Taylor Wimpey

Our value cycle

Taylor Wimpey plc is a focused residential developer with operations in the UK and Spain. Our vision is to become the UK’s leading residential developer for creating value and delivering quality.

Chief Executive’s review

In 2011, we have taken the opportunity to focus on our strategy of driving value for shareholders through margin improvement and improving return on capital. It is pleasing to have reached our double digit operating margin target ahead of schedule and to be well-placed to deliver further improvement, providing that market conditions remain broadly stable.

Chairman’s statement

2011 has been a transformational year for Taylor Wimpey

The Company has:

• achieved the double-digit UK operating margin target ahead of schedule;
• completed the sale of the North American business;
• communicated a strategy to optimise the UK residential development business both internally and externally;
• Successfully restructured the Board; and
• Continued to improve the strength of the Balance Sheet

Financial highlights

Continuing operations Revenue (£m) £1,808.0m	Continuing operations Operating profit*(a) (£m) £159.5m	Continuing operations Profit/(loss) before tax and exceptional items(a) (£m) £89.9m	Continuing operations Exceptional items before tax (£m) £(11.3)m	Continuing operations Adjusted earnings/ (loss) per share (p) 2.1p
Total Group Profit/(loss) for the year (£m) £99.0m	Total Group Basic earnings per share (p) 3.1p	Total Group Tangible net assets per share*** (p) 57.3p	Total Group Return on net operating assets** (%) 9.8%	Total Group Year end net debt (£m) £(116.9)m

• * Profit on ordinary activities from continuing operations before finance costs and exceptional items, after share of results of joint ventures.
• ** Operating profit divided by the average of the opening and closing net operating assets, which is defined as capital employed plus intangibles less tax balances.
• *** Tangible net assets per share is defined as net assets, excluding goodwill and intangible assets, divided by the number of shares in issue at the period end.
• ^(a) 2010 comparative excludes a one-off pension curtailment credit of £12.0 million in the UK.

Strategy

In order to achieve our strategic objectives, we need to deliver enhanced value from each component of our value cycle.

Our Corporate Responsibility approach

We seek to be a responsible organisation and to make positive social, environmental and economic contributions to the regions in which we operate.