RNS Number:3871J
Taylor Woodrow PLC
4 September 2001
Embargoed: 0700 hours: 4 September 2001
TAYLOR WOODROW plc INTERIM RESULTS SUMMARY
(Half year ended June 30, 2001 Unaudited)
Taylor Woodrow announces record half year profits.
Highlights
* Bryant Group successfully integrated - #15 million of synergies secure
* Turnover up to a record #977.2 million - up 33 per cent
* Group operating profit up 38 per cent to #108.7 million.
* Profit, before tax, exceptional items and goodwill up 48 per cent to a
record #108.8 million.
* International housing operating profits up 57 per cent to #83.7 million.
* Bryant Homes profits up by 240 per cent: operating margin increased to
14.7 per cent
* Refocused construction business returns an operating profit of #5.6
million
* Interim dividend up 10 per cent to 2.0 pence per share.
Taylor Woodrow plc, the housing, property and construction group, today (4
September 2001) announced a 48 per cent increase in half year pre tax profits,
before goodwill and exceptionals, to a record #108.8 million (2000: #73.3
million), boosted by its #632 million takeover of the Bryant Group in March
this year.
Group operating profits, after one-off costs of #7.5 million related to the
integration of Bryant, rose 38 per cent to #108.7 million (2000: #78.8
million) on Group turnover of #977.2 million, an increase of 33 per cent.
Return on capital employed, after exceptionals and before goodwill, increased
to 17.2 per cent (2000: 16.2 per cent).
The Board has declared an interim dividend of 2.0 pence per share, up 10 per
cent on the interim figure last year.
The Group's international housing businesses, predominantly focused in the UK
and North America, recorded a 57 per cent increase in operating profit to a
record #83.7 million (2000: #53.4 million). World-wide, Taylor Woodrow sold
5,362 homes and lots (2000: 2,872) and its housing operations now account for
73 per cent of Group operating profit.
The enlarged Bryant Homes, the UK's fourth largest house builder, posted
operating profits (pre-exceptional items and goodwill) up 240 per cent to
#50.6 million
(2000: #14.9 million) on housing sale completions of 2,121, up 184 per cent
(2000: 748). Average UK selling prices from Bryant rose during the period to
#152,000 up 14 per cent (2000: #132,800).
Operating profits from Taylor Woodrow's North American business grew 21 per
cent over last year's comparable period to #41.0 million (2000: #33.8
million). Operating profits in the USA increased to #28.8 million (2000: #24.1
million) and average selling prices increased to #499,000 (2000: #377,800), a
rise of 32 per cent. Taylor Woodrow's Monarch subsidiary in Canada achieved
housing turnover of #50.7 million, up 20 per cent on 2000, with an average
selling price of #133,100 (2000: #111,600). Operating profit was #7.3 million
(2000: #5.8 million).
The Group's housing operation in Spain reported operating profits of #3.1
million on turnover of #12.2 million, an increase of 182 per cent.
Taylor Woodrow announced in July it had sold the majority of its Australian
assets to Stockland Corporation for A$85 million, as part of its strategy to
focus on the UK and North American markets.
The Group's property arm made operating profits of #23.7 million (2000: #23.7
million) for the half year on increased turnover of #82.4 million (2000: #61.3
million). Taylor Woodrow is committed to reducing its investment property
portfolio and confirmed sales proceeds of #63.9 million in the first half.
The construction and engineering operation turned around a #0.6 million
operating loss into a #5.6 million profit, providing a 2.9 per cent margin,
reflecting the changes and repositioning of the past 18 months to provide
business to business solutions for key clients such as Tesco, Shell, BT
Cellnet, BAA and Railtrack.
Commenting on the results, the Group's chairman, Dr Robert Hawley, said:
" Following the acquisition of Bryant, we are now the fourth largest UK house
builder and the country's most profitable housing and property group.
"Taylor Woodrow has a unique complement of in-house skills within its
residential, commercial development, construction and engineering divisions,
as well as a comprehensive national network of offices. This enables the Group
to capitalise on strategic market opportunities, particularly in the
increasingly important urban regeneration of mixed use and brownfield
developments".
The Group's chief executive, Keith Egerton, said:
"Taylor Woodrow is growing from strength to strength. We have delivered
another strong set of business and financial results for the first half of
this year and our achievements reflect the increasing quality of our products
and our broad range of skills."
On current trading and future prospects, Mr Egerton said that UK housing
demand remains buoyant, with mortgage rates at the lowest for 40 years.
"In the UK, forward sales for Bryant are buoyant, currently running some 15
per cent higher than at this time last year. The summer months have been
unusually busy with a good level of sales during August.
"We are seeing a softening of consumer interest in the USA, particularly at
the luxury end of the market in California, but other regions of our North
American operations and lower priced products, as well as strong land
development performance, means we are meeting our expectations there.
"We are a soundly-based, focused business, with clear strengths. We anticipate
continued progress for the remainder of the year, he said.
Ends
The interim dividend will be paid on Thursday 1 November 2001 to shareholders
whose names appear on the register of members at the close of business on
Friday 14 September 2001.
The company offers a Dividend Re-Investment Plan which provides shareholders
with a facility to use their cash dividends to purchase Taylor Woodrow plc
shares in the market. Details will be sent to ordinary shareholders with the
Interim Report which will be posted on 28 September 2001. Copies will also be
available for members of the public at the Company's registered office at
Venture House, 42-54 London Road, Staines, Middlesex, TW18 4HF.
Note to Editors
Attached is:
* Full Interim Statement
* Summary consolidated Profit and Loss Account for the six months to 30
June 2001
* Summary consolidated Balance Sheet at 30 June 2001
* Summary consolidated Cash Flow Statement for six months to 30 June 2001
* Notes on the Interim Accounts.
For further information, please contact:
Analysts:
Adrian Auer:
Group Finance Director
Taylor Woodrow plc
Tel: 01784 428794 (4 September, ABN AMRO 020 7678 8000)
Media Enquiries:
Tony McGarahan:
Group director, corporate relations
Taylor Woodrow plc
Tel: 01784 428767 (4 September, ABN AMRO 020 7678 8000)
Mobile: 07796 276342
Miranda Bellord:
Group PR manager
Taylor Woodrow plc
Tel: 01784 428678 (4 September, ABN AMRO 020 7678 8000)
Mobile: 07946 722381
Scott Fulton:
Financial Dynamics
Tel: 0207 831 3113
Mobile: 07788 144993
Photographs:
Photographs have been sent by ISDN to picture desks. They are labelled Woodrow
1,2,3 and 4. The photographs show Dr Robert Hawley, Group Chairman, and Keith
Egerton, Group Chief Executive, at TW's award-winning Greenwich Millennium
Village, where the latest phase of apartments was completed last week. The
scheme also provides for 260 affordable homes out of the total of 1,400,
recognising our responsibility to the wider society in which we operate.
For any queries regarding photographs, please contact:
Robin Mayes: 07831 186 283
Beth Wood: 01784 428 732
GROUP FINANCIAL SUMMARY
Six months to
30th June
(unaudited)
2001 2000
- Group turnover #977.2m #736.4m
- Group operating profit #108.7m #78.8m
- Profit before taxation (before goodwill and #108.8m #73.3m
exceptional items)*
- Profit before taxation #103.8m #89.4m
- Adjusted basic earnings per share (before goodwill 14.3p 12.1p
and exceptional items)*
- Basic earnings per share 13.8p 16.4p
- Dividend per share 2.0p 1.82p
30 June 31 December
2001 2000
(unaudited)
- Net debt #393.6m #43.9m
- Net gearing 28.9% 4.9%
- Shareholders' funds per share 234.7p 231.8p
*exceptional items includes profit on disposal of investments of #6.8 million
(2000 interim: #16.1 million) and exceptional administrative expenses of #7.5
million (2000 interim: nil)
FULL TEXT OF TAYLOR WOODROW'S INTERIM STATEMENT
CHAIRMAN'S STATEMENT
"GROWING FROM STRENGTH TO STRENGTH. SETTING NEW RECORDS."
Taylor Woodrow has delivered another set of strong financial results in the
first half of this year. Record profits were boosted by the #632 million
acquisition in March of the Bryant Group and improved contributions from
existing operations.
The initial integration of the Bryant operations has been completed and we are
making excellent progress in developing our enlarged UK Housing business into
a more customer focused operation under the Bryant brand.
RECORD RESULTS AND INCREASED DIVIDEND
Group turnover increased by 33 per cent to #977.2 million (2000: #736.4
million). Operating profit rose to #108.7 million (2000: #78.8 million) up 38
per cent, with the Group's operating margin rising to 11.1 per cent (2000:
10.7 per cent). Profit before tax, before goodwill and exceptionals, rose 48
per cent to a record #108.8 million (2000: #73.3 million). Adjusted earnings
per share increased by 18 per cent to 14.3 pence (2000: 12.1 pence).
Annualised return on capital employed before goodwill increased to 17.2 per
cent (2000:16.2 per cent).
The Board has declared an interim dividend of 2.0 pence (2000: 1.82 pence), an
increase of 10 per cent. This dividend will be paid on 1 November to
shareholders on the register at close of business on 14 September 2001.
At 30 June 2001, total shareholders' funds were #1,362.4 million (December
2000: #887.7 million), equivalent to 234.7 pence per share. Net debt was
#393.6 million (2000: #43.9 million). At the half year, net gearing was 28.9
per cent (2000: 4.9 per cent) as a result of increased funding to support the
Bryant acquisition.
PEOPLE
Lady Robin Innes Ker, a former non executive director of Bryant Group plc,
joined the Board in July. A former City analyst, her skills and experience
will add a fresh dimension to our thinking.
Denis Mac Daid, previously managing director of our construction business,
joined the Board following his appointment as chief executive of Bryant Homes.
He succeeded Paul Phipps, who resigned after nine years with the Group. I
thank Paul for his valuable contribution during that period.
I also thank all employees for their support and commitment in delivering such
an excellent business performance in the first half of 2001.
UNIQUE EXPERIENCE & EXPERTISE
Taylor Woodrow is changing radically as we seek to maximise returns in the
markets we serve. Our progress and achievements reflect the increasing quality
of our products made possible by the skills of our people working together.
Following the acquisition of Bryant, we are now the fourth largest UK house
builder and the country's most profitable housing and property group.
Taylor Woodrow has a unique complement of in-house skills within its
residential, commercial development, construction and engineering divisions,
as well as a comprehensive national network of offices. This enables the Group
to capitalise on strategic market opportunities, particularly in the
increasingly important urban regeneration of mixed use and brownfield
developments.
We are dedicated to being at the forefront of our industry and delivering
maximum value to our shareholders and customers.
Dr Robert Hawley CBE
4th September 2001
CHIEF EXECUTIVE'S REVIEW
RESIDENTIAL
Operating profit from the Group's worldwide residential operations increased
by 57 per cent to #83.7 million (2000: #53.4 million) on turnover of #673.2
million (2000: #398.9 million).
UK HOUSING
Turnover from the enlarged Bryant Homes rose 210 per cent to #343.5 million
(2000: #110.8 million) leading to operating profit of #50.6 million, a 240 per
cent increase on last year (2000: #14.9 million). Operating margin was 14.7
per cent (2000: 13.4 per cent) an increase of 10 per cent.
During the period 2,121 home sales were completed (2000: 748 homes). In common
with our competitors, we were not helped by the extraordinarily wet weather
and inefficient local government planning regime. An average selling price of
#152,000 (2000: #132,800) was achieved, a 14 per cent increase.
The enlarged Bryant Homes is now made up of a national spread of 12 regional
operations producing approximately 6,000 units per year.
Bryant has proved to be an excellent purchase. The first phase of integration
has been very successful and the #15 million of synergies estimated at the
time of acquisition are secure. As we move forward with the enlarged business,
we anticipate that there will be further synergy opportunities.
Our reasons for acquiring Bryant were not about scale of operation, or simply
merging the two operations in order to achieve immediate cost savings.
Our aim with the enlarged Bryant Homes is to build on the strengths of
management, our market position and land bank, creating one culture, one brand
and one business focused on delivering what the customer wants - excellent
products and services.
We have moved at a considered pace, aware of the impact of change on staff and
customer service, and I am delighted with the progress.
Bryant has an exceptionally strong strategic land portfolio, comprising
approximately 10,236 gross acres. Major schemes include Stevenage, Southall
and Swindon, which are currently being progressed through the planning system.
At the half year, the Group owned or controlled land in the UK with the
benefit of planning permission for 17,690 homes (December 2000: 6,226) with
owned plots averaging a cost of #36,100 (December 2000: #29,300) representing
about 22 per cent of projected selling prices. By any standards, this is a
strong position and equates to more than three years output at current
production levels.
The average selling price of properties in our Central London housing business
rose by 9 per cent to #578,500 on last year. All remaining units at City Quay
and Drury Lane are sold and only four units remain at Montevetro.
THE INTEGRATED DEVELOPER
A key strategic aim of the Group is to develop ever-closer working
relationships between the unique complement of our in-house skills. The
expertise of our construction, engineering and development teams in securing
and managing complex urban projects will be one of the key drivers of future
growth for Taylor Woodrow.
Taylor Woodrow is ideally placed to capitalise on the opportunities presented
by the Government's policy of promoting brownfield and urban regeneration
schemes in the UK.
For example, sales of apartments in Fanum House, the former AA building in
Cardiff - in partnership with our construction arm - are going well and, in
York, work is progressing on a complex, seven storey development of 114
apartments, another Bryant Homes/Taylor Woodrow Construction joint venture.
In Leeds, we purchased the Thistle Hotel site and Bryant Homes and our
Property Division are working together to develop a residential and commercial
scheme.
REGENERATING OUR URBAN COMMUNITIES
We have significant expertise in developing technically complex urban
regeneration projects in partnership with joint venture partners.
In June, in joint arrangement with Hutchison Whampoa, we submitted planning
proposals to develop the Lots Road power station site into a 1.5 million sq.
ft. mixed use residential complex. Also with Hutchison Whampoa, we acquired an
adjacent 2.2 acre parcel of land at Chelsea Harbour from P&O. Together, this
11 acre site has a projected total capital value of #500 million.
A joint arrangement between Taylor Woodrow, the Bank of Scotland and Kilmartin
Property Group acquired the 20 acre Edinburgh Royal Infirmary site from
Lothian University NHS Trust. Architects, Foster and Partners, have been
appointed as master planner to create a vibrant mixed use scheme including
residential, retail, hotel, leisure and offices.
The latest phase of the award-winning Greenwich Millennium Village, our joint
arrangement with Countryside Properties, incorporating 100 units, is scheduled
for completion in September 2001. The forward sales position is very
encouraging. The scheme also provides for 260 affordable homes out of the
total of 1,400, recognising our responsibility to the wider society in which
we operate.
Together with Ask Property Developments, we have submitted a planning
application to develop a #83 million mixed use scheme, including 426
residential units, covering two key parts of the Southern Gateway Regeneration
Area of Manchester.
In March, we purchased a 0.8 acre site, called Bombay Wharf, on the bank of
the River Thames at Rotherhithe and we are developing a #25 million scheme of
77 residential apartments and business units.
NORTH AMERICA
In the first half of the year, Taylor Woodrow's operations in North America
remained resilient to a weakening economy in the USA.
A softening in the high value end of the market in California was balanced by
land development activities in Florida and Texas. This mix of land development
and house building activity provides Taylor Woodrow with greater flexibility
to respond to local market conditions.
Profits from our North American business grew 21 per cent over last year's
comparable period to #41.0 million (2000: #33.8 million)
In the US we achieved 361 home completions, a fall of 24 per cent on the
previous year, but average selling prices increased to #499,000, a 32 per cent
rise from #377,800 for the same period last year. Lot sales, in Florida and
Texas increased by over 400 per cent to #50.4 million, at an average selling
price of #30,400.
Operating profits for our American business in Florida, Texas and California
were #28.8 million (2000: #24.1 million) a rise of 20 per cent. This is the
result of a 23 per cent increase in turnover, up from #195.0 million in June
2000 to #240.0 million at the half year.
Our activities in Canada, which operate under the Monarch brand, enjoyed a
very good half year. The housing market was robust with sustained demand for
homes and high rise apartments in and around Toronto.
Monarch's total turnover (including property development and investment) for
the half year was up 48 per cent to #76.6 million (2000: #51.7 million).
Operating profit was #12.2 million (2000: #9.7 million)
We achieved 353 house completions with an average selling price of #133,100
(2000: #111,600). New low rise completions were 13 per cent higher than the
previous year, with strong reservations for new high rise projects.
The launch of Waterview, our prestigious high rise development of apartments
overlooking Lake Ontario, has been a great success resulting in 140 pre-sales
since opening in April representing 42 per cent of phase one.
SPAIN
Our housing operation in Spain, focused around Mallorca, Menorca and the Costa
del Sol, continued to be buoyant. Strong interest is being shown from local
and North European purchasers, particularly from the UK.
At the half year, completions were 94, up 34 per cent compared to the same
period last year (2000: 70).
Half year profits were #3.1 million with operating margins at 25.4 per cent
(2000: 16.4 per cent). Return on capital employed rose to 30.2 per cent (2000:
15.0 per cent). This marks the third consecutive year of strong growth from
our Spanish operation with profits over 400 per cent greater than the
equivalent period three years ago.
The acquisition of an additional 100 acres of land adjacent to our development
at Los Arqueros will enable us to build another 400 homes and an additional
nine holes of golf, resulting in a total development of 1400 dwellings and 27
holes of golf.
AUSTRALIA
In July, as part of our programme to dispose of non-core assets, we sold the
majority of our Australian assets to Stockland Corporation for A$85 million.
This disposal will allow TW to increase the focus on our core housing
operations in the UK and North American markets. The joint venture development
at Harrington Park, Sydney, was excluded from the sale.
PROPERTY DEVELOPMENT AND INVESTMENT
The property division made an operating profit of #23.7 million for the half
year (2000: #23.7 million). Turnover was #82.4 million (2000: #61.3 million).
Total value of trading sales in the first half of the year was #58.5 million.
We also experienced excellent occupier demand for developments at Cadogan
Square, Glasgow (Stakis Plc), Christie Fields, Manchester (Astra Zeneca),
Delta Business Park, Swindon (QA Group) and in Eastcheap, London (Chase De
Vere and HM Government).
We continue to implement our strategy of reducing our investment property
portfolio in the UK and Canada having completed sales for total proceeds of
#63.9 million. The value of the portfolio at the half year is reduced to #285.5
million.
In the UK property market, notably the Thames Valley, we have witnessed some
deterioration resulting from the economic slowdown in America and fading
demand in the technology sector, but our exposure to this market is limited.
CONSTRUCTION
Reflecting the benefit of the extensive changes and repositioning achieved by
our Construction operation over the last 18 months, the division has delivered
an operating profit of #5.6 million, a significant improvement on the #0.6
million loss returned for the same period last year. Turnover increased to
#221.6 million, an 8 per cent rise. Interest income and the sale of our stake
in the A19 PFI project increased profit before tax from #5.6 million to #14.8
million. Underlying operating margins, pre-restructuring costs, have improved
to 2.9 per cent (2000: 2.1 per cent).
Orders received in the first half amounted to #185 million (2000: #194
million) with total orders standing at #602 million (2000: #644 million). We
are also in a preferred sole negotiating position on a further #425 million of
potential orders.
Construction's strategy of providing business to business solutions to create
and maintain capital assets has delivered significant work for key clients
including Tesco, Railtrack, Shell, BT Cellnet, Whitbread and BAA.
Having smoothly integrated Bryant's construction arm into its operation,
Construction is working on a number of projects for Taylor Woodrow's other
divisions. This will form an increasingly important part of its revenue stream
in the coming years as the Group's activities become even more closely
integrated.
Facilities Management is a key growth area and here again emphasis is being
placed on blue chip customers, where we can provide solutions and technical
expertise driven by business improvement for the customer.
OUTLOOK
In the UK, housing demand remains strong. With mortgage rates at their lowest
for 40 years, housing affordability - the key to the consumer purchasing
decision - remains very healthy.
The unfortunate constraints in the local government planning system delaying
the start of developments reinforced the shortage of supply and the upward
pressure on values. We are well positioned in this regard following the Bryant
purchase due to our high level of consented schemes which was a key reason for
the purchase.
The UK housing market is well placed for a continuing period of steady growth
although we expect a more stable climate of house price inflation in coming
years. Forward sales for Bryant Homes are strong, currently running some 15
per cent higher than at this time last year. The summer months have been
unusually busy with a good level of sales in August.
We have an excellent supply of sites and plots with planning permission and a
strong strategic land bank and we can deliver significant growth in
completions in the second half and next year.
In the US the future economic conditions remain uncertain and we are seeing a
softening of consumer interest at the luxury end of the homes market
particularly in locations exposed to the IT industry, such as California. We
have therefore increased our focus on medium priced products. Other regions
and market segments in North America are meeting expectations.
The strong economic conditions in Canada and demand for Monarch's
developments, particularly high-rise projects, remain encouraging.
In the UK property market institutional investors are at present relatively
inactive. Overseas investors and private buyers continue to show interest, as
evidenced by recent large commercial deals in London. We expect only modest
rental growth in the near term.
The strong performance of Construction following its restructuring will be
enhanced further as a result of its tighter focus on its key markets such as
PFI, Facilities Management and consultancy, where future growth is targeted.
Taylor Woodrow's experience and skills in major mixed use development position
us uniquely to meet the Government's emphasis on urban regeneration and the
challenges of the planning environment.
We are a soundly-based, refocused business with a number of key strengths
which together differentiates us clearly from our competitors. Our aim is to
become the most respected creator of living and working environments. We
anticipate continued progress for the remainder of the year.
Keith Egerton
4th September 2001.
SUMMARY CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE SIX MONTHS TO 30 JUNE 2001
Six months to Year to
30 June 31 December
(unaudited)
2001 2000 2000 Notes
#m #m #m
Turnover: Group and share of joint ventures 983.7 745.6 1,557.9
Less share of joint ventures' turnover (6.5) ( 9.2) (18.2)
Existing operations 664.7 1,457.1
Acquisitions - -
Continuing operations 664.7 1,457.1
Discontinued operations 71.7 82.6 8
Group turnover
977.2 736.4 1,539.7 1
==== ===== =====
Existing operations 81.4 76.5 163.5
Acquisitions before goodwill amortisation - -
Acquisitions - goodwill amortisation - -
Acquisitions
Continuing operations 76.5 163.5
Discontinued operations 8
Group operating profit
108.7 78.8 165.7 1
Share of operating profit in joint ventures 2.1 3.2 5.5
Profit on disposal of discontinued operations - - 31.7 8
Profit on disposal of investments and 9.3 17.1 18.6 3
properties
Profit on ordinary activities before interest 120.1 99.1 221.5
Net interest payable (16.3) (9.7) (20.0) 4
Profit on ordinary activities before taxation 103.8 89.4 201.5
Tax on profit on ordinary activities (34.8) (22.4) (54.4) 5
Profit on ordinary activities after taxation 69.0 67.0 147.1
Minority equity interests (1.2) (5.1) (7.3)
Profit for the financial period 67.8 61.9 139.8
Dividends (11.6) (6.9) (31.7)
Profit retained 56.2 55.0 108.1
==== ==== =====
Basic earnings per share 13.8p 16.4p 37.0p 6
==== ==== =====
Diluted earnings per share 13.7p 16.3p 36.8p 6
==== ==== =====
Dividends per ordinary share 2.0p 1.82p 6.12p
==== ==== =====
CONSOLIDATED STATEMENT OF TOTAL
RECOGNISED GAINS AND LOSSES
FOR THE SIX MONTHS TO 30 JUNE 2001
Six months to Year to 31
30 June (unaudited) December
2001 2000 2000
#m #m #m
Profit for the financial period 67.8 61.9 139.8
Unrealised surplus on revaluation of properties - - 18.6
Tax on realised revaluation surplus (1.4) - -
Currency translation differences on foreign
currency net investments 13.8 12.9 13.4
Total recognised gains and losses
relating to the period 80.2 74.8 171.8
==== ==== ====
SUMMARY CONSOLIDATED BALANCE SHEET
AT 30 JUNE 2001
30 June 30 June 31 December
2001 2000 2000
(unaudited)(unaudited)
#m #m #m #m
Fixed assets
Intangible assets - goodwill 250.3 - -
Investment properties 285.5 371.3 346.7
Other tangible assets 91.9 84.8 75.7
Investments
Joint ventures
Share of gross assets (30 June 2000:
#59.7m; 31 December 2000: #58.3m) 36.4
Share of gross liabilities (30 June 2000:
#57.9m; 31 December 2000 : #57.1m) (36.1)
0.3 1.8 1.2
628.0 457.9 423.6
Current assets
Stocks 1,573.4 874.1 880.1
Debtors 198.1 151.4 131.6
Current asset investments 5.5 5.9 7.2
Cash at bank and in hand 104.4 138.4 204.4
1,881.4 1,169.8 1,223.3
Creditors: amounts falling due within one year (615.1) (492.1) (498.2)
______ ____ _____
Net current assets 1,266.3 677.7 725.1
Total assets less current liabilities 1,894.3 1,135.6 1,148.7
Non-current creditors and provisions (529.2) (321.6) (257.9)
_____ _____ _____
1,365.1 814.0 890.8
===== ===== ====
Represented by:
Capital and reserves - equity
Called up ordinary share capital 145.1 95.4 95.8
Capital redemption reserve 14.2 14.2 14.2
Share premium account 590.3 232.6 233.7
Revaluation reserve 151.8 136.8 142.5
Profit and loss account 461.0 333.5 401.5
_____ _____ _____
Shareholders' funds 1,362.4 812.5 887.7
Minority interests in equity of subsidiary
undertakings 2.7 1.5 3.1
_____ _____ _____
1,365.1 814.0 890.8
===== ===== ====
SUMMARY CONSOLIDATED CASH FLOW STATEMENT
FOR THE SIX MONTHS TO 30 JUNE 2001
Six months to Year to
30 June 31 December
(unaudited)
2001 2000 2000 Notes
#m #m #m
Group operating profit 108.7 78.8 165.7
Depreciation 9.5 4.0 9.5
Decrease/(increase) in stocks 2.4 (62.4) (84.3)
Increase in debtors (38.4) (3.5) (8.6)
(Decrease)/increase in creditors (31.7) (19.0) 32.3
Exchange adjustments (2.7) (0.7) (1.0)
______ _______
Continuing operating activities
Discontinued operating activities 8
Net cash inflow/(outflow) from operating 47.8 (2.8) 113.6
activities
Dividends from joint ventures 1.0 0.3 1.2
Returns on investments and servicing of (20.3) (7.3) (15.9)
finance
Taxation (38.0) (17.2) (48.8)
Capital expenditure and financial investment 63.6 41.9 71.6
Acquisitions and disposals (280.3) (94.0) (30.2) 7&8
Equity dividends paid - - (21.2)
______ _______ _______
Net cash (outflow)/inflow before financing (226.2) (79.1) 70.3
Issue of ordinary share capital by Taylor 1.8 0.7 2.3
Woodrow plc
Debt of acquired subsidiary undertaking (116.5) - -
(excluding bank overdrafts)
Exchange/other non-cash changes in net debt (8.8) (4.9) (3.9)
______ _______ _______
Movement in net debt (349.7) (83.3) 68.7
===== ===== =====
MOVEMENT IN NET DEBT
#m #m #m
(Decrease)/increase in cash in the period (35.0) (13.1) 46.3
Cash (inflow)/outflow from (increase)/decrease (117.5) (62.4) 13.9
in debt
Cash (inflow)/outflow from (decrease)/increase (71.9) (2.9) 12.4
in liquid resources
(Increase)/decrease in net debt resulting from (224.4) (78.4) 72.6
cash flows
Debt of acquired subsidiary undertaking (116.5) - -
(excluding bank overdrafts)
Exchange/other non-cash changes in the period (8.8) (4.9) (3.9)
______ _______ _______
(Increase)/decrease in net debt in the period (349.7) (83.3) 68.7
Net debt at the beginning of the period (43.9) (112.6) (112.6)
______ _______ _______
Net debt at the end of the period (393.6) (195.9) (43.9)
===== ===== =====
NOTES ON THE INTERIM ACCOUNTS
1. SEGMENTAL ANALYSIS
Group turnover Group
(by origin) operating profit Capital employed
Six months to 30 June Six months to 30 June 30 June 31 Dec
2001 2000 2001 2000 2001 2000
By activity #m #m #m #m #m #m
Housing 673.2 398.9 83.7 53.4 1,173.9 573.9
Property development
and investment 82.4 61.3 23.7 23.7 404.8 428.0
Construction 221.6 204.5 5.6 (0.6) (70.3) (67.2)
Continuing operations 977.2 664.7 113.0 76.5 1,508.4 934.7
Discontinued operations
Greenham Trading - 71.7 - 2.3 - -
_____ _____ _____ _____ ______ _____
977.2 736.4 113.0 78.8 1,508.4 934.7
==== ====
Goodwill amortisation/ goodwill - housing (4.3) - 250.3 -
108.7 78.8 1,758.7 934.7
==== ==== ===== ====
By market
United States of America 240.0 195.0 28.8 24.1 256.6 234.7
Canada 76.6 51.7 12.2 9.7 131.8 176.3
Rest of the world 73.9 71.8 12.3 3.0 37.3 35.0
Total overseas 390.5 318.5 53.3 36.8 425.7 446.0
United Kingdom 586.7 417.9 59.7 42.0 1,082.7 488.7
_____ _____ _____ _____ ______ _____
977.2 736.4 113.0 78.8 1,508.4 934.7
==== ====
Goodwill amortisation/goodwill -
United Kingdom (4.3) - 250.3 -
108.7 78.8 1,758.7 934.7
==== ====
Net debt (393.6) (43.9)
Minority interests (2.7) (3.1)
______ _____
Shareholders' funds 1,362.4 887.7
===== =====
Operating profit in the United Kingdom for the six months to 30 June 2001 is
stated after deduction of exceptional administrative expenses of #7.5m (#6.7m
in respect of the integration of Bryant and Taywood Homes housing operations
and #0.8m in respect of the integration of Taylor Woodrow and Bryant
construction operations).
Operating profit/(loss) for construction excludes its share of the
construction joint ventures and interest. Profit before taxation for
construction for the six months to 30 June 2001 would be #8.0m (2000 interim:
#2.3m) including these items.
NOTES ON THE INTERIM ACCOUNTS continued
2. BASIS OF PREPARATION OF THE INTERIM ACCOUNTS
The interim accounts have been prepared on a basis which is consistent
with the accounting policies adopted for the year to 31 December 2000.
In accordance with our stated accounting policy, investment and fixed
asset properties have not been valued since 31 December 2000. Investment
properties will next be valued at 31 December 2001.
The interim accounts were approved by the board of directors on 4
September 2001.
These accounts do not constitute statutory accounts. Comparative figures
for the year to 31 December 2000 have been extracted from the latest
published accounts on which the report of the auditors was unqualified
and did not contain a statement made under section 237 (2) or section 237
(3) of the Companies Act 1985.
The 2000 annual accounts have been delivered to the Registrar of
Companies.
3. PROFIT ON DISPOSAL OF INVESTMENTS AND PROPERTIES
Six months to 30 June Year to 31
December
2001 2000 2000
#m #m #m
Profit on disposal of investments (including 6.8 16.1 16.2
Greenham Construction Materials Ltd in 2000)
Profit on disposal of properties 2.5 1.0 2.4
9.3 17.1 18.6
=== === ===
4. NET INTEREST PAYABLE
Net interest payable includes the Group's share of joint venture interest
payable of #2.1m
(2000 interim: #2.4m; 2000 full year: #4.4m).
5. TAX ON PROFIT ON ORDINARY ACTIVITIES
Six months to 30 June Year to 31
December
2001 2000 2000
#m #m #m
United Kingdom 17.0 7.2 19.2
Overseas 17.8 15.2 35.1
Joint ventures - - 0.1
34.8 22.4 54.4
=== === ===
The effective overall tax rate is 33.5% (2000 interim: 25.1%; 2000 full
year: 27.0%). The tax charges in 2000 were below standard tax rates mainly
due to the utilisation of tax losses.
NOTES ON THE INTERIM ACCOUNTS continued
6. EARNINGS PER SHARE
Year to 31
Six months to 30 June December
2001 2000 2000
#m #m #m
Earnings per share has been calculated by
dividing:
Profit for the financial period 67.8 61.9 139.8
==== ==== ====
by the weighted average number of shares
for basic earnings per share 492.5m 377.4m 377.6m
weighted average of dilutive options 2.3m 1.8m 1.0m
weighted average of dilutive awards under
the Group Executive Bonus Plan 0.9m 1.1m 1.2m
for diluted earnings per share 495.7m 380.3m 379.8m
===== ===== =====
7. ACQUISITIONS
Bryant Group plc
On 2 March 2001, the Group declared its offer for Bryant Group plc
unconditional. The company offered 0.72 shares and 80 pence in cash for
each share issued and to be issued in Bryant Group plc. The consideration
of #632.0m comprised the issue of 196.3m ordinary shares of 25 pence each
in the company, the issue of #5.4m of loan notes and #222.3m in cash,
including the expenses of the acquisition. The provisional fair value to
the Group of the net assets acquired was #377.4m, giving rise to
provisional goodwill of #254.6m which is being amortised over twenty
years.
Net cash outflows in respect of the acquisition comprised: #m
Cash consideration 222.3
Bank overdrafts acquired 58.0
280.3
====
Monarch Development Corporation
On 22 May 2000, the Group acquired the 45% of the Monarch Development
Corporation Group held by other shareholders for #94.4m (C$213.3m) which
was equivalent to the fair value of the minority interest acquired.
8. DISPOSAL OF GREENHAM TRADING
Following the disposal of Greenham Trading on 28 July 2000, this business
segment was shown as discontinued. The profit on sale was #31.7m, after
deducting related goodwill previously written off to retained profit and loss
account of #1.4m. The profit on the sale had no effect on the amounts charged
to the profit and loss account for taxation and minority interests.
Net cash outflows in respect of the acquisition comprised: #m
Cash consideration net of sale expenses 67.3
Cash at bank and in hand sold (4.1)
Bank overdrafts sold 1.0
64.2
====
INDEPENDENT REVIEW REPORT TO TAYLOR WOODROW plc
Introduction
We have been instructed by the company to review the financial information for
the six months ended 30 June 2001 which comprises the summary consolidated
profit and loss account, the consolidated statement of total recognised gains
and losses, the summary consolidated balance sheet, the summary consolidated
cash flow statement and related notes 1 to 8. We have read the other
information contained in the interim report and considered whether it contains
any apparent misstatements or material inconsistencies with the financial
information.
Directors' responsibilities
The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by the directors. The directors
are responsible for preparing the interim report in accordance with the
Listing Rules of the Financial Services Authority which require that the
accounting policies and presentation applied to the interim figures should be
consistent with those applied in preparing the preceding annual accounts
except where any changes, and the reasons for them, are disclosed.
Review work performed
We conducted our review in accordance with guidance contained in Bulletin 1999/4
issued by the Auditing Practices Board for use in the United Kingdom. A
review consists principally of making enquiries of Group management and
applying analytical procedures to the financial information and underlying
financial data and based thereon, assessing whether the accounting policies
and presentation have been consistently applied unless otherwise disclosed. A
review excludes audit procedures such as tests of controls and verification of
assets, liabilities and transactions. It is substantially less in scope than
an audit performed in accordance with United Kingdom Auditing Standards and
therefore provides a lower level of assurance than an audit. Accordingly, we
do not express an audit opinion on the financial information.
Review conclusion
On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 30 June 2001.
Deloitte & Touche
Chartered Accountants
Hill House
1 Little New Street
London
EC4A 3TR
4 September 2001
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
