10th Jul 2006 07:01
Taylor Woodrow PLC10 July 2006 Taylor Woodrow plc Trading Update Taylor Woodrow plc, the international housing development company, today issuesan update on trading for the six months to 30th June 2006. Interim Results willbe announced on Thursday 3rd August 2006. The Group completed 5,052 homes in the first half, broadly similar to lastyear's figure of 5,065. As at 30th June 2006, the Group Housing order book wasup 2% to £1.62bn (H1 2005: £1.59bn). We have also increased our total owned andcontrolled landbank by 2% to 76,771 plots (December 2005: 75,160 plots). First half Group profits are anticipated to be in line with expectations and areslightly below the levels achieved in the equivalent period last year. We continue to benefit from the strong performance of our business in NorthAmerica, which will deliver around 50% of the Group's operating profit in thefirst half. UK Housing The UK market has shown some encouraging signs of recovery in the first half,with our sites seeing improvements in both visitor rates and reservations persite per week. The cancellation rate has also reduced compared to the sameperiod last year and is now running close to the long-term average. Margins,however, have remained under some pressure. Despite operating from a lower average number of sites than the equivalentperiod of 2005, we have achieved a small increase in net reservations. Wecompleted 3,369 homes in the period, up 5% against the first half of 2005. Theorder book now stands at £649m, 8% higher than in June 2005. The average selling price achieved was £193k (H1 2005: £195k) reflecting ahigher proportion of social housing completions. Average selling price persquare foot is up 3% compared with the first half last year. As we indicated in our Preliminary Results announcement, 2006 first half marginsin the UK will be close to those achieved (excluding land sales) in the secondhalf of 2005. The contribution to profits from land sales has been lower than inthe equivalent period of 2005. The comparative figure excludes the impact of theone-off sale at Edinburgh Quartermile in January 2005. We enter the second half of 2006 with a landbank of 38,498 plots, some 10%higher than in December 2005. 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 Our North American housing business will deliver a record first half performanceand is well-placed for the second half. Homes completions were 1,512, down 9% year on year mainly as a result of delaysin receiving habitation certificates in some markets. However, we continue toexpect strong growth in volumes in the second half. Average home selling pricesincreased by 10% to US$440k (H1 2005: US$399k). As planned, our land developmentbusiness achieved strong growth in lot completions to 1,462 (H1 2005: 1,017). The operating margin achieved in the first half of 2006 will be above the 17.5%level achieved in the full year 2005 (H1 2005: 16.7%). We ended the period with a landbank of 36,035 plots (December 2005: 37,910plots) and an order book of US$1.63bn, down 1% on June 2005. Excluding ourFlorida high-rise condominium developments, where we have fewer active projectsthan last year, the order book is up 16% compared to June 2005. Spain and Gibraltar Housing We have completed 171 homes (H1 2005: 203), at an average selling price of £190k(H1 2005: £163k). As expected, margins will be lower than the exceptional levelsachieved in recent years, but remain strong. Our landbank of 2,238 plots remains at a similar level to that reported inDecember 2005 and the order book of £92m is 6% above the £86m at the end of June2005. Construction Construction has had a successful first half, ending the period with an externalorder book increased to £1.09bn (H1 2005: £777m). Profit margins will be broadlyin line with last year. Outlook In the UK, we anticipate delivering modest growth in unit completions for thefull year, together with some improvement on the margins achieved in the firsthalf of 2006. In North America, our order book provides us with good visibility of performancein the second half. Whilst we have seen market softening in Arizona, Californiaand Florida, we continue to expect increases in both home completions andprofits for the full year. Spain and Construction remain on course to deliver stable performance in 2006. Overall, we anticipate full year results to be in line with expectations. -ends- 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% 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 PottingerDan de Belder/ Victoria Geoghegan 020 7861 3232 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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