27.8 - 0.3 28.1 ----- ----- ---- ------- ----- ------ -------- Group and share of joint ventures 681.2 445.3 37.4 1,163.9 52.5 232.9 1,449.3 ----- ----- ---- ------- ----- ------ -------- Result: Profit before joint ventures 106.5 68.4 12.9 187.8 - 7.0 194.8 Share of joint ventures' profit 1.6 6.0 - 7.6 - 0.5 8.1 ------ ----- ---- ------- ----- ------ -------- Profit* 108.1 74.4 12.9 195.4 - 7.5 202.9 Share of joint ventures' interest and tax (2.2) - - (2.2) - - (2.2) ------- ------ ---- -------- ----- ------ -------- Profit from operations 105.9 74.4 12.9 193.2 - 7.5 200.7 Interest receivable 3.9 Finance costs (34.2) -------- Profit before tax 170.4 Tax (52.8) -------- Profit for the period 117.6 -------- Capital employed** 1,653.6 477.8 48.7 2,180.1 118.9 (82.0) 2,217.0 -------- ----- ---- -------- ----- ------ Goodwill 363.5 Net debt (789.5) -------- Net assets 1,791.0 ======== Notes to the consolidated financial statements for six months to 30 June 2006 3. Business and geographical segments continued Housing Housing Housing United North Spain and Housing Kingdom America Gibraltar Total Property Construction Consolidated Six months to 2005 2005 2005 2005 2005 2005 2005 30 June 2005 £m £m £m £m £m £m £m Revenue: External sales 1,607.9 1,102.1 75.7 2,785.7 192.0 499.2 3,476.9 Inter-segment sales 4.8 - - 4.8 - 71.1 75.9 Eliminations (4.8) - - (4.8) - (71.1) (75.9) -------- -------- ---- -------- ----- ------ -------- Total revenue 1,607.9 1,102.1 75.7 2,785.7 192.0 499.2 3,476.9 Share of joint ventures' revenue 39.5 39.7 - 79.2 - 0.3 79.5 -------- -------- ---- -------- ----- ------ -------- Group and share of joint ventures 1,647.4 1,141.8 75.7 2,864.9 192.0 499.5 3,556.4 -------- -------- ---- -------- ----- ------ -------- Result: Profit before joint ventures 227.4 185.6 23.0 436.0 15.7 8.3 460.0 Share of joint ventures' profit 6.0 14.0 - 20.0 - 0.5 20.5 ------- ------- ---- ------- ----- ----- -------- Profit* 233.4 199.6 23.0 456.0 15.7 8.8 480.5 Share of joint ventures' interest and tax (5.4) (0.1) - (5.5) - - (5.5) -------- -------- ---- -------- ----- ----- -------- Profit from operations 228.0 199.5 23.0 450.5 15.7 8.8 475.0 Interest receivable 8.3 Finance costs (72.3) -------- Profit before tax 411.0 Tax (124.5) -------- Profit for the year 286.5 -------- Capital employed** 1,585.1 495.6 57.5 2,138.2 7.8 (123.7) 2,022.3 -------- -------- ---- -------- ----- ------- Goodwill 363.9 Net debt (456.9) -------- Net assets 1,929.3 ======== Notes to the consolidated financial statements for six months to 30 June 2006 4. Taxation Year to 31 Six months to 30 June December 2006 2005 2005 £m £m £m Current taxation UK corporation tax 17.5 15.9 39.1 Foreign taxation 18.3 38.4 96.5 Deferred taxation UK 0.3 6.0 10.2 Overseas 12.7 (7.5) (21.3) ---- ----- ------ 48.8 52.8 124.5 ==== ===== ====== Corporation tax for the interim period is charged at 30.3% (six months to 30 June 2005: 31.0%), representing the best estimate of the weighted average annual corporation tax rate expected for the full financial year. 5. Dividends Year to 31 Six months to 30 June December 2006 2005 2005 £m £m £m Final dividend for the year to 31 December 2005 of 8.9p (2004: 8.1p) per share 51.0 45.5 45.5 Interim dividend for the year to 31 December 2005 of 4.5p per share - - 25.8 ---- ---- ---- 51.0 45.5 71.3 ==== ==== ==== Six months to 30 June 2006 2005 £m £m Proposed interim dividend for the year to 31 December 2006 of 5.0p (2005: 4.5p) per share 29.7 25.8 ==== ==== The proposed interim dividend was approved by the Board on 2 August 2006 and hasnot been included as a liability as at 30 June 2006. Notes to the consolidated financial statements for six months to 30 June 2006 6. Earnings per share Year to 31 Six months to 30 June December 2006 2005 2005 Earnings per share Basic 19.5p 20.8p 50.6p Diluted 19.2p 20.6p 49.8p ----- ----- ----- The calculation of basic and diluted earnings per share is based on thefollowing data: Year to 31 Six months to 30 June December 2006 2005 2005 Earnings £m £m £m Earnings for basic earnings per share and diluted earnings per share 111.5 117.1 285.7 ----- ----- ----- Year to 31 Six months to 30 June December 2006 2005 2005 m m m Weighted average number of shares For basic earnings per share 572.4 562.9 564.6 Weighted average of dilutive options 7.7 3.0 7.8 Weighted average of dilutive awards under bonus plans 0.6 1.2 1.1 ----- ----- ----- For diluted earnings per share 580.7 567.1 573.5 ===== ===== ===== Notes to the consolidated financial statements for six months to 30 June 2006 7. Note to the consolidated cash flow statement Year to 31 Six months to 30 June December 2006 2005 2005 £m £m £m Profit from operations 193.1 200.7 475.0 Adjustments for: Depreciation of plant 3.0 2.9 5.8 Share-based payment charge 3.5 - 5.9 Gain on disposal of property, plant and investments (5.5) (10.1) (10.2) Share of joint ventures' operating profit (9.1) (5.9) (15.0) Increase/(decrease) in provisions 3.1 2.3 (0.4) ------ ------ ------- Operating cash flows before movement in working capital 188.1 189.9 461.1 Increase in inventories (489.7) (314.4) (204.9) (Increase)/decrease in receivables (70.6) (63.9) (9.1) Increase/(decrease) in payables 63.2 54.6 112.6 ------- ------ ------- Cash (used in)/generated by operations (309.0) (133.8) 359.7 Income taxes paid (54.1) (82.3) (153.7) Interest paid (45.5) (40.1) (75.8) ------- ------- ------- Net cash (used in)/from operating activities (408.6) (256.2) 130.2 ------- ------- ------- Year to 31 Six months to 30 June December 2006 2005 2005 £m £m £m Net Debt Cash and cash equivalents 84.7 97.1 197.3 Debenture loans 625.6) (648.2) (644.5) Bank overdrafts and bank loans (252.8) (238.4) (9.7) ------- ------- ------- (793.7) (789.5) (456.9) ======= ======= ======= Cash and cash equivalents (which are presented as a single class of asset on theface of the balance sheet) comprise cash at bank and other short-term highlyliquid investments with a maturity of three months or less. Notes to the consolidated financial statements for six months to 30 June 2006 8. Related party transactions Transactions between the company and its subsidiaries, which are related parties, have been eliminated on consolidation and are not disclosed in this note. Transactions between the Group and its joint ventures are as follows: The Group purchased land from joint ventures for £8.9m during the six months to 30 June 2006 (six months to 30 June 2005: £2.8m; year to 31 December 2005: £7.3m). Balances with joint ventures were as follows: 31 30 June 30 June December 2006 2005 2005 £m £m £m Amounts owed by joint ventures 45.6 89.6 93.6 ==== ==== ==== This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Taylor Wimpey