Taylor Woodrow PLC - Interim Results.

(From AFX CNF)

RNS Number:1787H Taylor Woodrow PLC 03 August 2006 TAYLOR WOODROW plc INTERIM RESULTS STATEMENT (for the six months to 30 June 2006) Taylor Woodrow plc, the international housing development company, today announces Interim Results for the six months to 30th June 2006. Headlines a Group revenues AGBP1.49 billion (2005: AGBP1.45 billion) a Housing profit from operations* AGBP189.9 million (2005: AGBP195.4 million) a Housing operating margin* 15.4% (2005: 16.8%) a Profit before tax AGBP160.8 million (2005: AGBP170.4 million) a Basic earnings per share 19.5 pence (2005: 20.8 pence) a Interim dividend 5.0 pence per share (2005 interim: 4.5 pence) a Net gearing 40.1% (2005: 44.1%) a Housing landbank 76,772 plots (Dec 2005: 75,160 plots) a Housing order book AGBP1.62 billion (2005: AGBP1.59 billion) * Throughout this announcement, profit from operations and operating margins are before joint ventures' interest and tax (see note 3). The Group's share of joint venture 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 a record first half profit from North America contributing 50 per cent of the Group's profit from operations. Our UK business has grown both its unit completions and order book in the first half, despite operating off fewer sites than in the equivalent period last year. We continue to anticipate modest growth in home completions in the UK for the full 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 expect good growth in both home completions and profits in North America for the full year." -ends- A presentation to analysts will be made at 10:00 hrs. This presentation will be broadcast live on www.taylorwoodrow.com. Notes to editors: Taylor Woodrow is a housing development group. Its primary business is the development of sustainable communities of high quality homes across the UK and in selected markets in North America and Spain. The company is listed on the London Stock Exchange and in the year ending 31 December 2005 turnover increased by 5 per cent to AGBP3.5 billion. For further information please visit the company's website - www.taylorwoodrow.com For further information please contact: Taylor Woodrow Investor Relations Jonathan Drake 0121 600 8394 / 07816 517 039 Taylor Woodrow Media Enquiries Ian Morris 0121 600 8520 / 07816 518 767 Bell Pottinger Ben 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 regions where underlying economic and demographic factors support long-term demand for new housing. In the UK, the chronic undersupply of new housing continues. The Department for Communities and Local Government estimates demand for an annual average of 209,000 new household formations per annum in England alone between 2003 and 2026, heavily outweighing the 155,000 new homes completed in England in the year to April 2005 according to data from the Office of National Statistics. Continuing net inward migration from the EU will increase the imbalance between demand and supply. We have businesses in four States of the USA (Arizona, California, Florida and Texas) as well as in Ontario, Canada. All of these markets continue to benefit from both job and population growth, with Arizona, California and Florida also popular destinations for retirees. We also operate in Spain and Gibraltar, primarily building homes in popular holiday destinations that are well served by low-cost airlines from Northern Europe. Results Total revenue for the six months to 30th June 2006 was up 3 per cent to AGBP1.49bn (2005: AGBP1.45bn). Profit before tax at AGBP160.8m was 6 per cent lower than the equivalent period last year. The effective tax rate was 30.3 per cent, which is in line with the 2005 full year. Total equity before minority interests stood at AGBP1,979.6m at 30th June 2006 (2005: AGBP1,789.9m). Net debt was AGBP793.7m (2005: AGBP789.5m) resulting in net gearing of 40.1 per cent (2005: 44.1 per cent). Basic earnings per share were 19.5 pence (2005: 20.8 pence). Equity per share increased by 9 per cent to 345.4 pence. Group Housing Overview H1 '06 H1 '05 FY '05 Revenue, including joint ventures AGBPm 1,232.5 1,163.9 2,864.9 Profit from Operations * AGBPm 189.9 195.4 456.0 Operating 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 record profits from our North American business helping to offset lower margins and a reduced contribution from land sales in the UK. Housing profit from operations was AGBP189.9m (2005: AGBP195.4m) with 57 per cent of these profits coming from our overseas operations. The overall order book has grown by 2 per cent to AGBP1.62bn (2005: AGBP1.59bn). The owned and controlled landbank with planning has also increased by 2 per cent to 76,772 plots (December 2005: 75,160 plots). With both of these metrics at record levels, we are well-placed to deliver growth in …