TWOD Taylor Woodrow

RNS Number:9149F
Taylor Woodrow PLC
10 July 2006


                               Taylor Woodrow plc

                                 Trading Update

Taylor Woodrow plc, the international housing development company, today issues
an update on trading for the six months to 30th June 2006. Interim Results will
be announced on Thursday 3rd August 2006.

The Group completed 5,052 homes in the first half, broadly similar to last
year's figure of 5,065. As at 30th June 2006, the Group Housing order book was
up 2% to #1.62bn (H1 2005: #1.59bn). We have also increased our total owned and
controlled 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 are
slightly below the levels achieved in the equivalent period last year.

We continue to benefit from the strong performance of our business in North
America, which will deliver around 50% of the Group's operating profit in the
first 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 per
site per week. The cancellation rate has also reduced compared to the same
period 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 equivalent
period of 2005, we have achieved a small increase in net reservations. We
completed 3,369 homes in the period, up 5% against the first half of 2005. The
order book now stands at #649m, 8% higher than in June 2005.

The average selling price achieved was #193k (H1 2005: #195k) reflecting a
higher proportion of social housing completions. Average selling price per
square foot is up 3% compared with the first half last year.

As we indicated in our Preliminary Results announcement, 2006 first half margins
in the UK will be close to those achieved (excluding land sales) in the second
half of 2005. The contribution to profits from land sales has been lower than in
the equivalent period of 2005. The comparative figure excludes the impact of the
one-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 property
portfolio is no longer being separately reported and has been incorporated into
the UK Housing results.


North America Housing

Our North American housing business will deliver a record first half performance
and is well-placed for the second half.

Homes completions were 1,512, down 9% year on year mainly as a result of delays
in receiving habitation certificates in some markets. However, we continue to
expect strong growth in volumes in the second half. Average home selling prices
increased by 10% to US$440k (H1 2005: US$399k). As planned, our land development
business 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: 37,910
plots) and an order book of US$1.63bn, down 1% on June 2005. Excluding our
Florida high-rise condominium developments, where we have fewer active projects
than 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 levels
achieved in recent years, but remain strong.

Our landbank of 2,238 plots remains at a similar level to that reported in
December 2005 and the order book of #92m is 6% above the #86m at the end of June
2005.


Construction

Construction has had a successful first half, ending the period with an external
order book increased to #1.09bn (H1 2005: #777m). Profit margins will be broadly
in line with last year.


Outlook

In the UK, we anticipate delivering modest growth in unit completions for the
full year, together with some improvement on the margins achieved in the first
half of 2006.

In North America, our order book provides us with good visibility of performance
in the second half. Whilst we have seen market softening in Arizona, California
and Florida, we continue to expect increases in both home completions and
profits 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 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% to #3.5 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
Dan de Belder/ Victoria Geoghegan                                  020 7861 3232






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

END
TSTAKKKDABKKNOD

Taylor Woodrow (LSE:TWOD)
Historical Stock Chart
From Jun 2024 to Jul 2024

Taylor Woodrow (LSE:TWOD)
Historical Stock Chart
From Jul 2023 to Jul 2024