RNS Number:0873Z
Wimpey(George) PLC
27 June 2007


27 June 2007


                                George Wimpey Plc
                                        
                          Pre-close Trading Statement


George Wimpey Plc is issuing the following pre-close trading statement prior to
its half year period end on 1 July 2007 and ahead of the expected completion of
the Company's proposed merger with Taylor Woodrow plc on 3 July 2007.

Merger of George Wimpey Plc and Taylor Woodrow plc

The merger of George Wimpey Plc and Taylor Woodrow plc is an outstanding
opportunity to create the UK's largest housebuilding company. The Board of
George Wimpey is delighted that shareholders of both companies have given the
proposal their overwhelming support.

Since the announcement of the merger on 26 March 2007, detailed integration work
has been carried out across all divisions. As a result the new management teams
and reporting structures for the combined business are agreed and will take
effect immediately upon completion.

UK Housing

The UK housing market has remained stable during the first half of the year,
with good buyer demand and customer confidence. Margin improvement continues to
be a priority and margins in the first half will show good progress on those
achieved in the first half of 2006. In current market conditions we remain
confident of achieving operating margins for the George Wimpey UK business in
excess of 14% for 2007 as a whole. This objective excludes the effect of the 
previously announced land option profit.  We expect completions in the first 
half to be at very similar levels to 2006.

The short term landbank is expected to be around 60,000 plots at the end of the
first half, showing steady improvement on the end of 2006 and a 10% increase on
the end of the first half of 2006.

Compared with the same period in 2006, the total forward order book is around 5%
ahead in volume terms with gross margins showing good progress. In all areas the
business has made excellent progress and has created a sound base for the
future.

US Housing

The US housing market has remained very challenging. Buyer confidence is low due
to continuing concern about interest rates and the high level of housing stock.

Volumes for the first half have been impacted by reduced order books coming into
2007 and weaker than normal sales and are expected to be around 20% below the
high levels achieved in the first half of 2006. Due to market conditions,
average sales prices on first half completions are expected to be significantly
down on 2006 which will impact directly on margins. The US business has
continued to focus on its cost reduction initiatives and remains confident of
achieving its target of $20 million in 2007.

We have continued to retain a cautious approach to land acquisition and expect
the landbank at the end of the period to be slightly below that at the year end.

As a result of the market conditions, the total forward order book at week 25 is
41% below the same period in 2006, with significant reductions in margins and
selling prices.

Outlook

In the UK, we currently anticipate less buoyant market conditions in the second
half of the year due to the impact of recent interest rate changes and the
effect of these on customer confidence. We are confident that progress on our
#25 million cost reduction programmes and margin improvement plans in the UK
will continue to improve underlying performance.

In the US short term market conditions remain difficult to predict. The focus of
the business remains on managing costs and maintaining a steady sales rate.

The Board remains confident that the continuing improvement in our UK
performance, as well as our ability to recover strongly from the difficult US
trading conditions over the next two to three years, will deliver significant
value to our shareholders. This value will be further enhanced by the strength
of the combined Taylor Wimpey business in both key markets.




Enquiries

George Wimpey Plc
Peter Redfern - Group Chief Executive             020 7963 6352

Maitland
Liz Morley                                        020 7379 5151
Charlotte Walsh





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

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