RNS Number:7518W
Taylor Woodrow PLC
11 January 2006


                        

                        TAYLOR WOODROW plc TRADING UPDATE

Taylor Woodrow plc, the international housing development company, today issues
an update on trading for the year ended 31st December 2005. Preliminary results
will be announced on 28th February 2006.

Introduction

We expect group profits for the year to 31st December 2005 to be in line with
current market expectations.

Our performance in 2005 has again demonstrated the value of our portfolio
investment strategy. The increased investment in our North American operations
over the last three years has resulted in further growth, at a time in which UK
markets have been relatively weak.

Group Housing

  * Order book up 16.6% to #1,318m (2004: #1,130m)
  * Land bank (owned and controlled) up 18.0% to 75,160 plots (2004: 63,701)
  * Unit completions down 4.4% to 12,516 (2004:13,092)

UK Housing

Home completions in 2005 were 8,178, down 9.7% on last year, reflecting more
challenging market conditions and the allocation of capital into North America.
As previously forecast, average selling prices have reduced from #197k in 2004
to #185k in 2005, as a result of an increased proportion of social and apartment
completions.

Demand in the final quarter was stronger than in the equivalent period of 2004
and we start 2006 with an order book of #411m, up 1.0% on last year, from 4.2%
fewer sites. Total operating margins are in line with expectations, with land
sales contributing a similar proportion of profit to the first half. However,
the market continues to be competitive and margin pressures remain, as we have
previously indicated.

Our UK landbank has grown by 2,526 plots to 34,985 plots, equivalent to 4.3
years of supply.

North America Housing

We have achieved another year of record results in North America. Total home
completions in 2005 were 3,932, up 8.2% on 2004. Average selling prices
increased by 21.2% to US$453k, as a result of strong market pricing and mix
changes including the completion of our three luxury waterfront condominium
projects in Florida. Operating margins will be above market expectations.

All our markets have performed well. At the year-end we have an order book of
US$1,421m, up 14.1% on 2004. Excluding our Florida high-rise condominium
projects, the order book is up 38.4% compared to 2004. Our land bank now stands
at 37,910 owned or controlled plots, an increase of 26.3% from last year and
representing 5.7 years of supply.

Spain and Gibraltar Housing

Our housing operations in Spain and Gibraltar have continued to perform well,
with 406 home completions, up 0.5% on last year. Average selling prices have
decreased by 5.1% to #169k, reflecting mix changes. The forward order book at
31st December 2005 was #81m, 8.3% higher than last year. The landbank has
increased from 1,233 plots last year to 2,265 plots, equivalent to 5.6 years
supply, as we continue to allocate capital to the business.

Commercial Property

As previously announced, we have continued to dispose of our commercial property
portfolio. Following the sale of various properties in the second half,
including the K2 development, we now have a small residual portfolio valued at
#17m. Gross profit on the sale of the K2 development is in line with market
expectations.

Construction

Construction operating profit is in line with expectations in 2005.

Cash Position

At the end of the year, we had reduced net debt to under #500m.


Outlook

The UK housing market remains competitive and whilst we have seen some
encouraging signs on customer demand in the last quarter, it remains too early
to forecast 2006. There is continuing undersupply of housing and we are well
placed to benefit from any continued improvement in customer confidence.

In North America we anticipate another year of profit progression, driven mainly
by growth in unit completions, although we expect some moderation of house price
inflation in certain hotspots.

We are on track with our expansion plans in Spain.


                                     -ends-

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 2004 turnover increased
by 26% to #3.3 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/ Victoria Geoghegan                 020 7861 3232




                      This information is provided by RNS
            The company news service from the London Stock Exchange

END
TSTKBLFFQFBEBBD
Taylor Woodrow (LSE:TWOD)
Historical Stock Chart
From Jun 2024 to Jul 2024 Click Here for more Taylor Woodrow Charts.
Taylor Woodrow (LSE:TWOD)
Historical Stock Chart
From Jul 2023 to Jul 2024 Click Here for more Taylor Woodrow Charts.