Annual Report and Accounts 2009

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 Group Strategy

A combination of the actions taken within the business over the last 18 months and our improved financing position now allows us to shift our focus to creating value by returning to profitability on existing and future sites.

Long term objectives

Short term priorities

  • Provide growth in earnings per share, in light of market conditions
  • Deliver a return on capital employed above the level of our cost of funding
  • Return the Group to an investment grade credit rating
  • Attract and retain the highest calibre of employees and strive to be a company that people want to work for
  • Return the Group to profitability following the recent downturns in both of our main markets through:
    • Focusing on sales price increases rather than volume growth
    • Continued focus on build cost reduction
    • Maintaining tight control on overhead costs
  • Deliver value from our existing landbank
  • Continue to generate cash from operations through reduced level of investment in land and work in progress spend
  • Maximise the potential of our employees through training and development programmes
  • Deliver operating cash flows in excess of the levels set out within our financial covenants

Our Group Key Performance Indicators at a glance

The following key financial and non-financial KPIs are the most appropriate basis on which to measure the Group’s current performance:

Adjusted loss
per share
Return on average
capital employed
Operating cash flow covenant Employee turnover
for 2009
(7.2p loss for 2008)
for 2009
(2.6% for 2008)
£457m inflow
for 2009
(Target: £51m outflow)
for 2009
(16% for 2008)

For more information see Our Group Key Performance Indicators

Risk   Corporate Responsibility
The following key risks have the greatest potential impact on the Group’s strategy:   Our corporate responsibility underpins the way we do business
  • Compliance with financial and operational covenants
  • Economic and market environment
  • Land purchasing
  • Government regulations
  We have a duty to take social, environmental, ethical and economic factors into account when conducting our business and tackling global imperatives such as sustainable development and climate change.
For more information see Principal Risks and Uncertainties   For more information see Our Corporate Responsibility Approach