Final Results

Taylor Woodrow PLC 28 February 2006 TAYLOR WOODROW plc PRELIMINARY RESULTS STATEMENT (for the year ended 31 December 2005) Highlights â€¢ Profit before tax up 2 per cent to Â£411.0 million (2004: Â£403.9 million) â€¢ Group Housing profit from operations* up 1.6 per cent to Â£456 million - almost 50 per cent from overseas. â€¢ Basic earnings per share up 3 per cent to 50.6 pence (2004: 49.1 pence) â€¢ Dividends per share up 21 per cent to 13.4 pence (2004: 11.1 pence) â€¢ Equity shareholders' funds per share up 11 per cent to 338.4 pence (2004: 303.8 pence) â€¢ Net gearing reduced from 31.6 per cent to 23.7 per cent. â€¢ Record group housing order book at Â£1.32 billion â€¢ Record group housing landbank at 75,160 plots. Â£773 million spend on land, up 39 per cent * Profit from operations and operating margins are pre-exceptional pension credits in 2004 and before joint ventures' interest and tax (see Note 1). The Group's share of joint venture revenue is used in the margin calculation (see Note 1). Norman Askew, Chairman of Taylor Woodrow, said today: '2005 has shown the benefits of our strategy of operating in different geographical and product markets and allocating capital where we see the best opportunities.' Iain Napier, Chief Executive of Taylor Woodrow, subsequently commented: '2005 was another year of good progress for Taylor Woodrow. Despite a challenging UK market, we have made good progress on strategy by improving our forward sales position, managing our cost base and providing for future growth through increasing the landbank. Our North American business continued its strong performance, benefiting from high levels of capital investment over the last three years. We are confident of another year of growth in our overseas businesses and are well-placed to benefit from any continued improvement in customer confidence in the UK.' -ends- International Financial Reporting Standards (IFRS) Whilst the financial information included in this preliminary announcement has been prepared in accordance with International Financial Reporting Standards (IFRS), this announcement does not itself contain sufficient information to comply with IFRS. The Company expects to publish full financial statements that comply with IFRS on 28 March 2006. All 2004 comparatives have been restated to comply with IFRS and a full reconciliation of the 2004 income statement, balance sheet and cashflow can be found in the notes to the financial statements when published and at www.taylorwoodrow.com. A presentation to analysts will be made at 10.00 hrs. This presentation will be broadcast live on taylorwoodrow.com. For further information please contact Ian Morris 0121 600 8520 / 07816 518 767 Taylor Woodrow Media Enquiries Jonathan Drake 0121 600 8394 / 07816 517 039 Taylor Woodrow Investor Relations Ben Woodford / Dan de Belder 020 7861 3232 Bell Pottinger Operating Performance Review Results Consolidated revenue for the year to 31 December 2005 was up 5 per cent at Â£3,476.9m (2004: Â£3,311.5m). Profit before tax was 2 per cent up on the previous year at Â£411.0m (2004: Â£403.9m), with an increase in housing profit* accompanied by a smaller contribution from property and construction. At 31 December 2005, equity shareholders' funds was Â£1,928.4m (2004: Â£1,702.8m). Net debt was Â£456.9m (2004: Â£538.8m). Net gearing was 23.7 per cent (2004: 31.6 per cent). Basic earnings per share were 50.6 pence (2004: 49.1 pence). Equity shareholders' funds per share increased by 11.4 per cent to 338.4 pence. Group Housing 2005 2004 Revenue, including joint ventures Â£m 2,864.9 2,876.6 Profit from Operations * Â£m 456.0 448.8 Operating Margin * % 15.9 15.6 Home completions 12,516 13,092 Despite challenging conditions in UK markets, we were able to improve average sales prices by 3 per cent to Â£204k ( 2004: Â£199k ) with operating margins up 0.3 percentage points to 15.9 per cent through our very strong performance in North America. This helped offset the effects of an overall reduction in volumes as housing profit from operations* rose 2 per cent to Â£456.0m (2004: Â£448.8m). 49 per cent of 2005 operating profits came from overseas operations (2004: 33 per cent). This reflects both our decision to increase investment into those markets over the last few years, and their relative strength compared to the UK. We remain well placed for continuing growth of our housing business, with the group order book up 16.5 per cent to Â£1.32bn (2004: Â£1.13bn) and the group landbank up 18 per cent at 75,160 plots (2004: 63,701 plots). UK Housing 2005 2004 Revenue including share of joint ventures Â£m 1,647.4 1,936.2 Profit from Operations * Â£m 233.4 301.1 Operating Margin * % 14.2 15.6 Home completions 8,178 9,053 During 2005, the UK housing market was challenging, with overall demand lower than in 2004. We made good progress on strategy by improving our forward sales position, managing our cost base and providing for future growth through increasing the landbank. Against the market average, the company delivered a strong sales performance with a rate of sales generally exceeding industry norms. Our order book at 31 December 2005 increased to Â£411m, compared to Â£407m at year-end 2004. Lower average selling prices at Â£185k (2004: Â£197k), are attributable to a very competitive market and a higher proportion of social and apartment completions than last year. The average square footage of our homes in the UK also fell as a consequence from 1,032 sq ft to 960 sq ft. Operating margins* fell to 14.2 per cent (2004: 15.6 per cent). This includes the benefit of higher than usual land sales during the year, primarily due to the disposal of our interest in the Quartermile project in Edinburgh, the sale of which was completed in January. We continue to focus on operational performance, reducing overhead costs through supply chain management, use of standard products and pull through from strategic land. Through our logistics business, WCL we have managed to reduce materials costs, improve quality and speed up delivery times by implementing an integrated solution that works in partnership with our key materials suppliers. Although planning remains difficult, we have been successful in securing consents on strategic land and our strategic landbank remains strong with some 18,300 gross acres representing 80,000 potential plots. Typically, land acquired this way is secured on option at a discount to the open market, and this has helped us to manage the average cost of plots in our landbank. The benefits of such investment are starting to be realised, with 19 per cent of completions in 2005 coming from plots originally sourced from our strategic landbank (2004: 18 per cent). Around 41 per cent of our current landbank has been sourced through our strategic land programme, with benefits to be realised in future years. As a result of this and prudent purchasing in the land market, we have increased our landbank by 8 per cent to 34,985 plots (2004: 32,459 plots). Our land bank cost per plot remains competitive at Â£37K (2004: Â£37K). 68 per cent of our developments in the UK in 2005 were on brownfield sites (2004: 64%). North America Housing 2005 2004 Revenue including share of joint ventures Â£m 1,141.8 863.9 Profit from Operations * Â£m 199.6 127.6 Operating Margin * % 17.5 14.8 Home completions 3,932 3,635 Our operations in North America had an excellent year, benefiting from increased investment and careful target marketing that enabled us to participate more fully in these strong markets. Profit from operations* increased by 56 per cent to Â£199.6m (2004: Â£127.6m), driven by 8.2 per cent growth in home completions and a 2.7 percentage point improvement in operating margins. We continue to improve our forward sales position with the order book 14 per cent higher (excluding high-rise, 38 per cent) than at year-end 2004, at US$1.42bn and an increase in the landbank by 26 per cent to 37,910 plots (2004: 30,009 plots). More than half our landbank is controlled through options rather than owned, which improves capital efficiency. We also continue actively to manage our land bank by selling plots to other builders where we consider it to be value creating. In Florida, where we offer a wide range of middle market to luxury homes and condominiums targeted to move-up families, retirees, and second home purchasers, the market is still strong. During 2005, we completed 752 homes (2004: 505) at an average sales price increasing to US$727k (2004: US$544k). These results were enhanced significantly by three high-rise beachfront condominiums that completed in the second half of the year. The market also remained strong in 2005 in California, with our home completions up 3% at 721 homes (2004: 697) but some parts of the market are showing signs of cooling after several years of exceptional price appreciation. We have therefore continued to operate mainly in the stronger mid-market as opposed to the luxury segment. We have also expanded our footprint in California by re-entering the Palm Springs market. The average sales price in 2005 was US$835k (2004: US$776k). Our Arizona division serves the Phoenix metropolitan area and continued its exceptional performance, targeting entry level and mid-market homebuyers. Although recent sales releases have suggested some moderation in the market Phoenix remains one of the fastest growing cities in the US, benefiting from migration from other less affordable markets. Home completions increased by 20 per cent to 1,009 (2004: 841) with average sales price up 14 per cent to US$209k (2004: US$183k). In Texas we are growing our homebuilding operations in both Austin and Houston. We are targeting the move-up segment by leveraging our existing reputation as a high quality community developer. Home completions increased by 102 per cent to 190 (2004: 94) with average sales price down 4 per cent to US$424k (2004: US$440k). In Ontario, Canada, the group trades under the Monarch brand which benefits from a long-standing reputation for quality and value. Operating in the greater Toronto area and southern Ontario, Monarch builds both low-rise, mid-market family homes and high-rise condominiums as well as affordable, urban town-homes. Completions in the year of 2005 were 1,260 homes (2004: 1,498). The average sales price was Can$326k (2004: Can$302k). Given the strength of its landbank and forward sales book, our North American business is well placed to drive continued growth. Spain & Gibraltar Housing 2005 2004 Revenue Â£m 75.7 76.5 Profit from Operations Â£m 23.0 20.1 Operating Margin % 30.4 26.3 Home completions 406 404 Trading under the Taylor Woodrow brand in Spain, we operate on the Costa del Sol, Costa Blanca and in Mallorca. Developments range from high-value villa-type community and country-club projects to homes targeted at the local market. Completions increased by 1 per cent, with average sales prices down by 5 per cent to Â£169k (2004: Â£178k) reflecting a change in geographic mix. Profits from operations rose to Â£23.0m, up 14 per cent on 2004, while operating margins grew by 4.1 percentage points to 30.4 per cent. The order book increased 8 per cent at Â£81m (2004: Â£75m) and we invested for future growth by increasing our landbank by 84 per cent to 2,265 plots (2004: 1,233 plots) In Gibraltar, Taylor Woodrow serves the luxury second home market through apartment and penthouse developments. Construction Our Construction business continues to build on its reputation with a growing portfolio of blue-chip and public sector clients, including Tesco, Texaco and the NHS. The profit from operations* was Â£8.8m (2004:Â£17.8m), with more than 50 per cent of the reduction accounted for by lower income from PFI disposals. Property The disposal of the final substantive part of the company's historic property portfolio was achieved with the sale of the K2 development at St Katharine's Dock. Completed on 1 July 2005, this achieved a gross profit of Â£17.4m. Overall, the property business recorded a profit from operations of Â£15.7m (2004: Â£26.7m). Shareholders' funds Equity shareholders' funds at the end of 2005 were Â£1,928.4m, up from Â£1,702.8m at the end of 2004. Equity shareholders' funds per share rose to 338.4 pence at the end of 2005. This represents an increase of 11.4 per cent from the previous year. Shareholders' returns Basic earnings per share increased by 3.1 per cent to 50.6 pence. The proposed final dividend of 8.9 pence produces a total return of 13.4 pence per ordinary share, an increase of 21 per cent over last year. During the year, the board decided to re-balance the levels of interim and final dividends to reflect a more usual weighting of profits between the first and second halves of the financial year. The dividend is covered 3.8 times by earnings. Cash flow Operating cashflows before movements in working capital were Â£461.1m (2004: Â£493.4m). inventories increased by Â£204.9m which was partly funded by an increase in creditors of Â£112.6m. Of this latter increase, Â£92m is represented by an increase in land creditors. Cash generated by operations was Â£359.7m (2004: Â£410.5m). Income taxes and interest payments totalled Â£229.5m (2004: Â£212.4m), resulting in net cash flows from operating activities being down by 34 per cent to Â£130.2m (2004: Â£198.1m). Treasury Management and Funding Net debt at the year end stood at Â£456.9m (2004: Â£538.8m) equivalent to net gearing of 23.7 per cent (2004: 31.6 per cent). Interest on borrowings, less interest receivable, was Â£54.4m (2004: Â£60.0m) (See note 2). Average net debt for the year was Â£823.4m (2004: Â£946.9m). At the year end Taylor Woodrow had undrawn committed revolving credit facilities totaling Â£685m. Taxation The effective tax rate in 2005 is 30.3 per cent (2004: 30.4 per cent). Pensions At 31 December 2005, the IAS 19 deficit net of deferred tax was Â£154 million (2004: Â£100 million). The increase has been caused by continuing falls in the yield of AA - credit rated corporate bonds. The company has commenced discussion with the trustees with a view to reaching agreement on the means of mitigating this deficit. Outlook for 2006 We look forward to another year of growth in North America based upon a strong forward order book and well-positioned landbank. We aim to be over 80 per cent forward sold by the half year. Our selected markets remain robust with Florida and Texas in particular continuing to enjoy stronger than normal demand. Whilst we have seen encouraging increases in both visitor numbers and reservations, together with a decline in cancellation rates, compared to the same period in 2005, it is still too early to predict the UK market for 2006. UK reservations are slightly ahead of last year although we are currently operating off fewer sites than this time last year. Our site opening programme will result in average site numbers increasing by around 4 per cent on 2005 providing for growth in home completions over the year. A greater proportion of our homes will be standard house types increasing average size with higher ASPs. The UK housing market remains very attractive in the medium term continuing to be fundamentally underpinned by supply-demand imbalance, relatively low interest rates and generally benign economic conditions. We will continue to invest in and grow our businesses in Spain and Gibraltar. Construction is likely to remain stable. We will maintain our strategy of a balanced portfolio with the UK, North America and Spain providing alternative growth channels and the capacity to mitigate exposure to any one market. Consolidated income statement for the year ended to 31 December 2005 Note 2005 2004 Â£m Â£m Continuing operations Revenue: Group and share of joint ventures 1 3,556.4 3,361.2 Less share of joint ventures (79.5) (49.7) -------- -------- Consolidated revenue 1 3,476.9 3,311.5 Cost of sales (2,831.7) (2,649.6) -------- -------- Gross profit 645.2 661.9 Profit on disposal of properties and investments 10.2 21.7 Administrative expenses (195.4) (179.9) Share of results of joint ventures 15.0 8.8 -------- -------- Profit from operations 1 475.0 512.5 Interest receivable 8.3 6.3 Finance costs 2 (72.3) (114.9) -------- -------- Profit before tax 411.0 403.9 Tax 3 (124.5) (123.0) -------- -------- Profit for the year 286.5 280.9 -------- -------- Attributable to: Equity holders of the parent 285.7 280.3 Minority interest 0.8 0.6 -------- -------- 286.5 280.9 -------- -------- Earnings per share From continuing operations Basic 5 50.6p 49.1p -------- -------- Diluted 5 49.8p 48.8p -------- -------- Consolidated statement of recognised income and expense for the year ended to 31 December 2005 2005 2004 Â£m Â£m -------- -------- Net exchange differences on translation of foreign operations 36.4 (6.5) Actuarial (losses)/gains on defined benefit pension schemes (73.3) 15.6 Tax on actuarial (losses)/gains taken directly to equity 22.0 (5.0) -------- -------- Net (expense)/income recognised directly in equity (14.9) 4.1 Profit for the year 286.5 280.9 -------- -------- Total recognised income for the year 271.6 285.0 -------- -------- Attributable to: Equity holders of parent 270.8 284.4 Minority interests 0.8 0.6 -------- -------- 271.6 285.0 -------- -------- Reconciliation of movements in consolidated equity for the year to 31 December 2005 Note 2005 2004 Â£m Â£m Total recognised income for the year 271.6 285.0 Dividends on equity shares 4 (71.3) (53.9) New share capital subscribed 9.8 3.7 Proceeds from sale of own shares 7.3 3.2 Purchase of own shares - (46.9) Share-based payment credit 5.9 - Increase/(decrease) in share-based payment tax reserve 1.2 (0.4) Credit to equity relating to own shares 1.3 - Increase in other reserve 0.6 - Decrease in minority interests (0.9) (0.7) -------- -------- Net increase in equity 225.5 190.0 Opening equity 1,703.8 1,513.8 -------- -------- Closing equity 1,929.3 1,703.8 -------- -------- Consolidated balance sheet at 31 December 2005 2005 2004 Â£m Â£m Non-current assets Goodwill 363.9 363.2 Property and plant 24.4 24.2 Investment property - - Interests in joint ventures 92.1 87.0 Other financial assets 17.8 26.5 Deferred tax assets 101.2 71.1 ------- -------- 599.4 572.0 ------- -------- Current assets Inventories 2,699.6 2,422.2 Trade and other receivables 301.3 282.5 Cash and cash equivalents 197.3 114.9 ------- -------- 3,198.2 2,819.6 ------- -------- Total assets 3,797.6 3,391.6 ------- -------- Current liabilities Trade and other payables (822.1) (709.7) Tax liabilities (61.6) (67.8) Debenture loans (6.5) (16.2) Bank overdrafts and loans (9.0) (16.5) ------- -------- (899.2) (810.2) ------- -------- Net current assets (2,299.0) 2,009.4 ------- -------- Non-current liabilities Trade and other payables (76.2) (73.6) Debenture loans (638.0) (620.7) Bank loans (0.7) (0.3) Retirement benefit obligation (222.5) (146.3) Deferred tax liabilities (0.9) (6.8) Long-term provisions (30.8) (29.9) ------- -------- (969.1) (877.6) ------- -------- ------- -------- Total liabilities (1,868.3) (1,687.8) ------- -------- ------- -------- Net assets 1,929.3 1,703.8 ------- -------- Equity Share capital 148.0 146.7 Share premium account 756.2 748.1 Revaluation reserve 0.5 0.7 Own shares (53.9) (57.8) Share-based payment tax reserve 4.0 2.8 Capital redemption reserve 31.5 31.5 Other reserve 5.4 4.8 Translation reserve 29.9 (6.5) Retained earnings 1,006.8 832.5 ------- -------- Equity attributable to equity holders of the parent 1,928.4 1,702.8 Minority interests 0.9 1.0 ------- -------- Total equity 1,929.3 1,703.8 ------- -------- Consolidated cash flow statement for the year to 31 December 2005 Note 2005 2004 Â£m Â£m Net cash from operating activities 6 130.2 198.1 Investing activities Interest received 8.3 6.3 Dividends received from joint ventures 3.0 2.2 Proceeds on disposal of properties, plant and investments 13.9 189.9 Purchases of properties, plant and investments (6.3) (8.5) Amounts invested in joint ventures (22.8) (21.2) Amounts repaid by joint ventures 27.2 12.5 -------- -------- Net cash from investing activities 23.3 181.2 -------- -------- Financing activities Equity dividends paid (71.3) (53.9) Dividends paid by subsidiaries to minority shareholders (0.9) (0.7) Issue of ordinary share capital 9.8 3.7 Proceeds from sale of own shares 7.3 3.2 Purchase of own shares - (50.3) Redemption of preference shares - (100.0) New debenture loans raised 1.8 334.4 New bank loans raised 410.2 339.4 Repayment of debenture loans (18.5) (116.6) Repayment of bank loans (416.2) (771.4) Increase in bank overdrafts (2.3) 6.0 -------- -------- Net cash used in financing activities (80.1) (406.2) -------- -------- -------- -------- Net increase/(decrease) in cash and cash 73.4 (26.9) equivalents Cash and cash equivalents at beginning of year 114.9 143.8 Effect of foreign exchange rate changes 9.0 (2.0) -------- -------- Cash and cash equivalents at end of year 197.3 114.9 -------- -------- Notes to the financial statements for the year to 31 December 2005 1. Business segments For management purposes, the Group is currently organised into five operating divisions - Housing - United Kingdom, Housing - North America, Housing - Spain and Gibraltar, Property and Construction. These divisions are the basis on which the Group reports its primary segment information. Segment information about these businesses is presented below. Housing Housing Housing Housing Property Construction Consolidated United North Spain and Total Kingdom America Gibraltar 2005 Â£m Â£m Â£m Â£m Â£m Â£m Â£m Revenue: External sales 1,607.9 1,102.1 75.7 2,785.7 192.0 499.2 3,476.9 Inter-segment sales 4.8 - - 4.8 - 71.1 75.9 Eliminations (4.8) - - (4.8) - (71.1) (75.9) ------- ------ ------- ------ ------- -------- -------- Total revenue 1,607.9 1,102.1 75.7 2,785.7 192.0 499.2 3,476.9 Share of joint ventures' revenue 39.5 39.7 - 79.2 - 0.3 79.5 ------- ------ ------- ------ ------- -------- -------- Group and share of joint ventures 1,647.4 1,141.8 75.7 2,864.9 192.0 499.5 3,556.4 ------- ------ ------- ------ ------- -------- -------- Inter-segment construction and housing revenue relates to construction contracts conducted on an arms-length basis. Result: Profit before joint 227.4 185.6 23.0 436.0 15.7 8.3 460.0 ventures Share of joint ventures' profit 6.0 14.0 - 20.0 - 0.5 20.5 ------- ------ ------- ------ ------- -------- -------- Profit* 233.4 199.6 23.0 456.0 15.7 8.8 480.5 Share of joint ventures' interest and tax (5.4) (0.1) - (5.5) - - (5.5) ------- ------ ------- ------ ------- -------- -------- Profit from 228.0 199.5 23.0 450.5 15.7 8.8 475.0 operations Interest 8.3 receivable Finance costs (72.3) ------- ------ ------- ------ ------- -------- -------- Profit before 411.0 tax Tax (124.5) ------- ------ ------- ------ ------- -------- -------- Profit for the year 286.5 ------- ------ ------- ------ ------- -------- -------- *Profit is profit from operations before joint ventures' interest and tax. Other information: Property and plant additions 0.9 1.4 0.1 2.4 - 3.8 6.2 Depreciation - plant 1.1 0.8 0.2 2.1 - 3.7 5.8 ------- ------ ------- ------ ------- -------- -------- Notes to the financial statements for the year to 31 December 2005 1. Business segments continued Housing Housing Housing Total Property Construction Consolidated United North Spain and Housing Kingdom America Gibraltar 2005 2005 2005 2005 Â£m Â£m Â£m Â£m Â£m Â£m Â£m Assets: Segment assets 2,160.2 746.9 121.5 3,028.6 25.2 152.6 3,206.4 Share of joint ventures' assets 133.7 55.9 - 189.6 - - 189.6 Eliminations (133.5) (26.1) - (159.6) - - (159.6) ------- ------- ------- ------- ------- ------- ------- 2,160.4 776.7 121.5 3,058.6 25.2 152.6 3,236.4 ------- ------- ------- ------- ------- ------- Goodwill 363.9 Cash and cash equivalents 197.3 ------- Consolidated total assets 3,797.6 ------- Liabilities: Segment liabilities (575.3) (281.1) (64.0) (920.4) (17.4) (276.3) (1,214.1) Share of joint ventures' liabilities (133.5) (26.1) - (159.6) - - (159.6) Eliminations 133.5 26.1 - 159.6 - - 159.6 ------- ------- ------- ------- ------- ------- ------- (575.3) (281.1) (64.0) (920.4) (17.4) (276.3) (1,214.1) Gross debt (654.2) ------- Consolidated total liabilities (1,868.3) ------- Capital 1,585.1 495.6 57.5 2,138.2 7.8 (123.7) 2,022.3 employed Goodwill 363.9 Net debt (456.9) ------- Net assets 1,929.3 Notes to the financial statements for the year to 31 December 2005 1. Business segments continued Housing Housing Housing Housing Property Construction Consolidated United North Spain and Total Kingdom America Gibraltar 2004 2004 2004 2004 2004 2004 2004 2004 Â£m Â£m Â£m Â£m Â£m Â£m Â£m Revenue: External sales 1,899.1 851.3 76.5 2,826.9 74.2 410.4 3,311.5 Inter-segment sales - - - - - 134.9 134.9 Eliminations - - - - - (134.9) (134.9) ------- ------- ------- ------- ------- ------- ------- Total revenue 1,899.1 851.3 76.5 2,826.9 74.2 410.4 3,311.5 Share of joint ventures' revenue 37.1 12.6 - 49.7 - - 49.7 ------- ------- ------- ------- ------- ------- ------- Group and share of joint ventures 1,936.2 863.9 76.5 2,876.6 74.2 410.4 3,361.2 ------- ------- ------- ------- ------- ------- ------- Result: Profit before joint ventures and exceptional item 294.2 120.1 20.1 434.4 26.7 17.8 478.9 Share of joint ventures' profit 6.9 7.5 - 14.4 - - 14.4 ------- ------- ------- ------- ------- ------- ------- Profit before exceptional item* 301.1 127.6 20.1 448.8 26.7 17.8 493.3 Exceptional item* 11.6 0.9 - 12.5 - 12.3 24.8 ------- ------- ------- ------- ------- ------- ------- Profit* 312.7 128.5 20.1 461.3 26.7 30.1 518.1 Share of joint ventures' interest and tax (5.5) (0.1) - (5.6) - - (5.6) ------- ------- ------- ------- ------- ------- ------- Profit from operations 307.2 128.4 20.1 455.7 26.7 30.1 512.5 Interest receivable 6.3 Finance costs (114.9) ------- ------- ------- ------- ------- ------- ------- Profit before tax 403.9 Tax (123.0) ------- ------- ------- ------- ------- ------- ------- Profit for the year 280.9 ------- The exceptional item relates to the curtailment of pension liability. Other information: Property and plant additions 1.7 1.0 0.1 2.8 - 3.4 6.2 Depreciation - plant 2.0 0.8 0.3 3.1 - 3.6 6.7 ------- ------- ------- ------- ------- ------- ------- Notes to the financial statements for the year to 31 December 2005 1. Business segments continued Housing Housing Housing Housing Property Construction Consolidated United North Spain and Total Kingdom America Gibraltar 2004 2004 2004 2004 2004 2004 2004 2004 Â£m Â£m Â£m Â£m Â£m Â£m Â£m Assets: Segment assets 1,998.6 517.8 81.1 2,597.5 159.4 121.9 2,878.8 Share of joint ventures' assets 147.7 49.2 - 196.9 - 0.1 197.0 Eliminations (150.0) (12.2) - (162.2) - (0.1) (162.3) ------- ------- ------- ------- ------- ------- ------- 1,996.3 554.8 81.1 2,632.2 159.4 121.9 2,913.5 Goodwill 363.2 Cash and cash equivalents 114.9 ------- Consolidated total assets 3,391.6 ------- Liabilities: Segment liabilities (513.9) (238.9) (38.0) (790.8) (17.3) (226.0) (1,034.1) Share of joint ventures' liabilities (150.0) (12.2) - (162.2) - (0.1) (162.3) Eliminations 150.0 12.2 - 162.2 - 0.1 162.3 ------- ------- ------- ------- ------- ------- ------- (513.9) (238.9) (38.0) (790.8) (17.3) (226.0) (1,034.1) ------- ------- ------- ------- ------- ------- Gross debt (653.7) ------- Consolidated total liabilities (1,687.8) ------- Capital employed 1,482.4 315.9 43.1 1,841.4 142.1 (104.1) 1,879.4 Goodwill 363.2 Net debt (538.8) ------- Net assets 1,703.8 ------- Geographical segments The Group's operations are located primarily in the United Kingdom and North America. The Group's housing divisions are already segmented geographically above. The property division is located in the United Kingdom. The construction division is primarily located in the United Kingdom. The following table provides an analysis of the Group's sales by geographical market, irrespective of the origin of the goods/services: Sales revenue by geographical market 2005 2004 Â£m Â£m United Kingdom 2,248.4 2,336.5 North America 1,102.1 851.3 Rest of the world 126.4 123.7 -------- -------- 3,476.9 3,311.5 -------- -------- Notes to the financial statements for the year to 31 December 2005 1. Business segments continued The following is an analysis of the carrying amount of segment assets, and additions to property and plant, analysed by the geographical area in which the assets are located: Carrying amount of Additions to property segment assets and plant 2005 2004 2005 2004 Â£m Â£m Â£m Â£m United Kingdom 2,725.5 2,638.6 1.2 2.7 North America 902.2 633.2 1.4 1.0 Rest of the world 169.9 119.8 3.6 2.5 -------- -------- -------- -------- 3,797.6 3,391.6 6.2 6.2 -------- -------- -------- -------- 2. Finance costs 2005 2004 Â£m Â£m Interest on bank overdrafts and loans 20.6 31.5 Interest on debenture loans 42.1 33.5 5.09875% preference dividend - 1.3 -------- -------- Interest on borrowings 62.7 66.3 Exceptional loss on repurchase of 9.5% first mortgage debenture stock 2014 - 41.1 Amortisation of discount on land creditors 5.4 3.2 Notional interest on pension liability 4.2 4.3 -------- -------- 72.3 114.9 -------- -------- 3. Taxation 2005 2004 Â£m Â£m -------- -------- Current tax: UK Corporation tax: Current year 111.8 66.1 Prior year (9.7) 1.8 Relief for foreign tax (63.0) (1.3) Foreign tax: Current year 82.3 60.8 Prior year 14.2 (0.4) -------- -------- 135.6 127.0 -------- -------- Deferred tax: UK: Current year 9.0 (1.3) Prior year 1.2 0.5 Foreign: Current year (7.3) (4.7) Prior year (14.0) 1.5 -------- -------- (11.1) (4.0) -------- -------- -------- -------- 124.5 123.0 -------- -------- UK Corporation tax is calculated at 30% (2004: 30%) of the estimated assessable profit for the year. Taxation for other jurisdictions is calculated at the rates prevailing in the respective jurisdictions. Notes to the financial statements for the year to 31 December 2005 4. Dividends 2005 2004 Â£m Â£m Amounts recognised as distributions to equity holders in the year: Final dividend for the year to 31 December 2004 of 8.1p (2003: 6.5p) per share 45.5 37.4 Interim dividend for the year to 31 December 2005 of 4.5p per share (2004: 3.0p) 25.8 16.5 -------- -------- 71.3 53.9 -------- -------- 2005 2004 Â£m Â£m Proposed final dividend for the year to 31 December 2005 of 8.9p (2004: 8.1p) per share 52.7 45.5 -------- -------- The proposed final dividend is subject to approval at the Annual General Meeting and has not been included as a liability in these financial statements. 5. Earnings per share Earnings per share 2005 2004 Basic 50.6p 49.1p Diluted 49.8p 48.8p Adjusted basic 50.6p 51.1p Adjusted diluted 49.8p 50.8p -------- -------- The calculation of basic, diluted, adjusted basic and adjusted diluted earnings per share is based on the following data: Earnings 2005 2004 Â£m Â£m Earnings for basic earnings per share and diluted earnings per share 285.7 280.3 Add/(less): Curtailment of pensions liability - (24.8) Loss on repurchase of debt - 41.1 Less: Tax effect of above items - (4.9) -------- -------- Earnings for adjusted basic and adjusted diluted earnings per share 285.7 291.7 -------- -------- Weighted average number of shares 2005 2004 m m For basic and adjusted basic earnings per share 564.6 570.4 Weighted average of dilutive options 7.8 3.1 Weighted average of dilutive awards under bonus plans 1.1 1.0 -------- -------- For diluted and adjusted diluted earnings per share 573.5 574.5 -------- -------- Notes to the financial statements for the year to 31 December 2005 6. Note to the consolidated cash flow statement 2005 2004 Â£m Â£m Profit from operations 475.0 512.5 Adjustments for: Exchange adjustments - 6.3 Depreciation of plant 5.8 6.7 Share-based payment charge 5.9 - Gain on disposal of property, plant and investments (10.2) (21.7) Share of joint ventures' operating profit (15.0) (8.8) Decrease in provisions (0.4) (1.6) -------- -------- Operating cash flows before movement in working capital 461.1 493.4 Increase in inventories (204.9) (12.2) (Increase)/decrease in receivables (9.1) 42.1 Increase/(decrease) in payables 112.6 (112.8) -------- -------- Cash generated by operations 359.7 410.5 Income taxes paid (153.7) (98.4) Interest paid (75.8) (114.0) -------- -------- Net cash from operating activities 130.2 198.1 Net Debt 2005 2004 Â£m Â£m Cash and cash equivalents 197.3 114.9 Debenture loans (644.5) (636.9) Bank overdrafts and bank loans (9.7) (16.8) -------- -------- (456.9) (538.8) -------- -------- Cash and cash equivalents (which are presented as a single class of asset on the face of the balance sheet) comprise cash at bank and other short-term highly liquid investments with a maturity of three months or less. 7. Statutory Accounts The Preliminary Accounts were approved by the board of directors on 27 February 2006. These accounts do not constitute the company's statutory accounts for the years ended 31 December 2005 or 2004 (as restated for IFRS) but are derived from those accounts. Statutory accounts for 2004 have been delivered to the Registrar of Companies and those for 2005 will be delivered following the company's annual general meeting. The auditors have reported on these accounts; their reports were unqualified and did not contain a statement under section 237 (2) or (3) of the Companies Act 1985. This information is provided by RNS The company news service from the London Stock Exchange

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Taylor Wimpey (TW.)

Thursday, 21st November 2024

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HLMA JD. ITH

JD Sports tanks after management tighten profit guidance towards the lower end of expectations, Halma finds support from strong earnings and capital return commitment cheers shareholders in Ithica Energy.

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