George Wimpey Plc
Manning House
22 Carlisle Place
London SW1P 1JA
Tel +44 (0)20 7802 9888
www.georgewimpeyplc.co.uk
George Wimpey Plc
Annual Report and Accounts
05
George Wimpey Plc 2005 Annual Report and Accounts
     2005 2004* % Change
Group proﬁt before tax £366.5m £437.6m –16%
Group operating proﬁt £437.5m £497.5m –12%
– UK housing £278.0m £409.4m –32%
– US housing $308.3m $188.3m +64%
Operating margins
– UK housing 12.9% 18.0%
– US housing 20.0% 14.7%
Group ROACE 22.3% 28.9%
– UK housing 17.3% 28.3%
– US housing 44.2% 33.9%
Dividends
– Dividend per share 17.6p 16.0p +10%
– Dividend cover 3.7x 4.9x
* restated for IFRS
#
restated for change in land sales policy
†
before exceptional costs of £5.9 million in 2002 and £28.9 million in 2001
Turnover 
(£m)
#
3,000
2,400
1,800
1,200
600
0
05 04 03 02 01
3,003
1,881
2,536
2,856
2,976
Operating proﬁt 
(£m)
†
500
400
300
200
100
0
UK GAAP IFRS
05 04* 04 03 02 01
497.5
437.5
213.1
329.7
429.8
500.4
Basic earnings per share
(pence)
†
100
80
60
40
20
0
UK GAAP IFRS
05 04* 04 03 02 01
78.4
64.3
32.8
52.2
68.5
80.8
Dividend per share
(pence)
20
16
12
8
4
0
05 04 03 02 01
17.6
8.25
9.1
12.25
16.0
Proﬁt before tax 
(£m)
500
400
300
200
100
0
UK GAAP IFRS
05 04* 04 03 02 01
437.6
366.5
152.0
285.9
378.2
450.7
Shareholders’ funds per share
(pence)
400
320
240
160
80
0
UK GAAP IFRS
05 04* 04 03 02 01
340
389
210
250
304
368
Financial Highlights
Shareholder Information
Annual General Meeting
20 April 2006 11:30am at 
The Royal College of Physicians, 
11 St Andrews Place, Regents Park, London NW1 4LE.
Results
2005 year end results – 21 February 2006
2006 half year results – 1 August 2006
Dividends
Final Dividend – subject to approval at the Annual General Meeting, 
a ﬁnal recommended dividend of 11.9 pence will be payable on 
12 May 2006 to ordinary shareholders whose names appear in the 
register of members at the close of business on 3 March 2006. 
The ex-dividend date is 1 March 2006.
Interim dividend – dates to be announced in July 2006.
Once these dates have been approved they will be displayed on our 
website www.georgewimpeyplc.co.uk
The scrip dividend scheme introduced by the Company in 2002 continues 
to be available to shareholders. For more information, please contact 
Lloyds TSB Registrars.
Shareholders’ Services
The Company continues to encourage private shareholders. 
Shareview dealing
On the Company’s behalf, Lloyds TSB Registrars operate a phone or internet
based low cost share sales service in George Wimpey Plc shares. The
telephone service is available on 0870 850 0852 and the internet based
service at the website, www.shareview.co.uk/dealing.
Postal share dealing service
JPMorgan Cazenove Limited also offer a low cost postal share dealing service
on behalf of the Company. 
For any further details on either service please contact the Group Company
Secretary at the Registered Ofﬁce or by telephone on 
+44 (0) 20 7802 9888.
Corporate Individual Savings Account (ISA)
George Wimpey has a corporate-sponsored ISA through The Share Centre.
For further information, please contact The Share Centre directly on 
+44 (0) 1296 41 41 44 or email: info@share.co.uk.
More information can be found on the website www.share.com
The Share Centre, an independent stockbroker, is a member ﬁrm of the
London Stock Exchange and is authorised and regulated by the Financial
Services Authority under reference 146768.
ShareGift
Shareholders with a small number of shares, the value of which makes it
uneconomic to sell them, may wish to consider donating them to charity
through ShareGift, a registered charity administered by The Orr Mackintosh
Foundation. A ShareGift donation form can be obtained from Lloyds TSB
Registrars. Further information about ShareGift is available at
www.sharegift.org or by writing to: ShareGift, The Orr Mackintosh
Foundation, 24 Grosvenor Gardens, London SW1W 0DH.
Private Shareholders
If you have a query about your holding of George Wimpey Plc shares or 
need to change your details, for example address or payment of dividend
requirements, please contact the Registrars at the address shown.
Website
Further details of the Group’s activities and products can be seen on its
website at www.georgewimpeyplc.co.uk. Services available include:
• email alert service
• download Company reports
• access press releases
• download investor presentations
• view investor presentation via webcasts
• interactive share price charting tool
• view analysts forecasts
Group Company Secretary and Registered Ofﬁce
James Jordan 
Manning House 
22 Carlisle Place 
London 
SW1P 1JA
email: jjordan@georgewimpey.co.uk
Tel: +44 (0) 20 7802 9888
Registered Number
1397926
Registrars
Lloyds TSB Registrars 
The Causeway 
Worthing 
West Sussex 
BN99 6DA
Tel: 0870 600 3970
You can see more details of your shareholding on Lloyds TSB Registrars
website on www.shareview.co.uk
Investor Relations Contact
Terri Wright
email: twright@georgewimpey.co.uk
Tel: +44 (0) 20 7802 9888
George Wimpey Plc is a public limited company listed on the 
London Stock Exchange and domiciled in England.
Published by Black Sun Plc
Photography by Richard Olivier
Printed by Royle Corporate Print
www.georgewimpeyplc.co.uk 77
Shareholder Information George Wimpey Plc is a dedicated 
housebuilding company. With 125 years’
experience, we have an unparalleled 
record in our industry. 
We have operations in the UK and US 
and aim to be the housebuilder of choice 
for our customers, our employees, our
shareholders and for the communities 
in which we operate. 
Business Review
Financial Highlights 1
Group Overview 2
Chairman’s Statement 4
Chief Executive’s Review 6
Operating and Financial Review
UK Housing 8
US Housing 16
Corporate Social Responsibility 22
Group Financial Review 26
Corporate Governance
Board of Directors 30
Directors’ Report 31
Corporate Governance 33
Remuneration Report 36
Financial Statements
Auditors’ Report 43
Group Income Statement 44
Balance Sheets 45
Cash Flow Statements 46
Accounting Policies 47
Notes to the Accounts 49
Five Year Review 72
Shareholder Information
Notice of Meeting 73
Business Directory 76
Shareholder Information 77
www.georgewimpeyplc.co.uk 1
Financial Statements Corporate Governance Operating and Financial Review Business Review Shareholder Information
Completions 
UK 12,100 (71%)
US 4,921 (29%)
Operating proﬁt
UK £278.0m (62%)
US £169.4m (38%)
UK housing
Operating proﬁt 
(£m)
500
400
300
200
100
0
UK GAAP IFRS
05 04* 04 03 02 01
409.4
278.0
173.6
290.2
371.8
408.6
US housing
Operating proﬁt
($m)
300
240
180
120
60
0
UK GAAP IFRS
05 04* 04 03 02 01
188.3
308.3
66.4
80.7
118.6
188.0
Contents
  Highlights
Key Facts
Our Business
Business Review
Group Overview
2 George Wimpey Plc Annual Report and Accounts 2005
We have unparalleled experience 
in the housing industry
UK completions
15
12
9
6
3
0
Private Aﬀordable
05 04 03 02 01
 10,678  1,422 
 10,929 608 
1,204
 12,203  706 
 11,274  958 
 12,516 
UK average selling price 
(£000s)
175
140
105
70
35
0
05 04 03 02 01
178
118
146
174
185
• In 2004 over 180,000 new homes were
completed in the UK. We completed 12,232
homes which gave us a 7% market share
• In 2005 we completed 12,100 new homes 
• The average price of our new homes 
was £178,000
• 66% of our completions were built 
on brownﬁeld land
• 89% of our customers would recommend
us to a friend or family member
• At the end of 2005 our UK landbank stood 
at 50,985 plots
UK Housing
Our 26 regional businesses and three satellites in 
the UK give our operations signiﬁcant scale and truly
national geographic coverage. Each business unit
provides a range of products, from one bedroom
apartments and starter homes to large detached
family homes. 
Our UK homes are sold under two distinct brands:
the core ‘George Wimpey’ brand and the ‘Laing
Homes’ brand which has previously been used solely
in the South East and Midlands. Going forward all our
businesses will have the opportunity to use both
brands. This will allow better use of large sites and
provide greater returns on future land purchases.
2005 was the most challenging housing market in
the UK for a number of years. However, a fundamental
shortfall in housing supply still exists which will
underpin the market going forward. This provides
George Wimpey UK with signiﬁcant potential for
future growth.
Regional ofﬁces
Satellite ofﬁces We are fully committed to creating prosperous, inclusive and
sustainable new communities and in maximising design, build quality
and innovation to help make communities, towns and cities better
places to live and work. In all of our businesses we pride ourselves 
on industry leading standards of health and safety, build quality and
customer service and satisfaction. 
www.georgewimpeyplc.co.uk 3
Business Review
US completions
5
4
3
2
1
0
05 04 03 02 01
4,921
2,900
3,197
3,661
4,422
US average selling price 
($000s)
300
240
180
120
60
0
05 04 03 02 01
313
238
252
270
289
• The US new homes market dwarfs that
of the UK. Around 1.7 million new single
family homes were built in 2005
• We completed 4,921 homes in 2005. 
We are now ranked 18th by volume 
in the list of America’s biggest builders
• The average price of our new homes 
was $312,700
• 85% of our customers would recommend
us to a friend or family member
• At the end of 2005 our US landbank stood 
at 23,514 plots
US Housing
In the US, our ‘Morrison Homes’ brand operates in 14
of the strongest housing markets across ﬁve states
from California to Florida. In recent years Morrison
Homes has gone from strength to strength, building
on its reputation for delivering quality homes with
outstanding levels of customer service. 
The business continues to experience rapid growth,
delivering circa 5,000 homes in 2005 with operating
proﬁts more than trebling over the past ﬁve years.
Morrison builds a range of traditional single family
homes and more compact attached townhomes.
Morrison is set to achieve further growth over the next
few years, beneﬁting from its position in the strongest
US housing markets and by developing its successful
satellite business model into three new markets.
Divisional ofﬁces
Satellite ofﬁces
2005 Awards
Awards received by George Wimpey and
Morrison Homes during 2005 include:
Housing Design Awards
Project Winner and Large Housebuilder Winner
Building for Life
Silver Award
Housebuilding Innovation Awards
Best Community Consultation
Construction Manager of the Year
Gold Medal won by Pierce Browne 
of George Wimpey West Midlands
NHBC Pride in the Job Awards
50 Quality Awards and six Seals 
of Excellence
Evening Standard New Homes Awards
Best New Family Home
Your New Home Awards
Best Development for Family Living
Daily Express New Homes Garden Awards
Gold and Silver Awards
Homes for Scotland Awards
Customer Service Award and four Commendations
Excellence in Energy Performance Awards, Texas
Winner Group results
Although 2005 was a challenging year for George Wimpey, we emerged from it stronger and better
placed for the future.
The housing market in the UK remained difﬁcult throughout the year, with the total number of housing
transactions for 2005 17% below the previous year. Against this background, our businesses did well to
deliver total UK volumes similar to last year as well as signiﬁcantly increasing our forward order position
entering 2006. The increased use of incentives needed to achieve this, along with the impact of a shorter
landbank, resulted in reduced operating proﬁts and margins. By contrast the US housing markets in which
we operate remained very strong, with national housing starts reaching record levels. We continued 
to push forward strongly with our growth plans and delivered higher volumes, margins and operating
proﬁts. In the US too, we have come into the new year with a far stronger order book. 
Total turnover for the Group rose slightly to £3,003.2 million (2004: £2,976.0 million). Reﬂecting 
the more challenging market conditions in the UK, Group proﬁt before tax fell to £366.5 million 
(2004: £437.6 million), 16% below the record levels achieved last year.
Dividend
We remain committed to delivering long term growth in both of our housebuilding businesses. 
Although the UK business experienced difﬁcult trading conditions during 2005, the Board remain
conﬁdent in the underlying strength and cash generative capability of the Group.
We are therefore proposing an increase of 10% in the ﬁnal dividend to 11.9 pence per share. Following 
the 10% increase in the interim dividend, if approved at our Annual General Meeting, our recommended
increase would bring the total dividend relative to the year to 17.6 pence per share. This represents a
rise of 10% on 2004 and a cumulative rise of 113% over the past ﬁve years. 
The Board
During 2005 I have been delighted to welcome two new independent Non Executive Directors 
to the Board. Tony Reading joined us on 15 April, having previously been an Executive Director of 
Tomkins Plc and Chairman and Chief Executive of Tomkins Corp, USA. Tony has brought with him a
wealth of operational experience gained both within the UK and the US. Robert Sharpe, Chief Executive
of The Portman Building Society, joined us on 1 September as Mike Blackburn stood down as a Non
Executive Director. Robert brings with him a wealth of experience from the ﬁnancial services sector 
and will provide insight into the housing ﬁnance market. Mike has been a highly respected member 
of the Board for six years and held the positions of Chairman of the Remuneration Committee and 
Senior Independent Director. David Williams succeeded Mike as our Senior Independent Director. 
On behalf of the Board I would like to thank Mike for the tremendous contribution made during 
his time with the Company. 
Business Review
Chairman’s Statement
The Board remains conﬁdent in 
the underlying strength and cash
generative capability of the Group.
We are therefore proposing an
increase of 10% in the dividend 
over 2004.
4 George Wimpey Plc Annual Report and Accounts 2005
Focusing on 
long term growth
Dividend per share
(pence)
20
16
12
8
4
0
05 04 03 02 01
17.6
8.25
9.1
12.25
16.0
    On 21 November, we announced that Stu Cline would be retiring as Chairman of Morrison Homes and 
as a Director of George Wimpey Plc at the end of December 2005. Stu joined Morrison Homes in 1994 
and has been the driving force behind the enormous success of our US housing business. Since joining
the Board in December 2000, Stu has made a valued contribution not only to the success of the US
business but also to the Group as a whole. I was very pleased that we were able to announce that Steve
Parker, who took over from Stu as President of Morrison Homes at the beginning of 2005, would join the
Board as an Executive Director as from 1 January 2006.
In October 2000 Peter Johnson joined George Wimpey as Group Chief Executive charged with the task of
transforming the performance of our Company. There can be no doubt that over the past ﬁve years, with
Peter’s direction, this business has been transformed and it is in a much stronger position today than it
was when he took over. Over the past ﬁve years total shareholder returns have been signiﬁcantly above
those of the UK housebuilding sector. As well as delivering major operational changes and improvements,
he successfully managed the internal succession of Peter Redfern to Chief Executive of our UK business at
the beginning of 2004 and of Steve Parker to President of Morrison Homes at the beginning of 2005. With
this in place, Peter has now concluded that he believes this is the right time for the business, and for him,
to hand over the reins and that he wishes to retire from George Wimpey with effect from 30 June 2006. 
I would like to take this opportunity to thank Peter both personally and on behalf of the Board for all
that he has done to create a stronger, more uniﬁed business and one that is now in a position to move
forward again.
I am particularly pleased that during his time as Group Chief Executive, Peter has been able to develop his
successor from within the business. Peter Redfern has been appointed Deputy Chief Executive with effect
from 21 February 2006 to work alongside Peter until his retirement to ensure a smooth transition for all in
the business. Peter Redfern will be appointed Group Chief Executive on Peter’s retirement. 
Employees
We are fortunate to have a dedicated and loyal work force whose continuing support and hard work 
has helped to strengthen our business. On behalf of the Board I would like to take this opportunity once 
again to thank all of our employees in the UK and the US for all they have achieved over the past year.
Outlook 
In the UK, the improvement that we experienced at the end of 2005 has continued and we remain
encouraged by growing signs of returning buyer conﬁdence. Although it is too early to predict the market
for the year, the level of transactions in the ﬁrst seven weeks of the new year has started to increase,
and in some areas we are reducing incentives. In the relatively stable price conditions we expect in
the near future, we are conﬁdent that our stronger order book gives us a better negotiating position
to reduce incentives.
Towards the end of 2005 the market across much of the US slowed as the rapid pace of price growth
experienced since mid 2004 moderated. Morrison had already taken early action to increase its order
book and entered 2006 with a strong forward sales position in terms of volume, price and margin.
Industry projections forecast only a modest reduction in volumes to levels which remain historically high.
John Robinson Chairman
Over the past ﬁve years George
Wimpey has been transformed 
and the business today is in a 
much stronger position than it was
when Peter took over in 2000. Total
shareholder returns in this period
have been signiﬁcantly above those
of the UK housebuilding sector.
www.georgewimpeyplc.co.uk 5
Business Review Whilst the testing market conditions
we faced in the UK during 2005
presented us with particular
challenges, we are emerging 
from them stronger than ever.
Lessons have been learned, and
changes made. Going forward, all 
regional businesses will have the
opportunity to use both the George
Wimpey and Laing Homes brands.
This will allow better use of large
sites and provide greater returns 
on future land purchases.
This is my sixth and last Review as Chief Executive of George Wimpey. It is, therefore, a good time 
to reﬂect on the progress the Group has made over the last ﬁve and a half years and to report on 
its strength as I prepare to pass its leadership to my successor, Pete Redfern, later this year.
Whilst the testing market conditions we faced in the UK during 2005 presented us with particular
challenges, we are emerging from them stronger than ever. Our position in the US has been transformed
over the past ﬁve years and we are now a major player in some of our markets with outstanding long 
term potential. Going forward, the Group is well placed in its UK and US markets which gives it both
opportunities and choices for future growth.
UK – George Wimpey 
UK house prices rose rapidly until mid 2004 when stretched affordability led to a substantial drop in
transactions. A year ago, many commentators were forecasting signiﬁcant price falls. However prices
remained broadly stable through 2005 and today almost all competitors believe the market has had 
a soft landing. In the absence of more general economic problems, the outlook would appear stable,
though without a return to strong price growth.
In 2005, George Wimpey delivered 12,100 homes and £278 million operating proﬁt, up from 11,437 homes
and £142 million operating proﬁt in 2000. However, in 2004, we had delivered 12,232 homes and £409
million operating proﬁt. A short landbank and order book, together with changes in the market and the
planning regime, posed particular challenges to us, which impacted 2005 margins.
In 2001 we restructured the business to one with an efﬁcient overhead structure and product range and
low build costs. We acquired McAlpine Homes and invested in our landbank, raising hurdle rates to deliver
improved margins. We acquired Laing Homes to give us a second brand to support organic growth.
However, our landbank remained short and our strategic land limited. With few sites coming forward with
older planning permissions, the implementation of Government planning policy, PPG3, impacted us faster
than most. Underlying build costs rose sharply as our build efﬁciencies were eroded. When prices stopped
rising, margins fell as high build costs on bespoke PPG3 schemes compounded the higher land costs
associated with a short landbank. 
Lessons have been learned, and changes made. Going forward, all regional businesses will have the
opportunity to use both the George Wimpey and Laing Homes brands. This will allow better use of large
sites and provide greater returns on future land purchases. We have re-established an efﬁcient overhead
structure and product range which meet the needs of today’s market and planning regime and which
again give us lower build costs. The use of standard building elements and a full range of PPG3 preferred
house types are re-establishing our former time and cost advantages, whilst enabling us to meet local
planning requirements for variety of elevation without the requirement for bespoke developments. 
A stronger forward order book will help us manage price better. We have taken action to address the
problems which have affected our 2005 performance in the UK and we enter 2006 in good shape.
Business Review
Chief Executive’s Review
6 George Wimpey Plc Annual Report and Accounts 2005
Reflecting on
progress
    US – Morrison Homes
In the US the demand for housing has grown signiﬁcantly in recent years, underpinned by the strength of
the economy and strong demographic trends. This has led to substantial price rises across many markets,
and in some affordability is stretched. However, interest rates remain low, the economy healthy and job
growth strong. With almost 1.3 million new households being formed each year for the next ﬁve years, half
as much again as over the past ﬁve years, the outlook for the US housing market is good.
In 2005, Morrison Homes delivered 4,921 homes and $308 million operating proﬁt, up from 2,638 homes
and just $53 million operating proﬁt in 2000. Today we operate in 14 markets compared to eight in 2000
and we have exited those markets where we were unable to generate adequate returns. In many of our
markets we have become a major player, most notably in Central Florida where we sold over 2,000 homes
in 2005. We have achieved this by focusing on markets where population and employment growth is
especially strong, expanding into neighbouring markets where our relationships and market knowledge
give us an advantage, and developing new more affordable products to broaden our market coverage.
By maintaining a high asset turn we have sustained a strong underlying cash ﬂow which has enabled us
to grow our landbank signiﬁcantly. Based on this ﬁnancial structure and strategy, our business plans will
double volume during the next ﬁve years, creating the potential for substantial further value creation.
Group
Over the past ﬁve years we have restructured our balance sheet, with a well balanced debt structure at
highly competitive terms and conditions. We have both stability and the ﬂexibility to pursue our strategic
choices. We took the necessary actions early to bring our Pension Fund deﬁcit under control, closing the
deﬁned beneﬁt scheme to new members and increasing employee contributions. We have established
ourselves as a leader in our industry in our approach to corporate governance and to the other areas
associated with corporate social responsibility. In an industry which has a material effect on those 
around us, this is becoming an increasing competitive advantage.
Today we behave as a single business. Our senior management teams understand the total business 
and each others’ pressures and needs. Internal communications have been improved and sharing of
knowledge and experience has become commonplace.
Conclusion 
It was always my plan to retire from this role after about ﬁve years and to ensure a smooth and effective
internal succession. I am therefore proud as well as delighted to be able to pass on to Pete Redfern, whose
revitalisation of our UK business demonstrates he has the energy and talent to take the Group forward to
the next stage.
There have been many across our businesses in the UK and US who have worked tirelessly through strong
and challenging markets, and through times of stability and of change. I would like to thank all those who
have been employees of George Wimpey whilst I have been Chief Executive for the tremendous support
they have given me. As I prepare to leave, I am conﬁdent I am handing over the Group in good shape and
into good hands. 
Peter Johnson Group Chief Executive
Today Morrison Homes operates 
in 14 markets compared to eight 
in 2000. In many of our markets 
we have become a major player.
In the US, our ﬁnancial structure and
strategy support our business plans
to double volume during the next
ﬁve years, creating the potential for
substantial further value creation.
Going forward, the Group is well
placed in its UK and US markets
which gives us both opportunities
and choices for future growth.
I am conﬁdent I am handing over
the Group in good shape and into
good hands. 
www.georgewimpeyplc.co.uk 7
Business Review Operating and Financial Review
UK Housing
8 George Wimpey Plc Annual Report and Accounts 2005
Midlands
Our Midlands Division consists of eight regional businesses 
and one satellite ofﬁce. During 2005 the Division sold over 
3,000 private homes at an average selling price of £170,200. 
Wide range of products
George Wimpey seeks to meet the needs of
customers by building a variety of mid-market
products across the UK. By developing a range 
of preferred house types George Wimpey can
standardise build times and build costs at the 
same time as delivering a choice of well designed
products to suit differing neighbourhoods.
Mawsley Village
Sedgley Mews – Tipton 
George Wimpey has developed a new
product to provide high quality homes
for key workers and ﬁrst time buyers 
at a price tag of less than £100,000. 
The new product will be trialled 
during 2006.
Sedgley Mews – Tipton
Oxley Park – Milton Keynes 
George Wimpey, with the Richard Rogers
Partnership, has been selected by English
Partnerships as the preferred developer
for Oxley Park in Milton Keynes. The site
consists of 145 units, 56 of these will 
be homes designed to meet the 
£60,000 target for the Design for
Manufacture competition. 
Oxley Park – Milton Keynes
Land for the future
George Wimpey has continued to
strengthen its land position in key
areas of growth within the Division.
The businesses currently own or
control 13,878 plots of land and
hold 4,662 acres within the 
strategic landbank.
Existing and future sites 
are indicated on the map
£60k
HOMES TO BE BUILT 
AT OXLEY PARK
1 2 3
45 6
1 2 3
45 6
1 2 3
45 6
     www.georgewimpeyplc.co.uk 9
Operating and Financial Review
Map Key
Current Developments
Landbank
Regional and Satellite Ofﬁces
Hallmark Award Winners
NHBC Quality Award Winners
Hallmark and NHBC Award Winners
Brand strength
Our UK business consists of two distinct brands; the core ‘George Wimpey’ brand 
and the ‘Laing Homes’ brand which has previously been used solely in the South East
and Midlands. Going forward all our businesses will have the opportunity to use both 
brands. This will allow better use of large sites and provide greater returns on future 
land purchases. The Midlands Division currently has two double branded developments
where the George Wimpey and Laing Homes ﬂags ﬂy side by side. More are planned 
for 2006. 
Lawley – Telford
George Wimpey are working in
partnership with English Partnerships
and two other housebuilders to 
deliver one of England’s largest new
communities at Lawley in Telford. 
The Lawley scheme will see 1,100
homes being built by George Wimpey
(3,300 in total) along with ofﬁces,
restaurants, bars, a primary school,
parkland and shops.
Lawley – Telford
Delivering quality
George Wimpey continues to lead the
housebuilding industry with its commitment 
to delivering a quality product and outstanding
satisfaction to its customers. 
During 2005 the National House Building Council
awarded 20 quality awards to developments across
the region. 22 developments were also awarded
our internal Hallmark Award by scoring a minimum
of ‘very good’ in 8/9 customer satisfaction
questions. Outstanding sites received both awards.
The Mall – Birmingham
As well as being awarded NHBC and Hallmark
Quality Awards, Pierce Browne, Site Manager at
The Mall was awarded the Gold Medal for
Construction Manager of the Year in 2005.
1 2 3
45 6
1 2 3
45 6
1 2 3
45 6
1 2 3
45 6
1 2 3
45 6
1 2 3
45 6
1 2 3
45 6 The long term outlook for the 
new home market in the UK 
remains positive. The demand 
for new homes is estimated 
to be 220,000 per year.
Peter Redfern
Chief Executive George Wimpey UK
(2005). Peter was appointed 
Deputy Group Chief Executive 
in February 2006.
UK housing market
During 2005 the UK experienced the most challenging housing market for a number of years. The impact
of interest rate rises over the course of 2004 and concerns over house price inﬂation saw greatly reduced
activity levels. According to the Land Registry, total housing market transactions reduced by 17% compared
with the previous year. Despite widespread concerns at the start of the year, overall prices remained
broadly stable, with modest ongoing increases in some markets offset by similar declines elsewhere. 
The new build market generally saw a signiﬁcant increase in the use of incentives in order to keep total
volume declines to a minimum.
The long term outlook for the new home market remains positive. The fundamental supply/demand
imbalance remains. A steadily increasing, aging population, reduced average household size and an aging
housing stock are driving demand for new homes to an estimated 220,000 homes per year. In contrast the
regulatory environment, and in particular the restrictive planning system, is constraining the supply of new
homes to around 160,000 per year.
Since the General Election in May 2005, the Government has repeatedly indicated its support for the
ﬁndings of the Barker Review carried out in 2004, which looked at the causes of undersupply of housing 
in the UK. The ﬁndings of the review called for a step change in housing output through widespread
release of land for new housing and reform of the planning system. 
Much of the detail of how these recommendations will be implemented is not planned until the
completion of the 2007 Spending Review. In the meantime, the Government has asserted its intention 
to achieve a steady growth in annual housing starts and is consulting the industry and other interested
parties on a range of policy initiatives. George Wimpey is actively involved in these discussions with the
Government, both directly and through its membership of the Home Builders Federation and the CBI. 
We hope that a favourable outcome will be achieved which is in the interests of both the Company and 
the industry as well as meeting the Government’s public policy objectives. At the same time, we have
been seeking to reassure the Government and others that George Wimpey and the wider industry are 
well placed to step up to the challenge of delivering high quality housing in the quantities demanded. 
George Wimpey market conditions 
Market conditions weakened considerably during the second half of 2004. Although the ﬁrst few weeks 
of 2005 started encouragingly, the recovery was short lived and George Wimpey experienced challenging
market conditions across all its businesses throughout most of 2005. The traditional key spring selling
season remained subdued and the market remained slow, but steady, for much of the year. Customers
were generally cautious, taking longer to commit to their purchase and, as a result of the material
reduction in total housing transactions, often experiencing delays in selling their existing home. This
problem was exacerbated by the unrealistic price expectations in much of the second hand market 
as some sellers and agents projected continued price increases. 
Operating and Financial Review
UK Housing
10 George Wimpey Plc Annual Report and Accounts 2005
Taking action to 
strengthen results
    In line with the industry, our visitor levels were below those achieved in 2004. Sales rates were well below
the prior year during the ﬁrst half. As a result of the impact of market conditions on our sales rates through
the second half of 2004 and ﬁrst half of 2005, our forward sales position was unusually low at the end of
June. We therefore took action by raising the bar on our sales processes and people, and by using our
standard forms of incentives, both to deliver our full year volume targets and to rebuild our order book. 
As a result, sales rates during the second half were well above prior year levels. Towards the end of the
year there was some evidence of the market stabilising, particularly in the south of the country, as
conﬁdence started to return after interest rates were cut in August.
Strategy 
It remains our strategy to deliver longer term volume growth in the UK and we believe the long term
fundamentals of the UK housing market are in place for us to achieve this. However, the market conditions
over the past 18 months have had an inevitable impact on the financial performance of our business. 
In addition there have been some areas of our business that have not performed at the levels we demand.
We have taken a number of actions to address these.
At the end of 2005 we introduced a new UK operating structure which will manage all of our businesses
within a simpliﬁed structure of three geographical divisions. We have also strengthened a number of senior
management roles within the operating companies.
The use of the Laing Homes brand, acquired to achieve organic growth, had previously been limited 
to dedicated Laing Homes businesses. Going forward all our businesses will have the opportunity to use
both brands. This will allow better use of larger sites, provide greater returns on future land purchases 
and improve our overhead efﬁciency.
Over the past two years, in light of a competitive environment and the risk of over-development, we have
limited our exposure to high-rise, inner-city developments. We have reduced our risk exposure to this market
further through joint ventures for three developments in London and Manchester. After further review we
feel the skills and capital intensity required for this business are in many cases too different from our core
business to justify further investment. Where this is the case, we will therefore be withdrawing from this
market, building out current projects as planned. 
We have taken other actions on our product range and order book which are set out below.
Financial review
In 2005 turnover for the UK business was £2,157.6 million, 5% below last year (2004: £2,277.9 million).
Operating proﬁts were impacted by the more challenging market conditions requiring greater use of
incentives, which had the effect of reducing net prices during the year at a time when land costs were
continuing to increase. Operating proﬁts reduced to £278.0 million (2004: £409.4 million) with operating
margins falling to 12.9% (2004: 18.0%). Operating margins have been adversely affected by a number of
issues. Lower average selling prices and the impact of a changing mix, with a greater proportion of smaller
private products and affordable housing, has reduced margins by around 2%. The impact of higher land
costs driven by land inﬂation has reduced margins by another 3%. 
It remains our strategy to deliver
longer term volume growth in 
the UK and we believe the long
term fundamentals of the UK
housing market are in place for 
us to achieve this.
www.georgewimpeyplc.co.uk 11
Operating and Financial Review
Turnover
Operating proﬁt
IFRS
0
500
1,000
1,500
2,000
2,500
0
100
200
300
400
500
Turnover
#
Operating proﬁt
UK GAAP
278.0
2,157.6
409.4
2,277.9 2,277.9
371.8 
408.6
2,252.9 1,999.6 1,403.1
290.2
173.6
2005 2004* 2004 2003 2002 2001
#
 restated for change in land sales policy * restated for IFRS 
UK housing
Five year turnover and operating proﬁt      
(£m) 
At the end of 2005 we introduced
a new UK operating structure which
will manage all of our businesses
within a simpliﬁed structure of three
geographical divisions.
We have strengthened a number 
of senior management roles within
the operating companies. Outlets and completions
The average number of outlets open throughout the year was 307, 4% above the previous year (2004: 295).
The planning environment remains difﬁcult and the time taken to process planning applications has
continued to increase. We have reviewed the methodology we use for making applications and by working
more closely with local authorities and the Planning Inspectorate, continue to strive to improve the time
taken for approvals to be gained. Of 21 planning appeals heard during the year, we were successful in 18. 
The total number of completions was 12,100 just 1% below the prior year (2004: 12,232). The total number
of private development completions was 10,678, 5% below last year as a result of the reduced order book
at the start of the year and the slower market conditions experienced throughout the year (2004: 11,274).
The number of affordable completions rose 48% to 1,422 (2004: 958), largely as a result of increased
planning requirements. 
George Wimpey maintained an even geographic spread across the UK market. We intend to continue 
to do so, and focus our activities on those markets with the opportunity to maintain consistent sales rates.
The business unit established in Cardiff in 2001 as a satellite operation of our South West region has now
achieved the scale of a stand alone business unit and has operated independently since the beginning 
of 2006. Three new satellite businesses were set up in Aberdeen, Peterborough and Plymouth to ensure
maximum coverage for our East Scotland, East Midland and Bristol regions respectively. 
Prices and costs
Average selling prices for the year fell by 4% to £178,000 (2004: £185,300), of which 1.5% was the direct
impact of additional affordable units. Average selling prices on private completions fell by 2% to £188,600
(2004: £193,400), largely caused by the increased use of incentives which were used throughout the year 
at slightly higher levels than previously. Prices for affordable homes rose by 10% to £98,600 (2004: £89,800).
As we moved into the second half of 2005 we took the decision to increase our sales rate. As a result, second
half reservations increased signiﬁcantly, by 34.6% over 2004. We were able to achieve this by an even greater
focus on promotion and sales presentation as well as by the use of targeted incentives. The range of
incentives used continues to be varied, plot speciﬁc and tailored to individual customers’ requirements. 
The decision to strengthen our order book has had a short term impact on margins, which we estimate 
to be 1% on sales taken in the second half of 2005. However we are now strongly placed to start reducing
incentives and increase prices, as well as grow volumes in the ﬁrst half of 2006. This will enable us to begin
to rebuild our margin position. 
Build costs have been broadly ﬂat, with most of the effects of inﬂation offset by our own actions. At the
beginning of 2005 we announced a programme to reduce our cost base by £20 million, of which £17
million would be achieved in 2005. We have achieved £18 million of savings in 2005, with the balance
expected in the early part of 2006. We have reduced our overheads year on year, with cost savings more
than countering inﬂation and restructuring and redundancy costs of £5.2 million. 
Maintaining a tight control of costs has always been a major focus within our business. We seek to gain
maximum beneﬁt from our scale and work in partnership with a number of suppliers to ensure mutual
beneﬁts and lower build costs. 
We have worked further to improve our environmental management systems on-site, which is helping 
to reduce the amount we pay in landﬁll tax and in other costs associated with removal of waste materials
Operating and Financial Review
UK Housing continued
12 George Wimpey Plc Annual Report and Accounts 2005
UK housing
Operating margin 
(%)
20
16
12
8
4
0
* restated for IFRS
UK GAAP IFRS
05 04* 04 03 02 01
18.0
12.9
12.4
14.5
16.5
17.9
0
7
14
21
28
35
+500 300-500 250-300 200-250 150-200 100-150 50-100
UK housing
Private development price points 
(%) 
1
6
18
7
32
30
6
Price points (£000’s)
As we moved into the second half 
of 2005 we took the decision to
increase our sales rate. As a result
second half reservations increased
signiﬁcantly, by 34.6% over 2004. from brownﬁeld sites as well as ensuring we achieve industry leading environmental performance. As 
set out in more detail in the CSR Report, we are the ﬁrst volume housebuilder to achieve ISO 14001: 2004
status for our entire UK business. 
The introduction of PPG3 has had a signiﬁcant impact on our cost base. It is now only possible to build
our traditional, efﬁciently engineered products on a limited number of sites. Therefore, our product range
has grown as we have been required to build a high proportion of bespoke products. As a result, costs
have increased signiﬁcantly, with many bespoke products often exceeding our original expectations. We
have therefore reviewed our product range with the objectives of reducing and controlling costs whilst
still delivering products the customer wants and meeting the aspirations of local and national planners. 
As part of this, we have developed a preferred house type range as a benchmark across our organisation.
This incorporates a comprehensive product range from one bedroom apartments through to large
detached houses and enables us to establish common ﬂoorplans, which are efﬁcient to build and meet
our customers’ requirements for space usage, whilst at the same time enabling us to modify elevations
and exterior design to meet the requirements of local planners.
Product mix
The proportion of sales accounted for by 4/5 bedroom homes fell during the year to 32% (2004: 37%) with
the proportion of apartments rising to 36% (2004: 31%). As the proportion of apartments has increased,
the average square footage of our products fell slightly to 994 sq ft (2004: 1,033 sq ft) as the proportion 
of affordable homes as well as apartments grew at the expense of 4/5 bedroom homes. 
As a volume housebuilder we continue to build a mix of products that meets the needs and requirements 
of our customers and provides a wide range of products to satisfy a broad market. However, in recent years,
following rapid price inflation, affordability has become an issue for customers of our smaller products.
These are now all too often outside the price range of the ﬁrst time buyer and the key worker. We have
therefore reviewed the market for ﬁrst time buyer products and identiﬁed an opportunity for George
Wimpey to introduce a new range of compact, affordable homes which will meet currently unsatisﬁed
demand. This range, initially of one and two bedroom apartments, has been trialled on sites in the
Midland region and the first developments will come on sale during the first half of 2006. We will 
use some restrictive covenants to ensure we are benefiting the target customer groups. We believe 
these products will meet many of the housing concerns of both local and central Government 
and with the support of such authorities, we hope to extend this product range across the country 
during 2006. 
In October it was announced that George Wimpey had been chosen as one of the ﬁnalists in the Design
for Manufacture Competition, the Government’s initiative to provide good quality, cost effective housing
built using modern methods of construction. The ﬁrst of these homes are being built at Oxley Park in
Milton Keynes. 
Quality and customers 
All our businesses aim to provide industry leading levels of customer service which set us apart from 
our competitors. We use an independently administered survey to monitor our customer satisfaction.
Measured as ‘would you recommend George Wimpey to your friends or family’, 89% of our customers 
said they would. 
As a volume housebuilder 
we continue to build a mix 
of products that meets the 
needs and requirements of 
our customers and provides 
a wide range of products 
to satisfy a broad market.
www.georgewimpeyplc.co.uk 13
Operating and Financial Review
UK housing
Product mix 
(%)
Apartments 36%
2/3 bed homes 32%
4/5 bed homes 32%
Total CSM scores
Recommendation rates
0
20
40
60
100
80
UK housing
Customer satisfaction 
(%)
0
20
40
60
100
80
Total Customer Satisfaction Monitor  scores Recommendation rates
Nov 05 Oct 05 Sep 05 Aug 05 Jul 05 Jun 05 May 05 Apr 05 Mar 05 Feb 05 Jan 05 Dec 04
65.1
69.8
70.7
73.7 74.4 73.9 73.2 72.1
69.7 70.6
65.3 65.7
87.7
88.7 87.5 87.9 88.6 89.0 89.4 89.7 89.6 89.7 89.4 89.3 Landbank
During recent years we have made progress in improving both the length and quality of our landbank
and have increased the focus on securing planning on more of our longer term strategic land sites.
Nevertheless our landbank remains relatively short when compared to our peers, with the majority 
of homes sold coming from sites acquired within the past two years. The total owned and controlled
landbank at the end of 2005 was 50,985 plots, similar to the number at the end of 2004, (51,119 plots).
We have made a number of improvements in our landbuying which is reﬂected in the fact that our
average cost per plot in the landbank of £47,200 (2004: £45,600) is slightly lower than that on completions
during the year of £47,300 (2004: £44,300). We believe that the operational changes we made during 
2005 will continue to improve this position. The average coverage of sites (excluding high-rise inner-city
developments) was 15,448 sq ft per acre (2004: 17,902 sq ft per acre). The number of plots coming into the
short term landbank from the strategic landbank has increased during the year to 1,568 plots (2004: 1,079
plots). The strategic landbank now stands at 14,169 acres (2004: 17,571 acres).
The land market traditionally lags the product market, so the slowing down in house prices from the
middle of 2004 has been only gradually reﬂected in the land market. As a result during 2005 we took the
decision to slow the growth in our landbank until both the housing and land market conditions became
more certain. However, we have continued to focus our attention on larger sites where we have some
competitive advantage from our scale and reputation for corporate social responsibility.
Focusing on larger sites in our landbank
Operating and Financial Review
UK Housing continued
14 George Wimpey Plc Annual Report and Accounts 2005
Bracknell – RAF Staff College 
• 110 acre site acquired from English Partnerships June 2005
• Start on-site 2006 based on existing consent
• Phased land payment terms above standard gross margin
• Existing planning consent for 584 private homes, 
146 affordable homes
• Approximately 20% 1 and 2 bed apartments
• Pursuing enhanced planning application to include 
38% affordable homes
• Average selling price around £260,000
Dartford – The Bridge
• 264 acre site acquired 2003
• Start on-site October 2006
• Phased land payment terms above standard gross margin
• Land acquired fully serviced
• 794 private homes, 340 affordable homes, 39% apartments
• Average selling price around £230,000
• Design codes for integrated mixed-use development
• ‘Fast track’ dedicated transport service
Bracknell – RAF Staff College
Dartford – The Bridge
Milton Keynes – Newton Leys
Telford – Lawley Milton Keynes – Newton Leys
• 107 acre site acquired in 2005 
• Start on-site 2007 
• 90 acres for housing, 14 acres for employment, 3 acres for a local 
centre and other facilities
• Outline planning consent for 1,155 private homes, 
495 affordable homes
• Average selling price around £199,000
George Wimpey entered 2006 with 
a strong order book and in a strong
position to take advantage of market
conditions. We have taken firm
action to simplify and strengthen our
business structure and performance.
We have proven plans in 
place to deliver further build 
and overhead cost savings.
Going forward
The UK housing market continues to be supported by a signiﬁcant undersupply and strong demand for
home ownership. Although we would anticipate public policy will aim to ensure house prices increase 
by no more than earnings for a period of time, the interest rate reduction in August and the indications 
of improved customer conﬁdence in the early weeks of 2006 give some cause to anticipate a better
market environment in the coming year. 
George Wimpey entered 2006 with a strong order book and in a strong position to take advantage of market
conditions. We have taken ﬁrm action to simplify and strengthen our business structure and performance.
We have proven plans in place to deliver further build and overhead cost savings. We expect the beneﬁts
of these actions to show through in some recovery of our gross margins in the second half of the year. 
In the medium term our new business structure has retained the ability to grow. 
www.georgewimpeyplc.co.uk 15
Operating and Financial Review
Telford – Lawley 
• 71 acre site acquired from English Partnerships 
in September 2005
• Start on-site November 2006
• Site is a joint purchase between three major housebuilders
• George Wimpey will build 1,100 of the total 3,300 homes. 25% will 
be affordable homes which will be split between shared equity 
and housing for rent
• Selling prices range from £115,000 for apartments up to £355,000 
for detached homes
• The scheme includes the construction of Lawley Square which consists 
of two pubs, 15 commercial units, a hotel and ﬁtness centre Operating and Financial Review
US Housing
16 George Wimpey Plc Annual Report and Accounts 2005
Florida
Our Florida Region consists of four Divisional offices 
and two satellite ofﬁces. During 2005 43% of Morrison’s 
total completions came from this region.
Product development
In 2003 the Orlando Division identiﬁed its ﬁrst
parcel of land for the development of a new range
of attached townhome products. This new range
has created an opportunity for Morrison Homes 
to remain in the affordable part of the market.
Building on the success of these products in
Orlando, townhomes are being introduced across
the Florida Region. In 2005 townhomes accounted
for 13% of completions in Florida and volumes 
are expected to more than double in 2006. 
Beneﬁting from 
strong markets
Florida was the No 1 state for job growth,
population growth and single family permits
in 2005 making it a very attractive market.
Although economic growth is expected to
moderate in 2006 it should remain fairly strong,
economists have predicted a 3.3% growth in
GDP with 245,000 new jobs being created, and
a population increase of 385,000 people or
160,000 new households*.
* source Wachovia Economic Commentary 8.2.06
Growth though satellites
By building on existing relationships with land vendors and by
utilising the strength of the Morrison brand, we are able to 
expand into neighbouring markets. 
In 2000 the ﬁrst satellite operation in Jacksonville was established
from the Orlando Division, followed quickly by a satellite in
Sarasota from the Tampa Division. Jacksonville became a full
Division in 2004 and Sarasota in 2005. Two new satellites are 
now being established in Daytona Beach and Fort Myers. 
In 2000 the Florida Region completed 793 homes, in 2005 total
completions were over 2,000 with 28% of these coming from 
the former satellites. 
13%
OF 2005 COMPLETIONS WERE TOWNHOMES
OF 2005 
COMPLETIONS 
CAME FROM 
FORMER SATELLITE
OPERATIONS
28%
1 2 3
45 6
1 2 3
45 6
Daytona Beach Fort Myers 1 2 3
45 6
1 2 3
45 6
Orlando (below) Tampa (above) www.georgewimpeyplc.co.uk 17
Operating and Financial Review
Map Key
Current Developments
Future Developments
Divisional and Satellite Ofﬁces
Customer satisfaction
Morrison Homes continues to
develop its excellent approach 
to customer care to maintain the
success of the Morrison Homes 
brand. In 2004 we introduced a web
based Customer Communication
Management System to support every
stage of customer communication
from initial enquiries through to the
end of our two year blanket warranty. 
A strong landbank 
to support growth
The Florida Region has grown by 22%
per annum since 2000 and in 2005
completed 2,129 homes. The Region
currently holds just over 12,000 plots
of land which places it in a strong
position from which to grow over 
the next few years. 
Existing and future communities
are indicated on the map. 
85%
OF OUR US CUSTOMERS WOULD
RECOMMEND US TO FAMILY 
AND FRIENDS
1 2 3
45 6
1 2 3
45 6
1 2 3
45 6
1 2 3
45 6 US home ownership rates
As shown in the chart to the 
right, a projected home ownership
rate of 70% in 2010 would imply 
the creation of circa 1.28 million
households each year from 
2004 – 2010 compared to the
800,000 created annually from 
1999 – 2004.
Steve Parker 
President Morrison Homes
US housing market
The US economy continued to make good progress during 2005, despite the devastating effects of an
unusually severe hurricane season. GDP grew by 3.5% for the year (2004: 4.2%). Unemployment remained
low, with two million new jobs created during the year. Consumer conﬁdence ended the year at 103.8,
comfortably in positive territory. Long term interest rates rose modestly with 30 year mortgage rates 
rising to an average of 5.9%, well below the long term average.
2005 was another record year for the new homes market in the US, with an estimated 1.3 million new single
family home sales (2004: 1.2 million) and 1.72 million single family home starts (2004: 1.6 million). House prices
in a number of markets (in particular on the Eastern and Western seaboards) showed strong growth, though
these had generally slowed by the end of the year. In much of the rest of the country price growth was modest. 
The strength in the housing market continues to be driven by a number of strong demographic trends.
An average of one million immigrants have entered the US every year since 1990 which, in addition 
to a positive underlying birth rate and increasing levels of home ownership (see chart above) is creating
the record levels of demand currently being observed. These trends have been particularly strong in
California, Arizona and Florida which are continuing to beneﬁt from strong job growth and immigration 
as well as migration from other parts of the US.
The longer term outlook for the total US housing market remains very positive. These demographic trends
are set to sustain demand at historically high levels for a number of years. The Joint Centre for Housing
Studies at Harvard has predicted that an average of two million annual housing starts will be made every
year for the next three decades.
US home ownership rates
(%) 
70
68
66
64
62
60
Source: CSFB
10 E 04 03 02 01 00 99 98 97 96 95 94 93 92 91 90
70.0
63.9
64.1
64.1
64.1
65.1
65.4
65.7
66.4
66.9
67.5
68.0
68.3
68.6
69.2
64.0
Operating and Financial Review
US Housing
18 George Wimpey Plc Annual Report and Accounts 2005
Focusing on 
organic growth
    Morrison Homes market conditions
Today Morrison Homes is positioned in 14 of the top housing markets in the US where the strong
fundamentals described above are supported by positive underlying job growth. Immigration from
overseas and migration from elsewhere in the US has been particularly strong in Northern California,
Phoenix and Florida. The states with the highest levels of job growth have remained California, Florida,
Texas and Arizona.
As a result, the markets in which Morrison Homes operates across Florida, Phoenix and Northern California
were again particularly strong during 2005, though the rate of price increases moderated during the
course of the second half. Denver and, in particular, Texas saw more muted market conditions, with
amongst the lowest rates of price growth in the US. Houston, Austin and Dallas are now amongst 
the most affordable housing markets in the US. 
Financial overview
Over the past ﬁve years, Morrison Homes has developed a consistent strategy to achieve organic growth.
It has focused its operations in some of the strongest housing markets in the US supported by continuing
employment growth and immigration. The business has developed a successful business model of 
growth into new markets through satellite operations, building on existing relationships and experience 
in neighbouring markets. Since 2001, three successful divisions have been formed in this way and three
new satellites were established during 2005 in Reno, Nevada, Fort Myers and Daytona Beach, Florida. To
increase its share of these markets, and to ensure its product range remains competitive and affordable as
prices have risen, Morrison Homes has developed ranges of attached townhome and other higher density
products. The townhome product ﬁrst introduced in Orlando in 2003 represented 13% of the Florida
region’s total completions in 2005. 
The planned exit from the Atlanta market has now been completed, with the Division making only a
modest contribution to completions in 2005. The management plan to improve the performance of the
Texas divisions is making encouraging progress, despite the continued slow market. Both volumes and
margins grew in 2005. 
The beneﬁts of this organic growth strategy and the strength of the US housing market can be seen in
Morrison Homes’ strong ﬁnancial performance over the past few years, which continued in 2005. Turnover
Today Morrison is positioned in 14 
of the top housing markets in the
US where strong fundamentals are
supported by positive underlying
job growth.
www.georgewimpeyplc.co.uk 19
Operating and Financial Review
2005 US housing market 
Single family (SF) home permits and job growth
Morrison SF Market State Job State
State Market
#
Permits Rank* Rank Growth Rank
Orlando 26,520 9
Tampa 27,430 8
Jacksonville 18,610 15
Sarasota 11,640 33
Florida 208,530 1 297,000 1
Sacramento 15,760 21
Central Valley 13,890 26
California 151,020 3 278,000 2
Houston 51,130 3
Dallas/FT Worth 49,320 4
Austin 17,080 19
Texas 165,580 2 154,000 3
Phoenix 53,960 2
Arizona 80,650 6 117,000 4
Denver 17,590 17
Colorado 40,480 12 55,000 18
* 200 total US markets
#
excluding satellite operations established late 2005 
Total SF permits Morrison states 646,260
Total US SF permits 1,681,000
Total UK private housing completions 2004 181,595
US housing
Operating margin 
(%)
20
16
12
8
4
0
05 04* 04 03 02 01
UK GAAP IFRS
* restated for IFRS
20.0
9.6
10.0
11.9
14.7
14.7 increased by 20% to $1,538.8 million (2004: $1,277.4 million) with an 11% increase in total completions 
to 4,921 (2004: 4,422). Average selling prices were up 8% to $312,700, with the growth in more affordable
products offsetting to some degree, price inﬂation. Over the past three years turnover has increased by
91% and completions by 54%. With this price growth, together with this volume growth and continuing
tight cost control, operating margins grew from 14.7% in 2004 to 20% in 2005. As a result, operating proﬁts
grew to $308.3 million, 64% higher than last year (2004: $188.3 million). Operating proﬁts have grown by
3.7 times over the past three years.
The net impact of changes in the exchange rate were very limited. Although the Dollar weakened in the
ﬁrst half of 2005, it recovered in the second half. As a result, the average exchange rate for the year was
$1.82:£1, compared with $1.83:£1 in 2004. In Sterling terms turnover increased 21% to £845.5 million 
(2004: £698.0 million) and operating proﬁts rose 65% to £169.4 million (2004: £102.9 million). 
An important element of George Wimpey’s strategy for Morrison Homes has been to maintain a 
high asset turn. This ensures that an improved operating margin results in a higher return on capital 
and, critically, that a high rate of organic growth can be ﬁnanced without substantial injections of cash. 
This remains a key beneﬁt of our focus on growth within the US housing market as a means of creating
shareholder value. As a result, return on capital grew even further in 2005 to 44.2% (2004: 33.9%).
Sales, product and prices
Total completions for the year increased 11% to 4,921 (2004: 4,422) although completions excluding
Atlanta rose by 17% to 4,797 (2004: 4,110). Despite the devastating effect of the hurricane season across
the US, the only direct impact on Morrison was a modest loss of completions in Florida. Total completions
were also affected by supply constraints in some of the stronger markets. These included shortages 
of materials and, especially, labour as well as delays in processing permits.
Over the past few years, the geographic mix of Morrison’s business has changed. Volume growth has been
stronger in Florida and Phoenix, where job growth has been strongest and affordability has remained
healthier. The proportion of both completions and proﬁts derived from Northern California has reduced.
Total average outlets for the year fell to 95 (2004: 100) although excluding Atlanta, average outlet 
numbers were similar to 2004 at 93. However, these grew through the year and Morrison entered 
2006 with 98 outlets open. Average outlets for 2006 are expected to be around 10% higher than 2005.
Visitor levels per outlet remained strong throughout 2005, with average visitor levels similar to 2004. Improved
conversion rates led to a 13% increase in average sales per outlet per week rising from 0.93 to 1.05. 
The average selling price of a Morrison home increased by 8% to $312,700 (2004: $288,900). In California,
Florida and Phoenix prices rose by more than 10% during the year. This was inﬂuenced by growth in the
sales of more affordable products in Florida and the increased contribution from the Texas Divisions, where
selling price inﬂation has been modest. With the growth in sales from the townhome product range, the
average size of a Morrison home fell slightly to 2,299 sq ft (2004: 2,386 sq ft). 
Landbank
Morrison Homes’ growth has been supported by strong and consistent investment into its landbank.
During 2005 we continued to add to the landbank at a rate of around 1.5 plots for every one plot used.
Operating and Financial Review
US Housing continued
20 George Wimpey Plc Annual Report and Accounts 2005
Turnover
Operating proﬁt
Turnover
#
Operating proﬁt
UK GAAP IFRS
0
330
660
990
1,320
1,650
0
64
128
192
256
320
#
 restated for change in land sales policy * restated for IFRS 
2005 2004* 2004 2003 2002 2001
US housing 
Five year turnover and operating proﬁt      
($m) 
308.3
1,538.8
188.0
1,277.4
188.3
1,277.4
118.6
988.3 804.8 
80.7
687.7
66.4
 
US housing 
Landbank 
(plots)
25,000
20,000
15,000
10,000
5,000
0
05 04 03 02 01
23,514
12,235
13,439
16,967
21,579 The number of owned and controlled plots rose by 9% to 23,514 (2004: 21,579). The landbank is spread
appropriately across all regions and already represents all the land required to achieve our growth targets
for 2006 and the majority of that required for 2007.
Customer service
Morrison Homes has built its brand on delivering high levels of customer satisfaction. During the year
Morrison Homes’ ‘Would you recommend’ customer satisfaction score averaged 85%. 27% of customers
who bought one of our homes came from referrals from satisﬁed customers. 
Centralised Signature Selection Centres continue to add value for our customers. On average our
customers spent $28,000 per sale customising their new homes (2004: $28,000), which represents 
9% of total turnover. Morrison Financial Services and Morrison Title have continued to contribute to 
our improved ﬁnancial performance with a 20% increase in proﬁts to $6.8 million. 62% of customers 
arranged their mortgages through us and in Texas and Florida 90% of customers used our title service. 
www.morrisonhomes.com continues to be an important marketing tool. During 2005
www.morrisonhomes.com received 2.6 million visitor sessions, a 19% increase on 2004. The average
visitor session was over nine minutes with each visitor viewing 7.5 pages. The increase in website
trafﬁc has signiﬁcantly increased email leads which in turn drives customers into our sales ofﬁces.
Going forward
The housing market in the US is underpinned by continuing demographic factors as well as economic
growth and low interest rates. Job growth remains strong – over 600,000 jobs have been created across
the US during the last three months – consumer conﬁdence in January was at its highest level since June
2002, and unemployment at 4.7% is at its lowest level for four and a half years. The market is therefore
expected to remain healthy in 2006, although at levels below the record achieved in 2005. The National
Association of Home Builders is projecting a reduction of 7% in national single family home starts to 
1.6 million and a 6% reduction in new single family home sales to 1.2 million. If achieved, this would equal
the very strong performance in 2004. Over the medium term, strong demographic trends and a stable
economy will support the continuing growth of home ownership and Morrison Homes is well positioned
in the markets expected to beneﬁt from this trend. 
The strong rate of price growth in Florida, Arizona and Northern California during 2004 and 2005 slowed
towards the end of the year, with the market in parts of Northern California slowing sharply. Morrison put
in place action plans during the second half of the year to strengthen its forward sales position across
these markets. 
We therefore entered 2006 in a strong position with over one third of the year’s anticipated completions 
in the forward order book. The selling prices and margins in this order book compare favourably to those
achieved during 2005. These action plans have continued to support a good sales performance during 
the ﬁrst weeks of 2006, with particularly encouraging sales growth in Texas.
With a solid land position, a well designed product range that enables it to remain affordable in the core
of the market and three new satellite businesses in neighbouring markets, Morrison Homes is well placed
to achieve further growth during 2006. 
With a solid land position, a well
designed product range that enables
it to remain affordable in the core of
the market and three new satellite
businesses in neighbouring markets,
Morrison Homes is well placed to
achieve further growth during 2006.
www.georgewimpeyplc.co.uk 21
Operating and Financial Review Operating and Financial Review
Corporate Social Responsibility
22 George Wimpey Plc Annual Report and Accounts 2005
Sustainability
The Staiths South Bank is a George Wimpey North development 
of 777 homes on the site of a former gas works on the banks of 
the River Tyne. There are expected to be six phases of development
and we are currently building 100 homes as part of phase two,
having completed 158 homes in phase one. We are working in
partnership with HemingwayDesign.
2005 Awards
Awards received by George Wimpey
during 2005 include:
Building for Life
Silver Award
Large Housebuilder 
Winner in the Housing Design Awards
Best Housing-led Project
Regeneration Award
Home Zones
Home Zones give pedestrians priority over cars and
most home owners use parking courts rather than
having their own parking space. To help reduce car
dependency alternative modes of transport are
encouraged, all residents live within 400 metres of 
a bus stop and the development is linked to cycle
routes. All houses have cycle sheds and residents 
are given a £50 contribution towards a new bicycle.
Play areas
Communal parkland and play areas for 
children have been integrated throughout 
the development.
Waste management
Communal waste management facilities are within 
30 metres of each home to encourage recycling and
to prevent wheelie bins cluttering up the streets they
are hidden behind willow screens. 
1 2 3
45 6
30
metres
THE DISTANCE OF RECYCLING 
FACILITIES FROM EACH HOME
Refuse store 1 2 3
45 6 www.georgewimpeyplc.co.uk 23
Operating and Financial Review
Meeting places
All courtyards have
a brick built
barbeque and
seating area.
Recycling site waste
Local craftspeople have made
features for the development
from reclaimed timber and
recycled railway sleepers. This
seating area provides a great
community space.
Timber blocks
1 2 3
45 6
1 2 3
45 6
Communal areas
Innovative design is a key aspect of the
development. Communal design features have
been used to encourage neighbours to get to know
one another, these include pocket parks, courtyards
and play areas.
1 2 3
45 6
1 2 3
45 6
1 2 3
45 6
1 2 3
45 6
1 2 3
45 6
1 2 3
45 6
Staiths South Bank – 
section of phase 1
shown below
Map Key
Homes
Gardens
Home Zones
Car Parking
Cars allowed CSR management system
Following implementation, our 
CSR policies are monitored and
reviewed in order to continuously
improve our approach to CSR
strategy and performance.
We are committed to corporate responsibility and building sustainable communities. We have published
Corporate Social Responsibility (CSR) Reports annually since 2002 and this year’s report is our fourth. The report
covers our Group’s operations during the 12 month period ended 31 December 2005 and our major targets
for 2006. It describes our approach to and performance on CSR issues as well as providing measurements
for 26 key performance indicators (KPIs).
Our CSR practices are our response to the global challenge of sustainable development. In 2005, 
we developed a Sustainability Policy to clarify our approach and intentions. The policy is available 
on our website.
CSR and business ethics are essential elements of good governance and help to secure the long 
term sustainability of our business. They also make sound business sense, particularly given the UK
Government’s increasing emphasis on building sustainable communities.
2005 achievements
Major developments for George Wimpey during 2005 included becoming the ﬁrst publicly listed UK
housebuilder to achieve certiﬁcation of its entire UK operations to the ISO 14001:2004 environment standard.
This certiﬁcation provides external validation of the rigour of our environmental management system.
We were also awarded one of 10 sites in the UK Government’s Design for Manufacture competition, which
challenged our industry to build high quality homes for a construction cost of £60,000. George Wimpey’s
success in this competition demonstrates our commitment to working with the Government on their
priority areas of sustainability, design excellence, modern methods of construction and affordability.
A sustainability survey of UK housebuilders by Insight Investment and WWF described us as one of ‘three
clear leaders’ who ‘stand out because they take an increasingly comprehensive, strategic and systematic
approach’ . We achieved third place with a score of 83% overall – just short of the two survey leaders’ scores
of 84% – and were ranked ﬁrst in terms of environmental performance.
CSR management 
Ultimate responsibility for CSR within our Group rests with the CSR Committee and the Board. Chaired by
Non Executive Director Christine Cross, our high-level CSR Committee meets at least three times per year
and is responsible for strategy, policies, reporting, performance and monitoring. It is tasked with ensuring
that CSR activity is adequately resourced, has appropriate standing within the Group and is aligned to the
needs of the business. The composition of our CSR Committee shows how seriously we take these issues.
Identifying and tackling non ﬁnancial risk is a key aspect of the business case for CSR. Our comprehensive
systems, processes and procedures help us to fully understand the social, environmental and ethical risks
to our business. Our CSR Report provides more information on our management of non ﬁnancial risks.
Operating and Financial Review
Corporate Social Responsibility
24 George Wimpey Plc Annual Report and Accounts 2005
Meeting the
CSR challenge
Implement
Measure and monitor
Report
Identify risks and
opportunities
Review approach 
and performance
Seek internal and 
external feedback
Develop strategies 
and policies
The CSR Committee
Christine Cross (Chair), pictured
above; Baroness Dean of 
Thornton-le-Fylde; Steve Parker
and Peter Redfern. James Jordan
also attends meetings of 
the Committee.
    www.georgewimpeyplc.co.uk 25
Operating and Financial Review
We strive to be a responsive company and enter into dialogue with our stakeholders on a wide range 
of business and sustainability issues. We participate actively in industry developments and work closely
with industry bodies, regulators and Government. We try to stay informed about developments in CSR 
and learn from the experience of organisations such as English Partnerships, WWF and Business in the
Community. We have systems in place to ensure engagement with our primary stakeholders. This report
and our CSR Report provide details of current stakeholder engagement practices. 
2005 CSR Report highlights
Ethics, values and governance underpin everything George Wimpey does and determines the Group’s
approach to all aspects of the business. Our CSR framework focuses on six key areas. Detailed below are
highlights of the year from each of these six key areas.
Health and Safety
• We undertook a major survey of UK trades’ and contractors’ views of on-site safety and will use the results
to develop awareness campaigns.
• Morrison Homes introduced an annual safety audit of all communities as well as a company-wide safety
award scheme.
Environment
• In the UK, we achieved ISO 14001:2004 certiﬁcation for our entire operations and developed a Green
Procurement Policy.
• The Dallas Division of Morrison Homes won the mid-volume housebuilder category of the 2005
Excellence in Energy Performance Awards in Texas.
Building Sustainable Communities
• We were selected as one of the preferred developers in the UK Design for Manufacture competition.
• George Wimpey was named a Project Winner and the Large Volume Housebuilder Winner of the Housing
Design Awards. The awards promote excellence and sustainability in home design.
Employees
• 1,366 of our UK employees received the Construction Skills Certiﬁcation Scheme qualiﬁcation during 2005. 
As members of the Major Home Builders Group, we have committed to all site employees being qualiﬁed
by 2010.
• We set up employee consultation committees in all UK companies as a result of feedback from our most
recent employee survey.
Customer Care
• 89% of UK customers and 85% of US customers would recommend us to friends and family.
• We won 50 Quality Awards and six Seals of Excellence in the NHBC Pride in the Job Awards that judge
housebuilders on quality and service.
Supply Chain Management
• Our 2005 CSR Report introduces supply chain management as a new section.
• We introduced an internet based vendor portal to provide up to date information for US trade partners.
Going forward
George Wimpey Plc continues to be committed to monitoring, reviewing, reporting on and improving
performance. We believe that our emphasis on CSR continues to make us a stronger and better Company.
We strive to be a responsive company and we are keen to receive feedback on our CSR Report and on
issues of sustainable business practice. Our CSR Report and other information including the text of our
Sustainability Policy is available at www.georgewimpeyplc.co.uk/csr. If you would like to comment on 
any aspect of our approach to CSR, please email us at csr.feedback@georgewimpey.co.uk. 
UK brownﬁeld land use 
(%)
75
60
45
30
15
0
The government has set  
a target of 60% by 2008.
Government target
05 04 03
67
68
66
UK tonnage of waste per
unit of housing completed
(t)
10
8
6
4
2
0
05 04 03
9.7
9.6
7.0
US incident rate including
employees and contractors
7.5
6.0
4.5
3.0
1.5
0
05 04 03
3.98
5.58
3.08
Our Sustainability Policy and other CSR information is available at
www.georgewimpeyplc.co.uk/csr Generating value for shareholders:
– ROACE 22.3%
– Shareholders’ funds increased 
by £213 million
– Balance sheet strengthened,
gearing reduced to 34%
– Dividend increased by 10%
Group summary 
During 2005 the Group continued to generate considerable shareholder value despite a reduction in
Group proﬁts. Return on average capital employed was 22.3%. Shareholders’ funds rose by £213 million
and a 10% increase in the full year dividend is proposed. At the same time, the balance sheet was further
strengthened with gearing reduced to 34% (2004: 39%).
Group results
The 2005 accounts have been prepared in line with International Accounting Standards and the 2004
numbers have been restated accordingly and in accordance with the accounting policies disclosed in
the Interim Report for 2005. 2004 comparative ﬁgures have also been restated for land sales which are 
no longer included in turnover.
Group completions grew 2% to 17,021 (2004: 16,654) in spite of more difﬁcult market conditions in the 
UK. Group proﬁt before tax at £366.5 million was £71.1 million below 2004’s record performance as a result
of reduced margins in the UK (2004: £437.6 million). Year end net debt at £521.9 million (2004: £520.9 million)
was very similar to the preceding two years resulting in gearing progressively falling (2003: 50%, 2004: 39%,
2005: 34% on an IFRS basis). The future direction of gearing will depend upon market conditions
and the attractiveness of investment opportunities. 
Group turnover increased by 1% to £3,003.2 million (2004: £2,976.0 million) with the 5% turnover reduction
in the UK to £2,157.6 million (2004: £2,277.9 million) more than offset by the success of the Morrison Homes
organic growth strategy. US turnover grew by 21% to $1,533.8 million or £845.5 million (2004: $1,277.4
million/£698.0 million). Exchange rates had little effect on the Income Statement with proﬁts translated in
2005 at $1.82:£1 (2004: $1.83:£1). UK operating margins fell from 18.0% in 2004 to 12.9% in 2005 as a
result of a weaker market environment resulting in the need to increase the level of incentives offered
and increasing land costs. The UK business continued to focus on improving cost efﬁciency and during
the year incurred £5.2 million of restructuring costs targeted at reducing overheads. This was treated
as a normal operating expense. In the UK, against a weak housing market, when total transactions fell by
17% on the previous year, George Wimpey sustained total volumes of 12,100 homes, just 1% below the
number achieved in 2004 of 12,232. In contrast the US housing market enjoyed another record year
which was generally reﬂected in the markets in which Morrison Homes has focused. Morrison increased
its operating margins from 14.7% in 2004 to 20.0% in 2005 through strong increases in prices and tight 
cost control.
With lower proﬁts and continued investment to support growth, particularly in the US, return on 
average capital employed was 22.3% (2004: 28.9%). 
Reported interest costs for 2005 totalled £71.0 million, an increase of £11.1 million (2004: £59.9 million).
Within this net interest on borrowings from ﬁnancial institutions totalled £50.0 million, an increase of 
Operating and Financial Review
Group Financial Review
26 George Wimpey Plc Annual Report and Accounts 2005
Another year
of value creation
    only £2.0 million (2004: £48.0 million), with the effect of average borrowings up 10% to approximately
£965 million, mostly offset by lower effective interest rates. Other items charged to this line under
International Accounting Standards include a pensions charge of £8.5 million (2004: £8.1 million), a net
£3.8 million (2004: £2.4 million) charge for imputed interest on long term land creditors and a mark to
market charge on our interest rate derivatives of £5.3 million. 
The tax charge for the year totalled £113.7 million, representing an effective tax rate of 31%. The tax 
charge beneﬁted from the resolution of some outstanding tax issues. Looking forward the effective 
rate is expected to rise given the increased level of the Group’s proﬁts being realised in the US. 
Balance sheet and cash ﬂow 
Shareholders’ funds continued to grow strongly, increasing by 16% to £1,544.4 million (2004: £1,331.4 million).
Expressed on a per share basis, shareholders’ funds totalled 389 pence (2004: 340 pence), an increase 
of 49 pence after allowing for dividends already paid out during the calendar year of 16.5 pence. 
Year end net debt levels were fairly constant, despite the impact of the stronger US$ on our US$ borrowings.
Retained shareholders’ funds have been the source of ﬁnance to support the increased investment in the
Group’s assets. The increase in net assets employed was £214.0 million to £2,066.3 million (2004: £1,852.3
million). This is reﬂected in the higher value of land assets and work in progress, which in turn is targeted 
at delivering further growth. Land is valued at the lower of historic cost or realisable value and on this basis
totalled £2,153.4 million at the end of 2005 (2004: £1,932.3 million). The Group continues to make use of
deferred land payment opportunities when it is economic to do so. The land creditor balance stood at
£380.5 million (2004: £274.7 million). This increase primarily relates to a small number of sizeable, attractive
land acquisitions in the UK which were achieved on favourable terms. Investment in work in progress has
also increased from £714.9 million to £778.8 million at the end of 2005, reﬂecting the strong increase in
our order books in both the UK and US, which increased by 31% and 36% respectively compared with the
order books at the end of 2004.
The Group’s net cash outﬂow was £1.0 million after meeting our interest and tax obligations and again
raising the level of dividends paid. Land spend in the year was £839.0 million, £101.6 million in excess of
land realisations, reﬂecting our focused strategy to lay the foundations for further growth in the UK and US.
Second half results 
In the six months ending 31 December 2005 turnover grew by 4% to £1,834.1 million (2004: £1,767.0 million).
Group completions grew by 6% to 10,452 (2004: 9,847) although average prices were lower reﬂecting some
mix changes and the challenging market conditions in the UK. Operating proﬁts fell by 11% to £281.0
million (2004: £315.7 million) whilst interest costs rose by £4.8 million to £36.8 million. Consequently, proﬁt
before tax reduced by 14% to £244.2 million (2004: £283.7 million). In the UK, as we approached the year
end, there were early signs that consumer conﬁdence was returning and that affordability was improving 
in the south of the country. Total UK completions in the second half grew by 5% to 7,524 (2004: 7,139),
however this growth was essentially in social housing where lower prices are realised. The operating
margins in the second half showed some improvement at 13.1% compared with 12.6% in the ﬁrst half.
Whilst gross margins were lower, this was more than offset by improved overhead recovery. 
In the US market conditions remained generally strong although parts of the Californian market
slowed sharply towards the end of the year. Robust economic, population and job growth, together
with a favourable interest rate environment, continued to sustain a healthy market. Morrison Homes,
second half completions at 2,928 grew by 8% (2004: 2,708). Excluding the Atlanta Division, a second half
www.georgewimpeyplc.co.uk 27
Operating and Financial Review
Cash ﬂow highlights 2005 (£m)
Operating proﬁt 437.5
Land spend (839.0)
Land realisations 737.4
Other working capital movements (49.0)
Cash inﬂow from operations 286.9
Interest (53.6)
Tax (117.7)
Dividends (53.7)
Other movements (62.9)
Increase in net debt (1.0) volume growth of 14% to 2,902 was achieved. Average selling prices at $321,800 rose by 8% (2004: 
$297,500) with stronger underlying inﬂation moderated by changes to product mix and geographic
balance. With turnover increasing by 16.8% to $936.0 million (2004: $801.5 million) and operating
margins improving from 16.0% in the second half of 2004 to 22.0% in the second half of 2005, 
operating proﬁts rose strongly to $206.4 million or £114.9 million (2004: $128.2 million/£69.6 million) 
a growth of 61% in Dollar terms. 
Financial and Treasury Policies 
The Group has ﬁnanced its growth in recent years through a combination of retained proﬁts, bank loans
and long term loans in the form of US$ private placements with a group of US insurance companies. 
All loans and banking relationships are managed centrally through the Group Treasury Department. 
We continue to use derivatives to generate the appropriate balance between ﬁxed, capped and ﬂoating
interest rate proﬁles. It is not our policy to trade actively in derivatives or to use more complex derivatives. 
The Group’s Treasury Committee is responsible for developing and recommending policy to the Board and
for monitoring our ﬁnance risks. The main risks arising from our ﬁnancing instruments are liquidity, interest
rate, foreign exchange currency risk and credit risk. 
Liquidity Risk: The Group maintains adequate committed borrowing facilities to ensure that seasonal
borrowing can be accommodated whilst maintaining prudent headroom and a range of development
plans can be ﬁnanced. The Group had committed bank facilities of £1,175 million at the end of 2005. 
It also had long term debt raised in the US private placement market of £333 million with maturities
ranging up to 13 years. 
During 2005 we negotiated further cost reductions in both the cost of our bank borrowings and our
ﬂoating rate capital market funding. These reductions were achieved through favourable conditions in 
the debt markets as well as the excellent relationships we have established with our debt providers over 
a considerable period of time. At the same time we took the opportunity to maintain the average debt
maturity proﬁle at close to ﬁve years. These cost reductions mitigated against the effect of higher short 
term interest rates which were particularly notable in US$ interest rates. 
Interest Rate Risk: We aim to limit our exposure to ﬂuctuations in the cash interest cost of servicing our
debt by using ﬁxed interest rate borrowings, interest rate swaps and options. The most adverse scenario
for the Group is a signiﬁcant increase in interest rates which would weaken the housing market at the
same time as increasing borrowing costs. 
In order to improve the economic mitigation of this risk, we decided to manage with regard to average
forecast level of borrowings in each currency rather than forecast year end borrowings. This resulted in
ﬁxed rate borrowings approximately equal to year end borrowings, but with a higher amount of Sterling
ﬁxed rate borrowings than year end borrowings. 
As noted last year, after careful consideration on the introduction of IAS 39, we decided that we should
continue to hedge interest rate exposure to reduce the economic impact on the business of interest 
rate movements, even if such hedges did not meet the strict prescriptive conditions to adopt hedge
accounting under the new standard. During 2005 the Group’s interest rate derivatives reduced the
payments for interest; however the value of the Group’s derivatives fell by £5.3 million as a result of an
expected more favourable interest rate environment in the future. Such an interest rate environment
should be beneﬁcial for the housing market. 
Currency Risk: Our principal currency risk is the translation exposure of our investment in Morrison Homes.
Our policy is to match as far as practicable our Dollar denominated asset with Dollar denominated debt. 
Consequently movement in the Sterling/Dollar exchange rate has had little effect on the Group’s
shareholders’ funds, though it did affect the Sterling value of year end debt as well as reported 
turnover and proﬁt before tax. 
Credit Risk: We have no signiﬁcant concentration of credit risk. Financial instrument counterparties 
are subject to pre-approval by the Treasury Committee. The amount of exposure to any individual
counterparty is subject to a limit which is reassessed periodically by the Treasury Committee.
The Group has continued its policy of managing its exposure to the risk related to major inner-city developments
by arranging joint ventures and ﬁnancing the schemes with non-recourse project risk facilities. The third joint
venture of this type was arranged in 2005. These schemes are performing satisfactorily with the ﬁrst completions
and proﬁts being achieved in 2005 on one of the joint ventures arranged in 2004. 
Operating and Financial Review
Group Financial Review continued
28 George Wimpey Plc Annual Report and Accounts 2005
Gearing 
(%)
50
40
30
20
10
0
05 04* 03*
50
39
34
IFRS
Shareholders’ 
funds per share 
(pence)
500
400
300
200
100
0
* restated for IFRS
IFRS
05 04* 03*
276
340
389 Accounting Standards 
We have produced the 2005 Annual Report in accordance with standards issued by the International
Accounting Standards Board. The results for 2004 have been restated to be on a consistent basis,
apart from the impact from IAS 39 which only applied from 1 January 2005. Note 28 sets out the
reconciling items between the published 2004 accounts, prepared under UK GAAP , and the restated
2004 accounts. All of the reconciling items are in line with the statements made in the 2004 Operating
and Financial Review. 
The principal changes affecting the results and net assets of the Group are: 
Accounting for pension costs under IAS 19: Under SSAP 24 the pension charge in 2004 was £11.0 million.
Under IAS 19 the total charge was £18.9 million, and in 2005 the total charge was £18.4 million. 
Accounting for share-based payments under IFRS 2: The charge under UK GAAP in 2004 was £0.5 million,
partly reﬂecting the ability under UK GAAP to write back provisions for schemes which were unlikely to
vest to participants. The IFRS 2 charge in 2004 was £2.2 million, and in 2005 the charge was £3.5 million 
as a result of more option schemes creating a charge due to the cut-off effect of IFRS 2 only applying to
options granted after 7 November 2002. 
Accounting for long term inventory creditors under IAS 2: Under UK GAAP there was no charge in the
reported 2004 results. In the restated Income Statement under IAS there was an interest charge of £2.4
million (net of £1.4 million of capitalised interest) offset partly by improved margins due to reduced cost 
of sales of £0.5 million. In 2005 there was an interest charge of £3.8 million (net of £3.4 million of interest
capitalised) offset by improved margins of £1.5 million. 
In addition to the above, the Group has elected to adopt the policy of full recognition of actuarial gains
and losses whereby movements in pension scheme obligations, due to changes in actuarial assumptions
or revised terms of the pension scheme, are recognised in full through the Statement of Recognised
Income and Expense. In 2004 this gave a charge of £3.6 million, in line with the ﬁgure in the FRS 17
disclosures in 2004. The 2005 charge was £1.1 million. 
All of the adjustments, net of tax, together with the Balance Sheet value of the adjustments at the 
date of transition to International Accounting Standards of 1 January 2004, reduced net asset value 
at 31 December 2004 by £150.0 million. This reduction is partially offset by £42.3 million as dividends 
are no longer recognised as liabilities until declared or, where necessary, approved by shareholders. 
The net reduction in net asset value at 31 December 2004 was, therefore, £107.7 million. 
Pensions 
There was a full actuarial valuation of the George Wimpey Staff Pension Scheme as at 31 March 2005. 
The valuation determined the gross deficit as £148 million, £104 million net of deferred tax. As a result 
of that valuation the Trustees and the Board have agreed that the Company will continue to make
contributions equivalent to £15 million per annum to fund the deﬁcit. This is in addition to the ongoing
costs of providing future service beneﬁts.
Pension net liabilities are reﬂected in the 2005 accounts in accordance with IAS 19, which uses different
methodology to the triennial valuation. Shareholders’ funds are shown net of any pension deficit, 
which stood at £129 million, net of deferred taxation, slightly below the level of 2004 (£130 million).
The Board, in conjunction with the Trustees, continues to take a prudent approach to the investment
strategy in relation to the pension fund and the actuarial assumptions used in assessing the deﬁcit.
In particular the mortality assumptions have been fully updated to reﬂect the trends identiﬁed by a
speciﬁc George Wimpey study carried out by the actuaries to the Pension Scheme Trustees. 
Details relating to the Pension Scheme, as represented in the 2005 Accounts and the most recent
Actuarial Valuation, are shown in note 20. 
Andrew Carr-Locke Group Finance Director
www.georgewimpeyplc.co.uk 29
Operating and Financial Review Board of Directors
30 George Wimpey Plc Annual Report and Accounts 2005
1 2 3 4 5 6
7 8 9 10 11
1 John H Robinson Chairman
John has been Chairman since 1999, originally joining George Wimpey
as a Non Executive Director in September 1998. He is also Chairman 
of Afﬁnity Healthcare Limited, Bespak plc, Paragon Health Care Group
Limited and is an operating partner at Duke Street Capital. In November
2005 John joined Esporta Group Limited as a Non Executive Director.
John has previously been Chairman and Chief Executive of Smith &
Nephew PLC and Chairman of Low & Bonar Plc, Railtrack PLC and UK
Coal PLC. John is Chairman of the Governing Council of the University 
of Hull. Age 65.
2 Peter M Johnson Group Chief Executive
Peter was appointed in October 2000, having previously been 
Chief Executive of The Rugby Group PLC and prior to that a Director of
Redland PLC. He is a Non Executive Director of DS Smith Plc and in May
2005 Peter joined the Supervisory Board of Wienerberger AG. Peter is a 
director of The House Builders Federation Ltd and of the Council for
Industry and Higher Education (CIHE). Age 58.
3 David Williams Non Executive Director
David was appointed in May 2001. He retired as Finance Director 
of Bunzl plc in January 2006, having been on the Board for 14 years. 
In January 2005 David joined The Peninsular and Oriental Steam
Navigation Company as a Non Executive Director. Previously David 
has held Non Executive positions at Dewhirst Group Plc and Medeva
PLC. David is the designated Senior Independent Director. Age 60.
4 Andrew Carr-Locke Group Finance Director
Andrew was appointed in May 2001. Previously he was Group Finance
Director of Courtaulds Textiles Plc. Andrew is a Non Executive Director 
at AWG Plc. Age 52.
5 Christine Cross Non Executive Director 
Chris was appointed in December 2002. She is a retail consultant and
was previously Group Business Development Director at Tesco. She is
Non Executive Director of Sobeys PLC, Fairmont Hotels PLC in Canada
and Next plc. Since June 2005 Chris has been the Retail Advisor to 
Apax Partners Ltd. Age 54.
6 Baroness Dean of Thornton-le-Fylde Non Executive Director 
Brenda was appointed in October 2003. She is a member of the House
of Lords and active in a range of public areas. She is a Non Executive
Director of Dawson Holdings PLC and in April 2005 became Chairman 
of the New Covent Garden Market Authority. She retired as Chairman 
of the Housing Corporation in 2003 and has previously held Non
Executive positions with Take Care plc, Chamberlain Phipps Plc and
Inveresk plc. Age 62.
7 Steve Parker President, Morrison Homes
Steve was appointed in January 2006. He joined Morrison Homes in
1996 as Orlando Division President and in 1998 was promoted to Senior
Vice President of the Florida Region. In 2004 he became Executive Vice
President, before being appointed President in 2005. Age 52.
8 Anthony Reading MBE Non Executive Director
Tony was appointed in April 2005. Previously Tony was an Executive
Director of Tomkins Plc and Chairman and Chief Executive of Tomkins
Corp USA. He is a Non Executive Director of The Laird Group Plc, Spectris
Plc and e2v technologies plc. Age 62.
9 Peter Redfern Deputy Group Chief Executive
Peter joined the company as Finance Director of George Wimpey UK 
in January 2001. At the beginning of 2004 he became the Managing
Director of George Wimpey UK and in October 2004 was appointed Chief
Executive of the UK Business and joined the Plc Board. In February 2006
Peter was appointed as the Deputy Chief Executive of George Wimpey
Plc. Prior to joining George Wimpey, Peter was Finance Director of 
Rugby Cement. Age 35.
10 Robert Sharpe Non Executive Director
Robert was appointed in September 2005. Robert is Chief Executive 
of The Portman Building Society, a post he has held since 1999. Prior 
to that Robert held a number of senior executive positions within the
mortgage market and was Vice Chairman of the Council of Mortgage
Lenders in 1992 and 1993. Age 57.
11 James Jordan Group Company Secretary and General Counsel
James, a solicitor, was appointed Group Company Secretary in 
February 2002. Age 44.
Audit Committee
Current members: Anthony Reading (Committee Chair), Brenda Dean,
Robert Sharpe and David Williams.
Corporate Social Responsibility Committee
Current members: Christine Cross (Committee Chair), Brenda Dean, Steve
Parker and Peter Redfern.
Nominations Committee
Current members: John Robinson (Committee Chair), Christine Cross,
Brenda Dean, Peter Johnson, Anthony Reading, Robert Sharpe and 
David Williams.
Remuneration Committee
Current members: David Williams (Committee Chair), Christine Cross,
Anthony Reading and Robert Sharpe.
WP088_p30_vAW1 TP.qxd  10/3/06  14:44  Page 30 Directors’ Report
www.georgewimpeyplc.co.uk 31
Corporate Governance
The Directors submit to the members their Report and Accounts of the
Company for the year ended 31 December 2005. The report on Corporate
Governance and the Remuneration Report on pages 33 and 36, respectively,
form part of this Directors’ Report.
Principal activities and business 
During 2005 the Group’s principal activities were in housing and land
development under the George Wimpey, Laing Homes and Morrison Homes
brand names. A summary of the results of these activities is set out in note 1.
Further details of the Company’s activities and future developments are
described on pages 2 to 29.
Profit and dividends
The profit for the financial year of £252.8 million is reported in the 
Income Statement on page 44. An interim dividend of 5.7 pence per share,
amounting to £22.4 million, was paid on 31 October 2005 and the Directors
recommend a final dividend at the rate of 11.9 pence per share amounting to
£47.2 million. As disclosed in note 5, the dividends paid during 2005 include
the interim dividend detailed above and the 2004 final dividend of 10.8 pence
per share. This made a total of 16.5 pence per share or £64.7 million in aggregate.
The Company introduced a scrip dividend scheme in 2002 and this will
continue to operate until the Board determines otherwise. Should shareholders
wish to elect to participate in the scheme, further information is set out on
page 77.
Directors
Biographical details of the Board of Directors are shown on page 30.
The Articles of Association require one third of the Directors who are subject
to retirement by rotation to retire at each Annual General Meeting. However,
if their number is not a multiple of three, the number nearest to but not
exceeding one third shall retire from office. The Directors to retire by rotation
shall be those who have been longest in office since their last appointment
or reappointment. In line with the Combined Code each Director also seeks
re-election every three years. Accordingly, at the forthcoming Annual General
Meeting two Directors will be required to retire by way of rotation. John
Robinson and David Williams being the longest standing Directors since their
appointment or reappointment will therefore retire and offer themselves for
reappointment at the forthcoming Annual General Meeting. 
Any new Directors appointed by the Board since the last Annual General
Meeting must, in accordance with the Articles, seek reappointment at the next
Annual General Meeting and shall not be taken into account in determining the
Directors or the number of Directors who are to retire by rotation as outlined
above. Accordingly, Anthony Reading, Robert Sharpe and Steve Parker, who
were appointed on 13 April 2005, 1 September 2005 and 1 January 2006
respectively, will be seeking reappointment at the Annual General Meeting.
The beneficial and non beneficial interests of the Directors in shares of the
Company, disclosed to the Company, are set out below:
Shares at Shares at
01/01/2005 31/12/2005
J H Robinson 29,770 29,770
P M Johnson 296,684 477,707
A C P Carr-Locke 25,000 175,604
P TRedfern 0 29,340
D M Williams 5,408 5,613
C Cross 3,454 5,847
B Dean 1,000 1,000
A J Reading (on appointment) 0 10,139
R Sharpe (on appointment) 0 0
Former Directors
S M Cline (resigned 31 December 2005) 10,000 10,000*
J M Blackburn (resigned 1 September 2005) 11,227 11,227*
*on resignation
Interests of the Directors in options over the shares of the Company are
shown on page 41. 
There has been no change in the interests of the Directors between 
31 December 2005 and the date of signing of the accounts, 21 February 2006. 
Share capital
At the 2005 Annual General Meeting authority was given to the Company 
to purchase up to a maximum of 10% of its own shares. This authority expires at
the conclusion of the forthcoming Annual General Meeting, at which a special
resolution will be proposed to renew the authority for a further year.
The Board has no present intention of exercising this authority but will, 
as is its practice, keep the matter under review. Purchases will only be made
if the Directors consider that they are in the best interests of shareholders
generally and if the purchase(s) could be expected to result in an increase 
in earnings per share after taking into account other available investment
opportunities. In exercising this authority, the Board may cancel the shares
that have been bought back or hold them in treasury (or a combination of
both). Holding bought back shares in treasury provides the Company with
the ability to sell or transfer them quickly and cost effectively and also
provides flexibility in using such shares for employee schemes. If any such
shares are used, the Company will, so long as required under the guidelines
of the Association of British Insurers Investment Committee, count them
towards the limits in the schemes as if they were newly issued shares. 
Options were outstanding as at 13 February 2006 to subscribe for a total
number of 7,432,054 ordinary shares, or 1.9% of the issued share capital. 
If the authority to purchase shares is ever used in full (and the purchased
shares cancelled), the proportion of issued share capital represented by 
this figure would be 2.1%.
An ordinary resolution will be proposed at the Annual General Meeting to
authorise the Directors, in accordance with section 80 of the Companies Act
1985, to allot shares in the Company up to an aggregate nominal amount 
of £33,070,976 for a further one year to the 2007 Annual General Meeting.
Previously this authority has been renewed annually for successive periods 
of five years (as is permitted by the Act) and this change in practice follows
the Company’s consultation with RREV (Research, Recommendations and
Electronic Voting) the joint venture between the NAPF (National Association
of Pension Funds) and ISS (Institutional Shareholder Services).
A special resolution will be proposed at the Annual General Meeting to
enable the Directors to allot shares for cash by way of rights issue, scrip
dividend or in an amount equal to, but not more than £4,960,646, in
aggregate of the nominal value of the Company’s issued share capital,
without regard to the pre-emption rights of the Companies Act.
Employee share schemes
The Company operates a Savings Related Share Option Scheme for all of its
UK employees who have been employed by the Group for a minimum of 
six months and an Executive Share Option Scheme for all UK regional board
directors. The limit that may be issued under each Scheme is the lower of
20,000,000 and 5% of the issued ordinary share capital of the Company.
Options were granted during the year over 962,430 shares at 328.2 pence
under the Savings Related Share Option Scheme.
Options were granted during the year over 639,854 shares at 448.5 pence and
728,671 shares at 419.25 pence under the Executive Share Option Scheme.
The number of options outstanding at 31 December 2005 under the Savings
Related Share Option Scheme was 4,174,734, exercisable between now and
2011 at between 101.0 pence and 328.2 pence per share and, for the
Executive Share Option Scheme, 3,485,888 shares exercisable between now
and 2015 at 121.5 pence to 448.5 pence per share. The number of options
outstanding under both schemes was 7,660,622 shares of which 0.24% are 
in relation to the Executive Directors.
Until 2000, the George Wimpey Plc Executive Incentive Scheme required
participants to invest part of their annual cash bonus in shares of the
Company to be held in trust. As at 31 December 2005, the Trust held a 
total of 2,392 shares with a market value of approximately £11,500. Under 
the Scheme shares were to be retained for three or five years and were 
then matched by 50% and 75% respectively. This Scheme will close when 
all current obligations are met. No Directors participate in the Scheme.
Substantial shareholdings
As at 13 February 2006 the Company’s register of substantial shareholdings
showed the following interests in 3% or more of the Company’s shares.
WP088_p31-32_vAW4 TP.qxd  10/3/06  14:42  Page 31 % Issued 
Number of Shares Share Capital
Axa S.A. (various funds) 78,428,888 19.76
Prudential Corporation PLC 31,988,974 8.06
Lehman Brothers 17,856,000 4.50
Barclays Bank PLC 17,577,387 4.43
FMR Corporation and Fidelity International 17,321,566 4.36
Creditor payment policy
The Group’s policy and practice, for itself and its businesses, is to agree 
in advance the terms and conditions for business transactions with suppliers
and sub-contractors. Payment is generally made on this basis, subject to
terms and conditions being met by the suppliers and sub-contractors. The
number of creditor days as at 31 December 2005 was 26 days (2004: 30 days).
The Company had no trade creditors at 31 December 2005.
Research and development
George Wimpey continues to employ both traditional and innovative
approaches to construction, taking into account the needs for safe working
practices, customer satisfaction, good design and build efficiency. During 2005
the Company strengthened its commitment to advancing its construction
methods by continuous improvement and a series of trials of new methods.
These consisted of both incremental changes to our current practices and
wider changes to build methodology. They have included timber and steel
frame as well as re-examining the principles of modular construction.
George Wimpey’s successful involvement in the Design for Manufacture
competition has provided the opportunity to stand back and look critically 
at existing methods. However, the Company continues to be cautious about
making wholesale changes to construction methods until new technologies
are tried and tested.
George Wimpey has maintained its partnership with the School of the 
Built Environment at The University of Nottingham; the number one ranked
university in the UK in the study of architecture and building technology. This
gives the business access to knowledge to take further steps in improving
construction practices and particularly energy efficiency.
The Board formally reviews production technology initiatives taking place 
in both the UK and the US on an annual basis.
Employee involvement and communication
The Company is committed to ensuring open and regular communication
throughout the Group on both business related issues and issues of general
interest. The intranet is continually updated thereby providing a valuable
communication tool across the Group and an important facility for providing
all employees with access to a wide range of information. We continue 
to cascade information widely throughout the business supported by
management presentations. In 2005 we introduced Employee Consultative
Committees in all of our UK businesses and elected representatives ensure
that employee suggestions and business changes are well communicated.
During the year the Board visited local businesses in both the UK and US,
meeting staff on site and in regional offices. The Board spent time with staff at
all levels and discussed a range of topics related to their businesses. In addition,
Directors carry out regular visits to all parts of the business and hold informal
discussions with employees, helping them to better understand the Company’s
objectives, and listen to feedback from employees on any issues they may have.
The Company produces an internal quarterly magazine for all employees
across the Group called ‘In House’ . The magazine, edited independently,
receives contributions from all businesses and aims to keep staff informed 
of new developments and initiatives, employee and business issues as well 
as social events and employee achievements including charity related work
and fundraising.
The Company’s Savings Related Share Option Scheme was again made
available during the year and was taken up by 1,054 employees. It is
intended to make a further issue in 2006. Under this Scheme, employees 
may acquire shares, at a 20% discount to the market price at the time of 
each grant of options, in three or five years’ time depending upon their
election at the commencement of the savings contract.
Equal opportunities 
The Company is committed to equality of opportunity in all its employment
practices, policies and procedures. To this end, within the framework of the law,
we are committed, wherever practicable, to achieving and maintaining a
workforce which broadly reflects that of the local catchment area within which
we operate. No employee or potential employee will receive less favourable
treatment due to their race, creed, colour, nationality, ethnic origin, religion,
political or other opinion, affiliation, gender, sexual orientation, marital status,
family connections, age, membership or non membership of a trade union, or
disability unless justifiable, for example due to health and safety considerations.
Employment of disabled persons 
The Company is committed, where possible, to ensuring that people with
disabilities are supported and encouraged to apply for employment with the
Company and to achieve progress once employed. They will be treated so that
they have an equal opportunity, so far as it is justifiable, to be selected, trained
and promoted. Every reasonable effort is made to enable disabled persons to
be retained in the employment of the Company by investigating the possibility
of making reasonable adjustments to the job, workplace or equipment.
Charitable contributions
Contributions for charitable purposes were made during the year amounting
to £546,532 (2004: £505,905). The Charitable Contributions Committee, an
executive committee under the chairmanship of Andrew Carr-Locke, considers
charitable contributions made by the Company and also monitors on a
quarterly basis both UK and US charitable contributions which have been
made by the regional businesses. Donations are made in accordance with the
policy laid down by the Board and the guidelines adopted by the Committee. 
Directors’ responsibilities for the financial statements
The Directors prepare the Annual Report and the financial statements 
in accordance with applicable law and International Financial Reporting
Standards (IFRS) as adopted by the European Union. The Directors are
responsible for preparing financial statements for each financial year which
give a true and fair view of the state of affairs of the Company and the Group
and of the profit or loss of the Group for that year. The Directors are also
responsible for preparing the Directors’ Remuneration Report in accordance
with the Companies Act 1985. In preparing the financial statements,
appropriate accounting policies have been used and applied consistently,
and reasonable and prudent judgements and estimates have been made. The
financial statements are prepared in accordance with relevant applicable
accounting standards. The Directors are responsible for maintaining adequate
accounting records, for safeguarding the assets of the Group and for
preventing and detecting fraud and other irregularities. 
A copy of the financial statements of the Company is placed on the George
Wimpey Plc website (www.georgewimpeyplc.co.uk). Executive management
is responsible for the maintenance and integrity of the Company’s website.
Information published on the internet is accessible in many countries with
different legal requirements. Legislation in the United Kingdom governing
the preparation and dissemination of financial statements may differ from
legislation in other jurisdictions and third parties in such jurisdictions should
take their own legal or professional advice as appropriate.
Indemnities
Throughout the year and as at the date of this Annual Report, the Articles 
of Association contained provisions for the benefit of Directors, officers 
and auditors of the Company indemnifying them out of the assets of the
Company to the full extent allowed by law against liabilities incurred by them
in the course of carrying out their duties. A resolution will be proposed 
at the Annual General Meeting to amend the Articles of Association to 
reflect current law on Directors’ indemnities as set out in the Companies
(Audit, Investigations and Community Enterprise) Act 2004. The proposed
resolution together with an explanation is set out in the Notice of Meeting. 
Auditors
In accordance with Section 384 of the Companies Act 1985, a resolution 
for the reappointment of PricewaterhouseCoopers LLP and to authorise 
the Audit Committee to determine their remuneration, will be proposed 
at the Annual General Meeting on 20 April 2006.
By Order of the Board
James J Jordan
Group Company Secretary and General Counsel
George Wimpey Plc
21 February 2006
Directors’ Report continued
32 George Wimpey Plc Annual Report and Accounts 2005
WP088_p31-32_vAW4 TP.qxd  10/3/06  14:42  Page 32 Corporate Governance
Introduction
The Board is and remains fully committed to high standards of corporate
governance throughout the Group and supports the Combined Code on
Corporate Governance (‘Combined Code’) which was published in July 2003.
The Listing Rules of the Financial Services Authority require the Company 
to include a statement to allow shareholders to evaluate how it has applied
the principles and provisions of good governance as set out in Section 1 
of the Combined Code. This report, together with the information set out 
in the Remuneration Report on pages 36 to 42, is published pursuant to 
the Combined Code which deals with directors, directors’ remuneration,
relations with and accountability to shareholders and the audit of the
company. Together, these sections explain how the Company has applied
the principles in Section 1 of the Combined Code and they also provide 
an insight into how the Board and management run the business for the
beneﬁt of shareholders.
Statement of compliance
The Board considers that it has complied with the provisions of Section 1 
of the Combined Code throughout the year. Provision C.3.4 of the Combined
Code requires the Audit Committee to review arrangements by which 
staff of the Company may, in conﬁdence, raise concerns about possible
improprieties in ﬁnancial reporting or other matters. During the year, on
behalf of the Board, the Executive Committee undertook a review of the
arrangements in place. The Audit Committee undertook its review of such
arrangements as part of its year end sign off procedures. In order to meet its
objectives as set out in provision C.3.4, the Audit Committee decided that 
the relative strength of the arrangements within Morrison Homes could be
enhanced by introducing a more formal procedure and measures will be
taken during the current ﬁnancial year to address such enhancements.
The Board of Directors
During 2005, the Board consisted of the Chairman (John Robinson), the
Group Chief Executive (Peter Johnson), three other Executive Directors and
four independent Non Executive Directors between 1 January 2005 and 
15 April 2005 and ﬁve independent Non Executive Directors throughout 
the rest of the year. David Williams, Christine Cross and Brenda Dean 
were Non Executive Directors throughout the year. Anthony Reading 
was appointed to the Board as a Non Executive Director on 15 April 2005.
Mike Blackburn stood down from the Board on 1 September 2005 and
Robert Sharpe was appointed as a Non Executive Director from that 
date. Throughout the year, in line with the Combined Code, excluding 
the Chairman, at least half of the Board comprised independent Non
Executive Directors. A list of Directors and details of their biographies 
is set out on page 30.
The business and management of the Company is the collective
responsibility of the whole Board. At each meeting the Board reviews 
the performance of each of its trading businesses in detail and during 
each year it undertakes a strategic review. There is a formal written schedule 
of matters reserved for consideration and approval by the Board and these
include the annual budget, major land purchases and investment proposals,
the approval of annual and interim results and a review of the overall system
of internal control and risk management. This list was implemented by the
Board in 2004 as part of an overall review of the terms of reference applicable
to the Board and its standing Committees, which also took into account the
requirements of the Combined Code. The terms of reference can be found
on the George Wimpey Plc website (www.georgewimpeyplc.co.uk).
There are four standing Board Committees: Nomination, Audit, Corporate
Social Responsibility and Remuneration. Each Board Committee operates
within its clearly deﬁned terms of reference and reports back to the Board 
at the next Board Meeting. Membership of these Committees was reviewed
during the year by the Board and the changes made took into account (a)
the expertise and background of newly appointed Directors and (b) the 
need to refresh Committee membership as appropriate. 
During 2005 the Board met formally, as a whole, nine times. Twice yearly the
Board spends time with a business unit in the UK and the US which consists
of site visits, presentations from local management and also provides the
opportunity for the Board to meet employees both on site and in the host
regional ofﬁce.
During the year, there were no absences from any Board meetings by 
any Directors. 
In line with the Combined Code, the Board considers that an independent
Director is one who is independent in character and judgement and where
there are no relationships or circumstances which could affect the Director’s
judgement. Each of the Non Executive Directors has at all times throughout
the year (or part of the year in the case of Anthony Reading and Robert
Sharpe) acted independently of management and has had no relationships
which would materially interfere with the exercise of their independent
judgement and decision making. The Board is of the view that the 
Non Executive Directors play an important role in upholding corporate
governance and in ensuring that no individual or group dominates the
Board’s decision making process. In achieving this, independence is vital. 
The roles of the Chairman and the Group Chief Executive are separately
held and have been throughout the year. There is a clear division of
responsibilities between each position which is documented. In brief, 
the Chairman is responsible for the working of the Board and all matters
relating to it including its balance and composition (subject to Board 
and shareholder approval) and for effective shareholder communications. 
The Group Chief Executive is responsible for the management of the 
Group and its businesses. He develops the strategy for Board approval 
and is then responsible for its implementation.
David Williams is the Senior Independent Director appointed in line with 
the Combined Code and was appointed to this role with effect from 
1 September 2005, taking over from Mike Blackburn who stood down 
from the Board on this date.
The Articles of Association require one third of the Directors who are subject
to retirement by rotation to retire at each Annual General Meeting. However, 
if their number is not a multiple of three, the number nearest to but not
exceeding one third shall retire from ofﬁce. The Directors to retire by rotation
shall be those who have been longest in ofﬁce since their last appointment 
or reappointment. In line with the Combined Code each Director also seeks
re-election every three years. Accordingly, at the forthcoming Annual General
Meeting two Directors will be required to retire by way of rotation. John
Robinson and David Williams, being the longest standing Directors since their
appointment or reappointment, will therefore retire and offer themselves 
for reappointment at the forthcoming Annual General Meeting.
Any new Directors appointed by the Board since the last Annual General
Meeting must, in accordance with the Articles, seek reappointment at 
the next Annual General Meeting and shall not be taken into account in
determining the Directors or the number of Directors who are to retire by
rotation as outlined above. Accordingly, Anthony Reading, Robert Sharpe 
and Steve Parker, who were appointed on 15 April 2005, 1 September 2005
and 1 January 2006 respectively will be seeking reappointment at the 
Annual General Meeting.
An induction programme is provided for new Directors which includes 
the provision of a comprehensive set of background information on 
the Group including its corporate governance policies and procedures.
Where appropriate, newly appointed Directors are also provided with the
opportunity of attending a training course on the role and responsibilities 
of being a Director in a public limited company.
Formal agendas and reports for Board and Committee meetings are 
provided to Directors one week prior to the meeting, thus allowing 
sufﬁcient time for detailed review and consideration of the documents
beforehand. The Chairman and the Group Chief Executive maintain regular
contact with all Directors. James Jordan is the Group Company Secretary 
and General Counsel (‘Secretary’) and he attends all Board and Board
Committee meetings (Nomination, Remuneration, Corporate Social
Responsibility and Audit). All Directors have direct access to the Secretary 
for advice and services. The Secretary is responsible for ensuring that the
correct procedures are followed at all Board and Committee meetings. 
He reports directly to the Chairman and also to the Group Chief Executive.
The Board has adopted a procedure whereby any Director may seek, 
through the ofﬁce of the Secretary, independent professional advice, 
at the Company’s expense, in furtherance of his or her duties. 
www.georgewimpeyplc.co.uk 33
Corporate Governance During 2005 the Board carried out a self appraisal in line with the Combined
Code. The Chairman led the process which included meeting separately with
each Director and also with the Secretary, to discuss and appraise his or her
performance, the performance of the Board and each of its Committees. The
Senior Independent Director carried out a formal appraisal of the Chairman
and, as part of this process, liaised with each Director and the Secretary, in
each case in the absence of the Chairman. The outcome of the appraisal
process has been formally considered by the Board.
Board Committees 
Nomination Committee
Current Members: John Robinson (Committee Chair), Peter Johnson and
Brenda Dean, who were each members throughout the year. David Williams,
Christine Cross, Anthony Reading and Robert Sharpe are also members and
joined the Committee on 1 September 2005. Mike Blackburn was a member
of the Committee until 1 September 2005. Prior to 1 September 2005, the
Committee consisted of the Chairman, two independent Non Executive
Directors and the Group Chief Executive. Having regard to the role and
independence of the Chairman this composition is considered to be in 
line within the requirements of the Combined Code which requires there 
to be a majority of Non Executive Directors. 
The Committee meets as and when necessary to consider the appointment
of new Executive and Non Executive Directors. The Committee adopts a
rigorous process for the appointment of new Directors, involving the use 
of external recruitment consultants followed by meetings with both the
Committee and subsequently with the Board as a whole and the Secretary.
This ensures that the selection process is formal, objective and based on
merit. The Committee has formal terms of reference and meets as and when
appropriate but at least once a year to comprehensively review succession
planning at both Board and senior management level across the Group. 
In line with the Combined Code, it also reviews the Board structure, size,
composition and time commitments required from each Non Executive
Director and through this keeps under review the balance of membership
and the blend of skills, knowledge and experience that is required.
During the year, the Committee formally met on six occasions principally 
to consider Board changes and review succession planning. There were 
no absences.
Audit Committee
Current Members: Anthony Reading (Committee Chair), David Williams,
Brenda Dean and Robert Sharpe.
David Williams and Brenda Dean were members of the Committee throughout
the year. Anthony Reading and Robert Sharpe became members of the
Committee on 1 September 2005. Christine Cross and Mike Blackburn 
were members of this Committee until 1 September 2005.
The Committee consists of four independent Non Executive Directors
including David Williams who was the Group Finance Director of Bunzl plc
until his recent retirement on 31 January 2006. The Board is satisﬁed, in line
with the Combined Code, that David Williams has both recent and relevant
ﬁnancial experience to meet the needs of this Committee. The Committee
Chair, Anthony Reading (a Chartered Accountant) was appointed to this
position on 1 September 2005 and has substantial operational experience 
in both the UK and the US. The Chairman, Group Chief Executive, Group
Finance Director and senior management attend Committee meetings 
for speciﬁc items at the invitation of the Committee Chair. The Committee
routinely meets without any operational management present.
The Committee has formal terms of reference. It receives reports from 
the external auditors, PricewaterhouseCoopers LLP (‘PwC’), the Internal 
Audit Department and also from senior management at each meeting. 
The Committee is responsible for reviewing the external audit process 
and for monitoring the effectiveness of internal controls. It also considers 
major accounting issues. The Committee supports the Board in reviewing
information which is sent to shareholders to ensure that it presents a
balanced assessment of the Company’s position. In addition, the Committee
reviews the performance and objectivity of PwC, the scope of its work (and
that of the Internal Audit Department). It also reviews the fees to be paid 
to PwC for both audit and non-audit related work.
During the year the Committee formally met on three occasions and there
were no absences.
Corporate Social Responsibility Committee
Current Members: Christine Cross (Committee Chair), Brenda Dean, Peter
Redfern (who were members throughout the year) and Steve Parker (who
became a member with effect from 1 January 2006). Stewart Cline was a
member of this Committee throughout 2005. He retired from the Board 
on 31 December 2005.
The Committee has formal terms of reference and is responsible for setting
the Company’s CSR strategy and policies and for performance monitoring 
and reporting against identiﬁed key performance indicators including, those
relating to Health and Safety, Environment, Customer Care, Supply Chain
Management, Employees and the Community. The Committee also highlights
significant social, environmental and ethical risks and opportunities for the
attention of the Board. The 2005 CSR Report entitled ‘Meeting the Challenge’
has been sent to all shareholders and many of our stakeholders, including
suppliers, local authorities, Governmental departments and regulatory bodies.
The report is also made available to all employees of the Group via the
intranet or in hard copy if preferred. The Report can also be found on the
George Wimpey Plc website (www.georgewimpeyplc.co.uk). The Company’s
approach to CSR is also summarised on pages 24 to 25 of this Annual Report. 
During the year the Committee met on four occasions and there were 
no absences except that Brenda Dean was unable to attend one meeting.
Remuneration Committee
Current Members: David Williams (Committee Chair) and Christine Cross (who
were members throughout the year), Anthony Reading and Robert Sharpe
(who each joined the Committee on 1 September 2005). Mike Blackburn 
was a member of and chaired the Committee until 1 September 2005.
The Committee consists of four independent Non Executive Directors. 
Details of the Remuneration Committee and its policies are set out in the
Remuneration Report on pages 36 to 42. The Committee has formal terms 
of reference.
During the year the Committee met on ﬁve occasions and there were 
no absences.
Relations with shareholders and investors
During the year, the Company has continued to maintain an active investor
relations programme, encouraging constructive two way communication 
with investors, fund managers and analysts. Presentations are given at the time
of both preliminary and interim results and at the Annual General Meeting. 
The Company has a well established cycle of communication based on the
Group’s ﬁnancial reporting calendar. Webcasts of both results presentations,
along with the question and answer sessions, are made publicly available
on the George Wimpey Plc website (www.georgewimpeyplc.co.uk). During
2005, Non Executive Directors attended both the Company’s preliminary and
interim results presentations where, in line with the Combined Code, they
were available to meet with both institutional and private shareholders.
The Company makes full use of its website (www.georgewimpeyplc.co.uk) 
to provide information for shareholders and others interested in George
Wimpey as an investment opportunity. Our registrars (LloydsTSB) have also
developed www.shareview.co.uk; an electronic service where shareholders
can review their shareholding, vote on resolutions and update their 
personal details.
Peter Johnson, Andrew Carr-Locke, Peter Redfern and Terri Wright (Group
Communications Manager) carried out an extensive programme of meetings
with institutional shareholders and investors throughout the year following
guidance issued by the Financial Services Authority. Meetings were held in
London, Edinburgh, Dublin, Paris, New York, Boston, Chicago, San Francisco,
Eindhoven, Amsterdam, Rotterdam, Stockholm and Copenhagen. The
Company also hosted an analyst event and will consider other visits as
appropriate or requested. 
Andrew Carr-Locke and David Rallison (Group Treasurer) held meetings
across the US with investors in the Company’s US Private Placement
programme. Presentations are made twice a year to the Company’s UK
bankers following the announcement of the Company’s preliminary and
interim results. 
Corporate Governance continued
34 George Wimpey Plc Annual Report and Accounts 2005 The Company’s joint brokers, JPMorgan Cazenove and ABN Amro Hoare
Govett, attend Board meetings to provide feedback on the shareholder
surveys that they each carry out following the publication of the Company’s
results and subsequent meetings with shareholders. 
The Company is pleased to welcome private and institutional shareholders 
to its Annual General Meeting which it regards as an important forum for 
the Board to engage with shareholders. The Chairman and the Group Chief
Executive use the Meeting as an opportunity to make presentations on the
business. The Board will be present at the Meeting to answer questions and
will be available both prior to and after the Meeting for discussions with
shareholders. The result of the voting on each resolution will be declared 
at the Meeting and will also be announced publicly afterwards in line with
best practice.
Accountability and audit 
The Board believes that the ﬁnancial statements and reviews contained
within this document present a balanced and understandable assessment 
of the Company’s performance and prospects. The sound system of internal
control within the Company enables the Board to make this statement.
The Audit Committee has a ﬁrm policy of not using the Company’s auditor
for non audit work if this could jeopardise the ability of the auditor to provide
an independent and objective audit opinion. However, in certain cases the
use of PwC for non audit work may make it more timely and cost effective
due to the ﬁrm’s knowledge of the Group. Following a competitive tender
process, which is designed to ensure the best provider is selected, PwC
currently carries out routine tax compliance work. PwC also assisted the
Company in its review of new International Accounting Standards. The
Committee takes the view that carrying out this non audit work does not
affect PwC’s objectivity or independence. In addition, PwC is subject to its
own professional standards which safeguards the integrity of the auditing
role performed on behalf of shareholders. Details of the fees paid to PwC 
in 2005 are set out in note 2.
Internal control
The Board has overall responsibility for the Group’s system of internal control
and for reviewing its effectiveness. The implementation and maintenance 
of the risk management and internal control systems are the responsibility 
of the Executive Directors and senior management. It is recognised that the
system is designed to manage, rather than eliminate, the risk of failure to
achieve business objectives. Consequently, it can only provide reasonable,
and not absolute, assurance against material misstatement or loss. The
system has been in place throughout the period and is reviewed within 
the Turnbull Guidance on Internal Control on an annual basis. 
The Board has reviewed in detail the areas of major risk that the Group 
faces in its operations and the key risks that are identiﬁed are documented 
in the Group Risk Schedule. This Schedule is regularly monitored for ongoing
relevance. Specific key operational risks include land purchase, health and
safety, the environment and product quality. The Board, following its review,
is satisfied with the process in place for risk identification, evaluation and
management. It is satisﬁed with current control mechanisms and reporting
lines that have been in place throughout the year and the programme 
of continuous improvement initiatives that has been implemented.
The Group seeks to maintain high standards of business conduct and
operates under an established internal control framework which can 
be described as follows:
Organisational structure
The Group operates through a number of operating businesses, each with its
own management board. Clear reporting lines and delegated authorities are
in place. The management and monitoring of risk and performance occurs 
at multiple levels throughout the Group and the use of interactive review
processes provides successive assurance through the levels of management
up to the Board.
Land purchase and investment appraisal 
There are clearly deﬁned policies and procedures for the purchase of land
and for capital expenditure. These include detailed appraisal and review
requirements and due diligence procedures which incorporate a detailed
environmental appraisal of land prior to acquisition. These procedures are
subject to rigorous review and authorisation.
Development activity 
There is an established framework for managing and controlling all site
related activity. This includes extensive health and safety procedures, regular
performance monitoring and clear accountability on customer satisfaction.
Operational and ﬁnancial reporting 
There is a developed budgeting system with an annual budget approved by
the Board. Proﬁt and cash forecasts are prepared and reviewed on a monthly
basis. The performance of each business is reviewed monthly by Divisional
and Group management and subsequently reported to the Board against
both budget and forecast. Particular emphasis is placed on cash ﬂow, as well
as proﬁt and loss and balance sheet reporting, and on key operating issues
including health and safety and environmental matters.
Control Self Assessment
The improved procedures put in place during 2004, requiring each business
to report on a regular basis, through a formal Control Self Assessment
process its compliance with the core policies and key controls governing 
the Group, was continued and further reﬁned. This process has also been
extended to key non-operational areas.
Treasury
The principal treasury related risks, decisions and control processes are
documented. The Treasury Committee, consisting of Andrew Carr-Locke
(Chair), Peter Johnson, David Rallison (Group Treasurer) and Matthew Rose
(Head of Tax), meets quarterly to consider treasury related issues, decisions
and control processes. The Committee has terms of reference. 
All of the above internal controls have been in place during the year 
and are subject to ongoing Internal Audit review. Internal Audit supports 
the Audit Committee, the Executive Directors and senior management 
by independently and objectively reviewing the effectiveness of risk
management and the control environment. The Internal Audit methodology
is aligned to the key elements of the Group’s internal control framework. 
All reviews are formally followed up to ensure agreed actions have been
implemented. The results of all Internal Audit reviews are categorised
according to the outcome of the review and are presented and discussed 
in detail at the Audit Committee. In addition to Audit Committee reporting,
Internal Audit reviews are discussed at Group Executive Committee meetings
(which take place at least monthly). During the year, the Committee
consisted of Peter Johnson (Chairman), Andrew Carr-Locke, Stewart Cline,
Peter Redfern, Steve Parker and James Jordan. Internal audit reviews are 
also discussed at Divisional executive meetings of George Wimpey UK 
and Morrison Homes. 
Going concern
The Directors are required under the Financial Services Authority’s Listing
Rules and the Combined Code to have satisﬁed themselves as to the Group’s
ability to continue in existence for the foreseeable future. A review has been
carried out and the Directors have concluded that the Group has adequate
resources and is justiﬁed in using the going concern basis in preparing the
ﬁnancial statements.
www.georgewimpeyplc.co.uk 35
Corporate Governance Introduction and compliance
In preparing this Remuneration Report to shareholders, the Remuneration
Committee has followed the requirements of Section 1 of the Combined
Code on Corporate Governance (‘Combined Code’). This Report complies
with the Companies Act 1985, as amended by the Directors’ Remuneration
Report Regulations 2002 (‘Regulations’) and the Listing Rules of the Financial
Services Authority. Pursuant to the Regulations, this Report is being put 
to shareholders for approval at the Annual General Meeting to be held 
on 20 April 2006. 
The Remuneration Committee
Current members: David Williams (Committee Chair) and Christine Cross
(who were both members throughout the year), Anthony Reading and
Robert Sharpe (appointed on 15 April and 1 September 2005 respectively).
Mike Blackburn was a member of and chaired the Committee until 1
September 2005 when he stood down from the Board. The Committee 
met on ﬁve occasions during the year and there were no absences. 
The Committee recommends to the Board the remuneration framework to
attract and retain its Executive Directors. In line with the Combined Code, it
also monitors and makes recommendations on remuneration for the level 
of senior management below the Board in both the UK and the US. 
The Committee, having taken independent advice on remuneration paid 
to Chairmen of FTSE 100 and 250 companies with similar turnover and/or
market capitalisation, reviews the Chairman’s fees on an annual basis before
making a recommendation to the Board for approval in his absence.
Consultants
The Committee keeps itself appraised of developments and best practice 
in the ﬁeld of remuneration and it seeks advice from external advisers 
when it considers it appropriate to do so. Following a review of its advisers
conducted during the year, Mercer Human Resource Consulting (Mercer) 
was appointed by the Committee as its new adviser in July 2005. Upon
appointment Mercer was commissioned by the Committee to undertake a
comprehensive review of the remuneration policy and following completion
of the review, Mercer provided material advice to the Committee. Mercer also
provides advice to the Trustees of the George Wimpey Staff Pension Scheme.
The Committee seeks external legal advice where appropriate from Slaughter
and May.
During the year, the people listed below provided material advice or services
to assist the Committee in its deliberations but not in relation to their own
individual remuneration:
John Robinson – Chairman
Peter Johnson – Group Chief Executive
James Jordan – Group Company Secretary and General Counsel
Anna Edgeworth – Group Human Resources Director
Towers Perrin (an HR consultancy ﬁrm) provided material advice to the
Committee until July 2005.
Policy and philosophy
Following the review undertaken by Mercer, the Committee has formally
adopted the following remuneration philosophy to apply with effect 
from 2006:
• George Wimpey’s global compensation and beneﬁts programmes must
help attract, retain and motivate the people needed to achieve the
Company’s strategic objectives.
• George Wimpey is committed to fostering a performance culture to
increase shareholder value and to establish George Wimpey as the 
leading housebuilder in the markets in which it operates.
• A signiﬁcant portion of each Executive Director’s total compensation 
should be delivered through performance related pay.
• Incentives should only be capable of providing upper quartile pay
if outstanding performance is achieved.
• Alternative compensation programme designs and pay levels will be
considered for UK and US employees so as to remain competitive with the
local market (subject to shareholder approval or consultation as appropriate). 
In light of the above philosophy, the changes as set out below are proposed
to the bonus and long term incentive plan practices:
• The enhancement of the bonus potential for the UK Executive Directors
so as to make the scheme competitive with the market. Performance
conditions required to receive payments will be stretching.
• In order to encourage the retention of the UK Executive Directors, 50% of
any bonus paid will be deferred into shares for three years with no share
matching element but with dividends accruing for the beneﬁt of the
participant during the deferral period.
• The enhancement of the the bonus potential for the Morrison Homes
President so as to make the scheme more competitive with other US
housebuilders and to help secure the US growth plans. Performance
conditions required to receive payments will be stretching. 
• In order to encourage retention of the President of Morrison Homes, 50% of
any bonus over 100% of salary will be deferred and paid out over a two year
period in cash of two equal amounts. The unpaid bonus will attract interest
at the rate of 6% (as per the Morrison Homes Long Term Incentive Plan).
• The George Wimpey Long Term Incentive Plan (‘George Wimpey LTIP’) was
introduced in 2002 following shareholder approval. Although no changes 
to the Plan are proposed, the requirement for the Company’s underlying
ﬁnancial performance to be satisfactory before vesting takes place, will be
deﬁned by reference to the Company’s earnings per share which will be
measured against those of the comparator group.
• The Morrison Homes Long Term Incentive Plan (‘Morrison LTIP’) was
approved by shareholders in 2003. When introduced, it was intended that
designated senior management from Morrison Homes would participate 
in both the Morrison LTIP and the George Wimpey LTIP , with appropriate
scaling back under the Morrison LTIP to reﬂect participation in both Plans. 
In order to secure greater focus of US management on the Morrison 
Homes business going forward it is proposed that executives of Morrison
Homes will no longer participate in the George Wimpey LTIP . Details of the
arrangement to be put in place for Steve Parker are set out on page 38. 
Proportion of ﬁxed to performance based remuneration
The chart above shows the proportion of ﬁxed to performance based
remuneration for 2005 and also for 2006 to take into account the proposed
changes to remuneration as outlined above. Fixed remuneration comprises
the annual salary and pension allowance which are shown separately.
Performance based remuneration comprises an annual cash bonus and 
a long term incentive plan. The chart illustrates the mix of remuneration
assuming target levels of annual bonuses are met and the annualised
expected value of long term incentive provision. It is the policy of the
Remuneration Committee that a signiﬁcant portion of each Director’s 
total compensation is delivered through performance related pay in 
order to align their risks and rewards with those of shareholders. 
Non Executive director positions
The Company encourages and facilitates its Executive Directors to take on
Non Executive positions with other listed public limited companies, provided
that such positions are held within the requirements of the Combined Code
and have been approved in advance by the Company. Executive Directors
are permitted by the Company to retain their earnings from such positions.
Peter Johnson is an independent Non Executive Director of DS Smith Plc 
and received fees of £38,542 during the year. Andrew Carr-Locke is an
Remuneration Report
36 George Wimpey Plc Annual Report and Accounts 2005
0 20 40 60 80 100
Bonus and Long Term Incentives Pension Allowance Salary (Annual)
05
06
US BASED DIRECTOR
05
06
UK BASED DIRECTORS
05
06
CEO independent Non Executive Director of AWG Plc and received fees amounting
to £35,000 of which 25% was paid to him in the form of AWG shares.
Base salary
The salaries of Executive Directors are reviewed annually by the Remuneration
Committee and changes are normally effective from 1 January. Base salaries
are targeted to be at the median of identiﬁed compensation peer groups as
described below. The Remuneration Committee takes into consideration a
number of factors including experience, responsibility, performance and the
level of salaries for large housebuilders and FTSE 100 and FTSE 250 companies
with turnovers similar to that of the Company. For the position of President 
of Morrison Homes the factors taken into account are similar except that the
Committee takes into account the level of salaries for US housebuilders.
In the 2004 Remuneration Report, it was reported that Peter Johnson 
and Andrew Carr-Locke had been awarded pay increases of 5% and 3.5%
respectively with effect from 1 January 2005 and that each had elected to
waive this increase. The waiver continued throughout 2005 and ceased 
with effect from 31 December 2005. No back pay will be made in respect 
of the waiver, but as previously reported, all other beneﬁts during the year
continued as though pay increases had been implemented from the
effective date. 
Bonus schemes
UK
Executive Directors participated in an annual cash based incentive scheme.
The scheme rewards current performance on the achievement of stretching
ﬁnancial performance targets set annually by the Remuneration Committee
having regard to prior year performance and the annual budget approved 
by the Board. The bonus scheme for Peter Johnson and Andrew Carr-Locke 
is based upon achieving Group proﬁt before tax targets. Peter Redfern
participated in a similar scheme except that it was based on stretching
targets relating to the proﬁt before tax and interest of the UK business 
(90%) and customer satisfaction (10%). 
For 2005, the financial targets were not met by either the Group or the 
UK business. Accordingly no payment has been made to any UK Executive
Director except in relation to Peter Redfern who received an award of 10%
of his basic salary as at 1 January 2005 for fully meeting the customer service
target element of his bonus. This payment is shown in the table on page 40. 
US
Stewart Cline (who retired on 31 December 2005) participated in an 
annual cash bonus scheme which is speciﬁcally tailored and linked to the
performance and growth of Morrison Homes. The scheme is based on a
number of demanding targets which are set by the Remuneration Committee
on an annual basis. The bonus is capped at 200% and is based on targets
relating to return on capital employed, operating margin, customer service
and growth in operating proﬁt. 
Based on the performance of Morrison Homes during the year, Stewart Cline
was awarded a bonus of 200% of his basic salary as at 1 January 2005. This
payment is shown in the table on page 40.
Bonus payments are not pensionable for any of the Executive Directors and
do not count towards the calculation of any other beneﬁts. 
The Company is proposing to make changes to the UK bonus scheme with
effect from the 2006 ﬁnancial year. For each of the UK Executive Directors the
measure will be Group profit before tax. Profit growth over 2005 must be
achieved before any bonus is paid. 60% of base salary will be payable for
achieving target performance. The maximum bonus payable for exceptional
performance is 150% of base salary, which will be very demanding to achieve.
Executive Directors participating in the scheme will be required to defer 50%
of any bonus paid into shares in the Company which will be held for three
years. There will be no share matching of the deferred shares but the shares
will accrue any dividends earned during the the retention period and these
will be paid upon release of the shares. The deferred shares will not normally
be receivable should the Director leave the employment of the Company
during the deferral period.
The 2006 bonus scheme for Steve Parker is speciﬁcally tailored to the 
growth of Morrison Homes through achieving scale and stretching targets.
No bonus will be payable if operating proﬁts fall below 85% of those targets.
The target bonus will be 175% of salary and the maximum bonus payable 
for exceptional performance will be 350% of salary. 50% of any bonus over
100% of salary will be deferred and paid over a two year period in cash in
two equal amounts. The deferred element of the bonus will attract interest 
at the rate of 6%.
Long term incentives 
The George Wimpey Long Term Incentive Plan
The Company believes that the George Wimpey Long Term Incentive Plan
(‘George Wimpey LTIP’), approved by shareholders at the 2002 Annual General
Meeting, continues to effectively align both the Company’s business strategy
and the long term interest of management with those of shareholders. The
George Wimpey LTIP is designed to lock in key executives and motivate 
them through the opportunity to earn signiﬁcant ﬁnancial rewards, on the
achievement of demanding and stretching performance targets, compared
to its comparator group (set out below). Awards under the George Wimpey
LTIP are made by the Remuneration Committee to a limited number of key
executives consisting of Executive Directors and the tier of management
below that level. Neither the Chairman nor any Non Executive Director
participates in the George Wimpey LTIP . 
Awards will not vest unless the pre-determined performance conditions 
are satisﬁed over a three year period (‘performance period’). The key
performance condition measures the Company’s total shareholder return
(‘TSR’) over the performance period commencing on 1 January, against a
speciﬁc comparator group of public limited companies. The group consists 
of housebuilding and building materials related companies. The
Remuneration Committee believes that TSR is the most appropriate
performance measure because it ensures that executives do not receive
rewards under the George Wimpey LTIP unless the Company has
outperformed relative to the designated comparator group companies. 
The comparator group for the George Wimpey LTIP in 2005 is as set out
below (and will be reviewed by the Committee from time to time):
Baggeridge Brick Gleeson (MJ) SIG
Barratt Heywood Williams Taylor Woodrow
Bellway Kier Travis Perkins
Berkeley Marshalls Westbury*
Bovis McCarthy & Stone Wilson Bowden
BPB* Persimmon Wolseley
Crest Nicholson Pilkington
Galliford Try Redrow
* BPB and Westbury will cease to form part of the comparator group for 2006 and
beyond following the recent takeover of each company.
* John Laing was removed from the group by the Remuneration Committee in 2005
with regard to awards made in 2005 and beyond, as it is no longer regarded as a
relevant comparator company.
For all current awards to vest in full, the Company’s TSR performance over 
the relevant performance period must equal or exceed the 75th percentile
performance of the comparator group. No portion of the award will vest 
if the Company’s TSR performance is less than the 50th percentile. Partial
vesting will take place if the Company’s TSR performance is at least equal 
to the 50th percentile. At that level of performance, awards will vest at a 
level equivalent to 25%, with straight line vesting for levels of performance
between the 50th and 75th percentiles. 
In addition to the TSR condition, there is a requirement that the Company’s
underlying ﬁnancial performance must be satisfactory before vesting takes
place and it is proposed that this performance should be defined. This will 
be done by reference to the Company’s earnings per share, which will be
measured against the comparator group and considered by the Committee
when determining vesting.
Awards made under the George Wimpey LTIP are not pensionable. Details 
of awards to Executive Directors are set out in the table on page 42. 
The performance period in respect of the 2003 George Wimpey LTIP expired
on 31 December 2005. As against its comparator group, the Company’s TSR
position placed it below median and accordingly, no part of the award vested
in favour of any participant and all awards have lapsed. 
www.georgewimpeyplc.co.uk 37
Corporate Governance Following the introduction of the George Wimpey LTIP in 2002, it is Company
policy that Executive Directors are no longer granted options under the
Executive Share Option Scheme. Following the announced exercises that took
place during the year, no Executive Director had any share options remaining
under this Scheme as at 31 December 2005. Details of past option awards to
Executive Directors are disclosed in the table on page 41. 
Morrison Homes Long Term Incentive Plan
The President of Morrison Homes participates in the Morrison Homes 
Long Term Incentive Plan (‘Morrison Homes LTIP’) which was approved by
shareholders at the 2003 Annual General Meeting. The Morrison Homes 
LTIP is a cash based scheme pursuant to which ‘units’ are awarded to each
participant following the end of a ﬁnancial year. The value of each unit, and
therefore the amount of cash that an individual receives, will depend on
growth in proﬁt before interest and tax (‘PBIT’) of Morrison Homes over that
ﬁnancial year. The maximum value is achieved if PBIT grows by more than
30%. The amount payable is, however, reduced progressively if Morrison
Homes’ return on Assets (‘RoA’) is less than 20%, such that no amount is
payable if RoA is less than 15% in the relevant year. The size of award is
determined by the Remuneration Committee which recognises the need 
to link awards and the rewarding of ongoing performance with the creation
of additional shareholder value. 
The Committee regards the Morrison Homes LTIP as a key part of the
remuneration for the President of Morrison Homes in terms of both
motivation and retention; the growth targets are demanding and any cash
is then paid out over a four year period commencing one year after the end
of the relevant ﬁnancial year. The payments are back-end loaded, with 20% of
the cash award being paid in each of the ﬁrst three years of that period and
the remaining 40% in the ﬁnal year. Interest is accrued on the unpaid part of
the award at a current rate of 6%. 
Since 2003 the President of Morrison Homes has also participated in the
George Wimpey LTIP . It was reported in the 2004 Remuneration Report that
ongoing participation in the George Wimpey LTIP would be reviewed during
2005 as part of an overall review of the bonus and long term incentive plan
arrangements in the US. Following completion of the review by Mercer and
further consideration by the Committee, which included consultation with
major shareholders, in order to secure greater focus on the Morrison Homes
business it is proposed that the President will participate in the Morrison
Homes LTIP only. The overall multiple of salary used to calculate awards will
not change. This means that for 2006, the President will receive an award
of units under the Morrison Homes LTIP equal to 3.5 times base salary as
at 1 January rather than split between the two long term incentive plan
arrangements as has been the case in previous years. 2.5 times of the
award will be based on performance hurdles relating to the year in question
with any award being paid out over the four year period as outlined above;
1 times of the award will be based on a three year performance period using
the same performance hurdles but rolled over for the longer period with any
award being paid out following the three year period. In order to align his
position closer to that of shareholders, the President will be required to
purchase and retain for at least twelve months an amount of shares in the
Company equal to 150/350 of any cash that is paid to him. The President will
also be subject to the share target policy as set out opposite which requires 
all Executive Directors to achieve a shareholding in the Company broadly
equal to their base salary within a designated ﬁve year period.
Sharesave Scheme
The Company operates a Savings Related Share Option Scheme which all 
UK staff (including UK based Executive Directors) with over six months’ service
are eligible to join. This Scheme enables participants to acquire shares at a
20% discount to the market price at the time of grant, in three or ﬁve years’
time according to their election during the offer period.
Executive Share Option Scheme
The Company operates an Executive Share Option Scheme in which
designated employees, including UK based regional board directors are
invited to participate. No Executive Directors currently participate in this
Scheme. Two option grants per year are made of shares in the Company,
each equal to 25% of base salary as at 1 January. The performance 
condition attached to the vesting of grants is the attainment of median
total shareholder return (‘TSR’) performance within a comparator group. 
Remuneration Report continued
38 George Wimpey Plc Annual Report and Accounts 2005
This comparator group is the same as that listed for the George Wimpey 
LTIP . Assuming the TSR criteria is met, options can be exercised at the 
election of the participant between three and 10 years after the grant.
Share retention and target Director shareholdings
In 2004, the Remuneration Committee implemented a share retention 
policy with regard to shares that vest under the George Wimpey LTIP , which
took into account the requirements of the Association of British Insurers –
Principles and Guidelines on Remuneration. The policy requires Executive
Directors to retain, for at least 12 months from the date of receipt of shares
under the George Wimpey LTIP , not less than 50% of the after tax/NI amount
of shares that vest in any year. Other participants in the George Wimpey LTIP
are expected to retain at least 25% of the shares received on the same basis. 
The Committee also introduced in 2004 a policy which requires Executive
Directors to accumulate, within a ﬁve year period from the date that each
joined the Board, a shareholding in the Company broadly equal to their 
base salary. For Peter Johnson, due to the size of his shareholding at the 
time of the introduction of the policy, the Committee set him a personal
target shareholding of broadly equal to three times his base salary.
The above policies are intended to promote as close an alignment as
possible for Executive Directors and senior management with the risks and
rewards that are faced by shareholders. Having these policies in place also
provides a clear framework within which Executive Directors may sell shares
received under the George Wimpey LTIP and in relation to other dealings,
subject to meeting their target shareholding as set out above.
A policy was also introduced in 2004 pursuant to which the Chairman 
and the Non Executive Directors are required to accumulate within a ﬁve 
year period from the date that each joined the Board, a shareholding in 
the Company of broadly equal to 50% of each Director’s annual fees.
Performance graph
Set out below is a graph which shows the total shareholder return of the
Company during the period December 2000 to December 2005 as against
the FTSE 250 based on 30 trading day average values. The Group believes
that the FTSE 250 is the appropriate comparator index against which to plot
its total shareholder return performance as the Company is a member of 
the index together with all but one of its key competitors plus a broad cross
section of leading companies. The graph shows the theoretical growth in 
the value of a £100 shareholding over the speciﬁed period, assuming that
dividends are re-invested to purchase additional units of equity.
Pensions 
The UK based Executive Directors and other designated managers are
members of the Executive section of the George Wimpey Staff Pension
Scheme (‘Scheme’). The Scheme (now closed to new members) is a funded,
Inland Revenue approved, ﬁnal salary occupational pension scheme.
Members contribute between 5% and 10% of salary. Executive members 
of the Scheme cease to contribute once they have achieved 30 years’
pensionable service. Pensions in payment are guaranteed to increase in 
line with the Retail Price Index to a maximum of 5% per annum. Following
the introduction of the Finance Act 2004, this guarantee has been reduced
for all service earned after 6 April 2006, to a maximum of 2.5%.
The Scheme provides Executive members with a pension of up to
2
/3 of
pensionable salary on retirement at age 62 (this is capped for members 
who joined after April 1989), subject to the member having completed 
30 years’ pensionable service.
George Wimpey Plc Peer group FTSE 250
Total shareholder return 
(£)
00 01 02 03 04 05
0
100
200
300
400 Life assurance equal to four times basic salary and a pension of
2
/3 of the
member’s entitlement for spouses on their death in service, or in retirement,
are provided, together with a children’s allowance of up to 100% of the
dependant’s pension for three or more children.
Pensionable salary excludes all bonuses, beneﬁts in kind and incentive
related remuneration. For early retirement, after age 50 but prior to 
age 62, pensions will be reduced by an appropriate actuarial factor. 
The Company provides Peter Johnson with a pension allowance through
additional payments to him, amounting to 40% (£224,700) of his basic salary.
Andrew Carr-Locke similarly receives a pension allowance amounting to 35%
(£108,672) of his basic salary. From 1 January 2006, Peter Redfern will receive
a pension allowance equal to 25% of the difference between the current
earnings cap and his full basic salary. This payment is intended to provide
him with an accural rate of 
1
/45 of his basic salary for each year of pensionable
service. A payment of £99,300 (gross) was made to Peter Redfern in February
2006, representing pension allowance arrears due for the period from 1
January 2004 (when he became the Managing Director of the UK business)
to 31 December 2005. During 2005, the sum of £21,371 was paid into a US
cash plan for Stewart Cline. Pension allowances do not count towards the
calculation of any bonus awards which are based only on base salary.
The Directors’ accrued pensions in 2005 are shown on page 40.
Service contracts – Executive Directors 
All Executive Directors have rolling service contracts which can be terminated
by either party by giving not less than 12 months’ notice. The Company 
has the right to terminate the contract of any Director on the payment of 
a sum equivalent to the contractual notice entitlement of 12 months’ salary
and beneﬁts. 
The UK based Directors, like all employees, are employed by George Wimpey
UK Limited. US based Directors are employed by Morrison Homes Inc. under
service contracts similar to those in place in the UK. 
The Company’s normal retirement age for Executive Directors is 60 and 
the service contracts terminate automatically when this age is attained,
unless extended by mutual consent and subject to the Companies Act 
1985 as applicable.
In the event of a change of control of the Company, the Director may, 
within six months of the event, elect to terminate the service contract 
on three months’ notice to the Company. In such a case the Director will 
be entitled to receive a payment equal to 12 months’ salary and beneﬁts.
Treatment of any awards that have been made under the George Wimpey
LTIP and Morrison LTIP will be dealt with in accordance with the rules of 
the relevant Plan. 
The date of the service contracts of Peter Johnson, Andrew Carr-Locke, 
Peter Redfern and Steve Parker are 26 March 2002, 27 March 2002, 
13 October 2004 and 10 February 2006 respectively. 
The Chairman/Non Executive Directors
The procedure for reviewing the Chairman’s fees is as set out on page 36.
The Remuneration of the Non Executive Directors is determined by the Board
on an annual basis in the absence of the Non Executive Directors. Independent
advice is obtained including the provision of data on remuneration paid to 
non executive directors of FTSE 100 and 250 companies with similar turnover
and/or market capitalisation. Remuneration is paid in the form of ﬁxed fees.
Non Executive Directors are invited each year, but not obliged, to use any
increase in their remuneration to purchase shares in the Company. 
The remuneration of the Chairman and the Non Executive Directors 
is reviewed annually and any change is effective from 1 July. 
The Chairman and the Non Executive Directors do not participate in any
Company incentive or share schemes.
Neither the Chairman nor the Non Executive Directors have service contracts.
The services of John Robinson and Christine Cross are contracted to the
Company under consultancy agreements which provide that each Director
will be appointed for an initial three year term and are terminable on six
months’ notice by either party. However, in the event that a Director is not
reappointed as a Director by the Company’s shareholders, or is removed from
ofﬁce by them in accordance with the Company’s Articles of Association, then
the relevant agreement will terminate with no provision for compensation.
David Williams, Brenda Dean, Anthony Reading and Robert Sharpe have
letters of appointment. These engagements also continue for an an initial
three year term and are terminable on six months’ notice by either party 
or otherwise in accordance with the Company’s Articles of Association 
as described above. 
The date of appointment of the Chairman and each Non Executive Director 
is as set out in the table on page 40. 
www.georgewimpeyplc.co.uk 39
Corporate Governance The following tables and accompanying notes constitute the auditable part of the Remuneration Report as defined in Part 3, Schedule 7a of the 
Companies Act 1985.
The remuneration paid to the Directors in 2005 was: 
Salary/ Performance Deferred Other Total Total
Fees Bonus Bonus Beneﬁts
1
2005 2004
£ £££ £ £
Chairman
John Robinson (appointed 28/09/1998) 212,500 – – 26,591
4
239,091 190,000
Executive Directors
Peter Johnson
2
(appointed 17/10/2000) 535,500 – – 261,709 797,209 1,269,732
Andrew Carr-Locke
2
(appointed 14/05/2001) 300,000 – – 127,971 427,971 695,704
Peter Redfern (appointed 12/10/2004) 314,250 31,400 – 22,909 368,559 233,048
Non Executive Directors
Christine Cross (appointed 19/12/2002) 46,250 – – 5,311
4
51,561 38,750
Brenda Dean (appointed 07/10/2003) 39,750 – – – 39,750 33,750
David Williams (appointed 01/05/2001) 49,583 – – – 49,583 38,750
Anthony Reading (appointed 15/04/2005) 31,583 – – – 31,583 –
Robert Sharpe (appointed 01/09/2005) 14,000 – – – 14,000 –
Former Directors
Stewart Cline
3
(retired 31/12/2005) 288,159 576,319 1,629,904
3
36,526 2,530,908 1,383,456
Mike Blackburn (retired 01/09/2005) 32,917 – – 3,644
4
36,561 41,250
Total 4,586,776 3,924,440
NOTES: 
1 Other beneﬁts consist of the provision of a company car (or car allowance in lieu of a car), private health / life insurance and in the case of Peter Johnson and Andrew Carr-Locke 
an annual pension allowance of £224,700 and £108,672 respectively based on 40% and 35% of their base salaries. A payment of £21,371 was paid into a US Cash Plan in respect 
of Stewart Cline and this is included in the above total. 
2 Peter Johnson and Andrew Carr-Locke were awarded salary increases of 5% (£26,775) and 3.5% (£10,500) with effect from 1 January 2005. Each Director elected not to take these
increases, which, if accepted would have resulted in salaries of £562,275 pa and £310,500 pa respectively. The salaries that appear in the table above are therefore the amounts
actually paid to Peter Johnson and Andrew Carr-Locke during the year. All other beneﬁts carried on or were calculated as though the increases had been paid.
3 The deferred bonus was paid to Stewart Cline under the Morrison Homes Long Term Compensation Plan which was replaced in 2003 by the Morrison Homes Long Term Incentive
Plan, approved by shareholders at the 2003 Annual General Meeting. The amount included in the table above consists of the aggregate of (i) the sum of $1,187,756 (£652,613)
which was paid to Stewart Cline in 2005 and represents the vesting of awards made to him between 1999 and 2003 inclusive and (ii) the sum of $1,778,670 (£977,291), which
represents the outstanding balance of Stewart Cline’s accrued interest in the Plan which, in accordance with the rules of the Plan vested unconditionally following his retirement on
31 December 2005 and will be paid out in 2007 and 2008.
3 Under the Morrison Homes Long Term Compensation Plan, units were granted annually at the beginning of the year and then valued at the end of that ﬁrst year. No equity is
involved in the Morrison Homes Long Term Compensation Plan. Payments to participants are made over a four year period commencing one year after the valuation of the units 
and concluding four years after the ﬁrst year payment. 
4 These payments represent an amount equivalent to employer’s national insurance contributions paid by the Company pursuant to the service contract with each Director.
Details of Executive Directors’ accrued pensions are as follows:
Increase in Total Transfer Value Transfer Value Increase in Transfer Value
Accrued Pension Gross of Gross of Transfer Value Accrued of Increase
Pension Accrued Director’s Director’s Net of Director’s Pension in Accrued
in year
1
as at Contributions Contribution Contributions in Year
2
Beneﬁts
3
£ 31/12/2005 £ at 31/12/2005 £ at 31/12/2004 £ £ £ £
P M Johnson 2,015 9,240 162,900 115,100 32,050 1,820 19,808
A C P Carr-Locke 3,960 16,427 249,300 167,000 66,550 3,623 44,338
P T Redfern 2,667 11,733 118,800 75,300 33,030 2,422 16,539
NOTES:
Calculated in accordance with Actuarial Guidance Note GN11.
1 Figures are stated gross of inﬂation.
2 Figures are stated net of inﬂation.
3 Figures are stated less Director’s contributions.
40 George Wimpey Plc Annual Report and Accounts 2005
Remuneration Report continued Directors’ interests in options over shares as at 31 December 2005
Options at Granted Lapsed Exercised Options at Exercise Option Exercise Period Net
Name 01/01/2005 2005 2005 2005 31/12/2005 Price (p) From To Worth (£)
1
Executive Directors
Peter Johnson
Savings Related 10,817 – – – 10,817 156.00 01/12/2006 31/05/2007 35,047.08
Total 10,817 – – – 10,817 35,047.08
Peter Redfern
Savings Related 6,209 – – 6,209 – 156.00 01/12/2004 31/05/2005 –
Total 6,209 – – 6,209 – –
Andrew Carr-Locke
Executive Scheme 123,152 – – 123,152 – 203.00 15/08/2004 14/08/2011 –
Savings Related 7,191 – – – 7,191 228.40 01/12/2007 31/05/2008 18,092.56
Total 130,343 – – – 7,191 18,092.56
Former Directors
Stewart Cline 
Executive Scheme 52,009 – – 52,009 – 141.00 25/03/1999 14/03/2006 –
52,195 – – 52,195 – 140.50 26/02/2000 26/02/2007 –
Total 104,204 – – 104,204 – –
NOTES:
1 Based on the market price of 480p as at 30 December 2005.
The following Directors exercised share options under the Executive Share Option Scheme during 2005 and the details are as follows:
Andrew Carr-Locke exercised 123,152 options on 2 March 2005 on which date the mid market close price was 458.75p.
Stewart Cline exercised 52,009 options on 2 March 2005 on which date the mid market close price was 458.75p, and 52,195 share options on 6 June 2005 on which date the mid market
close price was 432.75p.
Peter Redfern exercised 6,209 options under the Savings Related Share Option Scheme on 31 May 2005 on which date the mid market close price was 425.75p. 
The aggregate gain from all of the exercises of the Directors during the year was £649,508.
The performance condition for the George Wimpey Executive Share Option Scheme is based on the Company attaining a total shareholder return performance level which is above
median as against a deﬁned comparator group. The comparator group is the same group which is used for the George Wimpey LTIP and listed on page 37.
The mid market close price as at 30 December 2005 was 480p and the range during 2005 was between 383.50p and 487.25p.
All options were granted at nil cost.
www.georgewimpeyplc.co.uk 41
Corporate Governance Directors’ interests in conditional shares awarded under the George Wimpey Long Term Incentive Plan (‘George Wimpey LTIP’) 
as at 31 December 2005 
Conditionally Awarded Vested
16/05/2002 1/05/2003 26/05/2004 25/05/2005
(Market value (Market value (Market value (Market value Awards held at*
on award 285p) on award 242p) on award 403.91p) on award 414.25p) Number Date of Award 31/12/2005
Executive Directors
Peter Johnson 613,636 410,027 265,158 257,275 613,636 16/05/2002 932,460
Andrew Carr-Locke 361,364 226,908 148,548 142,073 361,364 16/05/2002 517,529
Peter Redfern 156,818 119,425 131,217 143,789 156,818 16/05/2002 394,431
Former Directors
Stewart Cline (retired 31/12/05) – 181,776 101,562 – – – 283,338
NOTES: 
Awards made pursuant to the George Wimpey LTIP are conditional and do not vest in whole or in part unless predetermined performance conditions are satisﬁed over a three year
period. The performance conditions are explained in detail on page 37. The number of awards made to each participant is calculated with reference to a formula based on two times
salary as at 1 January in each year (3 times salary in 2002) and the average share price over the 90 dealing days up to the day before the award is made. For 2002, 2003, 2004 and
2005, the relevant share prices were 220p, 251.21p, 403.9p and 437.10p. For Stewart Cline, the awards were calculated by reference to a formula based on one and half times his salary
as at 1 January 2003 and 1 January 2004. The 2003 George Wimpey LTIP awarded to Stewart Cline was made on 9 May when the market value on award was 250.5p and the 2004
award was based on a share price of 403.9p. 
* Shares conditionally awarded under the 2002 George Wimpey LTIP vested on 22 February 2005. Based on veriﬁcation from MM&K (an independent consultancy), the Company’s 
TSR performance during the period 1 January 2002 to 31 December 2004 placed the Company second against its comparator group, therefore triggering maximum vesting of 
the shares that had been conditionally awarded. These shares were distributed by the employee trust after the Company’s close period ended on 22 February 2005. Peter Johnson,
Andrew Carr-Locke and Peter Redfern received 616,636 shares, 361,364 shares and 156,818 shares respectively and based on the price on vesting of 449.0p per share this equates 
to a value of £2,755,226, £1,622,524 and £704,113. Accordingly these shares having vested during the year are not included in the ﬁnal column above.
* The TSR performance in respect of those shares conditionally awarded under the 2003 George Wimpey LTIP was not met. No vesting has taken place and the award has now lapsed.
These shares are however included in the ﬁnal column above. 
Directors’ Interest in the Morrison Homes Long Term Incentive Plan (‘Morrison Homes LTIP’) as at 31 December 2005
Stewart Cline participated in the Morrison Homes LTIP details of which are set out on page 38. The Morrison Homes LTIP is a cash based scheme which was
introduced in 2003, pursuant to which units are awarded to each participant. The value of each unit, and therefore the amount of cash received, depends upon
the growth in the proﬁt before interest and tax of Morrison Homes during the year of the award. The value of the cash award is then paid out over a four year
period commencing one year after the end of the relevant ﬁnancial year, with 20% being paid out over the ﬁrst three years and 40% in the ﬁnal year. No equity 
is involved in the Morrison Homes LTIP . Stewart Cline’s current interest in the Morrison Homes LTIP based on awards made in 2003, 2004 and 2005 amounts to
$3,846,895 (£2,113,679) which includes the award made to him in 2005 of $2,019,160 (£1,109,429). In accordance with the rules of the Morrison Homes LTIP ,
following Stewart Cline’s retirement on 31 December 2005, his interest vested unconditionally and will be paid out to him over the course of the next four years 
as outlined above.
This report has been approved by the Board on 21 February 2006 and signed on its behalf by:
David Williams
Chair, Remuneration Committee
George Wimpey Plc
42 George Wimpey Plc Annual Report and Accounts 2005
Remuneration Report continued Auditors’ Report
Independent Auditors’ Report to the Shareholders 
of George Wimpey Plc
We have audited the Group and Parent Company financial statements 
(the ‘financial statements’) of George Wimpey Plc for the year ended
31 December 2005 which comprise the Group Income Statement, the Group
and Parent Company Statements of Recognised Income and Expense, the
Group and Parent Company Balance Sheets, the Group and Parent Company
Cash Flow Statements, and the related notes. These financial statements
have been prepared under the accounting policies set out therein. We have
also audited the information in the Directors’ Remuneration Report that 
is described as having been audited.
Respective responsibilities of Directors and Auditors
The Directors’ responsibilities for preparing the Annual Report, the 
Directors’ Remuneration Report and the financial statements in accordance
with applicable law and International Financial Reporting Standards (IFRS) 
as adopted by the European Union are set out in the Statement of 
Directors’ Responsibilities.
Our responsibility is to audit the financial statements and the part of the
Directors’ Remuneration Report to be audited in accordance with relevant
legal and regulatory requirements and International Standards on Auditing
(UK and Ireland). This report, including the opinion, has been prepared for
and only for the Company’s members as a body in accordance with Section
235 of the Companies Act 1985 and for no other purpose. We do not, in
giving this opinion, accept or assume responsibility for any other purpose 
or to any other person to whom this report is shown or into whose hands 
it may come save where expressly agreed by our prior consent in writing.
We report to you our opinion as to whether the financial statements give a
true and fair view and whether the financial statements and the part of the
Directors’ Remuneration Report to be audited have been properly prepared
in accordance with the Companies Act 1985 and Article 4 of the IAS
Regulations. We also report to you if, in our opinion, the Directors’ Report is
not consistent with the financial statements, if the Company has not kept
proper accounting records, if we have not received all the information and
explanations we require for our audit, or if information specified by law
regarding Directors’ remuneration and other transactions is not disclosed.
We review whether the Corporate Governance Statement reflects the
Company’s compliance with the nine provisions of the 2003 FRC Combined
Code specified for our review by the Listing Rules of the Financial Services
Authority, and we report if it does not. We are not required to consider
whether the Board’s statements on internal control cover all risks and
controls, or form an opinion on the effectiveness of the Group’s corporate
governance procedures or its risk and control procedures.
We read other information contained in the Annual Report and consider
whether it is consistent with the audited financial statements. The other
information comprises only the Chairman’s Statement, Chief Executive’s
Review, Operating and Financial Review, Corporate Social Responsibility
Statement, Directors’ Report, Corporate Governance Statement and the
unaudited part of the Directors’ Remuneration Report. We consider 
the implications for our report if we become aware of any apparent
misstatements or material inconsistencies with the financial statements. 
Our responsibilities do not extend to any other information.
Basis of Audit Opinion
We conducted our audit in accordance with International Standards on
Auditing (UK and Ireland) issued by the Auditing Practices Board. An audit
includes examination, on a test basis, of evidence relevant to the amounts
and disclosures in the financial statements and the part of the Directors’
Remuneration Report to be audited. It also includes an assessment of 
the significant estimates and judgements made by the Directors in the
preparation of the financial statements, and of whether the accounting
policies are appropriate to the Group’s and Company’s circumstances,
consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the information 
and explanations which we considered necessary in order to provide us with
sufficient evidence to give reasonable assurance that the financial statements
and the part of the Directors’ Remuneration Report to be audited are free
from material misstatement, whether caused by fraud or other irregularity 
or error. In forming our opinion we also evaluated the overall adequacy 
of the presentation of information in the financial statements and the 
part of the Directors’ Remuneration Report to be audited.
Opinion
In our opinion:
• the Group financial statements give a true and fair view, in accordance 
with IFRS as adopted by the European Union, of the state of the Group’s
affairs as at 31 December 2005 and of its profit and cash ﬂows of the year
then ended;
• the Parent Company financial statements give a true and fair view, in
accordance with IFRS as adopted by the European Union as applied in
accordance with the provisions of the Companies Act 1985, of the state 
of the Parent Company’s affairs as at 31 December 2005 and cash ﬂows 
for the year then ended; and
• the financial statements and the part of the Directors’ Remuneration 
Report to be audited have been properly prepared in accordance 
with the Companies Act 1985 and Article 4 of the IAS Regulations.
Separate opinion in relation to IFRS
As explained in the Accounting Policies note to the financial statements, the
Group and Parent Company in addition to complying with their legal obligation
to comply with IFRS as adopted by the European Union, have also complied
with the IFRS as issued by the International Accounting Standards Board.
In our opinion the Group’s and Parent Company’s financial statements give 
a true and fair view, in accordance with IFRS, of the state of the Group’s and
the Parent Company’s affairs as at 31 December 2005 and of their cash ﬂows
for the year then ended and the Group’s profit for the year then ended.
Chartered Accountants and Registered Auditors
London
21 February 2006 
www.georgewimpeyplc.co.uk 43
Financial Statements 2005 2004
Note £m £m
Restated
Continuing operations:
Revenue 1 3,003.2 2,976.0 
Cost of sales (2,414.1) (2,320.1)
Gross profit 589.1 655.9
Net operating expenses 2 (150.8) (158.0)
Share of post tax losses from joint ventures 12 (0.8) (0.4)
Proﬁt on ordinary activities before finance costs 1, 2 437.5 497.5 
Interest payable and similar charges 3 (73.9) (63.6)
Interest receivable 3 2.9 3.7 
Profit on ordinary activities before taxation 366.5 437.6 
Taxation 4 (113.7) (135.8)
Profit attributable to equity shareholders 252.8 301.8 
Proposed/paid dividends per ordinary share
Interim 5 5.7p 5.2p
Final 5 11.9p 10.8p
Earnings per ordinary share – basic 6 64.3p 78.4p
Earnings per ordinary share – diluted 6 64.0p 77.3p
Statements of Recognised Income and Expense
For the year ended 31 December 2005
Group Parent
2005 2004 2005 2004
Note £m £m £m £m
Restated
Profit/(loss) attributable to equity shareholders 252.8 301.8 (29.2) 72.0
Actuarial loss on defined benefit pension scheme 20 (1.1) (3.6) – –
Deferred tax on actuarial loss 18 0.3 1.1 – –
Derivatives recognised on 1 January 2005 2.9 – 2.9 –
Deferred tax on derivatives 18 (0.8) – (0.8) –
Currency translation differences on foreign currency net investments 22 3.8 (1.7) – –
Total recognised income/(loss) 22 257.9 297.6 (27.1) 72.0
Group Income Statement
For the year ended 31 December 2005
44 George Wimpey Plc Annual Report and Accounts 2005 Balance Sheets
At 31 December 2005
Group Parent
2005 2004 2005 2004
Note £m £m £m £m
Restated Restated
Assets
Non-current assets
Goodwill 8 5.6 5.2 – –
Intangible assets 9 16.6 8.4 – –
Property, plant and equipment 10 16.9 15.8 – –
Investments in subsidiary undertakings 11 – – 1,690.0 1,672.3 
Joint ventures 12 18.5 7.0 – –
Deferred tax assets 18 78.8 77.1 0.2 –
Trade and other receivables 14 19.1 11.2 234.6 118.2 
155.5 124.7 1,924.8 1,790.5 
Current assets
Inventories 13 2,932.2 2,647.2 – –
Trade and other receivables 14 104.4 86.4 1,979.8 1,882.8 
Current tax assets 0.1 – 9.8 6.8 
Derivative financial instruments 17 4.6 – 4.6 –
Cash and cash equivalents 16 53.3 19.5 0.4 0.2 
3,094.6 2,753.1 1,994.6 1,889.8 
Total assets 3,250.1 2,877.8 3,919.4 3,680.3 
Liabilities
Current liabilities
Financial liabilities 16 (25.2) (19.4) (10.0) (5.0)
Derivative financial instruments 17 (6.9) – (6.9) –
Trade and other payables 15 (625.7) (603.2) (2,299.0) (2,102.8)
Provisions 19 (9.5) (10.3) (0.2) (0.1)
Current tax liabilities (102.3) (105.5) – –
(769.6) (738.4) (2,316.1) (2,107.9)
Non-current liabilities
Financial liabilities 16 (550.0) (521.0) (550.0) (521.0)
Trade and other payables 15 (184.9) (80.5) (436.4) (358.8) 
Deferred tax liabilities 18 (4.7) (4.1) – –
Deficit on defined benefit pension scheme 20 (184.6) (186.2) – –
Provisions 19 (11.9) (16.2) (2.8) (3.0)
(936.1) (808.0) (989.2) (882.8)
Total liabilities (1,705.7) (1,546.4) (3,305.3) (2,990.7)
Net assets 1 1,544.4 1,331.4 614.1 689.6 
Shareholders’ equity
Ordinary shares 21, 22 99.2 97.9 99.2 97.9 
Share premium 22 115.8 111.8 115.8 111.8 
Translation reserve 22 2.1 (1.7) – –
Retained earnings 22 1,327.3 1,123.4 399.1 479.9 
Total equity 22 1,544.4 1,331.4 614.1 689.6 
The accounts on pages 44 to 71 were approved by the Board on 21 February 2006 and are signed on their behalf by:
John Robinson Andrew Carr-Locke
Chairman Group Finance Director
www.georgewimpeyplc.co.uk 45
Financial Statements Group Parent
2005 2004 2005 2004
Note £m £m £m £m
Restated
Net cash ﬂows from operating activities 23 115.6 37.9 57.8 217.3 
Cash ﬂows from investing activities
Purchase of intangibles and property, plant and equipment (18.5) (13.4) – –
Proceeds from sale of property, plant and equipment 1.6 1.8 – –
Acquisition – deferred consideration (0.2) – – –
Refinancing of subsidiary – – – (192.4)
Loans to joint ventures (12.3) (7.4) – –
Net cash used in investing activities (29.4) (19.0) – (192.4)
Cash ﬂows from financing activities
Increase in borrowings 23.8 12.1 25.7 9.6 
Repayment of borrowings (34.9) (5.2) (34.9) (5.2)
Net proceeds from issue of ordinary share capital 5.3 4.5 5.3 4.5 
Dividends paid to ordinary shareholders (53.7) (33.7) (53.7) (33.7)
Net cash used in financing activities (59.5) (22.3) (57.6) (24.8)
Effect of exchange rate changes 3.7 (1.1) – –
Net increase/(decrease) in cash and cash equivalents 30.4 (4.5) 0.2 0.1 
Cash and cash equivalents at start of period 7.8 12.3 0.2 0.1 
Cash and cash equivalents at end of period 38.2 7.8 0.4 0.2 
Net Debt
At 31 December 2005
Group Parent
2005 2004 2005 2004
Note £m £m £m £m
Cash and cash equivalents 53.3 19.5 0.4 0.2 
Financial liabilities
Overdrafts (15.1) (11.7) – –
38.2 7.8 0.4 0.2
Other current (10.1) (7.7) (10.0) (5.0)
Non current (550.0) (521.0) (550.0) (521.0)
Net debt 16 (521.9) (520.9) (559.6) (525.8)
Cash Flow Statements
For the year ended 31 December 2005
46 George Wimpey Plc Annual Report and Accounts 2005 Accounting Policies
Basis of preparation
These financial statements have been prepared in accordance with
International Financial Reporting Standards (‘IFRS’) and IFRIC interpretations
and with those parts of the Companies Act, 1985 applicable to companies
reporting under IFRS. The financial statements have been prepared under 
the historical cost convention. A summary of the more important accounting
policies is set out below.
The preparation of financial statements in conformity with generally
accepted accounting principles requires the use of estimates and
assumptions that affect the reported amounts of assets and liabilities at the
Balance Sheet date and the reported amounts of revenue and expenses
during the reporting period. Although these estimates are based on
management’s best knowledge of the amount, event or action, actual
results ultimately may differ from those estimates.
Since the announcement of the restatement of results under IFRS the
accounting policy on land sales has been amended and prior figures restated.
The effect is to remove £37.5 million (2004: £29.7 million) of land sales revenue
and include it, with the associated cost of sales, in net operating expenses
where the net income of £17.0 million (2004: £9.2 million) is separately
disclosed. The restated figures more accurately reflect the core business 
of the Group.
Basis of consolidation
The consolidated results incorporate the financial statements of the
Company and entities controlled by the Company (‘subsidiaries’) up 
to the Balance Sheet date.
Entities which are jointly controlled with another party or parties (‘joint
ventures’) are accounted for using the equity method of accounting.
The results of subsidiaries and joint ventures acquired or disposed of during 
a year are included in the Group Income Statement from the effective date 
of acquisition or up to the effective date of disposal, as appropriate.
Goodwill arising on consolidation
Goodwill arising on consolidation represents the excess of the fair 
value of the consideration given over the fair value of the identifiable 
net assets acquired.
Goodwill is recognised as an asset and reviewed for impairment at least
annually. Any impairment is charged immediately to the Income Statement
and is not subsequently reversed.
Goodwill arising on acquisitions before the date of transition to IFRS 
on 1 January 2004 has been retained at the previous UK GAAP amounts
following impairment tests. Goodwill written off to reserves under UK 
GAAP prior to 1998 has not been reinstated.
Revenue
Revenue from housing sales is recognised as the fair value of the consideration
received or receivable on legal completion, net of incentives.
Share-based payments
In accordance with its transitional provisions, IFRS 2 has been applied to all
grants of equity instruments after 7 November 2002 which had not vested 
as of 1 January 2005.
The Group makes equity-settled share-based payments to certain employees.
These are measured at fair value at the date of grant. The fair value is
expensed on a straight line basis over the vesting period. Adjustments to the
amounts expensed are only made in respect of non market related factors.
Operating leases
Operating lease rentals are charged to the Income Statement in equal
amounts over the lease term.
Fixed assets and depreciation
Fixed assets are stated at cost less depreciation or amortisation. Depreciation
is provided on all fixed assets other than freehold land at rates calculated to
write off the cost of each asset to its residual value evenly over its expected
useful life as follows: 
• Freehold buildings – over 50 years
• Short leaseholds – over the period of the lease
• Plant and equipment – 20% to 33% per annum.
Finance income and costs 
Interest receivable and payable on bank deposits and borrowings is credited
or charged to finance costs as incurred.
Notional interest payable, representing the unwinding of the discount 
on long term liabilities, is charged to finance costs.
Infrequently a long term land creditor is for a parcel, or parcels, of land 
where the Group has exchanged unconditional contracts, and so recognised
the creditor and the land inventory, but in practice does not have title or
access to the land. In those few cases the notional interest payable already
charged to finance costs is then credited to finance costs and added to the
cost of inventory in accordance with IAS 23 ‘Borrowing Costs’ and IAS 2
‘Inventories’ . In no circumstances will the cost of such land inventory 
exceed the contracted sum payable.
Taxation
The tax expense represents the sum of the current tax and deferred tax charges.
The current tax charge is based on taxable profit for the year. Taxable profit
differs from profit before taxation recorded in the Income Statement because
it excludes items of income or expense that are taxable or deductible in
other years or that are never taxable or deductible. The liability for current
tax is calculated using tax rates that have been enacted, or substantively
enacted, by the Balance Sheet date.
Deferred tax is recognised on differences between the carrying amounts 
of assets and liabilities in the financial statements and the corresponding 
tax bases used in the computation of taxable profit. Deferred tax liabilities 
are generally recognised for all taxable temporary differences and deferred
tax assets are recognised to the extent that it is probable that taxable profits
will be available against which deductible temporary differences can be
utilised. Deferred tax is calculated at the tax rates that are expected to 
apply in the period when the liability is settled or the asset is realised.
Current and deferred tax are charged or credited in the Income Statement,
except when they relate to items charged or credited through the Statement
of Recognised Income and Expense when they are charged or credited there. 
Segmental reporting
The Group is divided into three components for management reporting 
and control:
• UK housing (George Wimpey and Laing Homes brands)
• US housing (Morrison Homes brand)
• Corporate
These components make up the primary segmental analysis in the financial
statements. No secondary segmental analysis is provided as the primary
segmental analysis follows the geographical split.
Intangible assets
Costs that are directly associated with the production of identifiable and
unique software controlled by the Group, and that will generate economic
benefits beyond one year, are recognised as intangible assets. Computer
software development costs recognised as assets are depreciated on a
straight line basis over three to five years from the time of going live. 
Investments in subsidiary undertakings
Investments in subsidiary undertakings are accounted for at cost less any
provision for impairment.
Inventories
Inventories are stated at the lower of cost and net realisable value. 
Cost comprises direct materials, direct labour costs and those overheads
which have been incurred in bringing the inventories to their present
location and condition. Cost in certain circumstances also includes 
notional interest as explained in the accounting policy for finance income
and costs. Net realisable value represents the estimated selling price less 
all estimated costs of completion and costs to be incurred in marketing 
and selling.
Land inventory is recognised at the time a liability is recognised – generally
after exchange of unconditional contracts.
www.georgewimpeyplc.co.uk 47
Financial Statements Trade receivables
Trade receivables do not carry interest and are stated at their initial value
reduced by appropriate allowances for estimated irrecoverable amounts.
Derivative financial instruments
Derivatives utilised by the Group are primarily interest rate swaps. Derivatives
are initially accounted and measured at fair value on the date of the
derivative contract and subsequently remeasured at fair value. Gains 
or losses on interest rate swaps are taken direct to finance costs in the 
Income Statement.
Trade payables
Trade payables on normal terms are not interest bearing and are stated 
at their nominal value. Trade payables on extended terms, particularly 
in respect of land purchases, are recorded at their fair value.
Cash and cash equivalents
Cash and cash equivalents in the Cash Flow Statements includes cash in hand,
deposits held at call with banks, other highly liquid investments with original
maturities of three months or less, and bank overdrafts. Bank overdrafts are
included within financial liabilities in current liabilities on the Balance Sheet.
Pensions
The Group accounts for pensions and similar benefits under the amended 
IAS 19 ‘Employee Benefits’ . The amended standard is only mandatory for
accounting periods commencing on or after 1 January 2006, but earlier
application is encouraged. For defined benefit plans, obligations are measured
at discounted present value whilst plan assets are recorded at market value.
The operating and financing costs of such plans are recognised separately in
the Income Statement; service costs are spread systematically over the lives 
of the employees and financing costs are recognised in the periods in which
they arise. Actuarial gains and losses are recognised in full through the
Statement of Recognised Income and Expense.
Payments to defined contribution schemes are charged to the Income
Statement as they become due.
Provisions
Provisions are recognised when the Group has a present legal or constructive
obligation as a result of past events, it is more likely than not that an outﬂow
of resources will be required to settle the obligation and the amount has
been reliably estimated.
Share capital
Ordinary shares are classified as equity share capital.
Incremental costs directly attributable to the issue of new shares or options
are charged to the share premium account.
Where any Group company purchases ordinary shares of the Company
(Treasury shares) the consideration paid, including any incremental costs, 
is deducted from equity attributable to the Company’s equity shareholders.
Foreign currencies
Transactions in foreign currencies are recorded at the rate ruling at the 
date of the transaction. Monetary assets and liabilities denominated 
in foreign currencies are translated at closing rates of exchange. On
consolidation, the Income Statements of overseas subsidiary entities are
translated at an average rate for the year and the Balance Sheets at the
closing rate. Exchange differences arising on the retranslation of opening
Balance Sheets, together with the difference between Income Statements
translated at average rates and closing rates, are dealt with through reserves.
The Group designates its US$ borrowings as a hedge of the investments 
in the US Housing business. Gains and losses on the retranslation of foreign
currency borrowings to £ Sterling are taken direct to reserves.
Accounting Policies continued
48 George Wimpey Plc Annual Report and Accounts 2005 Notes to the Financial Statements
1 Segmental reporting
Primary reporting format – business segments
UK Housing US Housing Corporate Total
2005 2005 2005 2005
£m £m £m £m
Revenue 2,157.6 845.5 0.1 3,003.2
Operating profit 278.8 169.4 (9.9) 438.3
Share of joint venture results (0.8) – – (0.8)
Finance costs (net) – – (71.0) (71.0)
Profit on ordinary activities before taxation 278.0 169.4 (80.9) 366.5
Tax on profit on ordinary activities (113.7)
Profit for the period 252.8
Gross assets 2,554.0 530.9 14.5 3,099.4
Joint ventures 18.5 – – 18.5
Gross liabilities (928.1) (82.4) (13.0) (1,023.5)
Operating assets 1,644.4 448.5 1.5 2,094.4
Current taxation (102.2)
Deferred taxation (net) 74.1
Net debt (521.9)
Net assets 1,544.4
Other segmental information:
Capital expenditure:
Property, plant and equipment 7.9 0.9 – 8.8
Intangibles 8.9 0.8 – 9.7
Depreciation and amortisation:
Property, plant and equipment 5.2 0.9 – 6.1
Intangibles 0.4 1.6 – 2.0
Other non-cash expenses:
Provisions provided 1.1 10.0 – 11.1
Provisions released 5.4 0.2 0.5 6.1
www.georgewimpeyplc.co.uk 49
Financial Statements 1 Segmental reporting continued
Primary reporting format – business segments
UK Housing US Housing Corporate Total
2004 2004 2004 2004
£m £m £m £m 
Restated Restated Restated Restated
Revenue 2,277.9 698.0 0.1 2,976.0 
Operating profit 409.8 102.9 (14.8) 497.9 
Share of joint venture results (0.4) – – (0.4)
Finance costs (net) – – (59.9) (59.9)
Profit on ordinary activities before taxation 409.4 102.9 (74.7) 437.6 
Tax on profit on ordinary activities (135.8)
Profit for the period 301.8 
Gross assets 2,393.2 377.5 3.5 2,774.2 
Joint ventures 7.0 – – 7.0
Gross liabilities (816.8) (53.0) (26.6) (896.4)
Operating assets 1,583.4 324.5 (23.1) 1,884.8 
Current taxation (105.5)
Deferred taxation (net) 73.0 
Net debt (520.9)
Net assets 1,331.4 
Other segmental information:
Capital expenditure:
Property, plant and equipment 7.3 1.4 – 8.7 
Intangibles 3.2 1.4 – 4.6 
Depreciation and amortisation:
Property, plant and equipment 5.3 0.9 – 6.2 
Intangibles 0.3 1.3 – 1.6 
Other non-cash expenses:
Provisions provided 2.9 9.2 – 12.1 
Provisions released 4.2 – – 4.2 
There are no sales between the business segments. All assets and liabilities are classified as operating assets other than corporate and deferred taxation and 
net debt. Net debt is managed at the Group level when deciding on the capital structure of the operating businesses.
A secondary format segmental analysis, on a geographical basis, is not separately provided as the businesses are already analysed by geographical location in
the primary analysis.
As noted in the accounting policies on page 47 Laing Homes is reported within UK Housing following the restructuring during the year. In previous Financial
Statements Laing Homes results were separately disclosed within the segmental analysis but it is no longer practical to do so, and the management reporting
structure of the Group reﬂects the restructuring.
Notes to the Financial Statements continued
50 George Wimpey Plc Annual Report and Accounts 2005 2 Net operating expenses and profit on ordinary activities before finance costs
Group
2005 2004
£m £m
Restated 
Net operating expenses: 
Administration expenses (167.8) (167.2)
Net other income 17.0 9.2
(150.8) (158.0)
Net other income comprises net income from land sales and other net income of a non trading nature.
Profit on ordinary activities before interest is stated after charging:
Staff costs (note 7) (223.8) (216.6) 
Inventories:
Cost of inventories recognised as an expense in cost of sales (2,262.2) (2,187.7)
Cost of inventories recognised as an expense in net operating expenses (20.5) (20.5)
Inventory write down (5.2) (1.0)
Depreciation and amortisation:
Property, plant and equipment (6.1) (6.2)
Intangibles (2.0) (1.6)
Rentals under leases for land and buildings (7.1) (6.7)
Hire of plant and equipment (20.0) (19.7)
Services provided by the Group’s auditor:
During the year the Group (including its overseas subsidiaries) obtained the 
following services from the Group’s auditor as detailed below:
Audit services:
Statutory audit (0.4) (0.4)
Tax services:
Compliance services (0.1) (0.1)
(0.5) (0.5)
Included in the Group audit fees for statutory audit services is £nil (2004: £nil) for the Parent Company.
In addition to the above services the Group’s auditor also acted as auditor to the George Wimpey Staff Pension Scheme. The appointment of auditors to the
pension scheme and the fees paid in respect of the audit are agreed by the Trustees of the scheme, who act independently of the management of the Group.
The aggregate fees paid to the Group’s auditor for audit services to the pension scheme during the year were £22,000 (2004: £24,000).
3 Net finance costs
Group
2005 2004
£m £m
Restated 
Interest payable and similar charges:
Bank loans and overdrafts (29.9) (31.8)
Other loans (23.0) (19.9)
Interest charged on provisions and creditors (10.6) (5.2)
Interest charged on pension liabilities (8.5) (8.1)
Movement on interest rate derivatives (5.3) –
Less: interest capitalised to inventory 3.4 1.4 
Interest and similar charges payable (73.9) (63.6)
Interest receivable 2.9 3.7 
Net finance costs (71.0) (59.9)
The interest charge on long term creditors, representing the discount unwinding, where the creditors are for land held in inventory to which the Group does
not have title or access to the land, is transferred to the cost of that inventory. The average rate at which the applicable long term creditors have been
discounted is 5.5% (2004: 5.5%).
www.georgewimpeyplc.co.uk 51
Financial Statements 4 Taxation
Group
2005 2004
£m £m
Restated 
The charge to taxation in the period comprised:
Current tax (122.3) (143.2)
Current tax prior year adjustment 8.4 4.6
Deferred tax 0.2 2.8 
Taxation in the Income Statement (113.7) (135.8)
Tax on items charged to equity:
Deferred tax credit on actuarial movements in pension liability 0.3 1.1
0.3 1.1 
The taxation charged in the Income Statement is higher (2004: higher) than the standard rate of corporation tax in the UK of 30% (2004: 30%). The differences
are explained below:
Group
2005 2004
£m £m
Restated 
Profit on ordinary activities before taxation 366.5 437.6 
Profit on ordinary activities at 30% (2004: 30%) (110.0) (131.3)
Effects of:
Adjustments to tax in respect of prior periods 6.9 4.6 
Adjustment in respect of foreign tax rates (11.7) (8.2)
Other differences 1.1 (0.9)
Taxation in the Income Statement (113.7) (135.8)
5 Dividends
Group and Parent Group and Parent
2005 2005 2004 2004
p per share £m p per share £m 
Interim paid 5.7 22.4 5.2 20.1 
Prior year final paid in year 10.8 42.3 8.45 32.2 
In addition, the Directors are proposing a final dividend in respect of 2005 of 11.9 pence per share which will absorb an estimated £47.2 million of shareholders’
funds. If approved by shareholders at the Annual General Meeting it will be paid on 12 May 2006 to shareholders who are on the register of members on 
3 March 2006. Dividends from the year’s earnings of 64.3 pence per share (2004: 78.4 pence per share) are, therefore, 17.6 pence per share (2004: 16.0 pence
per share) in total, representing dividend cover of 3.7 times (2004: 4.9 times).
6 Earnings per share
Basic earnings per share is 64.3 pence (2004: 78.4 pence). The calculation of the basic earnings per ordinary share is based on the profit attributable to ordinary
shareholders of £252.8 million (2004: £301.8 million) divided by the average number of shares in issue during the year of 393.1 million (2004: 384.8 million).
Diluted earnings per share is 64.0 pence (2004: 77.3 pence). The calculation is based on the profit attributable to ordinary shareholders divided by the average
number of shares in issue plus the dilutive potential ordinary shares amounting to 1.8 million (2004: 5.6 million) shares. The dilutive potential ordinary shares
relate to shares provisionally allocated under employee share schemes where the market value exceeds the option price.
Notes to the Financial Statements continued
52 George Wimpey Plc Annual Report and Accounts 2005 7 Employee information
Group
2005 2004
£m £m
Restated 
Staff costs, including Directors, comprised:
Salaries and wages 189.6 183.8 
Social security costs 18.7 17.0 
Other pension costs 12.0 13.6 
Share-based payments 3.5 2.2 
223.8 216.6 
The average number of people employed by the Group during the year was:
UK Housing and Corporate 5,051 5,069 
US Housing 999 898 
6,050 5,967 
Key management compensation, including Directors, comprised:
Salaries and fees 2.3 2.0
Performance bonuses 1.0 1.6
Deferred bonus 1.7 0.5
Benefits 0.4 0.4
Pension costs 0.1 0.1
Share-based payments 1.1 0.6
6.6 5.2 
Details of Directors’ remuneration are given in the Remuneration Report on pages 40 to 42.
Key management comprises the Board and other employees who serve on the Executive Committee. The Executive Committee advises the Chief Executive on
issues pertaining to the business and the implementation of Board policy.
www.georgewimpeyplc.co.uk 53
Financial Statements 7 Employee information continued
Share-based payments
The charge to the Income Statement for share-based payments, relating to share options granted under the Savings Related Share Option Schemes (‘SRSOS’)
and the Executive Share Option Scheme (‘ESOS’) and to grants of shares awarded under the Long Term Incentive Plan (‘LTIP’) after 7 November 2002, was 
£3.5 million (2004: £2.2 million). Details of options granted during the year are set out in note 21. Awards were granted under the LTIP over 1,606,355 shares
(2004: 1,692,458 shares). The terms applying to the LTIP awards are set out in the Remuneration Report on page 37.
Options and awards were valued using the binomial method, using weekly intervals in the calculations of the binomial value of the options and awards. 
The fair value per option and award granted, and the assumptions used in the calculations were as follows:
Options and awards granted during 2005 ESOS ESOS SRSOS LTIP
Date of grant 18 March 16 September 19 September 24 May
(a)
Share price at date of grant (pence) 448.5 419.25 410.3 437.1 
Exercise price 448.5 419.25 328.2 – 
Number of employees 197 248 1,055 25
Shares under option/awarded 639,854 728,671 962,430 1,606,355
Vesting period (years) 3 3 3 or 5 3 
Expected volatility 35.9% 35.4% 30.3% –
Option life (years) 10 10 6 months 3
after vesting
Expected life (years) 5 5 2 months 3
after vesting
Risk free rate 4.8% 4.2% 4.2% –
Expected dividend yield 3.7% 3.7% 4.2% 3.3%
Annual leavers 5.0% 5.0% 10.0% 5.0%
Expectation of meeting performance criteria 75.0% 75.0% – 40.6%
Fair value per option (pence) 96.2 86.3 – 161.3
Fair value per option (pence) – 3 year – – 89.0 –
Fair value per option (pence) – 5 year – – 85.1 –
Income Statement charge in year of grant £138,641 £52,135 £62,651 £740,454
Income Statement charge in full year £175,829 £179,644 £246,058 £740,454
Options and awards granted during 2004 ESOS ESOS SRSOS LTIP
Date of grant 15 March 1 September 15 September 26 May
(a)
Share price at date of grant (pence) 407.0 420.0 383.0 404.0 
Exercise price 407.0 420.0 306.4 – 
Number of employees 182 207 1,157 31 
Shares under option/awarded 690,561 685,481 1,172,994 1,692,458 
Vesting period (years) 3 3 3 or 5 3 
Expected volatility 34.3% 36.1% 36.1% –
Option life (years) 10 10 6 months 3 
after vesting
Expected life (years) 5 5 2 months 3
after vesting
Risk free rate 4.6% 4.9% 4.9% –
Expected dividend yield 3.4% 3.6% 4.8% 3.1%
Annual leavers 5.0% 5.0% 10.0% 5.0%
Expectation of meeting performance criteria 75.0% 75.0% – 40.6%
Fair value per option (pence) 85.0 91.3 – 147.8 
Fair value per option (pence) – 3 year – – 84.7 –
Fair value per option (pence) – 5 year – – 73.9 –
Income Statement charge in year of grant £133,730 £59,252 £89,802 £715,045 
Income Statement charge in full year £167,851 £178,858 £271,077 £715,045 
(a) Although the grant date is May the award actually runs for the three years from 1 January.
The expected volatility is based on historical volatility over the last five years. The expected life is the average expected period to exercise. The risk free rate of
return is the yield on zero-coupon government bonds of a term consistent with the assumed option life.
Notes to the Financial Statements continued
54 George Wimpey Plc Annual Report and Accounts 2005 8 Goodwill
Group
2005 2004
£m £m
Restated 
Cost:
At 1 January 5.2 5.2 
Additions 0.2 0.1
Exchange adjustments 0.2 (0.1) 
At 31 December 5.6 5.2 
Under the transitional arrangements to IFRS, cost at 1 January 2004 is deemed to be the net book value of goodwill as at 31 December 2003, up to which date
under UK GAAP goodwill was written off in annual instalments. Under IFRS, goodwill is subject to an impairment test, at least annually. Since 1 January 2004
there has been no impairment of goodwill. 
The addition during the year related to the final consideration paid to the vendor of Richardson Homes (Denver) which was based on profits earned in the year
to December 2004. Richardson Homes (Denver) was acquired in 2001.
9 Intangible assets
Software development costs
Group
2005 2004
£m £m
Restated 
Cost:
At 1 January 10.8 6.7
Additions – purchased externally 7.7 0.5
Additions – internally generated 2.0 4.1
Exchange adjustments 0.8 (0.5)
At 31 December 21.3 10.8 
Amortisation:
At 1 January 2.4 0.9
Charge in the year 2.0 1.6
Exchange adjustments 0.3 (0.1)
At 31 December 4.7 2.4
Net book value 16.6 8.4
www.georgewimpeyplc.co.uk 55
Financial Statements 10 Property, plant and equipment
Group
Freehold Leasehold Plant and
property property equipment Total
£m £m £m £m
Restated Restated
Cost:
At 1 January 2004 3.4 0.4 39.2 43.0 
Additions – 0.3 8.4 8.7 
Disposals (0.3) – (5.6) (5.9)
Exchange adjustments – – (0.3) (0.3)
At 31 December 2004 3.1 0.7 41.7 45.5 
Additions – 1.2 7.6 8.8
Disposals – – (6.8) (6.8) 
Reclassifications (1.5) – – (1.5)
Exchange adjustments – – 0.6 0.6
At 31 December 2005 1.6 1.9 43.1 46.6
Depreciation:
At 1 January 2004 1.6 0.1 25.9 27.6 
Charge in the year 0.1 0.1 6.0 6.2 
Disposals (0.1) – (3.8) (3.9)
Exchange adjustments – – (0.2) (0.2)
At 31 December 2004 1.6 0.2 27.9 29.7
Charge in the year – 0.3 5.8 6.1 
Disposals –– (5.2) (5.2) 
Reclassifications (1.3) – – (1.3)
Exchange adjustments – – 0.4 0.4
At 31 December 2005 0.3 0.5 28.9 29.7
Net book value:
At 31 December 2004 1.5 0.5 13.8 15.8
At 31 December 2005 1.3 1.4 14.2 16.9
Leasehold properties had terms below 50 years at both Balance Sheet dates.
11 Investments in subsidiary undertakings
Parent
2005 2004
£m £m 
Cost:
At 1 January 1,672.3 1,490.0 
Additions – 192.4 
Liquidation of subsidiary (3.5) –
Exchange adjustments 21.2 (10.1)
At 31 December 1,690.0 1,672.3 
Impairment provisions:
At 1 January – 94.6 
Release of provision no longer required – (94.6)
At 31 December – –
Net book value 1,690.0 1,672.3 
In the opinion of the Directors the value of the Company’s investment in subsidiary undertakings is not less than the amount at which it is stated in the
Balance Sheet. The Company’s principal subsidiary undertakings are shown in note 27.
Included within investments in subsidiary undertakings is a US$350 million investment funded by matching US$ borrowings. The £ Sterling equivalent at 
31 December 2005 was £203.5 million (2004: £182.3 million).
Notes to the Financial Statements continued
56 George Wimpey Plc Annual Report and Accounts 2005 12 Joint ventures
Group
2005 2004
£m £m 
Share of joint venture net assets:
Current assets 83.8 39.5 
Current liabilities (67.6) (18.0)
Non-current liabilities (17.4) (21.9)
Net liabilities (1.2) (0.4)
Loans from Group companies 19.7 7.4 
18.5 7.0 
Share of post tax losses from joint ventures:
Revenue 14.4 –
Cost of sales (11.5) –
Gross profit 2.9 –
Administrative expenses (2.1) (0.3)
Operating profit/(loss) 0.8 (0.3)
Finance costs (1.9) (0.3)
Loss before tax (1.1) (0.6)
Taxation 0.3 0.2 
(0.8) (0.4)
The Group has three principal joint ventures.
GN Tower Limited (GNT) was formed in 2004. The Group has a 50% shareholding in the Ordinary Share Capital of GW City Ventures Limited (GWCV), the
remaining shareholding is ultimately held by Barclays PLC. GNT is a wholly owned subsidiary of GWCV and is undertaking the development of 257 residential
and 18,000 sq ft of commercial/retail properties in Manchester city centre. The Group has made shareholder loans to GNT of £3.0 million (2004: £1.5 million). 
In 2004 the Group sold land and associated development works to GNT for a cash sum of £17.5 million, recognising a profit of £1.8 million on the transaction.
Management fees charged to the joint venture in the year totalled £0.6 million (2004: £0.3 million). At 31 December 2005 GNT was financed by interest bearing
unsecured shareholder loans amounting to £5.9 million (2004: £3.0 million), mezzanine interest bearing loans from the Group of £3.9 million (2004: £1.8 million)
repayable by September 2008 and non-recourse interest bearing loans from Barclays Bank PLC, repayable by June 2008, amounting to £24.0 million 
(2004: £11.8 million).
North Central Management Limited (NCM) was formed in 2004. The Group has a 50% shareholding in the Ordinary Share Capital of North Central Management
(Holdings) Limited (NCMH), the remaining shareholding is ultimately held by Taylor Woodrow plc. NCM is a wholly owned subsidiary of NCMH and is
undertaking the development of the Vizion7 development in Islington, London which includes 467 residential properties, 50 affordable houses and 60,000 sq ft
of commercial/retail space. The Group has made shareholder loans to NCM of £5.6 million (2004: £4.1 million). At 31 December 2005 NCM was financed 
by unsecured shareholder loans amounting to £11.2 million (2004: £8.2 million) and non-recourse interest bearing loans from Royal Bank of Scotland plc,
repayable by June 2008, amounting to £26.0 million (2004: £19.0 million).
Falcon Wharf Limited (FW) was formed in 2005. The Group has a 50% shareholding in the Ordinary Share Capital of GWNW Limited, the remaining shares are
ultimately held by The Royal Bank of Scotland plc. FW is a wholly owned subsidiary of GWNW Limited and is undertaking the development of Falcon Wharf 
in Battersea, London which includes 124 residential properties and 38,000 sq ft of commercial/leisure space. During the year the Group has advanced
shareholder loans of £3.6 million and mezzanine finance of £3.6 million. The Group also sold land and associated development works to the joint venture 
for a cash sum of £31.7 million. The profit on the sale of land to FW recognised in the Income Statement amounted to £0.2 million and management fees
charged to the joint venture during the year amounted to £0.6 million. At 31 December 2005 the joint venture was funded by unsecured shareholder loans 
of £7.1 million, mezzanine interest bearing loans of £7.1 million and non-recourse interest bearing loans from The Royal Bank of Scotland plc of £33.0 million.
Other than the shareholder and mezzanine loans referred to above there were no amounts outstanding to or from the joint ventures at the year end.
www.georgewimpeyplc.co.uk 57
Financial Statements 13 Inventories
Group
2005 2004
£m £m
Restated 
Land held for development 2,153.4 1,932.3 
Construction work in progress 735.3 654.4 
Part exchange properties 1.5 25.6 
Other inventories 42.0 34.9 
2,932.2 2,647.2 
The Directors consider all inventory to be current in nature. The operational cycle is such that the majority of inventory will not be realised within 12 months. 
It is not possible to determine with accuracy when specific inventory will be realised, as this will be subject to a number of issues such as consumer demand
and planning permission delays. The value of land expensed in 2005 was £737.4 million. At this level of activity and ignoring the effect of other factors such 
as inﬂation and exchange rate volatility, approximately 66% of inventory is estimated to be realised in excess of 12 months.
In accordance with the accounting policies on finance income and costs as set out on page 47 the Group adds to the cost of inventory certain notional
interest, representing the unwinding discount on long term creditors for land to which the Group has neither title nor access. Interest included within land
held for development has moved as follows:
Group
2005 2004
£m £m 
In land inventory at 1 January 4.2 2.8 
Added to land inventory (note 3) 3.4 1.4 
In land inventory at 31 December 7.6 4.2 
14 Trade and other receivables
Group Parent
2005 2004 2005 2004
£m £m £m £m
Restated Restated
Non-current assets:
Trade receivables 7.8 3.7 – –
Amounts due by subsidiary undertakings – – 234.6 118.2 
Other receivables 11.3 7.5 – –
19.1 11.2 234.6 118.2 
Current assets:
Trade receivables 35.9 23.5 – –
Amounts due by subsidiary undertakings – – 1,979.7 1,881.5 
Other receivables 58.2 48.8 0.1 0.3 
Prepayments and accrued income 10.3 14.1 – 1.0 
104.4 86.4 1,979.8 1,882.8 
Notes to the Financial Statements continued
58 George Wimpey Plc Annual Report and Accounts 2005 15 Trade and other payables
Group Parent
2005 2004 2005 2004
£m £m £m £m
Restated Restated
Current liabilities:
Trade payables (124.1) (137.4) – –
Land payables (214.8) (205.5) – –
Amounts due to subsidiary undertakings – – (2,292.9) (2,094.0)
Accruals and deferred income (206.6) (201.1) (5.9) (8.3)
Tax and social security (6.2) (5.9) – –
Other payables (74.0) (53.3) (0.2) (0.5)
(625.7) (603.2) (2,299.0) (2,102.8)
Non-current liabilities:
Land payables (165.7) (69.2) – –
Amounts due to subsidiary undertakings – – (436.4) (358.8)
Other payables (19.2) (11.3) – –
(184.9) (80.5) (436.4) (358.8)
16 Net debt
Group Parent
2005 2004 2005 2004
£m £m £m £m
Cash and cash equivalents:
Cash at bank and in hand 22.8 0.4 0.4 0.2
Short term bank deposits 30.5 19.1 – –
53.3 19.5 0.4 0.2
Current financial liabilities:
Secured loans – (1.2) – –
Unsecured loans and overdrafts:
US$ private placement ($44.6 million, 2004 $54.2 million) (current portion) (5.6) (5.0) (5.6) (5.0)
Bank loans and overdrafts (19.6) (13.2) (4.4) –
(25.2) (19.4) (10.0) (5.0)
Non-current financial liabilities:
Unsecured loans and overdrafts:
US$ private placement ($44.6 million, 2004 $54.2 million) (non-current portion) (20.3) (23.2) (20.3) (23.2)
US$ private placement (2005 and 2004 $320.0 million and £30.0 million) (216.1) (196.7) (216.1) (196.7)
US$ private placement ($96.0 million, 2004 $150.0 million) (55.8) (78.1) (55.8) (78.1)
US$ private placement ($60.0 million, 2004 $nil) (34.9) – (34.9) –
Bank loans and overdrafts (224.7) (224.9) (224.7) (224.9)
Bank fees 1.8 1.9 1.8 1.9 
(550.0) (521.0) (550.0) (521.0)
Net debt (521.9) (520.9) (559.6) (525.8)
www.georgewimpeyplc.co.uk 59
Financial Statements 16 Net debt continued
Cash at bank and short term deposits is all in US$ apart from Canadian $0.4 million (2004: £0.1 million and C$0.2 million). Short term bank loans and overdrafts
are all £ Sterling (2004: £5.4 million and US$15.0 million). Long term bank loans and overdrafts are £65.0 million and US$274.7 million (2004: £189.5 million and
US$68.0 million).
Floating rate debt is at margins over £ Sterling or US$ LIBOR.
Before the effect of swaps £297.8 million (£30.0 million and $460.6 million) (2004: £274.9 million (£30.0 million and $470.2 million)) of borrowings are fixed at 
a weighted average rate of 6.23% (2004: 6.28%) for a weighted average term of 7.2 years (2004: 8.1 years)
The US$44.6 million private placement is divided into two tranches. US$9.6 million is repayable within one year of the Balance Sheet date and US$35.0 million
is repayable between three and four years.
The US$320.0 million and £30.0 million private placement is repayable as US$110.0 million between three and four years, US$70.0 million and £30.0 million is
repayable between six and seven years, US$110.0 million is repayable between eight and nine years and US$30.0 million is repayable between 11 and 12 years.
The US$96.0 million private placement is repayable as US$28.0 million between seven and eight years, US$38.0 million between nine and ten years and
US$30.0 million between 12 and 13 years.
The US$60.0 million private placement is repayable as US$35.0 million between five and six years and US$25.0 million between seven and eight years.
Bank loans and overdrafts within current liabilities of £19.6 million are repayable within one year and are drawn on uncommitted facilities.
Bank loans and overdrafts within non-current liabilities are drawn on committed facilities. The committed facilities at December 2005 totalled £1,175.0 million
(2004: £945.0 million). £40.0 million (2004: £nil) of these facilities fall due for renewal within one year, £895.0 million (2004: £690.0 million) fall due for renewal 
in between two and five years and £240.0 million (2004: £255.0 million) fall due for renewal in over five years.
Gearing is calculated as net debt of £521.9 million (2004: £520.9 million) as a percentage of shareholders’ equity of £1,544.4 million (2004: £1,331.4 million) 
and equals 33.8% (2004: 39.1%).
17 Financial instruments
Group and Parent
1 January
2005 2005
£m £m 
Assets:
Interest rate swaps 4.6 5.8 
Liabilities:
Interest rate swaps (6.9) (2.9)
Up to December 2004 the Group disclosed gains and losses on hedging instruments in the notes to the financial statements. In accordance with IAS 39 such
gains and losses are recognised in the Income Statement with effect from 1 January 2005.
Interest rate swaps are used by the Group to establish an appropriate proportion of fixed rate borrowing. At the year end the Group had fixed rate borrowings,
after taking account of all swaps, approximately equal to net borrowings. Some of the instruments used by the Group, whilst appropriately managing the
economic exposure of the Group, do not meet the conditions required to be classified as hedge instruments. As a result gains and/or losses on interest rate
swaps are taken to finance costs in the Income Statement which creates a degree of volatility in finance costs.
Notes to the Financial Statements continued
60 George Wimpey Plc Annual Report and Accounts 2005 www.georgewimpeyplc.co.uk 61
Financial Statements
17 Financial instruments continued
After taking into account all swaps, the currency and interest rate exposure of net debt was as follows:
Group Parent
2005 2004 2005 2004
£m £m £m £m
Cash and cash equivalents:
Floating rates:
Sterling – 0.2 – –
US$ 52.9 19.1 – –
Other 0.4 0.2 0.4 0.2 
53.3 19.5 0.4 0.2 
Current financial liabilities:
Floating rates:
Sterling (19.6) (13.2) (4.4) –
US$ – (1.2) – –
Fixed rates:
US$ (5.6) (5.0) (5.6) (5.0)
(25.2) (19.4) (10.0) (5.0)
Non-current financial liabilities:
Floating rates:
Sterling 186.8 (29.8) 186.8 (29.8)
US$ (220.8) (66.6) (220.8) (66.6)
Fixed rates:
Sterling (280.0) (180.0) (280.0) (180.0)
US$ (236.0) (244.6) (236.0) (244.6)
(550.0) (521.0) (550.0) (521.0)
Net debt:
Floating rates:
Sterling 167.2 (42.8) 182.4 (29.8)
US$ (167.9) (48.7) (220.8) (66.6)
Other 0.4 0.2 0.4 –
Fixed rates:
Sterling (280.0) (180.0) (280.0) (180.0)
US$ (241.6) (249.6) (241.6) (249.4)
(521.9) (520.9) (559.6) (525.8)
The exposure of the Group to interest rate changes when borrowings reprice is as follows:
Within In one to In two to In three to Beyond five
As at 31 December 2005 one year two years three years four years years Total
Total £ Sterling borrowings in £m (82.8) – – – (30.0) (112.8)
Floating to fixed swaps 250.0 (50.0) (50.0) – (150.0) –
167.2 (50.0) (50.0) – (180.0) (112.8)
Total US$ borrowings in £m (165.3) – – (84.3) (212.8) (462.4)
Fixed to ﬂoating swaps (84.3) – – 84.3 – –
(249.6) – – – (212.8) (462.4)
Cash and cash equivalents are primarily deposits at money market rates.
Floating rate debt is at margins over £ Sterling or US$ LIBOR. Sterling fixed rate financial liabilities are at average rates of 5.42% (2004: 5.82%) with an average
term to maturity of 4.8 years (2004: 7.1 years). US$ fixed rate financial liabilities are at average rates of 5.72% (2004: 4.88%) with an average term to maturity of
6.9 years (2004: 4.9 years).
The average interest rate in 2005, calculated by dividing the net interest payable in the year on net debt by the average daily net debt, was 5.2% (2004: 5.5%).