Annual Report and Accounts 2009

Our UK Housing Strategy

Our UK strategy is focused on maximising value from each home sold through pricing, build cost reduction, replanning and additions to our landbank.

  • Goal is to be the leading homebuilder in the UK
  • Current operational focus is margin improvement and cash management
  • In the longer term we will look to grow volumes from increasing outlet numbers as the market recovers
Short term priorities:
  • Deliver competitive offers in each local market
  • Reduce build costs through merger savings, lower labour and materials costs and value engineering of sites
  • Replan existing sites with detailed planning consents to change product mix and reduce planning obligations
  • Add new plots to the landbank on attractive terms

Our UK Housing Key Performance Indicators at a glance

We have identified key financial and non-financial performance indicators which we believe are the most accurate measure of the success of our strategy in the UK.

Contribution per legal completion Forward order book volume as a % of completions Owned and controlled plots with planning Customer satisfaction Health and Safety (per 100,000 hours worked) Waste generated per home (tonnes)
£12.6k 53.6% 66,089 87.1% 0.226 4.69
for 2009
(£16.5k for 2008)
for 2009
(31.7% for 2008)
for 2009
(74,917 for 2008)
for 2009
(79.4% for 2008)
for 2009
(0.296 for 2008)
for 2009
(5.11 for 2008)

For more information see Our UK Housing key performance indicators

Risk

The Group’s principal risks and uncertainties are detailed on Principal Risks and Uncertainties page of this report. The risks that have seen the greatest change in the UK business during 2009 are:
  • Economic and market environment, with much greater stability during 2009
  • Land purchasing, as the supply of quality land on attractive terms remains restricted
  • Government regulation, with the possibility of a change of Government in the UK in 2010