Transcript George Wimpey Plc 2004 Preliminary Results

George Wimpey Plc
2004 Preliminary Results
Tuesday 22 February 2005
Disclaimer
This presentation is being made only to and is directed at (a) persons who have
professional experience in matters relating to investments falling within Article
19(1) of the Financial Services and Markets Act 2000 (Financial Promotion) Order
2001 (the "Order") or (b) any other persons to whom it may otherwise lawfully be
communicated, falling within Article 49(1)of the Order (all such persons being
referred to as "relevant persons").
Any person who is not a relevant person should not act or rely on this presentation
or any of its comments.
The financial information set out in this document does not constitute the
Company's statutory accounts. Statutory accounts for 2003, which received an
auditors' report that was unqualified and did not contain any statement concerning
accounting records or failure to obtain necessary information and explanations,
have been filed with the Registrar of Companies.
2
Welcome
Peter Johnson
Group Chief Executive
Agenda
Introduction
Peter Johnson
2004 Financial Review
Andrew Carr-Locke
UK Business Review
Peter Redfern
US Business Review
Stu Cline
Strategy and Outlook
Peter Johnson
4
Introduction
Peter Johnson
Group Chief Executive
2004 headlines
Profits exceed expectations despite weak H2 in UK
UK operating margins up from
George Wimpey
17.1% to 18.5%
Laing Homes
12.4% to 13.3%
Outstanding US performance
volumes up >20%
operating margin up from 11.9% to 14.6%
Full year dividend increased 31% to 16.0p
6
2004 Financial Review
Andrew Carr-Locke
Group Finance Director
2004 results
2004
2003
Change
3,006
2,879
+ 4%
Operating profit
501
430
+ 16%
Interest
(50)
(52)
- 4%
Profit before tax
451
378
+ 19%
Tax
31%
31%
-
EPS
80.8p
68.5p
+ 18%
NAV per share
368p
305p
+ 21%
DPS
16.0p
12.25p
+ 31%
5.1x
5.6x
-
£m
Turnover
Dividend cover
8
Segmental analysis
Turnover
Operating
profit
£m
Change
£m
Change
1,976
+ 2%
366
+ 11%
18.5% 17.1%
Laing Homes
325
- 4%
43
+ 3%
13.3% 12.4%
Morrison Homes*
705
+ 16%
103
+ 42%
14.6% 11.9%
-
-
(11)
-
3,006
+ 4%
501
+ 16%
George Wimpey
Other
TOTAL
*Exchange rate in 2004 $/£=1.83, 2003 $/£=1.64
Operating
margin
2004
2003
9
2004 completions
Completions
Ave selling price
No
Change
£/$
Change
10,345
- 9%
£182,000
+ 8%
GW affordable
777
+ 33%
£85,000
+ 14%
Laing private
929
- 5%
£320,000
+ 2%
Laing affordable
181
+ 50%
£110,000
+ 1%
UK total
12,232
- 5%
US total
4,422
+ 21%
$289,000
+ 7%
16,654
+ 1%
GW private
GROUP TOTAL
10
Cash flow summary
£m
Operating profit
Land spend
Land realisations
Other working capital movements
Yr to Dec Yr to Dec
2004
2003
501
(935)
702
(92)
430
(853)
665
(11)
CASH INFLOW FROM OPERATIONS
176
231
Interest
Tax
Dividends
Other movements
(49)
(91)
(34)
6
43
(118)
(25)
(198)*
8
(154)
REDUCTION / (INCREASE) IN NET DEBT
*Includes £215m acquisition payment for Laing Homes
11
Balance sheet –
net assets
Dec
2004
Dec
2003*
36
26
Land
1,941
1,729
Land creditors
(282)
(290)
388
308
Tax and provisions
(123)
(76)
TOTAL NET ASSETS
1,960
1,697
£m
Fixed assets
Other current assets
*restated for UTIF 38
12
Balance sheet –
financing
Dec
2004
Dec
2003*
1,439
1,168
521
529
Capital employed £m
1,960
1,697
Gearing
36%
45%
Interest cover
10.1x
8.3x
ROACE
27.4%
28.5%
Shareholders’ funds £m
Net debt £m
* restated for UITF 38
13
Impact of weakening dollar
2004
2003
Change
Morrison $ turnover
$1,290m
$998m
+ 29%
Morrison $ op profit
$188.0m
$118.6m
+ 59%
Ave exchange rate
$/£ = 1.83
$/£ = 1.64
Morrison £ turnover
£705m
£608m
+ 16%
Morrison £ op profit
£102.7m
£72.3m
+ 42%
Adverse effect on turnover
Adverse effect on operating profit £11.9m
Adverse effect on PBT
£82m
£10.2m
14
Treasury
Committed facilities from diversified sources
£302m US private placements
£945m bank syndicated and bilateral facilities
all bank facilities renegotiated on improved terms
Interest rate exposure cautiously managed
net debt at year end £521m of which £430m at fixed rates
hedge accounting not adopted for interest rate hedging
instruments – focus on underlying economic risk
Joint ventures
joint ventures formed for two inner city developments to limit
concentrated risk
15
IFRS / IAS
2004 to be restated prior to interim’s close period
Most significant area – pensions
FRS 17 no major changes
Other areas of consideration
dividends
land acquisition on deferred terms
LTIPs / share options
hedge accounting
goodwill
16
2004 financial summary
PBT ahead of expectations - up 19% to £451m
Continued strengthening of margins across all businesses
GW
up 1.4pp to 18.5%
Laing
up 0.9pp to 13.3%
Morrison
up 2.7pp to 14.6%
Group ROCE: 27.4%
UK = 25.8%
US = 33.8%
Gearing reduced to 36%
Full year dividend increased by 31% to 16.0p
dividend cover now 5.1x
17
UK Business Review
Peter Redfern
Chief Executive, George Wimpey UK
Market 2004
October / November very quiet
much of industry incentive led – eg part ex and shared equity
cancellations well above average
urgency to buy at low level
Different drivers impacting on market sectors
owner occupiers fear of interest increases and price falls
investors looking for bargain opportunities
December at more normal levels
Professional sales approach is key strength
customer service and customer options
sales and site presentation
19
Market 2005 and outlook
Market so far in 2005
visitor level higher than 2004 and 2003
first time buyers starting to return – c.20% of sales
GW / Laing position
outlets currently up 12% on 2004
sales rate below high Q1 2004 levels
Industry fundamentals still in place
continued supply shortfall – no improvement in planning
growth in number of households exceeds forecasts
rental values holding up well in most markets
20
Sales activity to Week 7 - GW
2005
2004
2003
Outlets
284
253
274
Ave sales rate
per outlet
0.76
0.88
0.79
Ave weekly visitors
per outlet
12.3
11.9
12.4
Laing sales rate to Week 7 is 0.50 (2004 = 0.52)
21
Financial summary
George Wimpey
Laing Homes
2004
2003
2004
2003
Total completions
11,122
11,813
1,110
1,096
Private completions
10,345
11,228
929
975
Private ASP
£182,000
£168,000
£320,000
£315,000
Turnover £m
1,976
1,933
325
337
Operating profit £m
365.8
330.1
43.1
41.7
Operating margin
18.5%
17.1%
13.3%
12.4%
22
UK housing –
Five year review
Turnover Operating Operating
Total
£m
profit £m margin % completions
PD ASP
£
2000
1,254
142.5
11.4%
11,437
113,000
2001
1,406
173.6
12.4%
11,537
122,600
2002
2,062
290.2
14.0%
13,720
152,600
2003
2,270
371.8
16.4%
12,909
179,700
2004
2,301
408.9
17.8%
12,232
193,400
23
UK housing – product mix
FY
2004
H1
2004
2003
2002
Flats
31%
29%
26%
25%
2 / 3 bed houses
32%
29%
32%
33%
4 / 5 bed houses
37%
42%
42%
43%
24
Price points
85% of private completions below £250,000
66% of private completions below £200,000
3500
3000
GW
No of completions
2500
Laing
2000
1500
1000
500
0
0 - 50k
50 - 100k
100k - 150k
150k - 200k
200k - 250k
Price band £
250k - 300k
300k - 500k
500k+
25
Land
Owned and
controlled plots
2004
2003
Long term acres
2004
2003
North
15,396
13,526
4,934
4,959
Midlands
12,716
12,047
5,529
5,682
South
15,297
14,483
7,108
7,980
City
2,658
3,531
-
-
Laing
5,052
5,021
-
-
TOTAL
51,119
48,608
17,571
18,621
Strengthening position despite being very cautious during H2 2004
Hurdle rates raised again in October
26
Operating margin on land
acquired
20
18
16
14
12
10
8
6
4
2
0
2000
2001
2002
2003
2004
PBIT %
27
Land quality
Land bought at an average plot cost of £46.8k (2003: £53.6k)
Nearly 15,000 plots received detailed planning
c.95% of 2005 GWUK volumes have full planning
Land bank is of a good quality:
2004
Landbank
ASP £000s
185
184
Cost per plot £000s
44.3
45.6
Land value % ASP
23.9%
24.8%
28
Margins and costs
Margins continued improving by 1.4% to 17.8%
Target is to make net cost movement negligible
subcontractor cost pressures are low
specific material price increase pressures
Since September, strong focus on
housetype and specification efficiencies
subcontract, material and waste savings
...processes in place to save £20m of costs in 2005
There are some inevitable underlying cost movements...
building regulation changes
increase in brownfield / contaminated sites
…but scale remains a key advantage
29
Looking forward
From October, market peaked and there has been small
correction
At present, better than expected but still delicate
Well placed to benefit from Government housing strategy
delivery of design and sustainability standards
innovation in construction
affordable housing / Social Housing Grant
To be successful in this market we have to get basics right
land acquisition and planning
construction costs
sales processes / options
customer satisfaction
30
US Business Review
Stu Cline
Chairman, Morrison Homes
US economy
2004
2005
Forecast*
GDP growth
4.4%
3.5%
Job growth
2.2m
2.0 – 2.2m
Prime rate
5.25% (yr end)
5.25 – 6.50%
30-yr fixed mortgage rate
5.75% (yr end)
5.75 – 6.75%
Key indicators
Forecasts particularly strong for Morrison markets
25% of above job growth forecast for California, Florida and Texas
Buoyant consumer confidence
*Source: NAHB
32
US housing market
2004 was another record year
1.6m Single Family starts
1.2m New Home sales
National price inflation c.5-7% but up to 15% in some markets
Market continues to be supported by strong fundamentals
population growth
affordability
low unemployment
Strong visitor and sales rates
Forecasts for 2005 (from NAHB):
SF starts of c.1.55m
NH sales of c.1.15m
33
Financial summary
2004
2003
Change
4,422
3,661
+ 21%
Ave selling price
$289,000
$270,000
+ 7%
Turnover
$1,290m
$998m
+ 29%
Operating profit
$188.0m
$118.6m
+ 59%
14.6%
11.9%
+ 2.7pp
Legal completions
Operating margin
34
Five-year review
Turnover Operating Operating
Completions
$m
profit $m margin %
ASP
$
2000
615
53.0
8.6%
2,638
227,000
2001
693
66.4
9.6%
2,900
238,000
2002
806
80.7
10.0%
3,197
252,000
2003
998
118.6
11.9%
3,661
270,000
2004
1,290
188.0
14.6%
4,422
289,000
-
+37%
-
-
+6%
CAGR
35
Land
2004
2003
Plots owned / under option
18,892
15,304
Plots controlled
2,687
1,663
Total landbank
21,579
16,967
Land spend $m
282
203
36
Going forward
2004
Improving US economy and record year in housing
Good volume growth
Strong margin performance
Excellent operating profit growth
Repositioned product mix
Improving position in challenging markets
2005
US economy and housing projected to remain strong
Land in place for further organic growth
Further benefits of scale
Excellent order book in terms of volumes, ASP and margins
After 7 weeks, visitors/sales rates, ASPs, margins all ahead
37
Strategy and outlook
Peter Johnson
Group Chief Executive
Business environment
UK
Market slower
US
Market to remain strong
lower sales rates
high sales rates
broadly stable prices
price momentum
Increased Govt regulation
Pro-development culture
planning no better
supports growth
limited action on Barker
limited taxes and
restrictions on product mix
increased costs
influencing product mix
Land market
competitive
Land market
competitive
but good availability
39
Strategy: Group
Target volume growth in both UK and US
Pace and priorities driven by
business environment
ability to sustain returns > cost of capital
Focus on areas of competitive advantage
Maintain above average asset turns (to generate cash)
Provide shareholders with enhanced returns through dividend
growth
40
Strategy: UK
Plan is in place
enhanced regional structure
-satellites include Scotland, East Midlands, Sussex
growth of Laing as second brand
-new regions include East and Southwest England
use of both brands on larger sites
Cautious implementation: prioritising margin over growth
Limited exposure to inner city developments, social housing
Meanwhile, focus on additional outlets to support volume
41
Strategy: US
Maximise growth where
land is available on right terms
underlying market and returns are sustainable
management team is strong
Build on scale and success in
Central Florida: Orlando, Tampa, Sarasota
Northern California: expansion of Central Valley
Phoenix
Land in place to sustain organic growth at historic rate
42
Outlook: UK
glass half empty…or half full?
After 7 weeks, it is too early to call 2005 market
Background is key: 2004 H2 was weak
But early signs for 2005 are encouraging
visitors
selling rates
use of incentives
Order book c.5% below 2004 at slightly lower margins
However, outlets open +12%, reducing margin pressure
2005 will be H2 biased
43
Outlook: US
set for continued progress
2004 an all-time record for single family home sales
2005 forecast to be another strong year
Sales rate to week 7 above strong 2004 performance
Order book up c.30% at better margins
Land in place to support growth plans in 2005 and beyond
44
Outlook: summary
US exposure provides balance
UK has started 2005 at better end of our expectations
though it is still too early to make firm judgements
lower sales rate offset by additional outlets
margins will be under pressure if no price growth
therefore focus on £20m cost saving programme
US has started 2005 very strongly
sales rate ahead of strong 2004
new outlets opening through the Spring
prices and margins continue to move forward
45
Forthcoming events
AGM trading update
14 April
Morrison presentations and dinner
14 April
Impact of IFRS
Quarter 2
Pre-close trading update
5 July
Interim results
6 September
46
Q&A
George Wimpey Plc
2004 Preliminary Results
Appendix
Pensions –
UK defined benefit scheme
Benefits
scheme closed to new members in 2002
active employee benefits modified and more equitable cost sharing implemented
terms for early retirement from deferred status now addressed
Investment Strategy
69% of fund invested in bonds and cash (2003: 70%)
Accounting
2004
SSAP 24 - P&L expense
£11m
SSAP 24 - Balance sheet net asset
£19m
FRS 17 – P&L (of which £8m non cash expenses on interest line)
£19m
FRS 17 – Balance sheet net deficit
£130m
(While the net deficit is unchanged at £130m the benefit of addressing the early retirement from a deferred
status has been balanced by the strengthening of the mortality assumptions used)
Cash – paid into scheme during 2004
Service cost
Deficit contribution
£8m
£15m
Total
£23m
(in line with our plans disclosed in the 2003 results’ presentation)
49
Group reservations
Reservations
GW private
Laing private
GW affordable
Laing affordable
Ave outlets
Per outlet /
per week
2004
2003
2004
2003
2004
2003
9,804
11,421
257
272
0.73
0.81
836
995
38
37
0.42
0.52
1,073
559
-
-
-
-
205
153
-
-
-
-
UK TOTAL
11,918 13,128
295
309
-
-
US TOTAL
4,822
100
102
0.93
0.72
GROUP TOTAL
16,740 16,939
395
411
-
-
3,811
50
George Wimpey turnover analysis
2004
Year
H2
2003
H1
Year
H2
H1
PD volume
10,345 6,125
4,220
11,228 7,103
4,125
PD ASP £000
182.1
181.1
183.6
167.9
170.8
163.1
PD turnover £m
1,884
1,109
775
1,886
1,213
673
Social volume
777
437
340
585
340
245
Social ASP £000
85.2
88.4
81.1
74.8
74.5
75.2
Social turnover £m
66
38
28
44
26
18
Other turnover
26
20
6
3
3
-
1,976
1,167
809
1,933
1,242
691
Total turnover £m
51
Laing Homes turnover analysis
2004
2003
Year
H2
H1
Year
H2
H1
929
506
423
975
665
310
319.6
329.2
308.1
315.2
307.7
331.2
PD turnover £m
297
167
130
307
204
103
Social volume
181
71
110
121
112
9
109.6
123.4
100.8
109.2
109.7
102.3
Social turnover £m
20
9
11
13
12
1
Other turnover
8
6
2
17
7
10
325
182
143
337
223
114
PD volume
PD ASP £000
Social ASP £000
Total turnover £m
52
George Wimpey margin analysis
2004
2003
Year
H2
H1
Year
H2
H1
Gross margin %
26.7
26.7
26.8
25.1
24.1
27.0
Gross profit £m
527.7
310.9
216.8
486.1
299.3
186.8
Selling expenses £m
(65.2)
(34.1)
(31.1)
(63.1)
(33.3)
(29.8)
Overhead costs £m
(96.7)
(49.7)
(47.0)
(92.9)
(49.9)
(43.0)
Operating profit £m
365.8
227.1
138.7
330.1
216.1
114.0
Operating margin %
18.5
19.5
17.1
17.1
17.4
16.5
53
Laing Homes margin analysis
2004
2003
Year
H2
H1
Year
H2
H1
Gross margin %
23.0
22.8
23.1
22.9
22.5
23.6
Gross profit £m
74.6
41.6
33.0
77.1
50.2
26.9
Selling expenses £m
(10.8)
(5.7)
(5.1)
(12.0)
(7.5)
(4.5)
Overhead costs £m
(20.7)
(9.9)
(10.8)
(23.4)
(13.0)
(10.4)
Operating profit £m
43.1
26.0
17.1
41.7
29.7
12.0
Operating margin %
13.3
14.2
12.0
12.4
13.3
10.6
54
PD activity analysis
2004
GW
Ave. house size (sq ft)
GW
Ave. selling price (£ / sq ft)
Laing
Ave. house size (sq ft)
Laing
Ave. selling price (£ / sq ft)
2003
Year
H2
H1
Year
H2
H1
1,025
996
1,067
1,053
1,051
1,056
178
182
172
160
163
155
1,121
1,149
1,088
1,232
1,192
1,317
285
287
283
256
258
251
55
George Wimpey geographic mix
2004
2003
Private development
Legals
Size
sqft
ASP
£000
Legals
Size
sqft
ASP
£000
North
3,582
1,117
170
3,948
1,116
148
Midlands
3,576
989
169
3,767
1,022
161
South
2,898
987
207
3,187
1,041
198
289
729
249
326
742
190
City
Total
10,345 1,025
182
11,228 1,053
168
56
George Wimpey product mix
2004
%
2003
Year
H2
H1
Year
H2
H1
Apartments
28
30
25
24
25
21
2 / 3 bed houses
33
36
30
33
32
34
4 / 5 bed houses
39
34
45
43
43
45
Total
100
100
100
100
100
100
57
George Wimpey price mix %
% completions by
price band £000s
2004
2003
Year
H2
H1
Year
H2
H1
51 - 75
76 - 100
101 - 125
126 - 150
151 - 175
176 - 200
201 - 250
251 - 300
301+
1
7
13
18
18
13
19
6
5
1
6
14
17
20
12
19
6
5
1
8
12
19
17
14
18
6
5
3
11
15
21
17
11
13
5
4
2
9
15
21
17
12
15
5
4
4
13
16
21
17
10
11
4
4
Total
100
100
100
100
100
100
58
Laing Homes product mix
2004
%
2003
Year
H2
H1
Year
H2
H1
Apartments
59
54
65
49
54
38
2 / 3 bed houses
17
20
13
19
17
23
4 / 5 bed houses
24
26
22
32
29
39
Total
100
100
100
100
100
100
59
Laing Homes price mix
% completions by
price band £000s
2004
2003
Year
H2
H1
Year
H2
H1
100 - 150
151 - 200
201 - 250
251 - 300
301 - 500
501 – 1,000
1,000+
5
22
17
16
31
8
1
4
23
16
17
28
10
2
5
21
18
15
34
7
0
6
23
19
13
28
11
0
9
27
13
12
28
10
1
0
14
28
16
28
14
0
Total
100
100
100
100
100
100
60
Total UK landbank by region
Owned and
controlled plots
Long term acres
2004
2003
2004
2003
North
15,396
13,526
4,934
4,959
Midlands
12,716
12,047
5,529
5,682
South
15,297
14,483
7,108
7,980
City
2,658
3,531
-
-
Laing
5,052
5,021
-
-
Total
51,119
48,608
17,571
18,621
61
George Wimpey short-term land
2004
Plots OWNED
2003
Year
H2
H1
Year
H2
H1
Start of period
30,506
31,018
30,506
29,536
30,605
29,536
Additions
14,039
8,967
5,072
12,783
7,344
5,439
Legal completions
(11,122) (6,562) (4,560)
(11,813) (7,443) (4,370)
End of period
33,423
33,423
31,018
30,506
30,506
30,605
CONTROLLED
12,644
12,644
15,235
13,081
13,081
11,957
TOTAL LANDBANK
46,067
46,067
46,253
43,587
43,587
42,562
62
George Wimpey owned land
2004
2003*
Cost per Value
plot £k
£m
Cost per Value
plot £k
£m
Short term
Plots
Opening landbank
30,506
40.0
1,220
29,536
34.7
1,025
Additions
14,039
46.2
649
12,783
49.3
630
Completions
(11,122)
(40.1)
(446)
(11,813)
(36.8)
(435)
End of period
33,423
42.6
1,423
30,506
40.0
1,220
Acres
Value
£m
Acres
Value
£m
17,571
85
18,621
78
Long term
End of period
*restated for consistency with 2004 figures
Plots
63
Laing owned land
2004
2003
Cost per Value
plot £k
£m
Cost per Value
plot £k
£m
Short term
Plots
Opening landbank
3,053
90.4
276
2,690
88.8
239
Additions
1,856
51.2
95
1,459
91.2
133
Completions
(1,110)
(86.5)
(96)
(1,096)
(87.6)
(96)
End of period
3,799
72.4
275
3,053
90.4
276
Plots
64
Total UK owned land
2004
2003*
Cost per Value
plot £k
£m
Cost per Value
plot £k
£m
Short term
Plots
Opening landbank
33,559
44.6
1,496
32,226
39.2
1,264
Additions
15,895
46.8
744
14,242
53.6
763
Completions
End of period
Long term
End of period
(12,232) (44.3)
37,222
45.6
Acres
17,571
(542)
1,698
Plots
(12,909) (41.1)
33,559
44.6
Value
£m
Acres
Value
£m
85
18,621
78
*restated for consistency with 2004 figures
(531)
1,496
65
Morrison Homes turnover analysis
2004
2003
Year
H2
H1
Year
H2
H1
4,422
2,708
1,714
3,661
2,140
1,521
PD ASP $000s
289
296
278
270
273
266
PD turnover $m
1,277
801
476
989
585
404
13
5
8
9
4
5
1,290
806
484
998
589
409
PD volume
Other turnover $m
Total $m
66
Morrison Homes margin analysis
2004
2003
Year
H2
H1
Year
H2
H1
Gross margin %
24.6
24.9
24.0
22.9
22.9
23.0
Gross profit $m
316.9
200.5
116.4
228.9
135.0
93.9
Selling expenses $m
(64.0)
(37.3)
(26.7)
(56.1)
(32.2)
(23.9)
Overhead costs $m
(64.9)
(35.3)
(29.6)
(54.2)
(29.5)
(24.7)
Operating profit $m
188.0
127.9
60.1
118.6
73.3
45.3
Operating profit $m
14.6
15.9
12.4
11.9
12.4
11.1
67
Morrison Homes PD activity analysis
2004
2003
Year
H2
H1
Year
H2
H1
Ave. house size
(sq ft)
2,386
2,371
2,409
2,415
2,402
2,433
Ave. selling price
($ / sq ft)
121.1
124.8
115.3
111.8
113.7
109.1
68
Morrison Homes regional performance
Turnover
Operating
profit
Operating
margin
2004
2003*
2004
2003*
2004
2003*
$m
$m
$m
$m
%
%
West
453
296
108.2
65.5
23.9
22.2
Southeast
553
431
74.2
43.7
13.4
10.1
Southwest
284
271
25.9
24.2
9.1
8.9
Corporate
-
-
(20.3)
(14.8)
-
-
1,290
998
188.0
118.6
14.6
11.9
Total
*restated to reflect new regional profile
69
Morrison Homes legals
2004
2003
Year
H2
H1*
Year*
H2*
H1*
West
1,130
728
402
832
491
341
Southeast
2,092
1,276
816
1,684
997
687
Southwest
1,200
704
496
1,145
652
493
Total
4,422
2,708
1,714
3,661
2,140
1,521
*restated to reflect new regional profile
70
Morrison Homes average selling price
2004
2003*
$000
$000
%
Change
West
398
355
+12%
Southeast
261
255
+2%
Southwest
233
230
+1%
Total
289
270
+7%
*restated to reflect new regional profile
71
Morrison Homes price mix %
% completions by
price band $000s
2004
2003
Year
H2
H1
Year
H2
H1
<200
201 - 250
251 - 300
301 - 350
351 - 400
401 - 450
451 - 500
500+
19
24
17
14
11
8
3
3
20
26
19
16
11
4
1
3
19
24
16
13
12
10
4
3
25
23
19
17
9
4
1
2
27
23
19
17
8
4
1
2
24
23
18
18
10
4
1
2
Total
100
100
100
100
100
100
72
Morrison Homes short-term land
2004
2003
OWNED AND OPTIONS
Year
H2
H1
Year
H2
H1
Start of period
15,304
17,456
15,304
11,796
12,574
11,796
Additions
8,010
4,144
3,866
7,169
4,870
2,299
Legal completions
(4,422) (2,708) (1,714) (3,661) (2,140) (1,521)
End of period
18,892
18,892
17,456
15,304
15,304
12,574
End of period
2,687
2,687
2,606
1,663
1,663
2,751
TOTAL LANDBANK
21,579
21,579
20,062
16,967
16,967
15,325
282
174
108
203
120
83
CONTROLLED
LAND SPEND $m
73