Business Review

Our strategy

Our strategy

 

Vision and goal

Taylor Wimpey plc is a focused homebuilding company with operations in the UK, North America, Spain and Gibraltar. We aim to be the homebuilder of choice for customers, employees, shareholders and communities.

Our strategies in our two largest markets are:

 

UK

  • Goal is to be the leading homebuilder in the UK.
     

North America

  • Goal is to be the homebuilder of choice in each of our markets
 

Short term priorities

  • Maintain sales momentum
  • Reduce build costs
  • Tight control of work in progress
  • Deliver value from our existing landbank
  • Reduce overheads, whilst maintaining national coverage.

Short term priorities

  • Drive sensible sales rates for each site
  • Deliver additional build cost and overhead savings
  • Continue to reduce investment in land and work in progress spend where appropriate
  • Grow market share in our key markets

Long term objectives

  • Volume growth from increased outlets as the market recovers

Long term objectives

  • Take advantage of land acquisition opportunities as they arise

We have strong landbanks in both the UK and North America, which have enabled us to conserve cash in the current market conditions. We are starting to see some attractive opportunities to purchase good quality land emerging in the US, but we remain cautious at this stage. There will, however, come a point at which it is right to invest in land in order to support future growth and we will position the business to take advantage of such opportunities.

In the slower conditions, we have had the opportunity to squeeze additional value from our landbank. We are able to improve both the saleability and returns from our products through a combination of replans, renegotiation of existing planning commitments and redesign of product types. In the UK we have launched a new product range across the business that builds on the strongest housetypes of both legacy groups and adds increased flexibility at reduced costs.

Review of capital requirements

As you will recall, the merger completed on 3 July 2007 and was effected as a nil premium, all share transaction. As such, no additional debt was taken on to complete the transaction and our facilities were renegotiated at that point, meaning that no significant repayment was scheduled to fall due until 2012. At 31 December 2007, we had committed funding of £2.7 billion compared to a total net debt of £1,415 million, of which £591 million related to bank borrowings, £443 million to private placement notes and £381 million to publicly traded Eurobonds.

  Continue to Our Group key performance indicators

Taylor Wimpey can face the challenges that 2009 will inevitably bring with significant confidence.