TWOD Taylor Woodrow

RNS Number:2612P
Taylor Woodrow PLC
10 January 2007


Taylor Woodrow plc, the international housing development company, today issues
an update on trading for the year ended 31st December 2006. Preliminary results
will be announced on 20th February 2007.

Group

Overall we anticipate full year results to be at the top end of expectations,
after making a provision against our North America land positions.

Group Housing

At a consolidated level, home completions were up 5.2% to 13,165 (2005: 12,516).
The Group landbank (owned and controlled) decreased to 68,662 plots (2005:
75,160), driven by a reduction in holdings in North America. The Group order
book was also down at #1,070m (2005: #1,318m), with a decrease in North America
offsetting increases in the UK and Spain.

UK Housing

We completed 8,294 homes in the steady market conditions experienced during
2006, up 1.4% on last year (2005: 8,178). Average selling prices increased by
4.3% to #193k (2005: #185k), reflecting both mix changes and increases in the
underlying price per square foot.

Sales rates remained good in the second half of the year, despite rises in
interest rates. An increase of 5% in active sites during the second half
contributed to a 30% increase in the order book to #534m (2005: #411m). As
previously advised, margins for the full year are slightly ahead of those
achieved in the first half.

We have maintained our investment in the UK landbank, which now stands at 34,827
plots (2005: 34,985), representing 4.2 years of supply.

North America Housing

The US Housing market weakened considerably in 2006, as rising interest rates
and growing concerns over affordability have affected confidence. However, the
strategy of maximising forward sales during 2005 will enable us to report a
strong result in North America for 2006, despite the impact of anticipated
pre-tax land write-offs in the region of US$40m. These write-offs follow a full
review of our year-end land positions and also include deposits on options not
taken up.

Home completions in 2006 were 4,492, up 14.2% on last year (2005: 3,932).
Average selling prices were lower at US$427k (2005: US$452k) primarily due to
the impact of our reduced exposure to luxury Florida high-rise completions in
2006. Our land development business remains robust, completing 2,639 lots (2005:
2,735).

The overall order book for North America is down by 39.9% to US$854m. We reduced
our land spend in North America during 2006, but retain a strong landbank of
31,353 owned or controlled plots (2005: 37,910) equivalent to 4.4 years of
supply.

Spain and Gibraltar Housing

We continue to make progress in our operations in Spain and Gibraltar, although
delays in obtaining habitation certificates meant home completions were down
6.7% to 379 (2005: 406). Average selling prices have increased to #205k (2005:
#169k) reflecting the relative strength of the market in Mallorca compared to
Costa Blanca and Costa del Sol.

The forward order book stood at #100m at the year end (2005: #81m) and we own or
control 2,482 plots up 9.6% on last year (2005: 2,265) and representing 6.5
years of supply.

Construction

The performance of our Construction operation is in line with expectations.

Gearing

The year-end net debt position has been reduced below last year's level.
Year-end gearing will be around 20%.

Outlook

The UK housing market remains good. Underlying fundamentals are strong due to
the continuing significant undersupply of new housing. However, despite strong
price appreciation at a national level, there were wide regional variations and
customer confidence could be damaged if further interest rate rises materialise
in 2007. Assuming market conditions remain stable, our strong landbank provides
us with good opportunities for growth in 2007 and 2008.

In North America, although the markets in Arizona, California and Florida remain
challenging and difficult to predict, current market conditions in Texas and
Ontario are healthy. We continue to be confident in the prospects for the
business in the medium-term, but expect to see significant reductions in both
operating margin and return on capital employed during 2007.

In Spain we are well-placed to benefit from any land acquisition opportunities
that market conditions might present.


-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
Jonathan Drake (Investor Relations) 0121 600 8394 / 07816 517 039
Ian Morris (Media Enquiries)        0121 600 8520 / 07816 518 767

Bell Pottinger
Ben Woodford / Dan de Belder        020 7861 3232


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

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