registered office 
t aylor w oodrow plc
2 princes way
solihull
west midlands
b91 3es
t el  44 0121 600 8000
fax  44 0121 600 8001
email twplcuktaylorwoodrowcom  
wwwtaylorwoodrowcom
registered in england and wales number 296805
t aylor w oodrow plc report and accounts 2005
t aylor w oodrow plc
report and accounts 2005 designed and produced by identity limited
printed by the colourhouse
printed on 9lives paper stock
9lives 55 is produced with 55 per cent recycled fibre
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with 45 per cent virgin ecf fibre comprising a
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contents
01 group financial highlights
02 chairman’ s statement
05 chief executive’ s review
1 1 operating performance review
26 corporate social responsibility
30 board of directors
32 report of the directors 
34 corporate governance statement
38 directors’ remuneration report
47 directors’ responsibilities 
statement
48 independent auditors’ report
49 accounting policies
52 consolidated income statement
53 consolidated statement of 
recognised income and expense
54 consolidated balance sheet
55 consolidated cash flow 
statement
56 notes to the consolidated 
financial statements
83 independent auditors’ report
84 accounting policies
85 company balance sheet
86 notes to the company financial 
statements
91 particulars of principal subsidiary 
undertakings
92 five y ear review
94 shareholder information
96 principal taylor woodrow offices
our aim is to be the homebuilder 
of choice our primary business is 
the development of sustainable
communities of high quality homes 
in selected markets in the uk 
north america spain and gibraltar 
we seek to add shareholder value
through the achievement of profitable
growth and by improving capital
management taylor woodrow report and accounts 2005 1
group financial highlights
• proﬁt before tax up 2 to £41 1m
• full year dividend up 21 to 134 pence
• landbank up 18 to 751 60 plots 49 year supply 
at 2005 year end 
• gearing down 7 9 percentage points to 237
• equity shareholders’ funds per share up 1 1 4 to 
3384 pence
landbank
plots
2004 
2003 uk gaap
4039
3005
2005 411 0
2004 
2003
11 1
89
2005 134
2004 
2003
63701
62085
2005 75160
proﬁt before tax
£m
full year dividend
pence
represents interim dividends declared and paid and 
ﬁnal dividend for the year as declared by the board 2 taylor woodrow report and accounts 2005
in 2005 we
• achieved a robust performance 
despite challenging conditions in 
the uk
• continued to grow our housing 
operations in north america
• increased our investment in our 
housing operations in spain
• substantially exited our property 
operations
• reduced gearing to 237
• increased land in all markets
maintaining growth in dividends
through the cycle
in line with our intention at the half year
to increase fullyear dividends by 20 per
cent the board recommends an
increase in the ﬁnal dividend for 2005 to
89 pence from 81 pence in 2004 this
together with the interim dividend of 45
pence paid on 1 november 2005 makes
a total dividend for the year of 134 pence
an increase of 21 per cent subject to
conﬁrmation at the annual general
meeting on 3 may 2006 the dividend will
be paid on 3 july 2006 to shareholders
on the register at close of business on 
2 june 2006
this dividend will be paid as a
conventional cash dividend but
shareholders are once again being offered
the opportunity to reinvest some or all 
of their dividend under the dividend 
reinvestment plan details of which 
are contained in a separate circular to
shareholders
board changes
as previously announced denis mac
daid retired from the company and the
board on 30 june 2005 on behalf of the
board i would like to extend our sincere
chairman’ s statement
2005 has shown the beneﬁts of our
strategy of operating in different
geographical and product markets and
allocating capital where we see the best
opportunities the uk market has
continued to be subdued in 2005 although
the stability of prices assisted by a quarter
point interest rate cut in august
contributed to improved reservation rates
in the second half our housing business
in north america continued to beneﬁt
from strong markets resulting in another
year of signiﬁcant organic growth we
also achieved excellent results in spain
norman askew chairman
thanks for his exceptional contribution to
the group over his 39 year career with us
our people
the performance that we have achieved
this year is a reﬂection of the skill and
enthusiasm of our team members i
would like to take this opportunity to thank
all of my colleagues throughout the group
for their hard work over the year
as a business we are also dependent 
on our customers trading partners 
shareholders and our other stakeholders
i would like to take this opportunity to
offer our thanks for all the support they
give us
shareholder information
full details of the facilities available to
shareholders can be found on page 94
and on the company’ s website
wwwtaylorwoodrowcom
norman askew
chairman 
27 february 2006 taylor woodrow report and accounts 2005 3
mortimer hill berkshire 4 taylor woodrow report and accounts 2005
our presence in different markets provides us with
alternative growth channels
above bryant at lichﬁeld
4 taylor woodrow report and accounts 2005 taylor woodrow report and accounts 2005 5
chief executive’ s review
our presence in different markets
provides us with alternative growth
channels these enable us to allocate
capital where we see the best
opportunities for returns and optimises
our ability to mitigate any short term
weakness in any particular market or 
sub market
housing
our housing operations worldwide
reported a slight rise in proﬁt from
operations to £4560m 2004 4488m
on turnover of £28649m 2004
£28766m during 2005 we sold a total
of 12516 homes compared to 13092 
in 2004
as expected the uk market continued 
to be relatively subdued in 2005 after a
number of years of unusually strong
performance came to an end in the
second half of 2004 we sold 8178
homes in the uk in 2005 2004 9053
we saw a fall in visitor numbers
resulting from a lack of conﬁdence due 
to widespread forecasts of a house price
collapse that did not materialise this fall
was partially offset by improvements in
our conversion rate of visitors into
customers 
t aylor woodrow has completed the
transformation from a group of diverse
semiautonomous companies into 
one focused housing business 
in order to achieve continuing growth 
in shareholder value we conduct our
business through a portfolio of 
selected housing markets – across 
the uk and within north america 
spain and gibraltar
proﬁt from operations was £2334m
2004 £301 1m the reduction in our uk
housing operating margin from 156 per
cent in 2004 to 142 per cent in 2005
reﬂects the difﬁcult conditions that we
faced and the impact of reduced
volumes on overhead absorption not
withstanding year on year reduction in
overhead costs 
the second half of 2005 saw the
potential for a return to a more favourable
environment and our order book of
£41 1m at the end of 2005 2004 £407m
sees us wellplaced for 2006 
during 2005 we have grown our uk
landbank of owned and controlled plots
to 34985 2004 32459 of which 41 per
cent is sourced from strategic land our
strategic landbank has also grown and
we now have 80000 potential plots
most of which are held under option
options enable us to purchase land at an
agreed discount to open market value
when planning is received with no
obligation to buy if satisfactory planning
is not forthcoming 
during 2005 19 per cent of our home
completions were from strategic land
holdings we continue to build the
iain napier chief executive
 throughout the chief executives and operating performance reviews proﬁt from operations and operating margins 
are before exceptional pension credits in 2004 and exclude joint ventures’ interest and tax see note 3 page 57 joint
venture revenue is used in the margin calculation see note 3 page 57 all 2004 comparatives have been represented
under international ﬁnancial reporting standards  chief executive’ s review continued
6 taylor woodrow report and accounts 2005
majority of our homes on brownﬁeld
land with 68 per cent of completions in
2005 coming from this source
in the challenging conditions experienced
in the uk housing market this year we
have made good progress on strategy by
improving our forward sales position
managing our cost base and providing for
future growth during the year we have 
also delivered the £25m of synergies
identiﬁed at the time of the wilson
connolly transaction we saw improved
reservation rates towards the end of
2005 albeit against low comparatives
which has enabled us to enter 2006 
with an increased order book we
continue to operate regional ofﬁces 
that are serviced by support functions
based at our central ofﬁce in solihull 
and have an organisational structure in 
place to support growth as market
conditions allow
our operations in north america had an
excellent year beneﬁting from increased
investment and careful target marketing
we saw another year of strong organic
growth with proﬁt from operations
growing by 56 per cent to £1996m
return on capital employed rose again 
to 492 per cent 2004 392 per cent 
our business in phoenix arizona
continues to perform strongly with over
1000 home completions in 2005 our
strategy of acquiring large land parcels
where we retain the premier plots for our
homebuilding business continues to
generate exceptional results 
in california we continue to beneﬁt from
our reputation as a luxury homebuilder
whilst at the same time we have now
successfully moved our product offerings
into the midmarket where we offer
quality homes with high brand values 
at premium prices
our florida business continues to
experience strong growth as we have
increased the scale of our homebuilding
operations all of our lowrise operations
are well placed for continued growth
having made promising land acquisitions
in 2005 and previous years during the
year we also completed several luxury
highrise waterfront condominiums
which enhanced our proﬁts and returns
the california arizona and florida
markets all experienced strong price
growth in 2005 albeit partially offset by
increased construction costs sourcing
land in these markets remains
competitive however we continue to
ﬁnd attractive opportunities to replenish
and grow our landbanks
in recent years the markets in t exas have
not seen the exuberance of other states
where we operate however during the
fourth quarter of 2005 we experienced
increasing demand for our homes
our business in ontario canada
continues to provide excellent returns
the greater t oronto area remains a supply
constrained market ensuring demand for
well located high quality developments
2005 has been another year of growth
for our operations in spain and gibraltar
proﬁt from operations has grown by 
14 per cent to £230m we continue 
to focus on the british second home
market in our three core regions of the
balearic islands alicante and malaga
where we offer a mix of apartments 
and townhouses our los arqueros
development near marbella has recently
been declared best spain development
as one of ﬁve awards achieved at the
prestigious bentley international 
property awards in gibraltar we focus 
on the premium end of the market 
we have made good
progress on strategy 
by improving our 
forward sales position
managing our cost 
base and providing for
future growth belcara southern california 6 taylor woodrow report and accounts 2005
we will continue to invest all across our portfolio in the best
interests of our shareholders
above calders green cheshire
8 taylor woodrow report and accounts 2005 taylor woodrow report and accounts 2005 9
chief executive’ s review continued
as the government seeks
to address the chronic
shortage of developable
land in the uk and 
pursue its sustainable
development agenda
t aylor woodrow plays an
active part in consultation
to ensure that practicalities
of implementation are
considered in government
planning
selling offplan well in advance of the start
of construction
construction and property
t aylor woodrow construction has also
had a successful year in terms of
industry recognition as well as being
voted contract journals building
contractor of the y ear for 2005 our work
on the new stand at the oval received
praise and signiﬁcant media exposure 
as the ashes cricket series drew to a 
nailbiting close 
as previously announced we completed
the sale of the k2 development at st
katharine’ s dock in london on 1 july
2005 this substantially completes our
exit from property operations we have
however retained the expertise required
to deliver future mixed use schemes in
our housing business
prospects for 2006
the long term imbalance between
demand and supply for new housing
added to continuing low uk interest
rates continue to underpin the market
however margin pressures remain with
consented land in short supply and the
need for increased use of incentives in 
a tighter market larger builders are 
likely to fare better in this environment
we are addressing these issues through
increasing the pullthrough of our
strategic landbank working with our
supplier base to drive out cost and
increasing the use of our rationalised
range of standard housetypes 
a large amount of potential legislation is
pending to accompany the introduction
of new technical standards as the
government seeks to address the
chronic shortage of developable land in
the uk and pursue its sustainable
development agenda t aylor woodrow
plays an active part in consultation to
ensure that practicalities of
implementation are considered in
government planning whilst we broadly
welcome the thrust of the government’ s
intent we remain concerned about the
country’ s ability to deliver consented 
land without a wholesale overhaul of 
the current planning regime we are
encouraged by the government’ s
apparent determination to bring about
reform in this area
we have experienced substantial levels
of house price inﬂation in parts of north
america over the last two years which
has been reﬂected in our strong
performance although pricing strength
and demand moderated during the
fourth quarter of 2005 we remain
conﬁdent that we can successfully
deliver superior results in a more normal
market due to our record forward order
book and strong landbank we anticipate
a successful 2006
the market for second homes in spain
continues to be attractive with demand
remaining robust from british buyers as
in the uk and north america we have an
indepth knowledge of the markets that
we operate in under an experienced and
capable team of local managers 
therefore we will continue to invest all
across our portfolio in the best interests
of our shareholders 
iain napier
chief executive
27 february 2006 macintosh village manchester taylor woodrow report and accounts 2005 11
operating performance review
highlights
• proﬁt before tax up 2 to £41 1m
• full year dividend up 21 to 134 pence
• group landbank up 18 to 75160 plots equating to 
49 years supply at 2005 year end
• group housing proﬁt from operations up 1 6 to £456m
• north american housing margin up 27 percentage 
points to 17 5
• order book up 165 to £1 317m
land bank split by operating divisions
north 
america
37 910 plots
united 
kingdom
34985 
plots
spain and 
gibraltar
2265 plots
proﬁt from operations split by 
operating divisions 
north 
america 
housing
£1996m
united 
kingdom
housing
£2334m
spain and
gibraltar
housing
£230m
other
£245m
2004
2003 
2002
2001
4039
3005
2005 411 0
2331
2023
group proﬁt before tax £m see note below
2004
2003 
2002
2001
3311 5
26694
2005 34769
22086
21384
revenue £m see note below 
2003 and prior are reported under uk gaap  see further details on page 92
 throughout the chief executives and operating performance reviews proﬁt from operations and operating margins 
are before exceptional pension credits in 2004 and exclude joint ventures’ interest and tax see note 3 page 57 joint
venture revenue is used in the margin calculation see note 3 page 57 all 2004 comparatives have been represented
under international ﬁnancial reporting standards  12 taylor woodrow report and accounts 2005
operating performance review continued
a homebuilder of choice
with over 95 per cent of proﬁt from
operations coming from housing
t aylor woodrow’ s aim is to be the
homebuilder of choice in our selected
markets across the united kingdom
and within north america spain and
gibraltar t aylor woodrow seeks to 
build sustainable shareholder value
through the business cycle the board’ s
conﬁdence in the longterm fundamental
characteristics of our markets is
supported by the board’ s commitment
to a 20 increase in the full year
dividends declared for 2005
the markets in which we operate share
characteristics that sustain demand 
for new homes in the uk an ageing
housing stock increasing numbers of
households and an increasingly
complex process for the delivery of
those additional homes combine to
create ever widening disparity between
demand and supply
this complexity arises in a variety of
different ways regulatory design
constraints onerous planning
requirements and remediation of
brownﬁeld sites all present additional
difﬁculties for housebuilding operations 
the company’s uk homebuilding
business has the commercial and
construction skills necessary to
compete effectively in this challenging
but rewarding market 
our us markets are in the sunbelt
states all beneﬁt from inward migration
from the colder northern states arizona
and florida beneﬁt from healthy and
sustainable demand for retirement and
second homes whilst california and
t exas enjoy markets sustained by high
levels of employment in canada our
business also beneﬁts from immigration
and economic growth
spain and gibraltar present good growth
prospects within the european second
home market and our mainly british
based customers beneﬁt from the
reassurance of buying from a familiar uk
brand name backed by over 40 years’
experience in this market 
we are proud of the achievements of our
people and their commitment to our
company’ s success in 2005 the success
of investing in the wellbeing training and
development of our people from senior
managers to trade apprentices is
demonstrated by the wealth of industry
awards that our team members win
across a wide variety of disciplines 
these included the nhbc’ s highest level
of ‘pride in the job’ recognition a
supreme award amongst 29 individual
quality award winners in the uk
four us building industry association
‘pinnacle’ awards and eight national
sales and marketing council’ s awards
were among the highlights achieved 
by north american team members
also monarch highrise was declared
sales and marketing team of the year 
by the greater t oronto housebuilders
association scaffolding in progress 
at stamford brook manchester bryant homes design pod  taylor woodrow report and accounts 2005 15
overall group housing had a satisfactory
year strong north american markets
compensated for a challenging year in
the uk average sales price was up 3 per
cent to £204k 2004 £199k  and
operating margins by 03 percentage
points to 159 per cent  helping to offset
a reduction in volumes housing proﬁt
from operationsrose 2 per cent to
£4560m 2004 £4488m 
49 per cent of 2005 housing proﬁt 
from operations came from overseas
operations 2004 33 per cent this
reﬂects both our decision to increase
investment into those markets over the
last few years and their relative strength
compared to the uk 
we remain well placed to grow our
housing business with the group order
book up 165 per cent to £1 32bn 2004
£1 13bn and the group landbank up 
18 per cent at 75160 plots 2004 
63701 plots
results
consolidated revenue for the year to 
31 december 2005 was up 5 per cent 
at £34769m 2004 £331 1 5m proﬁt
before tax was 2 per cent up on the
previous year at £41 1 0m 2004
£4039m with an increase in housing
proﬁtaccompanied by a smaller
contribution from property and
construction
at 31 december 2005 total equity
before minority interests was £19284m
2004 £17028m net debt was
£4569m 2004 £5388m net gearing
was 237 per cent 2004 31 6 per cent
basic and adjusted earnings per share
was 506 pence 2004 491 pence basic
and 51 1 pence adjusted equity
shareholders’ funds per share increased
by 1 1 4 per cent to 3384 pence
group housing
2005 2004
revenue including 
joint ventures £m 28649 28766
profit from 
operations £m 4560 4488
operating margin  159 156
home completions 12516 13092
operating performance review continued
2004
2003
2002
2001
13092
10819
2005 12516
8370
7096
t otal home completions
2004
2003
2002
2001
9053
7690
2005 8178
6238
5226
t otal uk home completions 16 taylor woodrow report and accounts 2005
uk housing
2005 2004
revenue including 
joint ventures £m 16474 19362
profit from 
operations £m 2334 3011
operating margin  142 156
home completions 8178 9053
during 2005 the uk housing market was
challenging with overall demand lower
than in 2004 visitor levels over the year
were approximately 20 per cent down on
2004 but this was partially compensated
for by a higher conversion rate we made
good progress on strategy by improving
our forward sales position managing our
cost base and providing for future growth
by increasing the landbank 
against the market average the company
delivered a strong sales performance
during 2005 demand in the ﬁnal quarter
was stronger than in the equivalent
period of 2004 and we start 2006 with an
order book of £41 1m up 1 per cent on
last year from 42 per cent fewer sites
average selling prices were lower at
£185k 2004 £197k with the reduction
mainly attributable to a higher proportion
of social housing and apartment
completions than last year the average
square footage of our homes in the uk
fell as a consequence from 1032 sq ft to
960 sq ft 
bryant design provides an attractive
options programme that provides a ‘one
stop’  convenient solution for ﬂooring
kitchen garden bathroom lighting and
ﬁttings enhancements to our standard
home package in 2005 73 per cent
2004 69 per cent of our customers
took advantage of the bryant design
service to personalise their home
operating margins fell to 142 per cent
2004 156 per cent this includes the
beneﬁt of higher than usual land sales
during the year primarily due to the
disposal of our interest in the quartermile
project in edinburgh the sale of which
was completed in january 
we continue to focus on cost control
reducing overhead costs through supply
chain management use of standard
housetypes and pullthrough from
strategic land through our logistics
business wcl acquired as part of the
wilson connolly business we have
managed to reduce materials costs
improve quality and speed up delivery
times by implementing an integrated
solution that works in partnership with
our key materials suppliers
we continue to reduce the overall
number of suppliers achieve common
standards and quality controls with
challenging performance criteria for
suppliers in conjunction with our
partners we have also developed
commercial solutions that streamline 
the ordering veriﬁcation and payment
administration burden 
we are particularly pleased with the
progress of our timber frame construction
company prestoplan also acquired with
wilson connolly which achieved record
results in 2005 and has embarked on an
expansion programme that will develop
its position as one of the uk’ s leading
timber frame suppliers a second offsite
manufacturing facility has been opened
this year at quedgeley in gloucestershire
to complement the existing facility 
operating performance review continued
our strategic landbank
is a key strength with
some 18300 gross acres
representing 80000
potential plots t ypically
land acquired this way 
is secured on option at 
a discount to the open
market and this has
helped us to manage the
average cost of plots in
our landbank design and innovation will continue to be a key theme for
bryant to meet customers needs we work with planning
authorities to design developments that meet the housing
needs of the locality while being sensitive to issues of
context and environment
above constable park salisbury
taylor woodrow report and accounts 2005 17 operating performance review continued
18 taylor woodrow report and accounts 2005
although planning remains difﬁcult we
have been successful in securing
consents on strategic land in 2005 we
obtained approval for 2300 sustainable
homes in swindon the largest current
greenﬁeld site in southern britain 
as a result of this and prudent purchasing
in the land market we have increased
our landbank by 8 per cent to 34985
plots 2004 32459 plots
in 2005 68 per cent 2004 64 per cent
of our developments in the uk were on
brownﬁeld sites and we seek in
partnership with central and local
government to develop all our land
responsibly with due regard to local
sensitivities several of our largest
schemes including grand union 
village in northolt and the swindon
development area have been cited 
as model schemes by local authorities
and urban design programmes
our strategic landbank is a key strength
with some 18300 gross acres
representing 80000 potential plots
t ypically land acquired this way is
secured on option at a discount to the
open market and this has helped us to
manage the average cost of plots in our
landbank the beneﬁts of this investment
continue to be realised with 19 per cent
of completions coming from plots
originally sourced from our strategic
landbank 200418 per cent around 41
per cent of our landbank has been
sourced through our strategic land
programme with the resulting beneﬁts
to be realised in future years
scotland
the livingston regional ofﬁce is placed
strategically between scotland’ s two largest
cities with developments focused around the
highly populated central belt in the west
t aylor woodrow is participating in the £500
million regeneration of glasgow harbour whilst
in the east the western harbour development
in leith is a key part of edinburgh’ s waterside
regeneration combined housing and
development expertise within the business
has also delivered newington grange – a
remarkable refurbishment and new build
project in one of the city’ s most desirable areas 
y orkshire and north east
the y orkshire and north east region has its
regional ofﬁce in leeds sites range from
centurion square in the heart of historic y ork
to carey meadows’ development of executive
detached homes in longhoughton in
northumberland and newcastle great park’ s
phased development of some 2500 energy
efﬁcient new homes
north w est
based in warrington the north west region
sold in excess of 1000 homes from over 30
active sites during the year the deck at
runcorn old quay is a waterside project of
466 apartments set to transform the region
and breathe new life into the town while the
botanic in ancoats will be part of the new
islington millennium community regenerating
east central manchester 
west midlands
west midlands region is based at the
company’ s central ofﬁces in solihull and offers
a diverse range of homes from traditional
family properties to both new build and
refurbished apartments work has also
commenced on the major regeneration of
diglis basin in worcester to provide new
homes in a vibrant community alongside the
river severn
east midlands
from its base in leicester east midlands
provides new homes across derbyshire
leicestershire lincolnshire and
northamptonshire and manages several large
scale brownﬁeld redevelopments on expublic
sector land in northampton for example two
former hospital sites st crispins and
mansﬁeld grange have both been
transformed into impressive communities
incorporating sensitive refurbishment of
historic buildings
anglia 
the counties of norfolk suffolk and
cambridgeshire are covered by our anglia
regional ofﬁce based in newmarket a key
feature of the region is the broad range of
housing offered including affordable homes
for key workers and ﬁrsttime buyers as well
as family homes the company is playing a
lead role in establishing the new town of
cambourne near cambridge to help meet the
area’ s high demand for additional housing
eastern 
eastern region covers bedfordshire
hertfordshire buckinghamshire and essex
including the key development areas along the
m1 a1 and m1 1 corridors where we have
very high quality landbank holdings from
ofﬁces in welwyn garden city the region is
sensitive to this part of england’ s architectural
heritage many of its developments are
designed to blend with vernacular styling
whilst its ﬂagship site redeveloping part of 
the old barracks in colchester revealed the
remains of a roman circus track for chariot
racing the traces of the remains will be
suitably marked for future generations at 
the same time as some 2500 new homes 
are created
south w est and w ales 
developments in gloucestershire wiltshire
somerset devon and south wales are
managed from a south west ofﬁce based near
bristol sites range from the high proﬁle 477
apartment victoria wharf at the revitalised
cardiff bay to a selection of traditional homes
of varying size in cotswolds towns like
cirencester and cheltenham the region has
been particularly successful in acquiring new
land and building a growing reputation in
south wales
south
based in newbury the south region is
responsible for our developments south of
oxford west of surrey and sussex and east of
uk housing organisation
our uk business operates across the uk and is organised
currently into 1 1 regions designed to provide cost effective
management of around 200 individual developments at 
any one time we aim to achieve optimal scale economies
from our national presence predominantly under our bryant
homes brand without compromising the value of our
regional ofﬁces’ local market knowledge
18 taylor woodrow report and accounts 2005 taylor woodrow report and accounts 2005 19
design and innovation will continue 
to be a key theme for bryant to meet
customers needs we work with
planning authorities to design
developments that meet the housing
needs of the locality while being
sensitive to issues of context and
environment our standard range of
home designs provides homes that meet
a diverse set of customer needs whilst
ensuring that optimal use is made of
space and natural light at minimum build
cost through bryant connect we offer
uk buyers unique technology and 
multimedia solutions as well as
advanced security systems it’ s also
important to us that homebuying is
made as straightforward and as stress
free as possible and we strive to achieve
this by constantly reviewing our
‘customer journey’ process to ensure
that it meets the needs of bryant home
buyers
lancashire
merseyside
cambridgeshire
suffolk
norfolk
leicestershire
nottinghamshire
worcestershire
herefordshire
durham
t  w
wiltshire
somerset
kent
essex
surrey
west sussex
east sussex
hampshire
gloucestershire
oxfordshire
berkshire
derbyshire
staffordshire
shropshire
warwickshire
cumbria
northumberland
north y orkshire
e r yorkshire
west y orkshire
south y orkshire
stirling
south
lanarkshire
angus
fife
perth and kinross
scottish borders
east
lothian
south
ayrshire
east a yrshire
north 
ayrshire
cheshire
gt  man
hertfordshire
bedfordshire
buckinghamshire
dorset
northamptonshire
rutland
tamworth
lincolnshire
livingston
welwyn 
garden 
city
leeds
leicester
solihull
crawley
watford
newmarket
newbury
chipping
sodbury
warrington warrington
leeds
newmarket
leicester
watford
solihull
chipping
sodbury
newbury
livingston
crawley
welwyn 
garden 
city
scotland
east midlands
anglia
eastern
south east
south
london
greater
london
west midlands
north west
y orkshire
north east
south west 
and wales
somerset and wiltshire again this region
caters to a wide range of housing needs from
affordable town centre homes in places such
as caversham in reading to larger family
homes in locations such as petersﬁeld and
basingstoke the company is playing a major
part in the regeneration of a signiﬁcant area of
poole which will eventually result in 3000
new homes for the popular coastal town
london
based in watford the london region covers
the greater london area where opportunities
increasingly involve the redevelopment of
previously used brownﬁeld land the team is
currently developing large scale urban
regeneration schemes at grand union village
in the west of the capital vision 7 in islington
north london and greenwich millennium
village to the south east the region also has
six sites in and around bromley including a 94
home development set in a 70 acre private
country estate at holwood in keston
south east
the south east region based in crawley
covering kent surrey and sussex provides a
wide variety of house styles within easy
commuting distance of london current sites
include the centrally located delta riverside
development in maidstone a range of stylish
new homes in canterbury and a waterfront
development at shoreham by sea near
brighton 20 taylor woodrow report and accounts 2005
north america housing
2005 2004
revenue including 
joint ventures £m 11418 8639
profit from 
operations £m 1996 1276
operating margin  175 148
home completions 3932 3635
our operations in north america had an
excellent year beneﬁting from the
increased investment over the past few
years as well as from a strong market
proﬁt from operations increased by 56
per cent to £1996m 2004 £127 6m
driven by 82 per cent growth in home
completions and a 27 percentage point
improvement in operating margins 
we continue to improve our forward
sales position with the order book 14 per
cent higher excluding highrise 38 per
cent than at year end 2004 at 
us1 42bn 
the landbank increased by 26 per cent to
37 910 plots 2004 30009 plots more
than half our landbank is controlled
through options rather than owned
which improves capital efﬁciency we
also continue to manage actively our
landbank by selling plots to other builders
where we consider it to be value creating 
our florida operations cover both coasts
from t ampa bay to naples on the gulf 
of mexico and from jacksonville to fort
lauderdale on the atlantic we offer 
a wide range of middle market to luxury
homes and condominiums targeted to
moveup families retirees and second
home purchasers this year the florida
market continued the trend of 2004 and
remained strong during 2005 we
completed 752 homes 2004 505 at an
average sales price of us727k 2004
us544k the florida average selling
price increased signiﬁcantly by three
highrise beachfront condominiums that
completed in the second half of the year 
our california operations are
concentrated in two key markets in 
the north we have a growing urban inﬁll
business that caters to the local working
population with a range of products 
from townhomes to midmarket family
homes our business in southern
california focuses mainly on the mid
market in riverside and san bernandino
counties but also sells luxury homes on
the southern californian coast some
parts of the market are showing signs of
cooling after several years of considerable
price appreciation therefore we have
continued to operate mainly in the
stronger midmarket as opposed to the
luxury segment we have also expanded
our footprint by reentering the palm
springs market the average sales price
in 2005 was us835k 2004 us776k
with home completions up 3 per cent at
721 homes 2004 697
our arizona division serves the phoenix
metropolitan area and continued its
exceptional performance targeting entry
level and midmarket homebuyers
recent sales releases indicate that the
market is moderating with price
appreciation levelling off although
phoenix is one of the fastest growing
cities in the us beneﬁting from
migration from other less affordable
markets home completions increased
by 20 per cent to 1009 2004 841 with
average sales price up 14 per cent to
us209k 2004 us183k 
in t exas we are growing our homebuilding
operations in both austin and houston
we are targeting the moveup market by
leveraging our existing reputation as a
high quality community developer  home
operating performance review continued
our operations in 
north america had an
excellent year beneﬁting
from the increased
investment over the past
few years as well as
from a strong market 
completions increased to 190 2004 94
with average sales price down 4 per cent
to us424k 2004 us440k
in ontario canada the group trades
under the monarch brand which beneﬁts
from a longstanding reputation for
quality and value operating in the
greater t oronto area and ottawa in
southern ontario monarch builds both
lowrise midmarket family homes and
highrise condominiums as well as
affordable urban townhomes
completions in the year of 2005 were
1260 homes 2004 1498 the average
sales price was can326k 2004
can302k
in north america we meet our
customers’ needs through a mixture of
highquality targeted developments
professional ﬁnishes and exceptional
customer service our ‘inspired by y ou’
programme ensures that customers
remain at the very top of our priorities by
giving them opportunity for direct input
into the design construction and
presentation of our product finally we
maintain open communications with our
homebuyers to exceed their expectations
and to deliver on our promises taylor woodrow report and accounts 2005 21
2004
2003 
†
 
2002 
†
2001 
†
127 6
901
2005 1996
662
534
t otal north america proﬁt from operations £m
above waterchase florida
in north america we meet our customers’ needs through a
mixture of highquality targeted developments professional
ﬁnishes and exceptional customer service 
† operating proﬁt as reported under uk gaap before goodwill amortisation and exceptional 
pension credits 22 taylor woodrow report and accounts 2005
spain and gibraltar housing
2005 2004
revenue £m 757 765
proﬁt from 
operations £m 230 201
operating margin  304 263
home completions 406 404
t rading under the t aylor woodrow brand
in spain we operate on the costa del
sol costa blanca and in mallorca
developing sites for the holiday home
market such as villatype community and
country club projects together with some
products designed to meet local market
demand 
in gibraltar t aylor woodrow serves 
the luxury second home market through
apartment and penthouse developments
our spain and gibraltar housing
operations enjoyed a strong 2005
completions increased by 1 per cent
with average sales prices down by 
5 per cent to £169k 2004 £178k
reﬂecting a change in geographic mix
proﬁts from operations rose to £230m
up 14 per cent on 2004 while operating
margins grew by 41 percentage points
to 304 per cent 
the order book increased 8 per cent at
£81m 2004 £75m and we invested 
for future growth by increasing our
landbank by 84 per cent to 2265 plots
2004 1233 plots 
construction
our construction business continues 
to build on its reputation with a growing
portfolio of bluechip and public sector
clients including t esco t exaco and the
nhs and winning a number of industry
awards in 2005 including contract
journal’ s ‘building contractor of the y ear
2005’  in the construction business the
proﬁt from operations before exceptional
pension credits was 51 per cent lower at
£88m 2004 £17 8m with the reduction
partly accounted for by lower income
from pfi disposals
property
over the past few years t aylor woodrow
has progressed our stated strategy of
divesting ourselves of our historic
property portfolio the disposal of the k2
development at st katharine’ s dock was
completed on 1 july 2005 this achieved
a gross proﬁt of £17 4m overall the
property business recorded operating
proﬁt of £157m 2004 £267m in future
commercial property developments will
operating performance review continued
we operate on the
costa del sol costa
blanca and in mallorca
developing sites for the
holiday home market
such as villatype
community and country
club projects together
with some products
designed to meet local
market demand
only be undertaken where they are
ancillary to housebuilding projects
accordingly segmental analysis of this
business stream will cease
equity shareholders’ funds
at the end of 2005 shareholders’ funds
were £19284m up from £17028m at
the end of 2004 equity shareholders’
funds per ordinary share rose to 3384
pence at the end of 2005 this represents
an increase of 1 1 4 per cent from the
previous year
shareholders returns
basic earnings per share increased 
by 31 per cent to 506 pence the
proposed ﬁnal dividend of 89 pence
produces a total return of 134 pence per
ordinary share an increase of 21 per cent
over last year this level of dividend is
consistent with the board’ s policy of
paying progressive dividends through 
the business cycle 
also during the year the board has
decided to rebalance the levels of
interim and ﬁnal dividends to reﬂect a
more usual weighting of proﬁts between
the ﬁrst and second halves of the
ﬁnancial year the dividend is covered 
38 times by earnings  our spanish housing operations enjoyed a very strong 2005
completions increased by 1 per cent with average sales
prices down by 5 per cent to £169k 2004 £178k reﬂecting a
change in geographic mix proﬁts from operations rose to
£230m up 14 per cent on 2004 while operating margins
grew by 41 percentage points to 304 per cent 
above los arqueros spain
taylor woodrow report and accounts 2005 23 grand union village northolt taylor woodrow report and accounts 2005 25
operating performance review continued
cash ﬂow
operating cashﬂows before movements
in working capital were £461 1m 2004
£4934m inventories increased by
£2049m which was partly funded by an
increase in creditors of £1 126m of this
latter increase £92m is represented by
an increase in land creditors
cash generated by operations was
£3597m 2004 £4105m income taxes
and interest payments totalled £2295m
2004 £2124m resulting in net cash
from operating activities being down 34
per cent to £1302m 2004£1981m
t reasury management and funding
the group operates within policies and
procedures approved by the board the
group’ s capitalisation policy establishes
overall parameters for the consolidated
capital structure together with guidelines
in respect of interest and currency
translation exposures the group seeks
to match longterm assets with long
term funding and shortterm assets with
shortterm funding strict controls are
exercised on the use of ﬁnancial
instruments in managing the group’ s
ﬁnancial risk the objectives are to
ensure sufﬁcient liquidity is maintained
to meet foreseeable needs and to invest
cash assets safely and proﬁtably the
group does not undertake speculative or
trading activity in ﬁnancial instruments or
foreign currencies 
the disclosures relating to the use of
ﬁnancial instruments and treasury risks
faced by the group required under the
eu’ s fair value directive are detailed in
notes 16–20 to the consolidated ﬁnancial
statements
the group maintains a balance between
certainty and ﬂexibility through the use 
of term borrowings overdrafts and
committed revolving credit facilities 
with a range of maturity dates it is the
group’ s policy to maintain committed
facilities or borrowings with staggered
maturity dates in order to ensure
continuity of funding
t reasury functions are centralised in our
main geographic locations all treasury
operations must remain in compliance
with group policy and are closely
monitored by the group treasury
department
equity retained proﬁts and longterm
ﬁxed interest debt are primarily used to
ﬁnance goodwill ﬁxed assets and land
shortterm borrowings are primarily
required to ﬁnance net current assets
other than landbank assets of more than
one year and commercial developments
and are therefore kept at a ﬂoating rate
where possible temporary cash
balances made available by our
construction business are used to reduce
our shortterm borrowing requirements
the group also uses derivatives to
manage interest rate exposure if
economically appropriate
a signiﬁcant proportion of the group’ s
capital employed is in currencies 
other than sterling with the result that
currency movements can affect the
balance sheet where appropriate
foreign currency translation exposure is
reduced by ﬁnancing overseas assets
with borrowings of the same currency
and by the use of derivatives
net debt at the year end stood at
£4569m 2004 £5388m equivalent to
net gearing of 237 per cent 2004 31 6
per cent interest on borrowings net of
interest receivable was £544m 2004
£60m  see note 6 page 62 average net
debt for the year was £8234m 2004
£9469m at the year end t aylor
woodrow had undrawn committed
revolving credit facilities totalling £685m
t axation
the effective tax rate in 2005 is 303 
per cent 2004 304 per cent
pensions
at 31 december 2005 the ias19 deﬁcit
net of deferred tax was £154m 2004
£100m the increase has been caused
by continuing falls in the yield of aa
credit rated corporate bonds the
company has now commenced
discussions with the trustees with a
view to reaching agreement on the
means of mitigating this deﬁcit
international financial reporting
standards ifrs
these are the ﬁrst full year statements
produced under international financial
reporting standards all 2004
comparatives have been restated
appropriately and a full reconciliation of
the 2004 income statement balance
sheet and cashﬂow can be found in the
notes to the ﬁnancial statemtents and at
wwwtaylorwoodrowcom  26 taylor woodrow report and accounts 2005
this section of the annual report is an
abridged version of the company’ s full
2005 csr report which can be viewed
on the company’ s website
objectives and t argets
at the beginning of 2005 we set a
number of high level business objectives
for csr in the areas of sustainability
safety healthpeople environment and
community further details are available
in our full csr report 
as a leading company the way we
manage social environmental and ethical
issues is coming under increasing
scrutiny grouped together these come
under the heading of csr a number of
csr issues are of material signiﬁcance to
t aylor woodrow’ s business and our
approach is to manage these issues in 
a proactive and balanced way 
sustainable development
government policy and regulation aimed
at encouraging more sustainable
development is a growing and important
feature of the uk market during 2005
we saw increased utilisation of
brownﬁeld land in our housing schemes
with 68 per cent of unit sales coming
from this source 2004 64 per cent 
in the uk we have been progressing 
sustainable community schemes in
t elford and swindon during the year 
we completed the green building in
manchester which incorporates
renewable energy technologies and
achieved an ‘excellent’ rating from the
ecohomes benchmarking scheme 
the number of affordable homes that we
built increased to 1048 2004 782
we believe that construction of new
high quality homes is an important 
factor in improving quality of life for our
customers through planning
agreements we also provide substantial
investment for the beneﬁt of local
communities for example by improving
roads construction of community
centres playgrounds and nature areas
and contributions to the arts
in north america sustainability issues
vary between states and are therefore
managed locally 
health and safety
our approach to the management of
health and safety is recognised as being
one of the best within the development
sector we strive to make our project
sites and our ofﬁces safe working
environments 
corporate social responsibility
a number of csr issues are 
of material signiﬁcance to 
t aylor woodrow’ s business and our
approach is to manage these issues 
in a proactive and balanced way 
in the uk we improve safety through
promoting a positive safety culture
incentivisation supporting the
development of skills and knowledge
providing a framework for the
management of safety and monitoring
performance we not only review
accidents but we have an extensive
programme of active monitoring that
measures how our working environments
are being managed we manage
occupational health by identifying key 
risk activities undertaking health
assessments and where appropriate
implement health surveillance
programmes 
in north america t aylor woodrow
operates a comprehensive and
independent health and safety audit
process sites are scored against criteria
which are made continually more
demanding each year  above building community relations 
at mortimer hill berkshire
this image lichﬁeld provide an excellent range of beneﬁts 
we facilitate training through an employee
review process for each team member
and we provide a range of development
options that help our people to improve
their personal performance we have
deﬁned a core training matrix on health
safety and environmental issues which
provides clarity on our minimum
competency requirements for different
roles t aylor woodrow is a longstanding
supporter of apprentice student and
graduate development programmes
ethics
the group’s whistleblowing policy 
is supported in the uk by an externally
facilitated procedure – ‘safecall’ –
through which team members may 
in conﬁdence raise concerns about
possible improprieties in ﬁnancial
reporting ethical conduct or other
matters safecall is widely publicised
within the company calls received are
investigated by the head of risk
management and audit and action 
taken where appropriate the audit
committee receives reports on all
28 taylor woodrow report and accounts 2005
the uk north america and spanish
operations all achieved the management
performance standards that had been
set at the beginning of the year in the
uk accident rates also were lower in
2005 compared with 2004 and reﬂect 
a longterm trend of reducing accident
incident rates in north america the
business exceeded its target audit score
of 90 per cent demonstrating a year on
year improvement in performance
there were no fatalities on our
development sites in 2005 20041 and
no prosecutions for health and safety
issues 20041
environmental issues
waste management continues to be a
particular focus in the uk waste volumes
per housing unit have been reduced by
36 per cent compared with 2004
maintaining a continuous improvement
trend the cost of waste disposal
continued to decline falling from £513
per unit in 2003 to £351 per unit in 2005
as changes in waste management
practice such as segregation of waste
plasterboard for recycling have been
implemented in 2005 we segregated
and returned for recycling 4677 tonnes
of plasterboard waste representing
approximately 80 per cent of
plasterboard waste generated there
were no prosecutions for environmental
offences in 2005 20041
customers
we remain committed to giving all of our
customers a great purchasing experience
a key management objective is to
achieve continual improvement in
customer satisfaction ratings which
forms part of the bonus reward of
directors and senior managers during
the year the following achievements
were recorded
uk housing 75 2004 70
construction 91 2004 88
north american housing 86 2004 86
spanish housing 73 2004 76
people issues
job satisfaction for our team members 
is a priority as a leading employer we
corporate social responsibility continued
waste management
continues to be a
particular focus in the
uk w aste volumes per
housing unit have been
reduced by 36
compared with 2004
maintaining a continuous
improvement trend taylor woodrow report and accounts 2005 29
occasions when such concerns are
raised
stakeholders  community
we have a range of stakeholders that
have an interest in our csr activities
these include shareholders customers
team members neighbours local
authorities government and non
government organisations consultation
is important for new developments 
we are involved in some leading edge
consultation programmes for example
the swindon southern development
area which has been cited as an
exemplar by government
we have continued to expand our
participation in the considerate
constructors scheme and were awarded
one gold one silver and one bronze
award in 2005
as part of the abc nationwide television
‘extreme makeover’ show t aylor
woodrow donated time resource and
money to create new homes for two
families in 2005 the okvath family in
phoenix arizona had a 5300 square 
foot home constructed for them in six
days with the help of over 1600 team
members and suppliers in los angeles
we assisted the local community’ s 
efforts to remodel the 1300 sq ft lewis
family home in addition in north
america the t aylor woodrow team
donated over £267 000 to other
worthwhile charities during the year 
in the uk we have been actively
supporting the children’ s charity
barnardo’ s through our ‘building futures’
partnership which helps fund skills and
training programmes for disadvantaged
young people 
we continue to match team members’
charitable fundraising efforts in the
community through the ‘support the
t eam’ programme
recognition
external benchmarking exercises are a
useful means by which we can review
our progress in csr our comprehensive
suite of policies coupled with processes
for implementation and monitoring are
reﬂected in positive outcomes following
external scrutiny t aylor woodrow is a
member of ftse4good and the dow
jones sustainability and stoxx indices 
in january 2005 we were listed in the
corporate knights global 100 most
sustainable corporations in the second
sustainability survey of uk housebuilders
carried out by insight investment and 
the worldwide fund for nature t aylor
woodrow was placed fourth of 12 with 
a score of 7 4 per cent 
our 2004 csr report was recognised as
the best in sector by ‘building’ magazine
at the annual sustainability awards 2005
extreme makeover in phoenix arizona 30 taylor woodrow report and accounts 2005
board of directors
1 norman askew
chairman
nonexecutive director
appointed a director and
chairman in july 2003 he is an
independent director he chairs
the nomination committee and
is a member of the
remuneration committee 
his current appointments
include the chairmanship of 
imi plc derby cityscape and of
the board of governors of the
university of manchester 
age 63
2 iain napier 
chief executive
appointed a director in january
2002 he chairs the executive
committee and is a member of
the nomination committee he 
is a nonexecutive director and
joint vice chairman of imperial
t obacco group plc formerly
chief executive of bass brewers
a director of bass plc and a
member of the executive
management committee of
interbrew sa
age 56
3 peter johnson
finance director
appointed a director in november
2002 he is also a member of 
the executive committee an
experienced ﬁnancial executive
with a strong background in
ﬁnancial services and property
investment conducting business
both in the uk and north america
he has held board positions with
henderson plc pearl assurance
and norwich union life his
career also includes experience
with hammerson property
investment and development
corporation plc he is a non
executive director of shanks
group plc
age 51
4 graeme mccallum
executive director
appointed a director in 
october 2003 he is a member 
of the executive committee 
and an operations director of 
t aylor woodrow developments
limited he was previously chief
executive of wilson connolly
holdings plc he is a non
executive director of the national
house building council and has
had over 27 years’ experience in
the housebuilding industry
age 59
5 mike davies
independent nonexecutive
director
senior independent director
appointed a director in 
october 2003 he is the senior
independent director and a
member of the audit
remuneration and nomination
committees he is nonexecutive
chairman of marshalls plc a non
executive director of pendragon
plc and chairman of vispring
limited he was formerly a
director of williams holdings plc
age 58
6 lady robin innes ker 
independent nonexecutive
director
appointed a director in july 2001 
she is chairman of the
remuneration committee and a
member of the nomination
committee she has considerable
experience as a ﬁnancial analyst
gained with leading uk city
ﬁnancial houses with a particular
interest in the media sector
previously a nonexecutive
director of bryant group plc she
is chairman of shed productions
plc her other directorships
include fibernet group plc
williams lea group limited and
wickham capital limited
age 45
7 andrew dougal
independent nonexecutive
director
appointed a director in november
2002 a chartered accountant
he is chairman of the audit
committee and a member of the
nomination committee he was
chief executive of hanson plc
until 2002 having previously
been group finance director he
was until recently a nonexecutive
director of bpb plc
age 54 
8vernon sankey
independent nonexecutive
director
appointed a director in january
2004 he is a member of the
audit remuneration and
nomination committees he is
also a nonexecutive director of
pearson plc and of zurich
financial services ag swiss
he is chairman of photome
international plc deputy
chairman of vividas group plc 
a supervisory board member of
cofra holding ag swiss and
chairman of the really effective
development company limited
age 56 taylor woodrow report and accounts 2005 31
1 2
3 4
5 6
7 8 report of the directors 
to the members for the year ended 31 december 2005
32 taylor woodrow report and accounts 2005
review of activities and future developments
a detailed review of the company’ s activities the development
of its businesses and an indication of likely future
developments are contained in the reports and reviews on
pages 3 to 25 
the subsidiary and associated undertakings principally affecting
the proﬁts or net assets of the group in the year are listed on
page 91 
results and dividends
the group’ s proﬁt on ordinary activities before taxation was 
£41 1 0 m 2004 £4039m the proﬁt after taxation and minority
interests was £2865m 2004 £2809m 
the directors recommend a ﬁnal dividend of 89 pence per
share 2004 81 pence which subject to approval at the annual
general meeting will be paid on 3 july 2006 to those
shareholders on the register on 2 june 2006 this together with
the interim dividend of 45 pence per share 2004 30 pence
paid on 1 november 2005 makes a total of 134 pence for the
year 2004 1 1 1 pence the company operates a dividend 
reinvestment plan details of which are set out in full in the
annual general meeting circular and on the company’ s
website
payment of dividend has been waived in part by the t rustee 
of the employee share ownership t rust over its holding of 
44 million shares and in full on the company’ s holding of 17 4
million t reasury shares these shares are held for delivery to
participants in the company’ s employee share plans
directors
the directors of the company at the date of this report all of
whom held ofﬁce throughout the year are shown on pages 30
and 31  denis mac daid retired from the board on 30 june
2005
retirement and reelection of directors
norman askew and mike davies will retire by rotation at the
annual general meeting both directors being eligible offer
themselves for reelection in accordance with the company’ s
articles of association
auditors
deloitte  t ouche llp have conﬁrmed their willingness to
continue in ofﬁce as auditors of the company and a resolution 
to reappoint them will be proposed at the annual general
meeting
deloitte  t ouche llp also provide nonaudit services to the
group within a policy framework which is described in
corporate governance on page 36
annual general meeting
the annual general meeting will be held at 2pm on wednesday
3 may 2006 at the renewal conference centre lode lane
solihull west midlands b91 2jr formal notice and details of
the meeting are set out in the annual general meeting circular 
registrar
the company’ s registrar is capita registrars their details
together with information on facilities available to shareholders
are set out in shareholder information on page 94 
t reasury shares
during the year 1 7 million t reasury shares held by the company
were sold to the t rustee of the t aylor woodrow 2004 employee
beneﬁt t rust and to participants in certain of the company’ s
employee share plans
substantial interests
details of the share capital are shown in note 23 to the
consolidated ﬁnancial statements the following persons have
notiﬁed the company pursuant to sections 198 to 208 of the
companies act 1985 of their interests in the ordinary share
capital
name number of percentage of 
shares held issued voting
millions share capital
beneficial interests
barclays plc 2315 403
britannic asset
management limited 1695 306
legal  general 
group plc 17 82 305
nonbeneficial interest
axa sa 10198 1779
at 27 february 2006 no change in these holdings had been
notiﬁed nor according to the register of members did any other
shareholder at that date have a disclosable holding of the issued
share capital
directors’ interests in the company’ s shares are shown in the
remuneration report on pages 44 to 45
corporate social responsibility csr
csr issues are of material signiﬁcance to t aylor woodrow’ s
business the company’ s approach to the management of them
is described on pages 26 to 29 the full corporate social
responsibility report 2005 is available on the company’ s
website wwwtaylorwoodrowcom by navigating through to
corporateabout uscorporate social responsibility
research and development
the company is committed to investing in research and
development projects where there are clearly deﬁned business
beneﬁts
charitable donations
during the year group companies donated £363000 2004
£296000 to various charities £96000 2004 £1 13000 in the
uk and europe and £267 000 2004 £183000 in north
america an outline of the group’ s programme of charitable
giving appears in corporate social responsibility and fuller
details can be found in the online csr 2005 report report of the directors continued
taylor woodrow report and accounts 2005  33
political donations
the company did not make any donations to political parties
during 2005 2004 £nil a business subscription of £167 000
2004 £158000 was paid to the house builders’ federation
which is active in supporting the interests of the housebuilding
sector some may consider that this payment may fall within
the meaning of ‘eu political expenditure’ as deﬁned by section
347a of the companies act 1985 at the 2006 annual general
meeting shareholders are being asked to approve a renewal for
up to eighteen months of the existing consent for such
donations
policy on payment of suppliers
the nature of the group’ s operations means that there is no
single group standard in respect of payment terms to suppliers
generally subsidiaries are responsible for establishing payment
terms with suppliers when entering into each transaction or
series of linked transactions in the absence of dispute valid
payment requests are met as expeditiously as possible within
such terms this policy continues to apply in 2006 t rade creditor
days for the group for the year ended 31 december 2005 were
31 days 2004 39 days based on the ratio of year end group
trade creditors excluding subcontract retentions and unagreed
claims of £129 million 2004 £132 million and land creditors
see note 20 to the consolidated ﬁnancial statements to
amounts invoiced during the year by trade creditors the
company had no signiﬁcant trade creditors at 31 december 2005
corporate governance
detailed statements of the company’ s corporate governance
principles the group’ s systems of internal control and the going
concern conﬁrmation are set out in corporate governance on
pages 34 to 37 
important events since the year end
except for any matters referred to elsewhere in this report and
accounts there have been no other important events affecting
the company or any of its subsidiary undertakings since the end
of the ﬁnancial year
this report of the directors was approved by the board 
of directors on 27 february 2006
richard i morbey
secretary
27 february 2006 corporate governance statement
34 taylor woodrow report and accounts 2005
the company is committed to the principles of corporate
governance contained in the july 2003 frc combined code on
corporate governance which is appended to the listing rules 
of the financial services authority ‘the code’ and for which 
the board is accountable to shareholders
statement of compliance with the code of best practice
throughout the year ended 31 december 2005 the company
has been in compliance with the code provisions set out in
section 1 of the code
statement about applying the principles of good
governance
in complying with the code the company has applied the main
and supporting principles of good governance of the code
further explanation of how these principles have been applied
is set out below and in connection with directors’ remuneration
in the directors’ remuneration report the chairman’ s
statement the chief executive’ s review and the operating
performance review seek to present a balanced and
understandable assessment of the company’ s position and
prospects
the board and its committees
the board consists of eight directors whose names
responsibilities and other details appear on pages 30 and 31  
three of the directors are executive and ﬁve are nonexecutive
the board discharges its responsibilities by providing strategic
and entrepreneurial leadership of the company within a
framework of prudent and effective controls which enables risk
to be assessed and managed it sets the company’ s strategic
aims ensures that the necessary ﬁnancial and human
resources are in place for the company to meet its objectives
and reviews management performance it also deﬁnes the
company’ s values and standards and ensures that its
obligations to its shareholders and other stakeholders are
understood and met
the following documents have been published on the company’ s
website and outline the way the board and its committees
operate which the board reviews at least annually
• a schedule of matters speciﬁcally reserved for the decision 
of the board
• a suite of boardmandated policies covering operational
matters compliance and stakeholder policies
• the t erms of reference of the nomination audit and
remuneration committees which outline their objectives
and responsibilities and which deﬁne a programme of
activities to support the discharge of those responsibilities
the board has also adopted a framework of delegated
commercial and operational authorities which deﬁne the scope
and powers of the chief executive and of operating
management all directors have access to the advice and
services of the company secretary and the board has
established a procedure whereby directors may take
independent professional advice at the company’ s expense
where they judge it necessary to discharge their responsibilities
as directors
board and committee balance independence and
effectiveness
it is the company’ s policy that appointments to the board are
made on merit and through a formal rigorous and transparent
process against objective criteria recommended by the
nomination committee the committee guides the whole
board in arranging orderly succession for appointments to the
board and to senior management no board appointments
were made during the year
there is a clearly established division of responsibilities
between the chairman and chief executive set out in writing
agreed by the board implemented by regular review meetings
between these ofﬁcers and validated by the board performance
evaluation process
the chairman is also chairman of imi plc a ftse 250 company
the board is satisﬁed that this and his other commitments 
do not detract from the extent or the quality of the time which
he is able to devote to the company
the appointment of nonexecutive directors is for a speciﬁed
term and reappointment is not automatic during the three
years up to and including the 2006 annual general meeting
every director will have sought reelection at least once 
the board has reviewed and reafﬁrmed that it considers all 
of the nonexecutive directors including the chairman to be
independent in character and judgement whenever any
director considers that he or she is interested in any contract 
or arrangement to which the company is or may be a party due
notice is given in accordance with the articles of association
the board has determined that any such interests as may have
arisen during the year are not material to the director or to the
companies concerned
the directors possess an appropriate balance of skills and
experience for the requirements of the business the board and
its committees operate within a framework of scheduled core
meetings and additional ad hoc meetings are held as required 
in addition to formal meetings the directors also participate 
in an annual board planning awayday at which strategic and
ﬁnancial plans are reviewed and developed all directors visit
the company’ s operations on a regular basis meeting
employees at all levels in order to maintain and refresh
directors’ understanding of the business  corporate governance statement continued
taylor woodrow report and accounts 2005  35
the members of the board and its committees together with
their attendances at the core meetings during 2005 are shown
below the company secretary is also secretary to the board’ s
committees
information and professional development
the company has procedures whereby directors including 
nonexecutive directors receive formal induction training and
continuing familiarisation about the company’ s business
operations and systems the principles underlying the discharge
of their duties as directors and wider issues relating to the
housing and construction sector t raining needs are identiﬁed
and implemented
performance evaluation of the board its committees 
and other functions
between november 2005 and january 2006 the directors
carried out the third annual evaluation of the performance and
effectiveness of the board and its committees of individual
directors and the internal and external auditors the evaluations
were performed using the following framework
the board its members and its committees
the evaluation of effectiveness of the board and its committees
was focused mainly on the principles of the combined code
and the napf corporate governance policy but also contained
a number of broader judgements covering commercial and
operational issues the evaluation was carried out by the company
secretary through structured interviews with each director
additionally the nonexecutive directors led by the senior
independent director met without the chairman present to
appraise the chairman’ s performance the chairman also held
meetings with the nonexecutive directors without the
executives present 
the directors reviewed the ﬁndings of these assessments in
february 2006 and concurred with the conclusions that the board
is a cohesive and effective group and that its committees operate
effectively the board veriﬁed that each director demonstrates
effectiveness and commitment and that the quality of the boards
processes and its relationship with management is of a high
order as a result of the evaluation the board has reordered a
number of priorities and will intensify its focus on succession
planning the board will continue to use the evidence gained
through the evaluation process when setting objectives and
procedures for 2006 and will continually review its approach to
the evaluation process 
the internal risk management and audit rma function
an evaluation of the rma function was carried out through
consultation with the members of the audit committee the
external auditors and the head of function in addition
management provided feedback the evaluation which was
reviewed by the audit committee in november 2005 conﬁrmed a
high degree of conﬁdence in the effectiveness of the function and
its ability to achieve its objectives and to meet the requirements
of the audit committee and the business operations
the external auditors
an evaluation of the external auditors was carried out through
consultation with board and audit committee members and
with senior management the evaluation which was reviewed
by the audit committee in november 2005 found the
performance of the external auditors to be satisfactory
board nomination remuneration audit 
committee committee committee
no of meetings held in the year 9 2 5 7
norman askew 9 2 5 7
chairman chairman
mike davies 8 2 5 6
senior independent director
lady robin innes ker 9 2 5 7
chairman
andrew dougal 9 2 4 7
chairman
vernon sankey 8 2 5 5
iain napier 9 2 4 7
chief executive
peter johnson 9 7 
finance director
graeme mccallum 9   3
operations director
denis mac daid 5   4
executive director
retired 30 june 2005
 by invitation corporate governance statement continued
36 taylor woodrow report and accounts 2005
board committees
remuneration committee and remuneration
the board’ s policy and approach to the setting of remuneration
for directors and senior executives and the activities of the
remuneration committee are described in the directors’
remuneration report on pages 38 to 46
the nomination committee
the members of the nomination committee and their
attendance at meetings during 2005 is shown on page 35 
the board has enjoyed a period of stability in recent years and
the work of the nomination committee during the year has
therefore been focused primarily on planning board and senior
management team succession and reviewing the balance of
the board’ s composition
t erms and conditions of appointment of all directors are
available for inspection as described in the 2006 annual general
meeting circular to shareholders
audit committee and auditors
the members of the audit committee are shown on page 35 
all members are independent nonexecutive directors the
board has determined that andrew dougal the committee
chairman who is a member of the institute of chartered
accountants of scotland has recent and relevant ﬁnancial
experience 
the chairman of the company the chief executive ﬁnance
director head of rma representatives of the external auditors
and senior executives of major group companies attend
meetings of the committee by invitation
the committee reviews the internal control framework the
internal audit process the ﬁnancial reporting practices and the
external audit process it ensures that the board regularly
assesses business risks and their management and mitigation
in monitoring the ﬁnancial reporting practices the committee
reviews accounting policies areas of judgement the going
concern assumption and compliance with accounting standards
and the requirements of the code the committee also reviews
prior to publication the interim and annual ﬁnancial statements
and other major statements affecting the group concerning
pricesensitive information
appointment of the auditors for nonaudit services
the audit committee has approved a policy on employing the
auditors to provide services other than audit services which 
is to require a competitive tender except in narrowlydeﬁned
circumstances where the company considers that for
conﬁdentiality past knowledge or other reasons there is an
advantage in using a single tender procurement procedure 
the committee has determined that the following assignments
should not be undertaken by the auditors
• the provision of internal audit services and
• advice on large it systems
the board is satisﬁed that this policy is conducive to the
maintenance of auditor independence and objectivity
executive committee
the executive committee consists of all the executive directors
of the company senior executives of major group companies
and senior function heads the chief executive chairs its meetings
the committee meets monthly and directs controls and reviews
the ﬁnancial and operational performance of all group companies
and divisions and key issues relating to human resources
communications and legal matters it deﬁnes and recommends
to the board forwardlooking business plans and budgets
within the delegated authorities framework the fortnightly
investment subcommittee meetings review all major
investment proposals affecting the group’ s business
other group committees
the group has a number of other committees which co
ordinate activities in areas such as risk management corporate
social responsibility improvement including health safety and
environmental matters information technology developments
and other key activities 
internal control
the board has applied principle c2 of the code by establishing
a continuous process for identifying evaluating and managing
the signiﬁcant risks the group faces the board regularly
reviews the process which has been in place from the start of
the year to the date of approval of this report and which is in
accordance with internal control guidance for directors on the
code published in july 2003 the board is responsible for the
group’ s system of internal control and for reviewing its
effectiveness such a system is designed to manage rather than
eliminate the risk of failure to achieve business objectives and
can only provide reasonable and not absolute assurance against
material misstatement or loss
in compliance with provision c21 of the code the board
regularly reviews the effectiveness of the group’ s system 
of internal control the board’ s monitoring covers all controls
including ﬁnancial operational and compliance controls and risk
management this process is based principally on reviewing
reports from management to consider whether signiﬁcant risks
are identiﬁed evaluated managed and controlled and whether
any signiﬁcant weaknesses are promptly remedied and indicate
a need for more extensive monitoring the board has also
performed a speciﬁc assessment for the purpose of this annual
report this assessment considers all signiﬁcant aspects of
internal control arising during the period covered by the report
including the work of rma the audit committee assists the
board in discharging its review responsibilities key elements 
of the system of internal control are detailed below
a grouplevel review is carried out by the members of the
executive committee to identify the major risks facing the
group and to develop and implement appropriate initiatives 
to manage those risks this process applies across the group 
key operational and ﬁnancial risks are identiﬁed and assessed 
at the operating process level while strategic risks are
identiﬁed as a part of the business planning process strategic
risk reviews are carried out in each of the operating divisions
to identify business risk evaluate existing controls and
develop strategies to manage the risks that remain the
results of which form part of the board’s assessment
updates to these risk assessments are reported to the
executive committee corporate governance statement continued
taylor woodrow report and accounts 2005  37
an executive risk committee chaired by the group finance
director reports to the executive committee this committee
which has formally agreed terms of reference oversees the risk
and control framework of the group and monitors the response
to key risk issues identiﬁed through the assessment process
the committee meets monthly and its ﬁndings are reviewed by
the audit committee as part of an overall process whereby
assurance is obtained about the integrity of the risk
management and internal control process
management
the chief executive has responsibility for preparing and
reviewing a threeyear corporate plan and the annual budgets
these are subject to formal approval by the board budgets are
reexamined in comparison with business forecasts throughout
the year to ensure they are sufﬁciently robust to reﬂect the
possible impact of changing economic circumstances the chief
executive and the board conduct regular and systematic
reviews of actual results and future projections with comparison
against budget and prior year together with various treasury
reports disputes that may give rise to signiﬁcant litigation or
contractual claims are monitored monthly the chief executive
conducts quarterly business performance reviews at which an
assessment is made of the progress against objectives
changes to operational risk and adequacy of control
the group has clearlydeﬁned policies processes and
procedures governing all areas of the business which are
accessible using a webenabled intranet tool which also
facilitates continuous improvement an owner is identiﬁed for
each process responsible for risk assessment and process
effectiveness operational compliance responsibilities are also
assigned to individual managers who have access to
compliance testing and auditing software tools for each
process key operational controls have been identiﬁed and
these are subject to quarterly selfassessment 
deﬁned authority limits are in place in particular any
investment in land property and other signiﬁcant assets
including acquisitions and disposals require detailed appraisals
and are subject to deﬁned authorisation levels and post
investment review procedures investment decisions including
private finance initiative pfi projects and tenders for
contracts are subject to approval by the board the chief
executive or subsidiary operating management depending on
the value and nature of the investment or contract
there is a clearly identiﬁable organisational structure and a
framework of delegated authority approved by the board within
which individual responsibilities of senior executives of group
companies are identiﬁed and can be monitored
the rma function oversees a quarterly programme of controls
self assessments across the uk development and construction
businesses a similar programme is to be implemented in the
north america housing business these activities are reinforced
through process compliance and other audits conducted by rma
the rma function reviews the effectiveness and efﬁciency of
the systems of internal control in place to safeguard the assets
to quantify price transfer avoid or mitigate risks and to monitor
the activities of the group in accomplishing established
objectives regular reports from these reviews are provided to
the board and reported to the chief executive audit committee
and management who consider them on a regular basis the
head of the rma function has direct access to the chairman of
the audit committee
a database of audit recommendations and improvement
initiatives is maintained a monthly follow up routine ensures
that such improvements are implemented in a timely manner 
throughout the year the board continually considers the
effectiveness of the group’ s internal control systems on 
23 february 2006 it completed the annual assessment for the
year to 31 december 2005 by reviewing evidence from the
audit committee operating divisions rma and by taking
account of events since the year end
the annual employee performance appraisal process is
objectivebased with individual objectives cascaded down from
the appropriate business objectives development reviews
identify training needs to support achievement of objectives
whistleblowing
the group’ s whistleblowing policy is supported in the uk by an
externallyfacilitated procedure – ‘safecall’ – through which
employees of the company may in conﬁdence raise concerns
about possible improprieties in ﬁnancial reporting or other
matters safecall is widely publicised within the company 
calls received are investigated by the head of rma the audit
committee receives reports on all occasions when such
concerns are raised 
relations with shareholders
the board actively seeks and encourages engagement with
major institutional shareholders and other stakeholders and has
put in place arrangements designed to facilitate contact about
remuneration and other issues this provides the opportunity for
meetings with the chairman the senior independent director as
well as the chief executive and ﬁnance director and other
executives in order to establish a mutual understanding of
objectives there is a structured programme of investor relations
based on formal announcements and publications covering the
full year and interim results there are associated brieﬁngs for
stockbroking analysts and investors the presentation material
for which is published on the company’ s website
all directors receive formal reports and brieﬁngs during the year
about the company’ s investor relations programme and receive
detailed feedback through surveys direct contact and other
means through which they are able to develop an understanding
of the views of major shareholders about the company
the board encourages shareholders to participate in the annual
general meeting 
information about the company and the group including full
year and interim results and other major announcements is
published on the company’ s website wwwtaylorwoodrowcom 
going concern
after making enquiries the directors have formed a judgement 
at the time of approving the ﬁnancial statements that there is a
reasonable expectation that the group and the company have
adequate resources to continue in operational existence for the
foreseeable future for this reason the directors continue to adopt
the going concern basis in preparing the ﬁnancial statements  directors’ remuneration report
38 taylor woodrow report and accounts 2005
introduction
this report has been prepared in accordance with schedule 7a
to the companies act 1985 ‘the act’ and meets the relevant
requirements of the listing rules of the financial services
authority in it we describe how the board has applied the
principles of good governance relating to directors’
remuneration as required by the act a resolution to approve
the report will be proposed at the annual general meeting of
the company on 3 may 2006 
the act requires the auditors to report to the company’ s
shareholders on certain parts of the report and to state
whether in their opinion those parts of the report have been
properly prepared in accordance with the act the report has
therefore been divided into separate sections for unaudited and
audited information
unaudited information
remuneration committee
the remuneration committee is constituted in accordance with
the recommendations of the combined code its principal
terms of reference include
• t o determine the remuneration of the chief executive
executive directors and senior executives of the group
• t o agree performance thresholds and targets
• t o determine amounts payable under the bonus plan
• t o agree awards under the company’ s discretionary share
based reward plans
the committee establishes and maintains formal and
transparent procedures for developing policy on executive
remuneration and for ﬁxing the remuneration packages of
individual directors and monitors and reports on them it makes
recommendations to the board 
the members of the committee during the ﬁnancial year were
lady robin innes ker committee chairman norman askew
mike davies vernon sankey all of whom are independent non
executive directors their details including attendances at
meetings held during 2005 are listed in the corporate
governance statement on page 35
none of the committee members has any personal ﬁnancial
interest other than as shareholders conﬂicts of interests arising
from crossdirectorships or daytoday involvement in running
the business no director plays a part in any discussion about
his or her own remuneration
advice
in determining the directors’ remuneration for the year the
committee consulted iain napier chief executive and alec
luhaste group director of human resources the committee
appointed t owers perrin to provide advice on directors’
remuneration packages t owers perrin did not provide any other
services to the company or the group kpmg llp advised the
company on executive pay and practices including sharebased
reward and on the valuation of the company’ s share plans for
the purposes of ifrs 2
remuneration policy for the executive directors
and other senior executives
the company’ s executive remuneration packages are designed
to be attractive so as to motivate and retain high quality
management and to reward them for achieving a high level of
corporate performance in line with the best interests of
shareholders the performance measurement of the executive
directors and key members of senior management and the
determination of their annual remuneration package is
undertaken by the committee
the main elements of the remuneration packages for executive
directors and senior management are described below
packages are designed to include a signiﬁcant element of
performancerelated incentive remuneration set against
challenging business performance objectives the committee
has procedures in place to monitor the size of potential pay
awards in 2005 the proportion of ﬁxed pay of the executive
directors was 583 per cent 2004 61 3 per cent and variable
pay was 41 7 per cent 2004 387 per cent
the committee reviews annually the basis and component
parts of executives’ reward to ensure that they remain
appropriate and competitive
executive directors are entitled to accept appointments outside
the company provided that the board’ s prior permission is
obtained and a determination made in respect of any fees
resulting from all such appointments iain napier the chief
executive is a nonexecutive director of imperial t obacco group
plc itg from which he received fees of £77 500 2004
£40000 £20000 of these fees less statutory deduction is
applied in the purchase of itg shares peter johnson is a non
executive director of shanks group plc appointed 16 may
2005 in respect of which during 2005 he received £18885
2004 nil they are entitled to retain these fees
basic salary
the committee reviews the basic salaries of executive directors
and members of the executive committee annually and
whenever an individual changes position or responsibility 
in deciding appropriate levels the committee makes its
judgement drawing on objective research from t owers perrin
which gives uptodate information on ftse 150 ftse 100 to
150 companies comparator groups of companies and an
industryspeciﬁc comparator group comprising 25 companies
representing the housing development and construction
industry the comparator group includes alfred mcalpine
amec balfour beatty barratt developments bellway homes
berkeley group holdings bovis homes group british land
canary wharf group carillion costain crest nicholson
george wimpey hammerson kier group land securities
liberty international mccarthy  stone mowlem persimmon
westbury homes redrow group slough estates and wilson
bowden
the committee considers this research and its own judgement
when determining appropriate levels of remuneration taking
into account the scale and scope of individuals’ responsibilities
and corporate performance basic salaries were reviewed in
november 2005 with any consequent changes being made
from 1 january 2006 reviews take account of the level of
remuneration elsewhere in the business
executive directors’ contracts of service which include details
of remuneration will be available for inspection at the annual
general meeting and generally as described in the 2006 annual
general meeting circular directors’ remuneration report continued
taylor woodrow report and accounts 2005  39
other beneﬁts including beneﬁtsinkind
the executive directors receive certain beneﬁtsinkind
principally a car or an allowance in lieu life assurance and
private medical insurance the company also operates an
income protection plan beneﬁtsinkind are not pensionable
annual bonus payments and the deferred bonus plan
the committee establishes the objectives that must be met for
each ﬁnancial year if a performancerelated bonus is to be paid
in setting appropriate bonus parameters the committee refers
to the objective research by t owers perrin on the comparator
group of companies as noted above
account is also taken of the relative success of the different
parts of the business for which the executive directors are
responsible and the extent to which the strategic objectives set
by the board are being met the current maximum bonus award
that can be made to an executive director in any one year is 100
per cent of salary 2005’ s bonus awards were dependent upon
the achievement of a number of ‘stretch’ businessspeciﬁc and
personal targets the targets include factors which the board
considers to be commercially conﬁdential if disclosed in detail
but which are summarised as follows 
• achievement of speciﬁed levels of proﬁt before tax for 2005 
a signiﬁcant element of the bonus is dependent on this target
• achievement of improvements in health and safety
performance based on speciﬁed levels of safety
management performance and site inspection results
• achievement of speciﬁed customer satisfaction ratings
• other important and relevant business issues
most but not all of the targets were achieved
for 2005 the maximum performancerelated cash bonus that
can be paid is 100 per cent of basic salary 2004 100 per cent
for the chief executive and 100 per cent 2004 85 per cent in
the case of the other executive directors bonus awards for
executive directors in respect of the year ended 31 december
2005 ranged between 7 43 per cent and 982 per cent of basic
2005 salary 2004 65 per cent and 95 per cent reﬂecting
performance against the targets for 2006 bonus targets have
been set based broadly on the 2005 framework and designed
to reﬂect the company’ s performance relative to the peer group
no bonus or deferred bonus is pensionable
bonus plan matching award
the committee believes share ownership by executive
directors and senior executives strengthens the link between
the interests of executives and the company’ s shareholders
executive directors and selected senior executives have the
opportunity of participating in the deferred bonus plan by
investing some or all of their pretax bonus in the purchase 
of shares in the company if these shares remain undrawn 
for a period of three years the company will match them on a
one for one basis provided in the case of awards made from
2005 onwards that group earnings per share eps shall have
grown by at least three per cent compound in real terms during
the prior three ﬁnancial years eps is calculated using the
adjusted basic earnings per share as shown in note 9 to the
consolidated ﬁnancial statements
executive sharebased reward
the performance share plan
in order to incentivise executive directors and other senior
executives the company has established a performance share
plan psp the remuneration committee is responsible for
supervising the plan and for granting or recommending of
awards under the psp 
conditional awards of shares are made to participants entitling
them to receive shares of the company at no direct cost v esting
occurs on the third anniversary of the award provided that the
performance criterion is fulﬁled there is a limit for awards under
the current plan rules of 200 per cent of basic salary per annum
the plan contains two elements basic awards which under
current policy are restricted to a current maximum of 75 per
cent of basic salary and additional enhanced awards which
under current policy are restricted to a current maximum of 50
per cent of basic salary enhanced awards introduced in 2005
are made on a discretionary basis to members of the executive
committee including the executive directors the vesting
criteria for these awards are as follows
in 2005 conditional awards were made to 296 participants
including each of the executive directors in respect of a total 
of 2644102 shares of these 2356526 were basic awards
2004 3244327 shares and 287 576 were enhanced awards
2004 nil
the performance criteria which apply to all participants in the
psp  were chosen because eps is considered to be an
appropriate indicator of management’ s success in advancing
the performance of the business eps is calculated as described
in note 9 to the consolidated ﬁnancial statements tsr was
selected in order to incentivise improvement in performance
relative to the psp peer group whilst continuing to focus on
earnings growth the peer group for this purpose consists of
barratt developments bellway berkeley group holdings 
basic awards
enhanced awards
vesting of enhanced awards is dependent on the 
basic award earnings criteria first being satisfied
there is a sliding scale between the respective targets 
there will be no retesting of the performance condition
the company’s eps
outperforms the uk index of
retail prices rpi by 3 per
cent per annum compound
over three years
50 per cent of award
vests
100 per cent of award
vests
nil vesting 40 per cent of
the enhanced
awards vest
100 per cent of
the enhanced
awards vest
the company’s eps
outperforms the rpi by 6
per cent per annum
compound over three years
median tsr
performance
relative to the
sector peer group
better than median
tsr performance
relative to the
sector peer group
upper quartile tsr
performance
relative to the
sector peer group directors’ remuneration report continued
40 taylor woodrow report and accounts 2005
bovis homes group crest nicholson galliford t ry mj gleeson
group kier group persimmon westbury homes redrow
group wilson bowden and george wimpey
executive share option plan 
the t aylor woodrow executive share option plan was
suspended on 9 october 2003 no awards have been made
since that date and the committee has no plans to make any
such awards
awards made under the plan were subject to increasingly
demanding performance criteria which in respect of options
granted from 2002 onwards require
– eps to exceed the rpi by 12 per cent for awards which
cause aggregate option values measured at the time 
of grant to exceed three times basic salary and
– eps to exceed the rpi by 15 per cent for awards which
cause aggregate option values measured at the time of
grant to exceed four times basic salary 
eps is calculated as described on page 39
for awards granted in october 2003 the company reduced the
number of performance retests to two which are applied at
the fourth and ﬁfth anniversaries of the date of grant for these
retests the measurement period is four and ﬁve years
respectively if the performance test is not satisﬁed at the ﬁnal
retest the option lapses
the exercise prices of all options granted under the above plan
were equal to the market value of the company’ s shares at the
time when they were granted
the rules of the psp  the executive share options plan and the
deferred bonus plan referred to above and the company’ s all
employee share plans referred to below provide for the early
vesting or exercise of share entitlements in the event of a
participant’ s death or cessation of employment because of a
change of control disability redundancy or retirement
employment equality age regulations 2006
the current eligibility criteria under the deferred bonus plan and
performance share plan do not allow awards to be made to
participants within one year of retirement the introduction of
the employment equality age regulations 2006
‘regulations’ in october 2006 on age discrimination will
require this provision to be removed t o comply with the
requirements of the regulations the board proposes to
implement changes to the rules of these plans by way of a
resolution of the directors such change will take effect when
the regulations come into force
allemployee share plans
united kingdom
the company operates a sharesave plan under which all uk
team members with at least three months’ service can save up
to £250 per month and receive three or ﬁve year options to
acquire the company’ s shares priced at a discount of up to 20
per cent of market value
a uk share purchase plan has also been introduced under
which all uk team members with at least three months’ service
are permitted to invest up to £1500 per annum of their pretax
earned income in the purchase of partnership shares of the
company such shares if held for a period of three years attract
an award of free matching shares currently participants receive
one matching share for each partnership share purchased
the executive directors are eligible to participate in these all
employee plans
overseas plans
during 2005 the company implemented an allemployee stock
purchase plan in the united states and plans to introduce a
share incentive plan in canada in early 2006
the united states plan is based broadly on the uk sharesave
plan and entitles participants to contribute funds of up to a us
amount equivalent to £3000 per year of their posttax income
to purchase shares of the company at a discount of 15 per cent
to the relevant market price
the canadian plan will be based broadly on the uk share
purchase plan and will entitle participants to contribute funds of
up to a can amount equivalent to £1500 per year of their post
tax income to purchase shares of the company which if held for
a period of three years would be matched by the company
impact of international financial reporting standards on
performance criteria of incentive plans
in accordance with the scheme rules and as indicated in
previous remuneration reports earnings per share ﬁgures for
the purpose of performance measurement of share incentive
schemes are restated in accordance with international financial
reporting standards 
pension arrangements
details of the group’ s principal uk pension schemes are given
in note 21 the consolidation ﬁnancial statements
of these the t aylor woodrow group pension and life
assurance fund into which the bryant group pension scheme
was merged in june 2002 and the wilson connolly holdings
pension scheme the wainhomes limited pension scheme the
prestoplan pension scheme and the wilson connolly deﬁned
contribution pension scheme were merged in august 2004 is
a funded scheme with deﬁned beneﬁt and deﬁned contribution
elements the t aylor woodrow personal choice plan is a
deﬁned contribution pension scheme all members of these
schemes are entitled to payment of a lump sum in the event of
death in service dependents of members of the deﬁned
beneﬁt elements are eligible for dependents’ pensions only
basic salary is pensionable
t aylor woodrow group pension and life assurance fund 
none of the executive directors is a member of the t aylor
woodrow section of the fund the fund was closed to new
entrants from 31 march 2002 with effect from 1 september
2004 a restriction was applied so as to limit the amount of any
increase in pensionable salary of members of this scheme to
the lesser of the actual increase in basic salary or the rpi
subject to a maximum of 5 per cent per annum  directors’ remuneration report continued
taylor woodrow report and accounts 2005  41
at 31 december 2005 graeme mccallum was a member of
the wilson connolly holdings section of the fund he has a
target beneﬁt of 7 8 per cent of his ﬁnal pensionable pay which
is restricted to the earnings cap currently £105600 at his
normal retirement age of 60 t o reﬂect the impact of the
earnings cap on his pension he also receives an additional
salary allowancesupplement of 125 per cent of his basic
salary details of graeme mccallum’ s accrued pension
entitlements under the fund and the opening and closing
transfer values of his accrued pension rights are shown in the
tables of directors’ pension entitlements on page 46
the company contributes a sum to an individual deﬁned
contribution top up arrangement for each member calculated 
on the full basic salary the company’ s contributions in respect
of graeme mccallum totalled £2603 2004 £850 for the year
t aylor woodrow personal choice pension plan 
with effect from 1 april 2002 the company introduced the 
t aylor woodrow personal choice plan a deﬁned contribution
pension scheme which all new eligible uk team members are
invited to join
at 31 december 2005 iain napier and peter johnson were
members of this plan the company contributes to the plan 38
per cent and 345 per cent respectively of their basic salary of
which an amount up to the maximum permitted by the inland
revenue will be applied to the plan and the balance paid as an
additional allowance this being reduced by the amount of
employer’ s national insurance contributions thereon iain
napier and peter johnson each contribute 5 per cent of basic
salary subject to the earnings cap
pensions of former directors
denis mac daid retired from the board on 30 june 2005 prior
to his retirement terms were agreed with him in relation to his
pension the company agreed that mr mac daid’ s pension
should be calculated with an assumed retirement date of 5 april
2006 the difference between beneﬁts calculated at that date
and fund beneﬁts at his actual date of retirement is being paid
by the company to mr mac daid by monthly installments the
annual equivalent of this payment is £18836 this additional
payment will increase on 1 may annually in line with increases
awarded by the t rustees on mr mac daid’ s main fund beneﬁts
with the ﬁrst such increase being due on 1 may 2006 the
additional payment also attracts dependents’ beneﬁts in line
with his fund pension
no other arrangements were made during the year for the
provision of pensions for former directors
uk pensions legislation 
the remuneration committee had reviewed the companys
pensions policy in the light of changes in uk pensions
legislation the committee has agreed that where the
companys pension arrangements are no longer attractive to an
employee as a result of the introduction of the new pension
taxation regime on 6 april 2006 and where the employee
advises the company that he no longer wishes to participate in
the companys ongoing pension arrangements the company
will pay an additional allowance to the employee equal to the
company pension contribution that would otherwise have been
paid to the pension arrangement reduced by the amount of
employers national insurance contribution thereon the
employee will continue to participate in the companys lump
sum life assurance arrangements no other compensation will
be offered 
performance graph
the following graph shows the company’ s performance
measured by total shareholder return for the ﬁve year period 
to 31 december 2005 compared with the performance of the
ftse 250 share index also measured by total shareholder
return the ftse 250 share index has been selected for this
comparison because the company is a constituent of that index
and in order to provide consistency of comparison with the
2004 directors’ remuneration report 
growth in value of a hypothetical £100 holding over ﬁve years
this graph has been prepared from information obtained through datastream 
it shows the theoretical growth in the value of a shareholding in the company
and in ftse 250 companies over the specified period assuming that dividends
are reinvested to purchase additional units of equity at the closing price
applicable on the exdividend date historical data is based on the constituent
companies at each given date
taylor woodrow plc
ftse 250 directors’ remuneration report continued
42 taylor woodrow report and accounts 2005
directors’ contracts
it is the company’ s policy that executive directors should have
contracts of employment providing for a maximum of one
year’ s notice however it may be necessary occasionally to
offer longer notice periods to new directors where this arises
it is the company’ s policy to reduce the notice period to one
year within one year of appointment of the director
the details of the directors’ contracts are summarised in the
table below
nonexecutive directors
none of the nonexecutive directors has a service contract 
as their terms of engagement are regulated by letters of
appointment as follows
their fees are determined by the board based on research of
fees paid to nonexecutive directors of similar companies within
the ftse 150 index and the sector peer group subject to the
aggregate annual limit of £600000 imposed by the articles of
association
the fees of the chairman were increased on 1 july 2005 from
£150000 to £170000 per annum the basic fees of each non
executive director were increased on 1 january 2005 from
£37 500 to £39000 the senior independent director and the
audit committee chairman each receive an additional fee of
£10000 and the remuneration committee chairman receives
an additional fee of £5000 in respect of these services non
executive directors cannot participate in any of the company’ s
share option plans and are not eligible to join the company’ s
pension scheme their fees are generally reviewed at twoyearly
intervals
name date of contract unexpired term notice periods notice periods normal retirement age
months company months director months age
iain napier 10 january 2002 12 12 12 60 56
peter johnson 1 november 2002 12 12 12 60 51
graeme mccallum 2 october 2003 12 12 12 60 59
it is the company’s policy that liquidated damages should not apply on the termination of an executive director’s contract in accordance with this approach payment
for early termination of contract without cause by the company is in the case of each of the executive directors to be determined in accordance with normal
principles of english law which requires mitigation of liability on a case by case basis any such payment would typically be determined by reference to the main
elements of a director’s remuneration namely salary contractual bonus benefitsinkind and pension entitlements the executive directors contracts contain no
express provisions relating to a change of control of the company in such event the directors’ rights and entitlements would be ascertained as stated above
name of director date of initial letter term of notice period by notice period by
of appointment appointment company months director months
norman askew


Summary:
 taylor woodrow report and accounts 2005 5
chief executive’ s review
our presence in different markets
provides us with alternative growth
channels these enable us to allocate
capital where we see the best
opportunities for returns and optimises
our ability to mitigate any short term
weakness in any particular market or 
sub market
housing
our housing operations worldwide
reported a slight rise in proﬁt from
operations to £4560m 2004 4488m
on turnover of £28649m 2004
£28766m during 2005 we sold a total
of 12516 homes compared to 13092 
in 2004
as expected the uk market continued 
to be relatively subdued in 2005 after a
number of years of unusually strong
performance came to an end in the
second half of 2004 we sold 8178
homes in the uk in 2005 2004 9053
we saw a fall in visitor numbers
resulting from a lack of conﬁdence due 
to widespread forecasts of a house price
collapse that did not materialise this fall
was partially offset by improvements in
our conversion rate of visitors into
customers 
t aylor woodrow has completed the
transformation from a group of diverse
semiautonomous companies into 
one focused housing business 
in order to achieve continuing growth 
in shareholder value we conduct our
business through a portfolio of 
selected housing markets – across 
the uk and within north america 
spain and gibraltar
proﬁt from operations was £2334m
2004 £301 1m the reduction in our uk
housing operating margin from 156 per
cent in 2004 to 142 per cent in 2005
reﬂects the difﬁcult conditions that we
faced and the impact of reduced
volumes on overhead absorption not
withstanding year on year reduction in
overhead costs 
the second half of 2005 saw the
potential for a return to a more favourable
environment and our order book of
£41 1m at the end of 2005 2004 £407m
sees us wellplaced for 2006 
during 2005 we have grown our uk
landbank of owned and controlled plots
to 34985 2004 32459 of which 41 per
cent is sourced from strategic land our
strategic landbank has also grown and
we now have 80000 potential plots
most of which are held under option
options enable us to purchase land at an
agreed discount to open market value
when planning is received with no
obligation to buy if satisfactory planning
is not forthcoming 
during 2005 19 per cent of our home
completions were from strategic land
holdings we continue to build the
iain napier chief executive
 throughout the chief executives and operating performance reviews proﬁt from operations and operating margins 
are before exceptional pension credits in 2004 and exclude joint ventures’ interest and tax see note 3 page 57 joint
venture revenue is used in the margin calculation see note 3 page 57 all 2004 comparatives have been represented
under international ﬁnancial reporting standards  chief executive’ s review continued
6 taylor woodrow report and accounts 2005
majority of our homes on brownﬁeld
land with 68 per cent of completions in
2005 coming from this source
in the challenging conditions experienced
in the uk housing market this year we
have made good progress on strategy by
improving our forward sales position
managing our cost base and providing for
future growth during the year we have 
also delivered the £25m of synergies
identiﬁed at the time of the wilson
connolly transaction we saw improved
reservation rates towards the end of
2005 albeit against low comparatives
which has enabled us to enter 2006 
with an increased order book we
continue to operate regional ofﬁces 
that are serviced by support functions
based at our central ofﬁce in solihull 
and have an organisational structure in 
place to support growth as market
conditions allow
our operations in north america had an
excellent year beneﬁting from increased
investment and careful target marketing
we saw another year of strong organic
growth with proﬁt from operations
growing by 56 per cent to £1996m
return on capital employed rose again 
to 492 per cent 2004 392 per cent 
our business in phoenix arizona
continues to perform strongly with over
1000 home completions in 2005 our
strategy of acquiring large land parcels
where we retain the premier plots for our
homebuilding business continues to
generate exceptional results 
in california we continue to beneﬁt from
our reputation as a luxury homebuilder
whilst at the same time we have now
successfully moved our product offerings
into the midmarket where we offer
quality homes with high brand values 
at premium prices
our florida business continues to
experience strong growth as we have
increased the scale of our homebuilding
operations all of our lowrise operations
are well placed for continued growth
having made promising land acquisitions
in 2005 and previous years during the
year we also completed several luxury
highrise waterfront condominiums
which enhanced our proﬁts and returns
the california arizona and florida
markets all experienced strong price
growth in 2005 albeit partially offset by
increased construction costs sourcing
land in these markets remains
competitive however we continue to
ﬁnd attractive opportunities to replenish
and grow our landbanks
in recent years the markets in t exas have
not seen the exuberance of other states
where we operate however during the
fourth quarter of 2005 we experienced
increasing demand for our homes
our business in ontario canada
continues to provide excellent returns
the greater t oronto area remains a supply
constrained market ensuring demand for
well located high quality developments
2005 has been another year of growth
for our operations in spain and gibraltar
proﬁt from operations has grown by 
14 per cent to £230m we continue 
to focus on the british second home
market in our three core regions of the
balearic islands alicante and malaga
where we offer a mix of apartments 
and townhouses our los arqueros
development near marbella has recently
been declared best spain development
as one of ﬁve awards achieved at the
prestigious bentley international 
property awards in gibraltar we focus 
on the premium end of the market 
we have made good
progress on strategy 
by improving our 
forward sales position
managing our cost 
base and providing for
future growth belcara southern california 6 taylor woodrow report and accounts 2005
we will continue to invest all across our portfolio in the best
interests of our shareholders
above calders green cheshire
8 taylor woodrow report and accounts 2005 taylor woodrow report and accounts 2005 9
chief executive’ s review continued
as the government seeks
to address the chronic
shortage of developable
land in the uk and 
pursue its sustainable
development agenda
t aylor woodrow plays an
active part in consultation
to ensure that practicalities
of implementation are
considered in government
planning
selling offplan well in advance of the start
of construction
construction and property
t aylor woodrow construction has also
had a successful year in terms of
industry recognition as well as being
voted contract journals building
contractor of the y ear for 2005 our work
on the new stand at the oval received
praise and signiﬁcant media exposure 
as the ashes cricket series drew to a 
nailbiting close 
as previously announced we completed
the sale of the k2 development at st
katharine’ s dock in london on 1 july
2005 this substantially completes our
exit from property operations we have
however retained the expertise required
to deliver future mixed use schemes in
our housing business
prospects for 2006
the long term imbalance between
demand and supply for new housing
added to continuing low uk interest
rates continue to underpin the market
however margin pressures remain with
consented land in short supply and the
need for increased use of incentives in 
a tighter market larger builders are 
likely to fare better in this environment
we are addressing these issues through
increasing the pullthrough of our
strategic landbank working with our
supplier base to drive out cost and
increasing the use of our rationalised
range of standard housetypes 
a large amount of potential legislation is
pending to accompany the introduction
of new technical standards as the
government seeks to address the
chronic shortage of developable land in
the uk and pursue its sustainable
development agenda t aylor woodrow
plays an active part in consultation to
ensure that practicalities of
implementation are considered in
government planning whilst we broadly
welcome the thrust of the government’ s
intent we remain concerned about the
country’ s ability to deliver consented 
land without a wholesale overhaul of 
the current planning regime we are
encouraged by the government’ s
apparent determination to bring about
reform in this area
we have experienced substantial levels
of house price inﬂation in parts of north
america over the last two years which
has been reﬂected in our strong
performance although pricing strength
and demand moderated during the
fourth quarter of 2005 we remain
conﬁdent that we can successfully
deliver superior results in a more normal
market due to our record forward order
book and strong landbank we anticipate
a successful 2006
the market for second homes in spain
continues to be attractive with demand
remaining robust from british buyers as
in the uk and north america we have an
indepth knowledge of the markets that
we operate in under an experienced and
capable team of local managers 
therefore we will continue to invest all
across our portfolio in the best interests
of our shareholders 
iain napier
chief executive
27 february 2006 macintosh village manchester