Chief executive Ian Smith sets out a complete overhaul of group鈥檚 business strategy
The new chief executive of Taylor Woodrow has thrown out his predecessor鈥檚 strategy and revealed his plans to overhaul the UK business.
Ian Smith, who became chief executive at the start of the year, criticised the housebuilders鈥� regional profile, landbank management and its .
He told 好色先生TV that a consolidation of the firm鈥檚 regional businesses five years ago meant that 鈥渢here are important parts of the country where we are not represented鈥�, such as Scotland, Devon, Cornwall and the Thames Gateway.
Smith added that there was too much activity concentrated in the interim and final-year reporting stages. This caused the company to discount units and 鈥済ive in鈥� to planners in an effort to meet targets. He said he wanted to remove this 鈥渟easonality鈥� from the business.
Smith鈥檚 plan to improve the business includes:
- Breaking up its large regional businesses into smaller units to give the firm greater coverage
- Improving the balance of small to large sites
- Improving the location of its landbank
- Introducing a more realistic timeframe for managing projects
- Starting the sales process earlier
Smith said it was too early to go into the details of his plans but he would give an update in July when the company鈥檚 interim results were published.
Taywood鈥檚 preliminary results for the year ending 31 December 2006 showed that pre-tax profit for the group dipped 1% to 拢406m from 拢411m the previous year. Turnover for the group was up 3% to 拢3.7bn.
Taywood鈥檚 UK housing division suffered a 5% drop in operating profit to 拢222m for the period and operating margins were lower at 12% compared with 14.2% the previous year.
Taywood鈥檚 US housing arm put in a much stronger performance than in 2005, generating an 11% increase in operating profit to 拢221m. However, conditions remain tough, and Smith said the main aim of the US business was to survive the short term and be in a position to benefit when the market picks up.
Construction, Taywood鈥檚 smallest division, posted an operating profit of 拢8.1m, down 8% on the previous year.
Peter Johnson, finance director said construction was a high quality business and the company wanted to double its size over the next five years.
