RNS Number:5426S
Taylor Wimpey PLC
17 April 2008
Taylor Wimpey plc
Interim Management Statement
Taylor Wimpey plc is holding its Annual General Meeting at 11:00 today, where
the following comments will be made regarding current trading, financial
performance and the outlook for the financial year. This statement covers the
period from 1 January 2008 to the date of this announcement and constitutes
Taylor Wimpey plc's first Interim Management Statement as required by the UK
Listing Authority's Disclosure and Transparency Rules.
UK Housing
Market conditions in the UK have weakened since we reported our Preliminary
Results, with first time buyers and investors facing particular difficulties as
a result of the increasingly restricted availability of mortgages. Sales rates
remain significantly below those of the equivalent period of 2007 on a pro forma
basis, with higher levels of cancellations being experienced.
On a pro forma basis we have 7% more active outlets than at the equivalent point
of 2007, however the current order book is 26% lower by value. We are seeing
pressure on prices, driven primarily by transactions in the secondary market and
by mortgage providers. We remain very cautious of the UK land market, where we
have seen prices starting to fall.
We anticipate that the current subdued conditions will continue, with interest
rates 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 are
continuing to reduce costs, the benefits of which will come through during the
second half of the year.
North America Housing
Trading conditions in the US remain weak, although we are seeing more stability
in some markets. Sales rates are below those achieved in the equivalent period
of 2007 on a pro forma basis and cancellation rates remain above long term
trends.
As we indicated at our Preliminary Results presentation last month, ongoing
market weakness may result in further land and work in progress write downs
during 2008. However, the scale of these write downs is expected to be
substantially lower than those reported in 2007.
We do not expect market conditions in the US to improve significantly during the
remainder of 2008. In the short term, our strategy remains to focus on managing
out 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 market
remains 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 full
year 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 2009
and 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 the
Group since the publication of the Annual Report for the year ended 31 December
2007.
-ends-
For further information please contact:
Pete Redfern, Group Chief Executive James Murgatroyd
Peter Johnson, Group Finance Director Faeth Birch
Jonathan Drake, Investor Relations
Taylor Wimpey plc Finsbury
Tel: +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 merger
to 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. It
aims to be the homebuilder of choice for customers, employees, shareholders and
communities. Taylor Wimpey also operates in the Construction sector under the
Taylor 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 Exchange
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