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
2
George Wimpey Plc
Preliminary Results
for the year ended 31 December 2005
Tuesday 21 February 2006
Welcome and introduction
John Robinson
Chairman
Agenda
Key messages
Peter Johnson
2005 financial review
Andrew Carr-Locke
US business review
Peter Johnson
UK business review
Pete Redfern
Group outlook
Pete Redfern
5
Key messages
Peter Johnson
Group Chief Executive
2005: US growth strategy paid off,
offset by disappointing UK result
Weak market exposed challenges of short term landbank as
well as weaknesses within our business
Bulk of UK business remains sound; those weaknesses have
been addressed
UK soundly based to rebuild margins in stable and improved
market
Morrison Homes has outperformed in a strong market
Management team is strong; internal succession ensures
continuity of strategy
7
2005 financial review
Andrew Carr-Locke
Group Finance Director
2005 results
£m
2005
2004*
Change
3,003.2
2,976.0
+ 1%
Operating profit
437.5
497.5
- 12%
Interest
(71.0)
(59.9)
+ 19%
Profit before tax
366.5
437.6
- 16%
Tax
31%
31%
-
EPS
64.3p
78.4p
- 18%
NAV per share
389p
340p
+ 14%
DPS
17.6p
16.0p
+ 10%
3.7x
4.9x
-
Turnover
Dividend cover
* restated for IFRS and land sales
9
2005 completions
Completions
Ave selling price
No
Change
£/$
Change
UK private
10,678
- 5%
£188,600
- 2%
UK affordable
1,422
+ 48%
£98,600
+ 10%
UK total
12,100
- 1%
£178,000
- 4%
US total
4,921
+ 11%
$312,700
+ 8%
GROUP TOTAL
17,021
+ 2%
10
Segmental analysis
Turnover
Operating
profit
Operating
margin*
£m
Change
£m
Change
2005
2004
UK
2,157.6
- 5%
278.0
- 32%
12.9%
18.0%
US
845.5
+ 21%
169.4
+ 65%
20.0%
14.7%
0.1
-
(9.9)
- 33%
3,003.2
+ 1%
437.5
- 12%
Other
TOTAL
*Exchange rate in 2005 $/£=1.82, 2004 $/£=1.83
*UK operating profits stated after charging £5m of restructuring costs
11
Interest charge
£m
2005
2004
Change
Loans
50.0
48.0
+ 4%
Pensions
8.5
8.1
+ 5%
Derivatives
5.3
-
Other
7.2
3.8
+ 89%
TOTAL
71.0
59.9
+ 19%
12
Cash flow summary
£m
Operating profit
Land spend
Land realisations
Other working capital movements
CASH INFLOW FROM OPERATIONS
Interest
Tax
Dividends
Exchange rate effects
Other movements
REDUCTION / (INCREASE) IN NET DEBT
Yr to Dec Yr to Dec
2005
2004
437.5
(839.0)
737.4
(49.0)
497.5
(935.1)
702.1
(88.3)
286.9
176.2
(53.6)
(117.7)
(53.7)
(38.8)
(49.2)
(91.3)
(33.7)
20.8
(24.1)
(14.5)
(1.0)
8.3
13
Balance sheet
net assets
Dec
2005
Dec
2004*
57.6
36.4
Land
2,153.4
1,932.3
Land creditors
(380.5)
(274.7)
469.9
403.0
Tax and provisions
(104.9)
(114.4)
Net pension deficit
(129.2)
(130.3)
TOTAL NET ASSETS EMPLOYED
2,066.3
1,852.3
£m
Fixed assets and joint ventures
Other net operating assets
* restated for IFRS
14
Balance sheet
financing
Dec
2005
Dec
2004
1,544.4
1,331.4
521.9
520.9
2,066.3
1,852.3
Gearing
34%
39%
Interest cover - reported
6.2x
8.3x
Interest cover - underlying
8.8x
10.4x
22.3%
28.9%
Shareholders’ funds £m
Net debt £m
Capital employed £m
ROACE
* restated for IFRS
15
5 year review
Profits increased by 141%
Dividends annual growth rate 21%
Balance sheet strengthened
IAS
UK GAAP
2005
2004
2004
2003
2002
2001
Group completions
17,021
16,654
16,654
16,570
16,917
14,437
PBT £m
366.5
437.6
450.7
378.2
285.9
152.0
1,544.4
1,331.4
1,439.1
1,168.4
944.6
783.3
Dividends per share
17.6p
16.0p
16.0p
12.25p
9.1p
8.25p
Gearing
34%
39%
36%
45%
40%
49%
Net worth £m
16
US business review
Peter Johnson
Group Chief Executive
2005 financial summary
2005
2004*
Change
Legal completions
4,921
4,422
+ 11%
Comps excluding Atlanta
4,797
4,110
+ 17%
Ave selling price
$312,700
$288,900
+ 8%
Turnover
$1,538.8m
$1,277.3m
+ 20%
$308.3m
$188.3m
+ 64%
20.0%
14.7%
+ 5.3pp
Operating profit
Operating margin
* restated for IFRS and land sales
18
Five year review
Turnover*
$m
Operating
profit* $m
Operating
margin %
Completions
ASP
$
2001
687.7
66.4
9.7%
2,900
238,000
2002
804.7
80.7
10.0%
3,197
252,000
2003
988.3
118.6
12.0%
3,661
270,000
2004
1,277.3
188.3
14.7%
4,422
289,000
2005
1,538.8
308.3
20.0%
4,921
313,000
CAGR
22.3%
46.8%
-
-
7.1%
* restated for IFRS and land sales
19
Margin
Gross margin up from 25% to 30%
average selling prices +8% but big mix changes
underlying house price inflation >10% in Florida, Phoenix, North
California; <5% in Texas, Denver
increase in land costs offset by change in regional mix
impact of build cost inflation on margin ~4.5% - 5%
Overhead to sales stable at 10%
increased bonuses offset by scale efficiencies
20
Some industry comparisons
:
Company
Est PBT margins 2005 asp
% US GAAP
$000
2005 increase
%
Toll Brothers
NVR
Morrison
Standard Pacific
DR Horton
Hovnanian
Pulte
Ryland
Centex
Beazer
21.6
21.0
18.5
17.6
17.0
16.7
15.8
15.6
14.4
12.2
13
13
8
-6
9
14
10
9
10
17
654
376
313
352
263
319
316
274
297
271
Estimates from broker reports
21
Successful growth strategy
Focus on growth markets
Growth through satellites
Growth through product development
Addressing underperforming businesses
Landbank
22
Successful growth strategy
Focus on growth markets
Morrison markets account for
45% of job growth
49% of population growth
38% of 2005 H2 SF permits
Growth through satellites
Growth through product development
Addressing underperforming businesses
Landbank
23
Morrison Homes markets
major beneficiaries of underlying trends
000s
Job
Growth
Rank
last 12 mths
SF
Permits
Rank
Population
Growth
Rank
H2 2005
Florida
297
1
209
1
404
1
California
278
2
151
3
290
3
Texas
154
3
166
2
388
2
Arizona
117
4
81
6
199
4
Colorado
55
18
40
12
63
11
TOTAL
901
647
1.344m
Total US
2,010
1,681
2.753m
Morrison
Markets
45%
38%
49%
24
Successful growth strategy
Focus on growth markets
Growth through satellites
2001 new satellites in Jacksonville, Sarasota, Central Valley
2005 these satellites accounted for 20% completions
2005 new satellites in Daytona Beach, Fort Myers and Reno
Growth through product development
Addressing underperforming businesses
Landbank
25
Successful growth strategy
Focus on growth markets
Growth through satellites
Growth through product development
townhomes were >12% of Florida completions in 2005
townhome volumes expected to grow 2.5 times in 2006
Addressing underperforming businesses
Land bank
26
Successful growth strategy
Focus on growth markets
Growth through satellites
Growth through product development
Addressing underperforming businesses
Atlanta exited
Texas 2005 completions +47%
Texas order book at 31 December +55%
net reservations weeks 1-6 2006 +14%
Landbank
27
Successful growth strategy
Focus on growth markets
Growth through satellites
Growth through product development
Addressing underperforming businesses
Landbank
total plots at end 2005
% of plots used during the year
% of land for 2006 targeted completions
% of land for 2007 targeted completions
23,514
140
100
90
28
Landbank
in place to deliver growth
25,000
20,000
15,000
10,000
5,000
0
2001
2002
controlled
2003
2004
owned/optioned
2005
total
29
Focus on growth markets
balanced landbank to support growth
2005
2004
2003
comps
land
comps
land
comps
land
West
1,187
4,093
1,130
3,997
832
3,125
Southeast
2,253
12,040
2,092
10,573
1,684
8,816
Southwest
1,481
7,381
1,200
7,009
1,145
5,886
30
Focus on growth markets
growth in completions and landbank
2005/4
2005/3
2003
comps
land
comps
land
comps
land
West
5%
2%
43%
31%
832
3,125
Southeast
8%
14%
34%
37%
1,684
8,816
Southwest
23%
5%
29%
25%
1,145
5,886
31
Outlook economy, housing market
- macro
picture remains healthy
US economy remains strong
600,000 jobs created in last three months
consumer confidence at highest since June 2002
unemployment rate down to 4.7%
30 year fixed rate mortgage at 6.22%
Housing industry projected to remain at high levels
NAHB projects SF new home sales down 8.1% to 1.19m
that matches 2004 and is 10%> average 2002-2004
1.28m new owner households created to grow home
ownership rate from 69% in 2004 to 70% in 2010
32
Outlook Morrison Homes
- too early to call full year outlook
Outlets*
+10%
Order book at 1 Jan 06*
+20% in volume
+36% in value
at margins and prices ahead of 2005 full year
Order book at end week 6*
+19% in volume
+36% in value
Sales
weeks 1-6
-3% on 2005
sales rate
0.93 vs 1.05
West down, Southeast flat, Southwest up
*excluding Atlanta
33
UK business review
Pete Redfern
Deputy Group Chief Executive
Two key questions
Why have UK margins fallen in 2005?
What have we done to address these issues?
35
Two key questions
Why have UK margins fallen in 2005?
What have we done to address these issues?
36
Causes of margin reduction
Impact of tough market and mix on selling prices
affordable housing
smaller private product – houses and apartments
southern market significantly weaker
Habitual second half volume weighting reduced business flexibility
Impact of rising costs – mostly land, due to short term landbank
Underperforming businesses and sites affected overall margin
performance
37
Margin movement
2005
2004 margin
18.0%
Sales pricing impact
(1.8%)
Mix / volume impact
(0.3%)
Build cost impact
(0.4%)
Land cost impact
(2.6%)
Net operating expenses impact
2005 margin
0.0%
12.9%
38
2005 financial summary
2005
2004*
Total completions
12,100
12,232
Private completions
10,678
11,274
Affordable completions
1,422
958
£188,600
£193,400
Total turnover £m
2,157.6
2,277.9
Gross margin %
21.5%
26.1%
Operating profit £m
278.0
409.4
Operating margin %
12.9%
18.0%
Private ASP
* restated for IFRS and land sales
39
2 key questions
Why have UK margins fallen significantly in 2005?
What have we done to address these issues?
40
Actions to improve margin
performance
Put sales on front foot
improve quality of sales processes and performance
ensure sales are moving on all sites
lengthen order book to create urgency for customers
Improve H1/H2 volume balance
through sales catch up and focus on next six months
through build planning
Continue to improve land processes, culture and people
Drive down build and overhead costs
£20m of cost savings achieved (£2m in 2006)
further overhead reductions to come through
more to go on build costs in 2006
41
Actions to improve margin
performance
Addressing underperforming businesses
challenging management, changing where necessary
new Management Team established - experienced housebuilding team
structure simplified, central drive and control, not more overhead
Laing business structure rationalised and absorbed
all UK businesses run on same model
two smallest subscale businesses closed
strong underlying Laing businesses and people retained
two brands nationally available to allow local differentiation for growth
Decision to withdraw from high rise City business
strong skills within business retained
releases £100m of cash over two years for reinvestment
42
2006 business structure
New business structure
Aberdeen
Edinburgh
Glasgow
North
8
Midlands
8
South
9
TOTAL
25
+ 3 new satellites
Newcastle
Completions from 350 – 700 per business
Leeds
Liverpool
Overheads before restructuring costs (£m)
Manchester
2005
2004
2003
109
118
117
Birmingham
London
Bristol
Plymouth
43
2005 market
Market has been difficult since mid 2004
total market volumes down 17.2%
(source: Land Registry)
second hand market very slow
price sensitive and incentive led
In H1, North was strongest and South weakest
H2 started to show slow improvement
particularly in the last two months
particularly in South
Apartment market has been particularly price and product
sensitive
impact c. 2.5% margin difference to average
44
Ave weekly sales rates
GW 2003 – 2005
1.20
Sales per site per week
1.00
0.80
0.60
0.40
0.20
0.00
Jan
Feb
Mar
Apr
May
2003
Jun
Jul
2004
Aug
Sep
Oct
Nov
Dec
2005
• H2 sales create 32% growth in order book
• Nov/Dec sales remain strong due to focussed pressure
45
Net prices on reservations
GW 2003 – 2005
210
ASP achieved on reservations £000s
205
200
195
190
185
180
175
170
165
Jan
Feb
Mar
Apr
May
June
2003
July
2004
Aug
Sep
Oct
Nov
Dec
2005
•Sales growth driven by performance not just price – cost 1% of net price
•Building order book will allow reduction in incentives
46
Product mix
PD completions
2005
2004
Apartments
36%
31%
2 / 3 bed houses
32%
32%
4 / 5 bed houses
32%
37%
100%
100%
Managing our apartment mix
2005 land approvals 30% apartments
margin hurdles increased on apartments in 2004
size down 5% and still being reduced
preferred range 10 - 15% more efficient in size/plotting
47
Cost reduction
2005 cost saving programme
sub-contractor savings
rationalisation of brick supply chain
replans of high cost sites/products
rationalisation of site overheads
More potential for 2006
standard build detail eg floor systems loading scaffolding/joist hangers
rationalisation of doors/fittings
kerb remedials
option cost efficiencies
sales and showhome costs
Preferred housetype range designed and in place
adopted first in new and underperforming businesses
cost per square foot 5% below average product
48
Landbank
Owned and
controlled plots
2005
2004
2005
2004
North
16,447
18,615
5,112
4,934
Midlands
13,878
11,882
4,662
5,529
South
20,660
20,622
4,395
7,108
TOTAL
50,985
51,119
14,169
17,571
Strategic acres
•Landbank broadly maintained, North land prices still inflating until late 2005
•Strategic landbank and process challenged – sifting sand, finding some nuggets
49
Owned land cost and value
Cost Per Plot (£000)
2005
2004
Opening landbank
45.6
44.6
Acquired net*
51.0
46.8
Completions*
(47.3)
(44.3)
47.2
45.6
Closing landbank
*Plot cost high in year, driven by South/North mix
ASP £000s
Cost per plot £000s
Land value % ASP
2005
completions
Landbank
178.0
47.3
26.6%
181.2
47.2
26.0%
•Closing plot cost marginally lower than 2005 completions
•Landbank average selling price higher than completions due to South mix
50
Example sites acquired in 2005
No of plots No of acres
Cost per plot
as % of ASP
695
66
17.3%
Lawley, Telford
1,167
71
19.6%
Newton Leys
1,650
90
20.7%
Masterton, Dunfermline
51
UK objectives
Margin improvement objective for H2 2006
move net prices forward having strengthened sales position
continuous cost reduction plan to hold inflation or better
show improvements from underperforming businesses
Medium term volume growth
2006 volumes will be less H2 weighted – foundation for housebuilder
growth culture
existing structure has ability for growth
-undersize businesses
-three new satellites
-improvements in land buying structure and people
52
Outlook
Market recovery seen in Nov/Dec continues
RICS survey shows completions up 15% year on year
more confident, committed visitors
outlets below last years peak at 292 (2005: 320)
sales rate still maintained at 0.96
order book at lower margins, starting to move net prices on new
reservations
Opportunities in both material supply and subcontract costs,
despite energy pressures
53
Group outlook
Pete Redfern
Deputy Group Chief Executive
Group outlook
US
economy and housing market projected to remain healthy
although too early to call full year outlook
strong forward order book
sales remaining sound
UK
market recovery seen in Nov/Dec continues
further cost saving opportunities identified and in place
strong forward order book starting to reduce use of incentives
55
Forthcoming events
AGM statement and trading update
20 April
Pre-close trading update
W/C 3 July
Management dinner
W/C 3 July
Interim results
1 August
Site visit
October
56
George Wimpey Plc
Preliminary Results
for the year ended 31 December 2005
APPENDIX
Pensions
UK defined benefit scheme closed to new members in 2002
Investment position
68% fixed interest
32% equities
Mortality assumptions fully updated following detailed study of
recent mortality experience of the Scheme
March 2005 Actuarial Valuation
gross deficit £148m
net £104m
IAS 19 valuation 2005
gross £185m
(2004 £186m)
net £129m
(2004 £130m)
Deficit funding contributions paid for 2004 and 2005, agreed
contributions for 2006 of £15m
Total contribution (including deficit funding) £21m (2004 £23m)
57
Undeveloped land disposals
2005
2004
UK
24.3
22.7
US
13.2
7.0
TOTAL
37.5
29.7
UK
15.4
9.3
US
1.6
(0.1)
TOTAL
17.0
9.2
£m
Land sales
Profit (loss)
Revenue from land disposals is no longer included in turnover
There is no impact on reported operating profits
58
Group reservations
Reservations
2005
2004
UK private
11,318 10,640
UK affordable
1,881 1,278
UK TOTAL
13,199 11,918
US TOTAL
GROUP TOTAL
5,211
4,822
Ave sites
Per outlet /
per week
2005
2004
2005
2004
307
295
0.71
0.69
95
100
1.05
0.93
18,410 16,740
59
UK – turnover analysis
2005
Year
Private
volume 10,678
-
H1
Year
H2
H1
6,524
4,154
11,274
6,631
4,643
188.6
184.8
194.5
193.4
192.4
194.9
turnover £m
2,014
1,206
808
2,181
1,276
905
volume
1,422
1,000
422
958
508
450
ave price £000s
98.6
103.3
87.7
89.8
92.5
85.9
turnover £m
140
103
37
86
47
39
4
2
2
11
9
2
7,524
4,576
12,232
7,139
5,093
Other turnover £m
-
H2
ave price £000s
Affordable -
Total
2004
volume 12,100
ave price £000s
178.0
174.0
184.6
185.3
185.3
185.3
turnover £m
2,158
1,311
847
2,278
1,332
946
60
UK margin analysis
2005
2004
Year
H2
H1
Year*
H2*
H1*
Gross profit £m
464.2
265.6
198.6
595.4
348.0
247.4
Gross profit %
21.5% 20.3% 23.4%
26.1% 26.1% 26.2%
Direct selling £m
(86.2)
(45.7)
(40.5)
(75.9)
(39.7)
(36.2)
Overheads / JVs £m
(115.4) (58.4)
(57.0)
(119.4) (61.4)
(58.0)
Land profits £m
15.4
9.8
5.6
9.3
6.7
2.6
Operating profit £m
278.0
171.3
106.7
409.4
253.6
155.8
Operating margin %
12.9% 13.1% 12.6%
* restated for IFRS and land sales
18.0% 19.1% 16.5%
61
UK PD product mix
Completions
2005
2004
Year
H2
H1
Year
H2
H1
Apartments
36%
37%
34%
31%
29%
32%
2 / 3 bed houses
32%
32%
32%
32%
29%
35%
4 / 5 bed houses
32%
31%
34%
37%
42%
33%
100
100
100
100
100
100
62
UK –
PD activity analysis
2005
2004
Year
H2
H1
Year
H2
H1
Ave house size sqft
994
980
1,015
1,033
1,008
1,069
Ave selling price £ / sqft
189
188
192
187
190
182
63
UK PD price mix %
% completions by
price band £000s
2005
2004
Year
H2
H1
Year
H2
H1
£0 – 50k
0
0
0
0
0
0
£51 – 100k
6
7
4
7
7
7
£101 – 150k
30
31
30
29
29
29
£151 – 200k
32
32
32
31
31
30
£201 – 250k
18
17
19
18
19
18
£251 – 300k
7
6
8
7
7
7
£301 – 500k
6
6
6
7
6
8
£500k +
1
1
1
1
1
1
TOTAL
100
100
100
100
100
100
64
UK PD geographic mix
2005
2004
Legals
Size
sqft
ASP
£000
Legals
Size
sqft
ASP
£000
North
3,813
1,043
167.0
4,182
1,084
167.5
Midlands
3,079
965
170.2
3,197
1,018
177.9
South
3,599
989
225.6
3,606
1,012
232.9
187
766
273.4
289
729
249.0
10,678
994
188.6
City
TOTAL
11,274 1,033
193.4
65
UK landbank by region
Owned and
controlled plots
Strategic acres
2005
2004
2005
2004
North
16,447
18,615
5,112
4,934
Midlands
13,878
11,882
4,662
5,529
South
20,660
20,622
4,395
7,108
TOTAL
50,985
51,119
14,169
17,571
66
UK short term land (private & affordable)
2005
Plots OWNED
2004
Year
H2
H1
Year
H2
H1
Start of period
37,222
39,784
37,222
33,559
34,191
33,559
Net acquired
14,319
7,181
7,138
15,895
10,170
5,725
Legal completions
(12,100) (7,524) (4,576)
(12,232) (7,139) (5,093)
End of period
39,441
39,441
39,784
37,222
37,222
34,191
CONTROLLED
11,544
11,544
14,596
13,897
13,897
16,710
TOTAL LANDBANK
50,985
50,985
54,380
51,119
51,119
50,901
67
UK owned land (private & affordable)
2005
2004
Plots
Cost per
plot £k
Value
£m
Plots
Opening landbank
37,222
45.6
1,698
33,559
44.6
1,496
Additions
14,319
51.0
733
15,895
46.8
744
Short term
Completions
End of period
Strategic
End of period
(12,100) (47.3)
39,441
47.2
(572)
1,859
Cost per Value
plot £k
£m
(12,232) (44.3)
37,222
45.6
(542)
1,698
Acres
Value £m
Acres
Value £m
14,169
71
17,571
85
68
Morrison Homes turnover analysis
2005
Volume
ASP $000s
Turnover $m
* restated for land sales
2004*
Year
H2
H1
Year
H2
H1
4,921
2,925
1,996
4,422
2,708
1,714
313
320
302
289
296
278
1,539
936
603
1,277
801
476
69
Morrison Homes margin analysis
2005
2004*
Year
H2
H1
Year
H2
H1
Gross profit $m
456.5
288.2
168.3
316.9
200.7
116.2
Gross profit %
29.2% 30.6% 27.1%
24.6% 24.9% 24.0%
Selling expenses $m
(72.8)
(41.2)
(31.6)
(64.0)
(37.3)
(26.7)
Overhead costs $m
(77.0)
(40.6)
(36.4)
(64.5)
(35.0)
(29.5)
1.6
-
1.6
(0.1)
(0.2)
0.1
Operating profit $m
308.3
206.4
101.9
188.3
128.2
60.1
Operating margin %
20.0% 22.0% 16.9%
Land profits $m
* restated for IFRS and land sales
14.7% 16.0% 12.7%
70
Morrison Homes activity analysis
2005
2004
Year
H2
H1
Year
H2
H1
2,299
2,263
2,355
2,386
2,371
2,409
Ave selling price $ / sqft 136.0
141.0
128.2
121.1
124.8
115.3
Ave house size sqft
71
Morrison Homes price mix
% completions by
price band $000s
2005
2004
Year
H2
H1
Year
H2
H1
$0 - <200k
$201 – 250k
$251 – 300k
$301 – 350k
$351 – 400k
$401 – 450k
$451 – 500k
$500k +
17
17
17
16
12
9
6
6
15
14
17
19
13
9
6
6
19
20
17
13
11
9
6
5
19
24
17
14
11
8
3
3
20
26
19
16
11
4
1
3
19
24
16
13
12
10
4
3
TOTAL
100
100
100
100
100
100
72
Morrison Homes regional performance
Turnover
Operating profit
Operating margin
2005
$m
2004
$m
2005
$m
2004*
$m
2005
%
2004
%
West
517
453
139.7
108.2
27.0
23.9
Southeast
681
553
141.3
74.2
20.7
13.4
Southwest
365
284
51.0
26.0
14.0
9.1
Exclude land sales
(24)
(13)
-
-
-
-
-
(23.7)
(20.1)
-
-
1,277
308.3
188.3
20.0
14.7
Corporate
TOTAL
1,539
* restated for IFRS and land sales
73
Morrison Homes completions
2005
2004
Year
H2
H1
Year
H2
H1*
West
1,187
727
460
1,130
728
402
Southeast
2,253
1,321
932
2,092
1,276
816
Southwest
1,481
877
604
1,200
704
496
TOTAL
4,921
2,925
1,996
4,422
2,708
1,714
*restated to reflect new regional profile
74
Morrison Homes average selling price
2005
2004
Change
West
$436,000
$398,000
9.6%
Southeast
$302,000
$261,000
15.7%
Southwest
$246,000
$233,000
5.6%
TOTAL
$313,000
$289,000
8.3%
75
Morrison Homes landbank by region
Owned and
controlled plots
2005
2004
West
4,093
3,997
Southeast
12,040
10,573
Southwest
7,381
7,009
23,514
21,579
TOTAL
76
Morrison Homes short term land
2005
2004
OWNED AND OPTIONS
Year
H2
H1
Year
H2
H1
Start of period
18,892
19,661
18,892
15,304
17,456
15,304
Additions
6,841
4,076
2,765
8,010
4,144
3,866
Legal completions
(4,921) (2,925) (1,996) (4,422) (2,708) (1,714)
End of period
20,812
20,812
19,661
18,892
18,892
17,456
End of period
2,702
2,702
3,058
2,687
2,687
2,606
TOTAL LANDBANK
23,514
23,514
22,719
21,579
21,579
20,062
303
152
151
282
174
108
CONTROLLED
LAND SPEND $m
77
Impact of dollar
2005
2004
Change
Morrison $ turnover
$1,538.8m
$1,277.3m
+ 20.5%
Morrison $ op profit
$308.3m
$188.3m
+ 63.7%
Ave exchange rate
$/£ = 1.82
$/£ = 1.83
Morrison £ turnover
£845.5m
£698.0m
+ 21.1%
Morrison £ op profit
£169.4m
£102.9m
+ 64.6%
78