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1
George Wimpey PlcInterim Results for the half year ended 2 July 2006
1 August 2006
Interim Results for half year ended 2 July 2006 2
Disclaimer
The information in this presentation does not constitute an offer to sell or an invitation to buy shares in George Wimpey Plc or any other invitation or inducement to engage in investment activities
Past performance cannot be relied upon as a guide to future performance.
3
Welcome and introductionJohn Robinson (Chairman)
Interim Results for half year ended 2 July 2006 4
Agenda
• Interim highlights / group strategy Peter Redfern
• Half 1 2006 financial review Andrew Carr-Locke
• US housing / UK housing Peter Redfern
• Group outlook Peter Redfern
• Questions and answers
5
Interim highlights and strategyPeter Redfern (Group Chief Executive)
Interim Results for half year ended 2 July 2006 6
Interim highlights
• Group profit before tax £152.3m + 25%
• Strong first half from Morrison Homes $125.3m PBIT + 23%
• Gearing reduced to 43% from 64% June 2005
• Group completions increased to 7,822 – highest for 25 years
• Group landbank grown to 78,192 plots – strongest ever position
• Lowest UK plot acquisition cost since 2002
• Improving margins in UK order book
Interim Results for half year ended 2 July 2006 7
Group strategy Objectives
• Focus on residential development in our two key markets– UK where supply demand balance underpins good market– US where demographic growth provides great opportunities
• Objective to be the leading housebuilder in the UK and in each of the regional markets we choose in the US
• Increase emphasis on ways of adding value– medium term margin growth and stability– value adding processes– steady volume growth
Interim Results for half year ended 2 July 2006 8
US housing Building a leading competitive business
• Existing strengths– positions in five states with excellent medium term prospects– a strong brand in Morrison Homes for quality– a delivery and growth culture – committed management team with a long term view
• Our goals are to – build on our regional positions to create regional leadership– continue to select the right markets for our business– take opportunity from market slow down to build business– increase focus on operating efficiency
Interim Results for half year ended 2 July 2006 9
UK housingBuilding a leading competitive position
• Existing strengths– large scale presence in most key markets– strong build cost and overhead base– lead position in customer service and build quality– committed management team with long term view
• Our goals are to – change the mix and source of land to reduce our real land cost– capitalise on our scale to become the leader in operating efficiency and
effectiveness– operate with a longer term view
10
H1 financial reviewAndrew Carr-Locke (Group Finance Director)
Interim Results for half year ended 2 July 2006 11
2006First half results
£m H1 2006 H1 2005 Change
Turnover 1,397 1,169¹ + 19%
Operating profit 178.9 157.2 + 14%
Joint ventures (0.5) (0.7) – 29%
Interest (26.1) (34.2) – 24%
Profit before tax 152.3 122.3 + 25%
Tax 31.5% 31.0%
EPS 26.3p 21.5p + 22%
NAV per share 405p 348p + 17%
DPS 6.3p 5.7p + 10.5%
ROACE* 20.2% 22.7%
*last 12 months
¹restated for change in land sales reporting
Interim Results for half year ended 2 July 2006 12
Segmental analysisFirst half 2006
Turnover Operating profit Operating margin
£m Change £m Change H1
2006
H1
2005¹
UK 1,031 + 22% 115 + 7% 11.2% 12.7%
US* 366 + 14% 70 + 28% 19.1% 16.9%
Other - (6)
TOTAL 1,397 + 19% 179 + 14%
*exchange rate in 2006 £:$1.79. 2005 £:$1.87
¹restated for change in land sales reporting
Interim Results for half year ended 2 July 2006 13
CompletionsFirst half 2006
Completions Ave selling price
No Change £ / $ Change
UK private 5,138 + 24% £187,200 – 4%
UK affordable 716 + 70% £91,700 + 5%
UK total 5,854 + 28% £175,500 – 5%
US 1,968 – 1% $333,000 + 10%
GROUP TOTAL 7,822 + 19%
Interim Results for half year ended 2 July 2006 14
Interest charge
£m H1 2006 H1 2005 Change
Loans 22.3 25.1 – 11%
Pensions 3.9 4.2 – 7%
Derivatives (3.1) 1.3
Other 3.0 3.6 – 17%
TOTAL 26.1 34.2 – 24%
Interim Results for half year ended 2 July 2006 15
Cash flow summary
£m H1 2006 H1 2005
Operating profit 179 157
Land realisations 389 284
Replacement land spend (353) (294)
Other working capital movements (109) (134)
Cash inflow before growth 106 13
Growth land spend (171) (208)
Cash inflow from operations (65) (195)
Interest / tax (83) (82)
Dividends (46) (41)
Exchange rate / other 18 (42)
Increase in net debt (176) (360)
Interim Results for half year ended 2 July 2006 16
Balance sheetNet assets
£m 2 July 2006 3 July 2005
Fixed assets and joint ventures 63 45
Land 2,238 2,136
Land creditors (369) (240)
Other net operating assets 585 546
Tax and provisions (92) (94)
Net pension deficit (115) (145)
TOTAL NET ASSETS EMPLOYED 2,310 2,248
Interim Results for half year ended 2 July 2006 17
Balance sheetFinancing
2 July 2006 3 July 2005
Shareholders’ funds £m 1,612 1,367
Net debt £m 698 881
Capital employed £m 2,310 2,248
Gearing 43% 64%
Interest cover last 12 months 7.3 x 7.1 x
Cash interest cover last 12 months 9.7 x 9.4 x
Interim Results for half year ended 2 July 2006 18
Financial summaryFirst half 2006
• Group profit before tax £152.3 m + 25%
• UK operating profit £114.9 m + 7%
• US operating profit $125.3 m + 23%
• ROACE - last 12 months 20.2% (2005: 22.7%)
• Gearing 43% (2005: 64%)
• Shareholders’ funds on June 2005 £1,612 m + 18%
• Interim dividend increased from 5.7p to 6.3p + 10.5%
19
US housing Peter Redfern (Group Chief Executive)
Interim Results for half year ended 2 July 2006 20
US housing Financial summary
H1 2006 H1 2005 Change
Legal completions 1,968 1,996 - 1%
Ave selling price $333,000 $302,000 + 10%
Revenue $m 655.5 602.8 + 9%
Operating profit $m 125.3 101.9 + 23%
Operating margin 19.1% 16.9%
• Completions increased by 3% excluding Atlanta
Interim Results for half year ended 2 July 2006 21
Short term market conditions Total US stock position
June 2006 June 2005
Existing homes 3.73 m 2.65 m
Months’ supply 6.8 4.3
New homes 0.57 m 0.45 m
Months’ supply 6.1 4.2
Source: NAR / US Census Bureau
• High level of housing stock needs to clear– 41% increase in existing home inventory– 27% increase in new home inventory – 4.5 – 5 months’ supply of new homes is healthy demand / supply balance
• Level varies significantly by region
•New homes includes homes completed, under construction and not yet started
Interim Results for half year ended 2 July 2006 22
Market conditionsUS 2006
• Market strength affected by – steep price rises mid 2004 to October 2005– media speculation about ‘crash’ – interest rate rises and concerns about future rises– significant reduction in investor sales
• Still a good long term environment – 1.85 m new jobs added since May 2005 + 1.37% – 136.4 m total employment market – 4.6% unemployment - lowest level for 10 years– target of 70% home owners by 2010, 1.28 m new home owners per year
Interim Results for half year ended 2 July 2006 23
US housing Short term market impact
• Compared with H1 2005– H1 visitor levels down 33% – H1 sales rates down by 33%– H1 net prices down by 2.5%
• A business of two parts– Florida, California, Phoenix slowing
• visitor levels and sales rates well down• significant increase in cancellation rates• incentives increased
– Texas and Denver some strengthening• visitor levels and sales rates well up • incentives still necessary but at normal levels
Interim Results for half year ended 2 July 2006 24
US housingAverage weekly sales rates
0
0.2
0.4
0.6
0.8
1
1.2
H12002
H22002
H12003
H22003
H12004
H22004
H12005
H22005
H12006
sale
s p
er
site
pe
r w
ee
k
Interim Results for half year ended 2 July 2006 25
Managing the slowing market Sales
• Maintaining higher outlet numbers– outlets currently up 19%– driven by 20% increase in first half outlet openings and slower sales rates
• Presenting well structured incentives– reduce up front funding costs– targeted at local market conditions
• Continuous review and strengthening of sales people– new Sales and Marketing Director with extensive industry experience– retraining and refreshing of staff
• Careful management of order book
Interim Results for half year ended 2 July 2006 26
• Overheads– review of overheads within all businesses – reducing headcount without affecting ability to grow in the future
• Procurement– purchasing function greater accountability for cost reductions– regional purchasing councils introduced– cost savings of 3 - 5% targeted from all suppliers– opportunities learnt from UK business
• Review of product and specification, particularly of lower end product
Managing the slowing market Costs
Interim Results for half year ended 2 July 2006 27
Managing the slowing market Product and specification
• Affordability in many markets has become stretched– introduced townhomes into Florida in 2004 to address affordability issues
• Essential to stay in the core of the market with the right product
• Increase in higher density product across all divisions– townhomes being considered for Texas / California markets– low rise condominiums being considered for Florida– ‘four pack’ higher density homes introduced in Sacramento
• Products redesigned to reduce costs without affecting appearance and appeal
Interim Results for half year ended 2 July 2006 28
US housing Cost of land acquired
H1 2006 Landbank
Average plot cost $43,200 $43,500
H1 2006 2005 full yr 2004 full yr 2003 full yr
Cost per plot of land acquired
$59,100 $53,300 $40,900 $37,300
Cost per plot as %
of ASP on completions 17.8% 17.0% 14.2% 13.8%
Interim Results for half year ended 2 July 2006 29
US housing Objectives
• Medium term aim to become ‘Top 3’ in each of our selected markets by – developing the right relationships– being selective about land – creating longer term land opportunities – having the right products in the right market segments
• Significant opportunity for regional scale - Morrison Homes 19th largest housebuilder in 2005
Interim Results for half year ended 2 July 2006 30
US housing Going forward
• Remains difficult to predict market outcome for 2006– visitor levels and sales rates below 2005– completions for H2 expected to be below H2 2005– margins and prices starting to reflect changing market conditions– order book for completions in 2006 at week 29
• 16% lower by volume and 13% lower by value
• Morrison business in good shape– strong land bank with good proportion of historical land cost– strong management team in centre and regions– opportunities for advantage from weaker market– focus on new operational efficiencies
31
UK housing Peter Redfern (Group Chief Executive)
Interim Results for half year ended 2 July 2006 32
UK housing Financial summary
H1 2006 H1 2005 Change
Legal completions – total 5,854 4,576 + 28%
Private 5,138 4,154 + 24%
Affordable 716 422 + 70%
Ave selling price – total £175,500 £184,600 – 5%
Private £187,200 £194,500 – 4%
Affordable £91,700 £87,700 + 5%
Revenue £m 1,030.4 846.6 + 22%
Operating profit £m 114.9 107.4 + 7%
Operating margin 11.2% 12.7%
Interim Results for half year ended 2 July 2006 33
Market conditionsUK 2006
• Market stable throughout period
• Buyer confidence improved from Q4 2005 onwards
• Affordability constraints in many areas – prices remain competitive
• Southern markets showing greatest strength
• George Wimpey performance benefiting from stronger order book and improved sales position
• Gross margins in order book up more than 1% on December
Interim Results for half year ended 2 July 2006 34
Update on actions taken in December 2005Delivering on promises
• Now complete– addressed underperforming businesses – rationalised business structure to improve delivery and reduce overhead cost
• Continuous improvement building on H1 2006 progress– increasing margin– H1 / H2 volume balance– reducing build costs– land processes, people and culture
Interim Results for half year ended 2 July 2006 35
Increasing UK margins
• 30 June 2006 order book up more than 1% on 31 December 2005
• Future improvement from– improving selling prices– continuous cost reduction– improvement in landbank
• Consistent rather than overnight improvement
Interim Results for half year ended 2 July 2006 36
H1 / H2 balance The benefits
• Reduces risk and volatility in earnings
• Improved cash position – increases land capacity – reduces need for stop start land acquisition
• Not hand to mouth on sales– reduces impact of discounting in run up to year end
• ‘Evenflow’ business gives efficiency in build costs and procurement
• Reduces management distraction from long term view of the business
Interim Results for half year ended 2 July 2006 37
UK housing Improving cost base
• Objective to achieve build cost reductions to more than offset inflation and regulation changes
• Net cost movement H1 2006 v H1 2005 – down 1% per plot
• Following £20 m cost savings delivered 2004/5 cost reduction process renewed– Director of Procurement appointed– brief to undertake complete review of our supply chain – new focus on sales costs where benchmarking shows opportunity– preferred house type designs increasingly used on new sites acquired
Interim Results for half year ended 2 July 2006 38
Strengthening land positionQuality as well as quantity
• Objective to reduce real cost of land going forward
• Consistency of land acquisition approach – tougher process, not slower process
• Focus on ‘value added’ land rather than sourcing next year’s business
• Short term ‘retail land’ – existing strength within business– people and process in place
• Medium term ‘value added’ land – increased focus since late 2003 – people and processes in place – benefits starting to come through
• Longer term ‘value added’ land – new focus since early 2006
Interim Results for half year ended 2 July 2006 39
UK housing Source of owned and controlled landbank
0
10000
20000
30000
40000
50000
60000
D ec-04 D ec-05 Jun-06
plo
ts
L ong te rm land
Med ium te rm land
Short te rm land
Optimum mix
• 40% short term
• 30% medium term
• 30% long term
Interim Results for half year ended 2 July 2006 40
UK housing Strengthened owned land position
Cost per plot H1 2006 H1 2005
Opening landbank £46,500 £45,400
Acquired £43,800 £52,200
Completions £50,100 £47,700
Closing landbank £45,500 £46,300
H1 2006 completions
Landbank (owned plots)
Ave selling price £175,500 £179,900
Cost per plot £50,100 £45,500
Land value % ASP 28.5% 25.3%
• Plot cost in landbank below that of completions
• Land value as % of ASP 3.2% lower in forward landbank
Interim Results for half year ended 2 July 2006 41
UK housing Cost of land acquired
H1 2006 2005 full yr 2004 full yr 2003 full yr 2002 full yr
Cost per plot of land acquired
£43,800 £49,900 £46,500 £53,200 £48,400
ASP on completions £175,500 £178,000 £185,300 £174,300 £145,600
Cost per plot as %
of ASP on completions 25.0% 28.0% 25.1% 30.5% 33.2%
Interim Results for half year ended 2 July 2006 42
UK housing Going forward
• Market conditions remain stable– visitor levels and sales rates at normal seasonal levels
• Completions for H2 expected to be similar to H2 2005– total UK completions for 2006 expected to show some progress
• Margins in order book showing improvement on H1
• Order book at week 29 – total order book up 5% by volume– private order book 8% by volume
43
Group outlook Peter Redfern (Group Chief Executive)
Interim Results for half year ended 2 July 2006 44
George Wimpey PlcOutlook
• Group outcome for the year expected to be in line with our expectations
• US– long term fundamentals remain good, still difficult to predict outlook for full year– continue to strengthen regional positions for long term growth– short term focus on
• reducing costs• optimising sales
• UK – market remains stable, completions expected to show progress on 2005– focus on
• margin improvement • strong sales performance• improved land buying• reducing costs
• Objective to be the leading housebuilder in the UK and regional markets we choose in the US
45
George Wimpey PlcInterim Results for the half year ended 2 July 2006
APPENDIX
Interim Results for half year ended 2 July 2006 46
George Wimpey PlcUndeveloped land disposals
£000s H1 2006 H1 2005
Land sales UK 16,193 11,768
US 1,840 9,480
TOTAL 18,033 21,248
Profit UK 10,645 5,622
US - 1,707
TOTAL 10,645 7,329
Land sales are not included in revenue. Profits on land sales are included in net operating expenses
Interim Results for half year ended 2 July 2006 47
George Wimpey Plc Group reservations
Reservations Ave outlets Per outlet /
per week
H1
2006
H1
2005
H1
2006
H1
2005
H1
2006
H1
2005
UK private 6,693 5,936 286 321 0.90 0.71
UK affordable 594 1,201
UK TOTAL 7,287 7,137
US TOTAL 2,048 2,804 102 94 0.77 1.16
GROUP TOTAL 9,335 9,941 388 414
Interim Results for half year ended 2 July 2006 48
UK housing Turnover analysis
H1 2006 H1 2005 H2 2005 2005 full yr
Private volume 5,138 4,154 6,524 10,678
ASP £000s 187.2 194.5 184.8 188.6
turnover £m 962 808 1,206 2,014
Affordable volume 716 422 1,000 1,422
ASP £000s 91.7 87.7 103.3 98.6
turnover £m 66 37 103 140
Other turnover £m 3 2 2 4
TOTAL volume 5,854 4,576 7,524 12,100
ASP £000s 175.5 184.6 174.0 178.0
turnover £m 1,031 847 1,311 2,158
Interim Results for half year ended 2 July 2006 49
UK housingMargin analysis
H1 2006 H1 2005 H2 2005 2005 full yr
Gross profit £m 199.1 198.6 265.6 464.2
Gross margin % 19.3% 23.5% 20.3% 21.5%
Direct selling £m (43.0) (40.5) (45.7) (86.2)
Overhead costs (51.8) (56.3) (58.3) (114.6)
Land profits 10.6 5.6 9.8 15.4
Operating profit £m 114.9 107.4 171.4 278.8
Operating margin % 11.2% 12.7% 13.1% 12.9%
JV results (0.5) (0.7) (0.1) (0.8)
Profit before interest 114.4 106.7 171.3 278.0
Interim Results for half year ended 2 July 2006 50
UK housingPrivate development product mix
Completions % H1 2006 H1 2005 H2 2005 2005 full yr
Apartments 40% 34% 37% 36%
1 / 2 / 3 bed houses 31% 32% 32% 32%
4 / 5 bed houses 29% 34% 31% 32%
100% 100% 100% 100%
Interim Results for half year ended 2 July 2006 51
UK housingPrivate development activity analysis
H1 2006 H1 2005 H2 2005 2005 full yr
Ave house size sq ft 971 1,015 980 994
ASP £ / sq ft 193 192 188 189
Interim Results for half year ended 2 July 2006 52
UK housingPrivate development price mix
H1 2006 H1 2005
Completions % Completions %
£51 – 100k 247 5% 162 4%
£101 – 150k 1,687 33% 1,250 30%
£151 – 200k 1,584 31% 1,325 32%
£201 – 250k 851 16% 792 19%
£251 – 300k 427 8% 311 8%
£301 – 500k 311 6% 268 6%
£500k + 31 1% 46 1%
TOTAL 5,138 100% 4,154 100%
Interim Results for half year ended 2 July 2006 53
UK housing Private development geographic mix
H1 2006 H1 2005 H2 2005
Legals Size
sq ft
ASP
£000
Legals Size
sq ft
ASP
£000
Legals Size
sq ft
ASP
£000
North 1,694 1,059 168 1,417 1,053 170 2,396 1,037 165
Midlands 1,547 939 169 1,197 1,008 176 1,882 937 167
South 1,775 950 227 1,461 1,001 231 2,138 981 222
City 122 738 222 79 713 242 108 473 163
TOTAL 5,138 971 187 4,154 1,015 195 6,524 980 185
Interim Results for half year ended 2 July 2006 54
UK housingPrivate development average weekly sales rates
0
0.2
0.4
0.6
0.8
1
1.2
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
sale
s p
er
site
pe
r w
ee
k
2003 2004 2005 2006
Interim Results for half year ended 2 July 2006 55
UK housing Private development net sales prices on reservations
165
170
175
180
185
190
195
200
205
210
Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec
AS
P £
000
2003 2004 2005 2006
Interim Results for half year ended 2 July 2006 56
UK housingLandbank by region
Owned and
controlled plots
Strategic acres
June 2006 June 2005 June 2006 June 2005
North 16,270 17,439 4,983 4,784
Midlands 17,396 12,045 4,532 5,329
South 18,718 21,337 4,250 6,218
City 2,133 3,559
TOTAL 54,517 54,380 13,765 16,331
Interim Results for half year ended 2 July 2006 57
UK housing Short term land (private and affordable)
OWNED H1 2006 H1 2005 H2 2005 2005 full yr
Start of period 39,441 37,222 39,784 37,222
Net acquired 8,101 7,138 7,181 14,319
Legal completions (5,854) (4,576) (7,524) (12,100)
End of period 41,688 39,784 39,441 39,441
CONTROLLED 12,829 14,596 11,544 11,544
TOTAL LANDBANK 54,517 54,380 50,985 50,985
Interim Results for half year ended 2 July 2006 58
UK housing Owned land (private and affordable)
H1 2006 H1 2005
Short term Plots Cost per
plot £k
Value
£m
Plots Cost per
plot £k
Value
£m
Opening landbank 39,441 46.5 1,833 37,222 45.4 1,690
Additions 8,101 43.8 355 7,138 52.2 372
Completions (5,854) (50.1) (293) (4,576) (47.7) (218)
End of period 41,688 45.5 1,895 39,784 46.3 1,844
Strategic Acres Value £m
Acres Value £m
End of period 13,765 61 16,331 49
Interim Results for half year ended 2 July 2006 59
• Outline planning consent - 1,400 units (acquisition based on 1,250) all private
• Phased land payments
• £163,000 projected average selling price
• HomeZone principles - where pedestrians are given priority over cars
• Mix includes– detached homes– apartments– PPG3 style compact housing
• First completion anticipated July 2007
Medium term land New Stoke Urban Village, Coventry
Interim Results for half year ended 2 July 2006 60
Long term landBells Lane, Hoo St Werbergh, Kent
• Strategic land site – option dates back to 1997
• Planning process on-going since early 2003
• Phase 1 - granted detailed consent July 2005
• Phase 2 - scheduled to go to committeewith recommendation for approval July 2006
• Phased payments
• Due to start on site in August 2006
Interim Results for half year ended 2 July 2006 61
Latham’s Yard, HackneyAltius and Riverside Wharf
• Shared development: GW East London and GW North Thames
• Utilising both brands: George Wimpey and Laing Homes
• Total 665 homes– includes affordable and live-work units– range from studio apartments to 3 bedroom mews
• Phased payment
• Within walking distance ofthe Olympic Village
Interim Results for half year ended 2 July 2006 62
University of East London, BarkingThe Academy
• Bought with planning brief but no formal planning consents
• Phased payments
• Bought with London & Quadrant Group – Limited Liability Partnership between GW
and L&Q Group on private element – also unconditional partners for affordable
element
• First completion anticipated early 2008
• Project due to be completed 2012
Interim Results for half year ended 2 July 2006 63
Impact of dollar
H1 2006 H1 2005 Change
Morrison Homes $ turnover 655.5 602.8 9%
Morrison Homes $ op profit 125.3 101.9 23%
Ave exchange rate 1.79 1.87
Morrison Homes £ turnover 366.2 322.4 14%
Morrison Homes £ op profit 70.0 54.5 28%
Interim Results for half year ended 2 July 2006 64
US housing Turnover analysis
H1 2006 H1 2005 H2 2005 2005 full yr
Volume 1,968 1,996 2,925 4,921
ASP $000s 333 302 320 313
Turnover $m 655 603 936 1,539
Interim Results for half year ended 2 July 2006 65
US housing Margin analysis
H1 2006 H1 2005 H2 2005 2005 full yr
Gross profit $m 201.4 168.3 288.2 456.5
Gross margin % 30.7% 27.1% 30.6% 29.2%
Direct selling $m (36.7) (31.6) (41.2) (72.8)
Overhead costs $m (39.4) (36.4) (40.6) (77.0)
Land profits - 1.6 - 1.6
Operating profit $m 125.3 101.9 206.4 308.3
Operating margin % 19.1% 16.9% 22% 20.0%
Interim Results for half year ended 2 July 2006 66
US housingActivity analysis
H1 2006 H1 2005 H2 2005 2005 full yr
Ave house size sq ft 2,423 2,355 2,263 2,299
ASP $ / sq ft 137.5 128.2 141.0 136.0
Interim Results for half year ended 2 July 2006 67
US housing Price mix
H1 2006 H1 2005
Completions % Completions %
$0 – 200k 307 16% 390 19%
$201 – 250k 215 11% 395 20%
$251 – 300k 243 12% 332 17%
$301 – 350k 382 19% 265 13%
$351 – 400k 325 17% 215 11%
$401 – 450k 226 11% 172 9%
$451 – 500k 122 6% 128 6%
$500k + 148 8% 99 5%
Total 1,968 100% 1,996 100%
Interim Results for half year ended 2 July 2006 68
US housingGeographic mix
Completions H1 2006 H1 2005 H2 2005 2005 full yr
West 384 460 727 1,187
Southeast 790 932 1,321 2,253
Southwest 794 604 877 1,481
TOTAL 1,968 1,996 2,925 4,921
Average selling price $000
West 422 428 430 429
Southeast 365 282 313 300
Southwest 259 237 240 239
TOTAL 333 302 320 313
Interim Results for half year ended 2 July 2006 69
US housingRegional performance
Turnover Operating profit Operating margin
H1 2006
$m
H1 2005
$m
H1 2006
$m
H1 2005
$m
H1 2006
%
H1 2005
%
West 162 197 29.3 56.5 18.1% 28.7%
Southeast 287 262 66.9 39.2 23.3% 14.9%
Southwest 206 144 38.8 16.8 18.8% 11.7%
Corporate - - (9.7) (10.6) - -
TOTAL 655 603 125.3 101.9 19.1% 16.9%
Interim Results for half year ended 2 July 2006 70
US housingShort term land
Owned and options H1 2006 H1 2005 H2 2005 2005 full yr
Start of period 20,812 18,892 19,661 18,892
Additions 1,292 2,765 4,076 6,841
Legal completions (1,968) (1,996) (2,925) (4,921)
End of period 20,136 19,661 20,812 20,812
Controlled
End of period 3,539 3,058 2,702 2,702
TOTAL LANDBANK 23,675 22,719 23,514 23,514
LAND SPEND $m 156 151 152 303