t aylor woodrow plc
report and accounts 2006 our aim is to be the homebuilder of choice
our primary business is the development 
of sustainable communities of highquality
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
effective capital management
contents
01 group financial highlights
02 chairman’s statement
05 chief executive’s review
28 board of directors
30 report of the directors 
33 corporate governance statement
37 directors’ remuneration report
46 directors’ responsibilities 
statement
47 independent auditors’ report
48 accounting policies
51 consolidated income statement
52 consolidated statement of 
recognised income and expense
53 consolidated balance sheet
54 consolidated cash flow 
statement
55 notes to the consolidated 
financial statements
79 independent auditors’ report
80 accounting policies
81 company balance sheet
82 notes to the company financial 
statements
87 particulars of principal subsidiary 
undertakings
88 five y ear review
90 shareholder facilities
92 principal taylor woodrow offices 2005 
2004
4110
4039
2006 4056
2005 
2004
134
111
2006 1475
2005 
2004
3384
3038
2006 3647
• group revenues £368bn 2005 £356bn
• housing profit from operations £469m 2005 £456m
• profit before tax £406m 2005 £411m
• basic earnings per share 505 pence 2005 506 pence
• full year dividend 1475 pence 2005 134 pence
• net gearing 186 per cent 2005 237 per cent
• equity shareholders’ funds per share 3647 pence
2005 3384 pence
profit before tax 
£m
group financial highlights
full year dividend 
pence
represents interim dividends declared and paid and final dividend for the year as declared by the board
equity shareholders’ funds per share
pence
taylor woodrow report and accounts 2006 01
 profit from operations is before joint ventures’ interest and tax see note 3 page 56 october 2003 following the acquisition
of wilson connolly the company has
benefited from his experience in the
homebuilding industry and we wish
him a long and happy retirement
our people
the company’s success is dependent 
upon the expertise and enthusiasm 
of its team members i would like to
take this opportunity to thank all of 
my colleagues throughout the group 
for their enterprise and hard work over 
the year
thanks are also due to our customers
trading partners shareholders and
other stakeholders in our business for
the continuing support that they give 
to t aylor woodrow
shareholder information
full details of the facilities available to
shareholders can be found on pages 90
and 91 of this report and accounts and
at wwwtaylorwoodrowcom
norman askew
chairman
19 february 2007
we have delivered a robust performance in 2006
with strong growth in north america and the uk
performing in line with expectations
in 2006 we
• increased our home completions in the
uk and strengthened our order book
• grew home completions and profits
in north america as a result of our
strategy of maximising forward sales
during the buoyant market conditions
of 2005
• achieved another good profit increase
from our businesses in spain gibraltar
• increased equity shareholders’ 
funds per share by 7 8 per cent 
to 3647 pence 
• reduced our gearing to 186 per cent
growing dividends through the cycle
in line with our progressive dividend
policy the board recommends an
increase in the final dividend for 2006
to 975 pence per share from 89
pence in 2005 this together with the
interim dividend of 50 pence paid on 
1 november 2006 makes a total
dividend for the year of 1475 pence
an increase of 10 per cent 
subject to confirmation at the annual
general meeting agm on 2 may 2007 
the dividend will be paid on 2 july 2007
to shareholders on the register at close
of business on 25 may 2007 
this dividend will be paid as a
conventional cash dividend but
chairman’s statement
02 taylor woodrow report and accounts 2006
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 the 2007
agm circular to shareholders
board changes
as previously announced iain napier
retired from the board on 31 december
2006 following his arrival at taylor
woodrow in early 2002 iain oversaw
our transition to a focused housebuilder
with the acquisition of wilson connolly
and the disposal of our noncore
investment and commercial property
portfolios on behalf of the board 
i would like to extend our sincere
thanks for his leadership during a
period of enormous change and wish
iain every success in his new role 
as chairman of imperial tobacco
ian smith joined the board as chief
executive on 2 january 2007  bringing
with him extensive international
experience along with a strong
background in strategy in the logistics
and healthcare sectors i look forward
to working with ian to deliver further
success for taylor woodrow
graeme mccallum retired from the
board in january 2007  he joined us in
norman askew chairman manfield grange two miles from the centre of
northampton offers 79 new homes ranging from one 
to five bedrooms built in the grounds of the former
manfield grange children’s hospital 
a listed building this magnificent restoration provides
modern homes and luxury apartments with original 
and historical features complemented by the latest in
highspecification features and fittings
taylor woodrow report and accounts 2006 03
above manfield grange northampton england featuring a variety of four and five bedroom family homes
river heights is situated in the picturesque area of steiner
ranch texas and is located within walking distance of the
town centre and is close to local schools
04 taylor woodrow report and accounts 2006
above river heights steiner ranch austin texas usa taylor woodrow operates a portfolio of 
housing businesses in selected markets in the
uk north america spain and gibraltar which
account for 98 per cent of our operating profits
in addition to building new homes we also 
have expertise in mixeduse development 
and construction which help to support our
development of sustainable new communities
chief executive’s review 
it also enables us to mitigate the
impact of any shortterm weakness 
in any particular market or submarket
consequently as the markets in arizona
california and florida started to weaken
in 2005 we were able to reduce our
planned land spend in north america
for 2006 and allocate additional funding
to our uk housing business
each business is targeted to
• deliver highquality homes in which 
our customers want to live
• use capital efficiently
• identify and manage risk effectively
• deploy effective and disciplined 
processes and systems which 
encourage continuous improvement 
and support ‘right first time’ results
• work closely with supply chain 
partners to improve the way in 
which business is conducted 
• recruit retain and develop high
quality staff
strategic priorities
the group’s key strategic priorities 
are to
• improve operating margins and 
returns on capital from our uk 
housing business
• deliver competitive operating profit
margins and return on capital in
north america whilst positioning 
the business for growth as market
conditions allow
• consolidate stable performance from 
our business in spain and gibraltar 
whilst building a platform for future 
growth 
• grow the profits of our construction
business while managing risk
effectively
structure and strategy
our aim is to be the homebuilder 
of choice our primary business is 
the development of sustainable
communities of highquality 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 effective capital management 
our performance in delivering total
shareholder return can be seen on
page 40
we are a national homebuilder in the
uk in the united states we operate 
in arizona california florida and texas
we also build in ontario canada 
our operations in spain are focused on
the popular holiday destinations of the
costa blanca costa del sol and mallorca
operating a portfolio of housing
businesses allows us to allocate our
capital where we see the best
opportunities for riskadjusted returns 
taylor woodrow report and accounts 2006 05
ian smith chief executive 130
135
2006
2005
2006
2005
230
246
2006
2005
2235
2025
2006
2005
68662
75160
2006
2005
186
237
06 taylor woodrow report and accounts 2006
chief executive’s review continued
group housing
2006 2005
revenue including 
joint ventures £m 31284 28649
profit from 
operations £m 4692 4560
operating margin  150 159
ending capital 
employed £m 22412 21382
roace  214 229
home completions 13165 12516
home average selling 
price £’000 207 204
lot completions 6413 4495
order book £m 1070 1318
landbank plots 68662 75160
monitoring our performance
operating margin is
calculated using profit from
operations excluding joint
ventures’ interest and tax and
revenue including that of joint
ventures please see note 3
of the consolidated financial
statements on page 56 for
further information this
measure represents the
profitability of our operations
return on average capital
employed roace is
calculated using profit from
operations excluding joint
ventures’ interest and tax 
and capital employed 
pregoodwill this measure
indicates how efficiently the
business is using its capital 
to generate profits
gearing is calculated as net
debt divided by shareholders’
funds and represents the 
level of borrowing within the
business
home completions include
sales from within joint ventures
which are counted as a
proportion of a unit in line 
with the percentage of the
joint venture owned by 
taylor woodrow
the order book represents
future business consisting 
of houses or lots reserved 
or amounts yet to be invoiced
on construction contracts
landbank indicates the
‘stock’ available for new
housing for which planning
consent has been received
some of the landbank is
owned outright whilst other
plots are controlled through
options
customer satisfaction is
measured by each of our
businesses through the use 
of customer surveys the way
in which these surveys are
conducted and the questions
that they contain vary by
business
results
consolidated revenue for the year 
to 31 december 2006 was up 3 per
cent at £35721m 2005 £34769m
profit before tax was £4056m 2005
£411 0m
at 31 december 2006 total equity
before minority interests was £21035m
2005 £19284m net debt was
£391 3m 2005 £4569m net gearing
was 186 per cent 2005 237 per cent
basic earnings per share was 505
pence 2005 506 pence equity
shareholders’ funds per share increased
by 7 8 per cent to 3647 pence
group housing has had a good year
with our north american business
reporting another year of record profits
revenue increased to £31284m
2005 £28649m reflecting an
increase in both home and lot
completions profits from operations
were higher than last year at £4692m
as the increase in completions
outweighed the reduction in overall
group housing operating margin
some 53 per cent of 2006 group
housing profit from operations came
from overseas operations 2005 49 per
cent this reflects our decision to
increase investment into those markets
over the last few years
the group housing landbank owned
and controlled was reduced to 68662 
plots 2005 75160 as a result of our
more cautious approach to land buying
in north america the group housing
order book stood at £1070m 
2005 £1318m with a decrease 
in north america offsetting increases 
in the uk and spain
throughout the chief executives review profit from operations and operating margins 
exclude joint ventures interest and tax see note 3 page 56 the group’s share of joint 
venture revenue is used in the margin calculation see note 3 page 56
operating margin 
return on average capital employed 
gearing 
order book £m
landbank plots
home completions
12516 13165
2006 2005 dan y graig gwent wales 08 taylor woodrow report and accounts 2006
grand union village is a £130 million redevelopment of a 54 acre
brownfield site in west london into a mixed use sustainable urban
village set alongside the grand union canal 
when complete over 800 homes including apartments and family
homes will be provided as well as a new canal basin known as
engineer’s wharf a community development trust set up and part
funded by taylor woodrow is now actively involving residents in the
creation and management of community facilities provided at the site
the development was recognised with a prince’s foundation award in
february 2007 for creating a community design that has helped to
improve the quality of life for the people who live there
above grand union village northolt west london england taylor woodrow report and accounts 2006 09
2006 saw a return to more stable
market conditions in the uk there
was however considerable regional
variation in the strength of markets
london and the southeast were
particularly strong while the midlands
and north remained subdued overall
visitor levels per site per week were 
up 12 per cent on 2005 and we also
saw an increase in the reservation rate
to 083 homes per site per week 2005
081 cancellation rates have also
improved with the 2006 level of 17 per
cent being broadly in line with the long
run industry average 2005 20 per cent
we have increased our average
number of active sites in 2006 to 207
2005 204 home completions for 
the year were up 1 per cent to 8294
2005 8178 and we entered 2007
with an order book up by 30 per cent
to £534m 2005 £411m
average selling prices were higher at
£193k 2005 £185k an increase in the
underlying price per square foot offset
the slight reduction in average square
footage of our homes from 960 sq ft 
to 952 sq ft the latter was a result of
an increase in the proportion of social
housing completions to 15 per cent
2005 13 per cent and the proportion
of apartment completions to 45 per
cent 2005 40 per cent 
uk housing revenue increased by 11 8
per cent driven by the increases in
home completions and average selling
prices operating margins were lower
at 120 per cent 2005 142 per cent
results in 2005 benefited from a
higher level of land profits primarily
due to the disposal of the quartermile
project in edinburgh revenue from
land sales in 2006 was £1946m 2005
£1344m and yielded lower profits and
margins than in 2005 due to an increased
proportion of recentlyacquired land in
the mix this is a result of our strategy
of acquiring large sites and selling on
those parcels of land that we do not
require for our homebuilding business
return on average capital employed for
the year was 140 per cent 2005 152
per cent
our operating margin has declined in
2006 and consequently growth in margin
is the longterm key focus of our uk
management we are preparing a
number of new measures to extract
greater value from our sites these will
complement our ongoing activity to
better manage cost
uk housing
2006 2005
revenue including 
joint ventures £m 18420 16474
profit from 
operations £m 2215 2334
operating margin  120 142
ending capital 
employed £m 15744 15851
roace  140 152
home completions 8294 8178
home average selling 
price £’000s 193 185
lot completions 3695 1748
active sites average 207 204
order book £m 534 411
landbank plots 34827 34985
strategic landbank 
potential plots 79000 80000
customer satisfaction 
7875
chief executive’s review continued
8178 8294
2006 2005
1 4
uk home completions
43
uk home average 
selling price 
£185k £193k
2006 2005 chief executive’s review continued
• increasing the proportion of our 
homes that are built using our core 
range which provides customers 
with the choice that they need 
whilst also enabling us to achieve 
lower build costs
• further developing our ‘right 
first time’ approach to reduce
maintenance costs and increase
customer satisfaction 
• increasing build process efficiency
we will be providing an update on our
progress with these initiatives when
we announce our interim results on 
31 july 2007 
our supply chain team works to deliver
value throughout the build process
their skills were recognised by the
chartered institute of purchasing and
supply when taylor woodrow’s supplier
management solution won the award
for ‘best use of technology’ in 2006
we continue to make good progress
with our strategic landbank which
represents land that does not currently
have planning consent having
identified a site with strategic potential
we will typically agree a purchase
option arrangement with the landowner
and then work together to promote 
the land through the planning process
such options generally provide us with
the ability to purchase the land at a
discount to market value when suitable
planning consents are obtained 
sites brought through from the
strategic landbank typically generate
higher margins than those bought 
in the open market with a planning
consent in place during 2006 22 per
cent of our home completions were
strategically sourced 2005 19 per
cent and we aim to increase this to 
25 per cent of our completions by
2008 at the end of 2006 we had
79000 potential plots within our
strategic landbank 2005 80000 and
39 per cent of the land in our landbank
originally came from strategic sources
2005 41 per cent
10 taylor woodrow report and accounts 2006
the quality of the landbank is critical 
to delivering growth in future years 
as well as the strength of the strategic
land outlined above we have
maintained our investment in the 
uk landbank during 2006 as a result
our year end landbank stood at 34827
plots owned or controlled broadly in
line with the position a year ago this
represents 42 years of supply
we are committed to developing
communities where people want to 
live rather than just building a collection
of houses for example the green
building at macintosh village in
manchester won the civic trust
sustainability award for its urban design
and use of materials 
customer satisfaction is a key priority
and our efforts in this area are reflected
in the improvements to our customer
satisfaction score in 2006 the score
for our uk housing business rose to 78
per cent 2005 75 per cent
chief executive’s review continued
uk housing revenue including joint ventures
£m
uk housing profit from operations
£m
2006
16474
18420
2005
2006
2334 2005
2215 taylor woodrow report and accounts 2006 11
at victoria wharf in cardiff for the second year running we have
received the nhbc uk supreme award for our management of
this waterfront development
this is a 479 home residential waterfront community situated 
on a prestigious peninsula in cardiff bay with its wealth of
shopping leisure and sporting amenities the development is
being built by taylor woodrow construction limited for our uk
housing business 
above victoria wharf cardiff wales 12 taylor woodrow report and accounts 2006
eastern
the eastern division has four operating
regions – eastern london the south
east and anglia 
2006 2005
home completions 2595 2596
average selling price £202k £193k
total plots owned 
and controlled with 
consent 11571 11947
eastern
based in welwyn garden city the region
covers essex hertfordshire and
bedfordshire 
anglia
the anglia region covers the counties of
norfolk suffolk and cambridgeshire from
its office in newmarket
london
based in watford the london regional
team sells new homes across central 
and greater london
holwood in keston sits within
approximately 74 acres the development
offers new homes positioned within the
historic surroundings of a stately english
mansion built primarily on the footprints
of former buildings with additional
conversion of period buildings this
exclusive project of 94 homes has been
carefully created to complement the 
wellestablished holwood estate
south east
our south east region covers sussex
surrey and kent from its office in crawley
chief executive’s review continued
uk housing organisation
our uk business provides around 8000 new homes
each year through approximately 200 sites currently
in development across england scotland and wales
the business operates currently from three divisions
northern eastern and western which incorporate 
our network of 12 regional offices this structure may
be subject to change going forward
northern
the northern division has four operating
regions  scotland the north west
yorkshire and north east and the east
midlands 
2006 2005
home completions 3150 3132
average selling price £194k £179k
total plots owned 
and controlled with 
consent 14150 13862
scotland
based in livingstone the region covers
mainly the central belt of the country
duloch grange dunfermline in scotland
is a development of 380 homes including
apartments and houses in this thriving
and growing town in west fife buyers
will have the choice of 18 different house
types many with garden rooms
north west
the regional office is located at
warrington and covers cheshire and
greater manchester up to lancashire 
and west in to denbyshire 
stamford brook altrincham in cheshire 
is part of the national trust’s dunham
massey estate the scheme is a proving
ground for a variety of sustainable
development features and techniques
our joint venture will provide 650 new
homes of high environmental
performance standards over a period 
of six years
north east and y orkshire
the region covers northumberland
county durham and yorkshire from its
office in leeds 
east midlands
with its base in leicester the east
midlands region provides new homes
across northamptonshire leicestershire
derbyshire and lincolnshire
western
the western division has four operating
regions – west midlands south west
south and south wales 
2006 2005
home completions 2549 2450
average selling price £182k £184k
total plots owned 
and controlled with 
consent 9106 9176
west midlands
the west midlands region is based in
solihull and spans the west midlands
shropshire north oxfordshire
herefordshire warwickshire and
worcestershire 
telford millennium community telford in
shropshire is a major regeneration project
of a former colliery plans for the site
include up to 800 highly sustainable high
quality homes at least 25 per cent of
which will be affordable and associated
community education and commercial
facilities the development is one of the
seven millennium communities
commissioned by english partnerships 
south wales
our latest operating region opened for
business in january 2007  with its office
based in cardiff it covers areas from
newport and cardiff to swansea the
region aims to sell around 400 homes 
in 2007 and intends to increase this
number in 2008 by securing further 
land opportunities and expanding into
camarthenshire
south west
based in chipping sodbury near bristol
the south west region covers
gloucestershire wiltshire somerset 
and north devon 
south
based in newbury the south region
covers berkshire hampshire dorset 
and straddles south wiltshire taylor woodrow report and accounts 2006 13
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
northern
eastern
western
anglia
east midlands
eastern
south east
south
london
west midlands
north west
y orkshire
north east
south west
south wales
duloch grange dunfermline 
fife scotland
stamford brook altrincham
cheshire england
telford millennium community
shropshire england
holwood keston surrey england the senna hills community is situated within a scenic area of
austin yet only a short driving distance from the city centre
senna hills features a community centre with playground pool
tennis basketball and an active homeowners association
14 taylor woodrow report and accounts 2006
above senna hill austin texas usa at the start of the year were converted
into completions return on average
capital employed has reduced from 
the wholly exceptional levels achieved
last year but still represents a very
strong result
we entered 2006 with a record order
book of us1421m as a result of our
focus on preselling our order book 
of us854m at the end of 2006
reflected the weaker market conditions
experienced during the year 
we have been more cautious in the
land market in 2006 as land prices
adjusted downwards to reflect the
market conditions much of our land is
acquired under option initially and only
bought outright once planning consents
are in place we carefully review the
terms of each option as it becomes
exercisable and where terms are no
longer attractive due to changes in
market conditions we approach the
land vendor to renegotiate in many
instances we have managed to
improve terms but there have also
been cases where we have allowed
options to lapse we have undertaken 
a full review of our yearend land
positions which in conjunction with
deposits on options not taken up has
resulted in a pretax land writeoff of
us40m
while we have continued to buy land
through our existing portfolio of
options we have been very selective 
in replacing options during 2006 as 
a result our landbank at the year end
stood at 31353 plots 2005 37 910
plots this represents 44 years of
supply and allows us to continue to be
selective in our land purchasing in 2007 
while shortterm market prospects 
are difficult commentators are united
in the belief that a recovery will occur
there is very significant potential for
taylor woodrow in north america in
the mediumterm our home
completions in north america are just
over a half of our completions in the uk
for 2006 but the florida market alone 
is larger than the entire uk market
our business in arizona which is
focused on the phoenix market has
been tremendously successful since it
was acquired in 2002 having originally
been centred on entrylevel homes the
business has been diversifying into the
midmarket and during 2006 launched 
a new product range targeting growing
families and executive buyers we
completed 1245 homes in arizona in
2006 2005 1009 at an average selling
price of us287k 2005 us209k the
business is also a highly successful
land developer buying larger tracts of
land identifying the plots that best suit
our product and selling on the remaining
plots to other builders during the year
we completed the sale of 1171 lots
2005 1076 whilst the market in
arizona cooled during 2006 the long
term fundamentals of population growth
job growth and relative affordability
remain in place
chief executive’s review continued
north america housing
2006 2005
revenue including 
joint ventures £m 11943 11418
profit from 
operations £m 2213 1996
operating margin  185 175
ending capital 
employed £m 5772 4956
roace  413 492
home completions 4492 3932
home average selling 
price £’000s 233 248
lot completions 2640 2735
active sites average 108 85
order book usm 854 1421
landbank plots 31353 37910
customer satisfaction
8786
our north american business has
delivered another excellent year of
profit growth with profit from
operations increasing by 11 per 
cent to £221 3m 2005 £1996m 
this reflects the success of our
strategy of maximising forward sales 
in the buoyant market conditions of
2005 in order to mitigate the anticipated
impact of market weakness in arizona
california and florida during 2006
home completions increased by 14 per
cent to 4492 2005 3932 with lot
completions slighter lower at 2640
2005 2735 despite the challenging
market conditions our operating
margin increased to 185 per cent 
as the reservations in our order book 
taylor woodrow report and accounts 2006 15
142
north america
home completions
north america
home average selling price 
60
3932 4492
2006 2005
£248k
2005
£233k
2006 16 taylor woodrow report and accounts 2006
north american housing organisation
we operate in five of the fastest growing markets in
north america which are underpinned by economic
growth household formation immigration and some
retirement wealth
arizona
key markets phoenix
home completions 1245 2005 1009
lot completions 1171 2005 1076
landbank plots 6250 2005 9080
california
key markets bay area palm springs
riverside county san bernandino
county san diego
home completions 540 2005 721
lot completions 156 2005 378
landbank plots 3379 2005 3768
florida
key markets fort myers naples palm
beach sarasota st petersburg tampa
home completions 835 2005 752
lot completions 499 2005 219
landbank plots 9597 2005 11459
t exas
key markets austin houston
home completions 280 2005 190
lot completions 306 2005 353
landbank plots 3017 2005 3375
ontario
key markets ottawa toronto
home completions 1592 2005 1260
lot completions 508 2005 709
landbank plots 9110 2005 10228
irvine
phoenix
t oronto
ottawa
san 
ramon
sarasota
austin houston
naples
t ampa
palm 
beach 
gardens
arizona
florida
ontario
t exas
california
founders club sarasota florida
usa
streetsville glen brampton
ontario canada
cliffhaven corona hills southern
california usa 
the summit collection at shamrock
estates phoenix arizona usa in california we operate in two key
markets in the north our business 
is focused on the lower end of the 
midmarket in the san francisco bay
area in southern california we build 
in selected submarkets from riverside
and san bernardino counties
southwards to san diego and eastwards
towards palm springs californian
markets in general weakened
significantly during 2006 primarily due
to interest rate rises and affordability
issues however our focus on the 
midmarket and providing highquality
homes allows us to offer an attractive
proposition to our customers during
the year we completed the sale of 
540 homes 2005 721 homes at an
average selling price of us812k 
2005 us835k we also achieved 156 
lot completions 2005 378
we operate from three divisions in
florida our central florida division
covers the areas around st petersburg
tampa bradenton and sarasota 
in southeast florida we operate in the
palm beach area whilst in southwest
florida we are focused on the markets
between fort myers and naples 
we offer a wide range from middle
market to luxury homes and
condominiums targeted to moveup
families retirees and second home
purchasers the florida market has also
experienced more difficult conditions
following a number of years of very
strong house price appreciation 
home completions in 2006 were 835
2005 752 at an average selling price
of us653k 2005 us727k our land
development business in florida is
primarily centred around our largescale
developments where we sell lots to
other homebuilders in 2006 we
completed the sale of 499 lots 2005
219 lots
our operations in texas are active in
both austin and houston these
markets did not experience the price
growth of other us regions in recent
years and are proving more stable
while other markets weaken they offer 
good levels of affordability particularly
in comparison to the western united
states we have a strong reputation 
in texas as a highquality community
developer which enables us to target
the ‘moveup’ market we offer our
customers a range of innovative home
designs that deliver ‘affordable luxury’
home completions increased to 280
2005 190 with average sales prices 
up 5 per cent to us447k 2005
us424k we also have a strong 
land development business in texas
centred on our community at steiner
ranch in austin we completed on 306
lots in 2006 2005 353
in ontario canada the group trades
under the monarch brand which
benefits from a longstanding reputation
for quality and value operating in the
greater toronto area and in ottawa in
eastern ontario monarch builds 
lowrise midmarket family homes 
chief executive’s review continued
and highrise condominiums as well 
as affordable urban townhomes the
ontario market has not seen significant
house price inflation over recent years
and retains a good level of affordability
in addition the market was assisted by
the reduction in the level of canadian
goods and services tax during the
year completions in 2006 were 1592
homes 2005 1260 the average sales
price was can322k 2005 can326k
we also sell lots in canada and
completed 508 during 2006 2005 709
the continuing success of our business
in north america is a result of our
focus on highquality developments
professional finishes and exceptional
customer service in october 2006
taylor woodrow received the honour 
of being the first homebuilder ever to
be inducted into the builder magazine
‘hall of fame for design excellence’ 
this prestigious award recognises
outstanding contributions to residential
design
our north america divisions are
consistently recognised by customers
and industry peers winning some of
the most soughtafter awards in the
business in particular our arizona
division received five awards at ‘the
nationals’ awards 2006 recognising
taylor woodrow’s contribution to
innovation in home design marketing
and sales
taylor woodrow report and accounts 2006 17
2006
11418
11943
2005
2006
1996 2005
2213
north america
profit from operations
£m
north america
revenue including joint ventures
£m new properties on the island which has
become a soughtafter destination
we sold a total of 379 homes in 2006
2005 406 at an average selling price
of £205k 2005 £169k this increase 
in average selling price reflects a
change in the mix of completions with
a higher proportion of completions in
2006 coming from our developments in
mallorca we also took the opportunity
during the year to rebalance the land
portfolio by selling some of our holding
in the malaga area
operating margins and returns on
capital have remained strong albeit
below the exceptional levels achieved
in recent years
the order book increased 23 per cent
to £100m 2005 £81m and our year
end landbank stood at 2482 plots up 
10 per cent 2005 2265
the disappointing reduction in our
customer satisfaction score
predominantly results from difficulties
in obtaining habitation certificates as
high levels of development activity
have put pressure on local town halls
construction
our construction business has
developed an excellent reputation within
its chosen markets focusing on repeat
work for blue chip clients facilities
management infrastructure and
government projects this excellence
has once again been recognised with 
a number of industry awards in 2006
including being named building
magazine’s ‘major contractor of the
year’ and winner of the overall
‘constructing excellence’ award profit
from operations was £81m 2005
£88m and our increased order book 
of £1165m at the year end 2005
£707m provides us with a solid
platform for 2007 
during the year we have undertaken
projects ranging from the redevelopment
of the ticket hall at kings cross
underground station in london to the
design and build of the national
assembly for wales in cardiff we have
recently commenced work on the 
st helens and knowsley hospitals pfi
scheme and are also preferred bidder
on the sheffield ‘building schools for the
future’ programme we achieved a
customer satisfaction score of 87 per
cent in 2006 2005 91 per cent
principal risks and uncertainties
as with any business taylor woodrow
faces a number of risks and
uncertainties in the course of its 
daytoday operations by effectively
identifying and managing these risks
we are able to improve our returns
thereby adding value for shareholders
economic and market environment
customer demand is dependent upon
underlying economic conditions such
as interest rates unemployment levels
and general consumer confidence
which are outside the group’s control
spain and gibraltar housing
2006 2005
revenue including 
joint ventures £m 921 757
profit from 
operations £m 264 230
operating margin  287 304
roace  359 457
ending capital 
employed £m 896 575
home completions 379 406
home average selling 
price £’000s 205 169
lot completions 78 12
active sites average 28 22
order book £m 100 81
landbank plots 2482 2265
customer satisfaction
6273
chief executive’s review continued
18 taylor woodrow report and accounts 2006
spain and gibraltar
revenue including joint ventures
£m
spain and gibraltar
profit from operations
£m
2006
757
921
2005
2006
230 2005
264
our business in spain trades under the
taylor woodrow brand and is primarily
focused on developing sites in popular
holiday destinations where we identify
appropriate opportunities we also 
build homes designed to meet the
requirements of the local population
in gibraltar taylor woodrow serves 
the luxury market through apartment
developments selling offplan well 
in advance of the start of construction
after a strong performance in 2005 we
saw our markets in the costa blanca
and costa del sol slowing during 
2006 however the market in mallorca
continues to be good as a result of the
limited supply to meet the demand for los balcones los arqueros golf and
country club marbella spain  the impact of these factors on the
group’s sales is mitigated to a degree
by operating in different geographic
markets which may exhibit different
economic conditions at any particular
point in time
we use the detailed knowledge of 
our local teams to select the locations
for our communities and the
appropriate home designs to meet
customer demand we minimise the
level of speculative build that we
undertake by opening a sales office 
and showhomes at an early stage 
of development our selective use of
partexchange has proved successful 
in making the process of buying a
home easier for our customers
planning system
the number of homes that we are able
to build in the course of a financial year
is dependent on the granting of suitable
planning permissions due to the time
taken to obtain planning permissions
on land we hold a landbank to provide
greater certainty of the number of plots
available to be developed in the
following 12 months we also look to
use option contracts to control land
with ownership not being taken until
planning is more certain
delays to the expected timescale for
receipt of planning on a site may result
in a reduction in the number of homes
that we have available for sale
planners may also impose conditions
within planning consents which may
lead to additional costs of developing 
a site our land specialists mitigate
these risks by working closely with 
the relevant planning authorities and
through the structure of land purchase
agreements
in the uk planning permissions can be
very specific including the density types
of housing and availability of car parking
spaces if the views of the planners do
not coincide with our customers’
aspirations there will be an impact on
demand for our product we work closely
with the government both directly
and as a member of industry groups 
to highlight such potential issues
land purchasing
land is the major ‘raw material’ for the
group and as such overpaying for land
would have a detrimental impact on our
profitability to mitigate this risk we
operate an investment appraisal process
for all significant land purchases with
approval required from our investment
committee prior to such purchases
being completed the investment
committee reviews the key information
on which bids are based and ensures
that projects meet our internal hurdle
rates for operating margin and return
on average capital employed
availability of subcontractors
the vast majority of the work carried
out on site is performed by sub
contractors if they are not able to
chief executive’s review continued
20 taylor woodrow report and accounts 2006 recruit sufficient numbers of skilled
employees our developments may
suffer from delays or quality issues
we vet all suppliers thoroughly prior 
to working with them to ensure 
that they meet our requirements for
environmental impact health and
safety quality and financial stability 
we also play our part in addressing 
the skills shortage in the building
industry through apprenticeship
schemes and membership of the
construction industry training board
availability of materials
the key materials used within our
operations such as bricks blocks
concrete steel and timber are in heavy
demand across the world changing
patterns of construction demand due to
factors ranging from changes in public
sector construction programmes to
natural disasters can have an influence
on the availability of such materials
our vetting process ensures that
materials are responsibly sourced from
financially stable suppliers and meet
our requirements for health safety and
quality we work closely with our key
supply chain partners providing
forecasts of our demand to assist with
ensuring the availability of supply
site safety
building sites are inherently dangerous
places we recognise our responsibility
to provide our workforce with a safe
place of work and have a team of 
inhouse health and safety specialists
who provide training and site reviews
as detailed later in this review we 
have a strong commitment to health and
safety but we are continually looking
for ways to make further improvements
construction process
construction both of homes and other
projects can be subject to delays 
and cost overruns arising for a wide
variety of reasons these include
left south hook lng terminal
milford haven pembrokeshire wales
following the successful construction
three months ahead of schedule for
liquefied natural gas lng
containment tanks taylor woodrow
construction twc secured a further
contract at the south hook lng
terminal near milford haven
pembrokeshire 
right 
explorer t oronto canada
construction of the highrise
development explorer located
against the backdrop of the toronto
skyline the two 14storey towers are
connected by a five storey podium
this photograph captures the east
view showing construction in
progress on one of the towers
taylor woodrow report and accounts 2006 21
adverse ground conditions changes 
to the original design once build has
commenced and unfavourable weather
we target selectively the type of 
work that we bid for choosing not to
participate in projects where we
consider that the risks are too great
we maintain detailed risk registers
ensuring that risks are identified 
priced or hedged and approved at the
appropriate level before taking on a
project these registers are maintained
throughout the life of the project and
reviewed following the completion 
of the job to identify any key learning
points for future projects we also
actively promote developments in
areas such as offsite manufacturing
which have the potential to reduce 
the risk of delay the calders green development near weston sits in 
the middle of some of the most beautiful parkland that
cheshire has to offer it is a gated development of family
homes and apartments in a setting of lakes streams 
and trees 
22 taylor woodrow report and accounts 2006
above calders green crewe cheshire england sustainability and the environment
taylor woodrow is committed to
continuous improvement in the design
and construction of new homes and
enhancing the built environment for
people who live in and near its new
communities both now and in the
future in order to measure our progress
against this aim we focus on four key
areas of sustainability
urban regeneration is a major part of
our business transforming areas of land
that are often derelict and sometimes
contaminated into desirable places to
live during 2006 we commenced work
on telford millennium community which
will include up to 800 highly sustainable
homes along with associated
community education and commercial
facilities on the site of a former colliery
in 2006 63 per cent of our uk homes
and 21 per cent of our north american
homes were developed on brownfield
previously developed land 2005 uk
68 per cent north america 17 per
cent our construction business also
undertakes regeneration projects and 
is currently working with sandwell
homes to deliver a five year package of
repairs and improvements to homes
across six towns in the west midlands
as the cost of buying a new home in
the uk continues to increase
affordable housing homes built for
registered social landlords or as part of
key worker programmes is becoming
an increasing part of our business 
we have developed a reputation for
delivering highquality affordable
housing making us a partner of choice
for housing associations affordable
housing increased as a proportion of
our business from 13 per cent in 2005
to 15 per cent in 2006
around 25 per cent of the uk’s carbon
dioxide emissions a major cause of
climate change come from the energy
that people use to heat light and run
their homes during the year we
commissioned thermal photography 
to compare the energy efficiency of
brand new and secondhand homes
the results showed that new homes
are significantly more energy efficient
than those built twenty or thirty years
ago the average sap standard
assessment procedure rating for our
uk homes was 97 in 2006 2005 98
against a maximum possible score 
of 120
taylor woodrow has also taken a
leading role in the deployment of the
ecohomes scheme an environmental
assessment method for house building
and refurbishment in 2006 950 of our
homes were certified to ecohomes
standards representing 11 per cent of
our total uk completions 2005 736 
9 per cent 
as a major homebuilder we have a
responsibility to play a major role in the
sustainability debate as such we
contributed to the consultation on the
uk government’s draft code for
sustainable homes and held our first
sustainability conference
we closely monitor the environmental
performance of our business and have
continuous improvement initiatives
underway in three key areas
• we successfully reduced the average
amount of construction waste
generated per uk home to 321 cu yds
and the associated cost of disposal to
£291 2005 396 cu yds and £351
• we reduced the carbon dioxide
emissions from our uk operations
including those generated during the
construction process by our offices
and showhomes and by our company
vehicle fleet from an estimated
20204 tonnes in 2005 to an
estimated 19034 tonnes in 2006 
• we received a reduced total number 
of environmental prosecutions 
notices and incidents during the year 
of 19 2005 29
sustainability and environmental issues
are becoming increasingly important in
north america and we have a number
of initiatives underway in our different
regions for instance our florida
business has implemented a recycling
programme at its palma sola trace
community which has successfully
increased the amount of waste
material that is recycled or reused
chief executive’s review continued
taylor woodrow report and accounts 2006 23
community
taylor woodrow has a long history 
of contributing to local communities
through voluntary projects and other
activities we set ourselves the
objective of further developing our
community programmes during 2006
examples of our work with
communities in the uk include
• our ongoing relationship with the 
charity barnardo’s through our 
‘building futures’ partnership 
through which team members raised
£11447 for their local barnardo’s 
projects 2005 £4913 many other 
company events raised additional 
funding for barnardo’s of £26000 
2005 £19200
• continuing our ‘support the team’ 
programme we donated £28959 
to match team members’ charitable 
fundraising efforts 2005 35918
• rolling out our ‘community in the 
curriculum’ initiative to schools 
neighbouring our developments in 
scotland and the west midlands 
• developing policies for a company
wide process for community 
consultation
our team in north america has a
strong culture of community
participation which was further
enhanced during 2006 examples of
the team’s contributions include
• team members from texas raised 
more than 50000 in walks 
benefiting the juvenile diabetes 
research foundation
• our team in southern california 
raised more than 25000 for 
homeaid orange county a non
profit organisation that helps build 
and renovate shelters for the 
transitionally homeless men women
and children in the community 
• the arizona division hosted an 
‘easter eggstravaganza’ for 
residents of one of its communities 
which was attended by over 100 
residents with their children more 
than 1000 eggs were hidden with 
prizes including gift certificates toys 
and bicycles 2006
736 2005
950
2006
1212
1382
2005
employees
the development of effective teams is
vital to our company we are committed
to recruiting and retaining a talented
team that is motivated and focused to
deliver and exceed our business
objectives this commitment is
supported by regular benchmarking of
our remuneration and benefits packages 
we respect the rights of our people
we promote
• good and safe conditions of work
• the development and best use of 
talent
• equal opportunity employment 
• involvement of our people in the
planning and direction of their work
we strive to make our project sites and
our offices safe working environments
our objective is to improve safety
performance through awareness
raising monitoring and incentivisation 
in the uk we have a programme of
active monitoring for site safety and
project performance is linked to bonus
schemes for site managers and senior
managers during 2006 we conducted
• 1382 site inspections which 
measure how well our project teams 
are implementing health and safety 
management 2005 1212 
• 326 safety management audits 
which measure how well our project 
teams have planned the management
of health and safety 2005 342
we have been recognised for our
leadership position within the sector in
2006 our uk housing and construction
businesses each received gold awards
from the royal society for the
prevention of accidents during 2006
our accident frequency rate was 034
accidents per 100000 man hours
2005 034
in north america we conduct
independent health and safety audits
of all construction sites twice a year
and set continuous improvement
targets the results of the 2006 audits
were very good with average scores of
93 per cent exceeding the target of 88
per cent
our spanish business has achieved
certification to the occupational health
and safety management standard
18001  the standard has been
successfully audited by lloyds register
and is being promoted to our
contractors and suppliers
despite the good progress made in
advancing the quality of our safety
management processes we are deeply
saddened to report three fatalities in
our operations during the year
we are committed to keeping our
employees informed of developments
within the business internal
communication methods include
weekly news bulletins regular team
chief executive’s review continued
24 taylor woodrow report and accounts 2006
briefings and frequent opportunities to
meet senior management facetoface
we undertake regular employee
surveys and benchmark the responses
against both previous results and
industry standards our 2006 survey
showed that 79 per cent of our
employees would recommend taylor
woodrow to others as a good place 
to work an improvement on the 2004
figure of 74 per cent
our people are a key strength of our
business and their skills have once
again been recognised in industry
awards jerry williams from our
construction business was named
‘project manager of the year’ for the
national assembly for wales at the
chartered institute of building awards
12 of our uk housing site managers
received nhbc ‘seal of excellence’
awards with three winning ‘regional
awards’ and going through to the
overall uk final steve vorres received
the nhbc uk supreme award in the
multistorey category for the second
year running for our victoria wharf
development in cardiff
details of the number of employees
and related costs can be found in 
note 5 to the consolidated financial
statements on page 59
uk homes certified to ecohomes standards
uk site safety inspections site workers at calders green crewe cheshire england pensions
at 31 december 2006 the gross ias19
deficit was £206m 2005 £220m net
of deferred tax the deficit was £144m
2005 £154m further information is
contained in note 20 on page 68
the company has now completed
discussions with the trustees of the
main defined benefit pension scheme
in the uk on the means of mitigating
this deficit as we announced at our
interim results the company has
agreed to increase its past service
deficit funding payments from £48m
per annum to £20m per annum for a
period of 10 years this increase impacts
on cashflow but profit from operations
will not be affected also in line with
our previous announcement the fund
was closed to future accrual for existing
members on 1 december 2006
equity shareholders’ funds
at the end of 2006 shareholders’ funds
were £21035m up from £19284m at
the end of 2005 equity shareholders’
funds per ordinary share rose to 3647
pence at the end of 2006 this
represents an increase of 7 8 per cent
from the previous yearend
shareholders returns
basic earnings per share stood at 
505 pence 2005 506 pence the
proposed final dividend of 975 pence
produces a total return of 1475 pence
per ordinary share an increase of 10
per cent over last year this level of
dividend is consistent with the board’s
policy of paying progressive dividends
through the business cycle
the dividend is covered 34 times 
by earnings
cash flow and net debt
operating cashflows before movements
in working capital were £4609m 2005
£461 1m inventories increased by
£347 5m which was partly funded by an
increase in creditors of £17 44m of this
26 taylor woodrow report and accounts 2006
chief executive’s review continued
latter increase £131 1m is represented 
by an increase in land creditors cash
generated by operations was £2233m
2005 £3597m income taxes and
interest payments totalled £1663m
2005 £2295m resulting in net cash
from operating activities of £57 0m
2005£1302m
net debt at the yearend stood at
£391 3m 2005 £4569m equivalent to
net gearing of 186 per cent 2005 237
per cent interest on borrowings net of
interest receivable was £550m 2005
£544m average net debt for the year
was £837 8m 2005 £8234m at the
yearend taylor woodrow had undrawn
committed revolving credit facilities
totalling £6295m
t axation
the effective tax rate in 2006 was 284
per cent 2005 303 per cent
left twenty gothic development toronto
canada
twenty gothic is an eightstorey monarch
highrise development located on gothic
avenue in toronto the apartments are close
to the subway station local shops and
restaurants 
175 luxurious suites will be offered with 
one bedroom and two bedroom apartments
– all with balconies or terraces a limited
selection of penthouse suites will also be
available
right diglis water worcester england
a waterside regeneration development of
approximately 420 new homes on the banks
of the river severn and the worcester and
birmingham canal network the scheme
encompasses restoration of the river and
canal basins and some historic buildings as
well as providing retail shopping community
and leisure units public and private
waterside park areas will also be created
the scheme consists mainly of apartments
along with a number of threestorey
townhouses the development has launched
successfully with an indepth knowledge of the
markets in which we operate we are
wellplaced to benefit from any land
acquisition opportunities that market
conditions might present
we will continue to invest across our
portfolio where we see the best returns
for shareholders and i look forward to
updating you on our progress through
the year
ian smith
chief executive
19 february 2007
prospects for 2007
our geographic portfolio of businesses
continues to provide us with alternative
investment and growth options
the uk housing market remains good
underlying fundamentals are strong
due to the continuing significant
undersupply of new housing whilst
government is committed to introducing
policies that will increase the availability
of land for development we have not
yet seen any increase in supply despite
strong price appreciation during 2006
there were wide regional variations and
customer confidence could be damaged
in some of the weaker markets if
further interest rate rises materialise 
in 2007  we anticipate an increase in
the number of home completions
during 2007 and will continue to focus
on improving our operating margins
in north america although the markets
in arizona california and parts of florida
remain challenging and difficult to predict
current market conditions in texas 
and ontario are healthy we continue 
to be confident in the prospects for 
the business in the mediumterm but
expect to see significant reductions 
in both operating margin and return on
capital employed during 2007  in 2007
the priority for our north american
management is to minimise the impact
of the market downturn in the short
term whilst taking the opportunity 
of the market downturn to position 
the business for accelerated growth 
in the future
the market in spain remains attractive
on a mediumterm view although any
weakness in the uk market in the
shortterm could reduce demand for
property in spain from british buyers
taylor woodrow report and accounts 2006 27 28 taylor woodrow report and accounts 2006
board of directors 
ian smith
chief executive
appointed a director and chief
executive in january 2007  
he chairs the executive
committee and is a member
of the nomination committee
he brings wide experience as
a business leader across a
variety of international
markets he was previously
chief executive of the general
healthcare group the uk’s
leading private healthcare
company chief executive
europe middle east and
africa of exel the
international logistics and
distribution company and
chief executive europe of
monitor the global strategy
consultancy he is also a 
nonexcecutive director of
galiform plc
age 53
norman askew 
chairman 
nonexecutive director 
appointed a director and
chairman in july 2003 
he is judged by the board to
be 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 64
peter johnson 
finance director 
appointed a director in
november 2002 he is a
member of the executive
committee peter is an
experienced financial
executive with a strong
background in financial
services and property
investment in the uk and
north america he is also a
nonexecutive director of
shanks group plc and joined
the board of oriel securities
limited on 20 december 2006 
peter has previously held
board positions with
henderson plc pearl
assurance and norwich union
life and has also worked for
hammerson property
investment and development
corporation plc
age 52  taylor woodrow report and accounts 2006 29
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 is a director 
of premier farnell plc and
creston plc he was formerly
chief executive of hanson plc
until 2002 having previously
been the group finance
director of hanson the
diversified industrial group
until its demerger in 1997  he
was also a nonexecutive
director of bpb plc
age 55 
mike davies 
independent nonexecutive 
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 and a 
nonexecutive director of
pendragon plc he was
formerly a director of 
williams holdings plc 
age 59 
katherine 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 katherine has
considerable experience as a
financial analyst gained with
leading uk city financial
houses with a particular 
interest in the media sector
she is chairman of shed
productions plc a non
executive director of ordnance
survey and of gyrus group plc
age 46
vernon sankey 
independent nonexecutive 
director 
appointed a director in
january 2004 he is a member
of the audit remuneration
and nomination committees
he is a nonexecutive director
of zurich financial services
ag and zurich insurance
company ag both swiss
chairman of photome
international plc and deputy
chairman of vividas group plc
age 57 report of the directors 
to the members for the year ended 31 december 2006
30 taylor woodrow report and accounts 2006
introduction 
company law requires the directors to prepare a report to
shareholders on various matters affecting the company and the
group during the reporting year 2006 and the general outlook
for the company and the group in the context of the markets
and business environment within which we operate
certain matters required to be included in the report appear
elsewhere in this report and accounts and can be found in the
following areas
• a detailed review of the group’ s principal activities the
development of its businesses an indication of likely future
developments a review of ﬁnancial and nonﬁnancial key
performance indicators and a description of the principal risks
and uncertainties facing the group are contained in the
reports and reviews on pages 2 to 27  
• a list of the subsidiary and associated undertakings principally
affecting the proﬁts or net assets of the group in the year
appears on page 87  
• changes in asset values are set out in the consolidated
balance sheet on page 53 and in notes 10 to 29 on pages 
62 to 75 
• the group’ s proﬁt before taxation and the proﬁt after taxation
and minority interests appear in the consolidated income
statement on page 51 and in notes 3 to 9 on pages 56 to 61  
• 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 33 to 36 
directors
the following directors held ofﬁce throughout the year
norman askew
iain napier retired from the board on 31 december 2006
peter johnson
graeme mccallum retired from the board and the company 
on 16 january 2007
mike davies
andrew dougal
katherine innes ker
vernon sankey
ian smith was appointed a director and chief executive on 
2 january 2007 
the directors of the company at the date of this report together
with biographical information are shown on pages 28 and 29 
retirement and reelection of directors 
at the annual general meeting ian smith who has recently
been appointed to the board will retire and seek election
katherine innes ker and vernon sankey directors retiring by
rotation will being eligible offer themselves for reelection 
in accordance with the company’ s articles of association 
each of the directors proposed for reelection has been
recommended following detailed consideration by the
nomination committee the directors retiring by rotation have
additionally been subject to formal performance evaluation
audit and auditors 
each of the persons who is a director at the date of approval 
of this report conﬁrms that
so far as each director is aware there is no relevant audit
information of which the companys auditors are unaware and
each director has taken all the steps that heshe ought to have
taken as a director in order to make himselfherself aware of any
relevant audit information and to establish that the companys
auditors are aware of that information
this conﬁrmation is given and should be interpreted in
accordance with the provisions of section 234za of the
companies act 1985 
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 35 
annual general meeting
the annual general meeting will be held at 2pm on wednesday
2 may 2007 in the oasis suite at the crowne plaza hotel
pendigo way national exhibition centre birmingham b40 1ps
formal notice of the meeting including details of special
business is 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 90 
t reasury shares
during the year 54 million t reasury shares held by the company
were sold to the company’ s employee share ownership trusts
and to participants in certain of the company’ s employee share
plans
substantial interests 
details of the share capital are shown in note 22 to the
consolidated ﬁnancial statements the following persons have
notiﬁed the company pursuant to rule 5 of the disclosure and
t ransparency rules of their interests in the ordinary share
capital of the company 
name number of percentage of 
shares held issued voting
millions share capital
beneficial interests
barclays plc 21 78 378 
legal  general group plc 2026 348 
britannic asset 
management limited 1695 306 
legal  general assurance
pensions management limited 17 50 301 report of the directors continued
name number of percentage of 
shares held issued voting
millions share capital
nonbeneficial interest
axa sa 10077 1732 
at 19 february 2007  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 including interests in the company’ s shares
are shown in the directors’ remuneration report on pages 37
to 45 
dividend
information about the recommended 2006 ﬁnal dividend is
given in the chairman’ s statement on page 2
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
wwwtaylorwoodrowcom 
payment of dividend has been waived in part by the t rustee 
of the company’ s two employee share ownership t rusts over
those t rusts’ combined holding of 51m shares and in full on 
the company’ s holding of 122m t reasury shares shares held 
in the t rusts are set aside to meet commitments under the
company’ s employee share plans shares held in t reasury result
from the acquisition of the company’ s own shares in 2004 and
provide the company with additional ﬂexibility in the
management of its capital base
corporate social responsibility csr 
csr has become increasingly integrated within t aylor
woodrow’ s business in the chief executive’ s review on pages
5 to 27 you will ﬁnd a broad outline and many examples of the
ways in which we continue to apply csr principles throughout
everything we do we draw these themes together in the
group’ s full csr report for 2006 which is published separately
in electronic form on the group’ s website
wwwtaylorwoodrowcom
the group’ s commitment to advancing csr within t aylor
woodrow is evidenced by the appointment from january 2007
of a fulltime director of csr
during 2006 we focused the business on a number of high
level csr objectives covering the key areas of sustainability
safety health and people environment and community these
are discussed in the full csr report
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 longterm 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 15 to 19 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
used primarily to ﬁnance goodwill ﬁxed assets and land 
shortterm borrowings are required primarily to ﬁnance net
current assets other than landbank assets of more than one
year and work in progress 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
research and development 
the company is committed to investing in research and
development projects where there are clearlydeﬁned business
beneﬁts 
charitable donations 
during the year group companies donated £198000 2005
£363000 to various charities £63000 2005 £96000 in 
the uk and europe and £135000 2005 £267 000 in north
america an outline of the group’ s programme of charitable 
giving appears elsewhere in the chief executive’ s review 
and fuller details can be found in the online csr 2006 report 
political donations
the company did not make any donations to political parties
during 2006 2005 £nil business subscriptions were paid to
the home builders federation of £192000 2005 £167 000
and homes for scotland of £20000 2005 £nil both of which
are active in supporting the interests of the housebuilding
sector some may consider that these payments may fall within
the meaning of ‘eu political expenditure’ as deﬁned by section
347a of the companies act 1985
taylor woodrow report and accounts 2006  31 report of the directors continued
32 taylor woodrow report and accounts 2006
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 2007  t rade creditor days for the group 
for the year ended 31 december 2006 were 32 days 2005 
31 days based on the ratio of year end group trade creditors
excluding subcontract retentions and unagreed claims of 
£132 million 2005 £129 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 2006
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 19 february 2007  
richard i morbey
secretary
19 february 2007  corporate governance statement
taylor woodrow report and accounts 2006  33
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 2006 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 and the chief executive’ s review seek
to present a balanced and understandable assessment of the
company’ s position and prospects 
the board and its committees 
at the date of this report the board consists of seven directors
whose names responsibilities and other details appear on
pages 28 and 29 t wo 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 
• schedule of matters speciﬁcally reserved for the decision 
of the board 
• board policies covering operational matters compliance 
and stakeholder policies
• 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 the work of all board
committees is described later in this statement
there is a clearly established division of responsibilities
between the chairman and the 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 none of the other commitments of
the chairman or other board members detract from the extent
or quality of time which they are able to devote to the company 
the appointment of all nonexecutive directors is for a speciﬁed
term and reappointment is not automatic during the three
years up to and including the 2007 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 is or may be interested in any
contract or arrangement to which the company is or may be a
party he gives due notice to the board 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 strategic planning away day at which strategic and
ﬁnancial plans are reviewed and developed all directors visit
the company’ s operations on a regular basis engaging with
employees at all levels in order to foster and maintain an
understanding of the business 
the members of the board and its committees together with
their attendances at the core meetings during 2006 are shown
on the following page the company secretary is also secretary
to the board’ s committees  corporate governance statement continued
34 taylor woodrow report and accounts 2006
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 
in november and december 2006 the directors carried out the
fourth annual evaluation of the performance and effectiveness
of the board and its committees of individual directors and of
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
focused on a number of areas including those concerned with
best practice based on the principles of the combined code
and good governance principles the evaluation particularly
addressed commercial and operational effectiveness and the
interaction between the board the executive team and the
business the evaluation was carried out by the company
secretary through structured scored interviews with each
director also taking soundings from the other members of the
executive committee 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 the board and committee
assessments in january 2007 and concurred with the
conclusions that board members demonstrate commitment
and give sound guidance and direction to the business and that
the board committees operate effectively the evaluation found
that the quality of the board’ s processes is high that there had
been continuing improvement in the board’ s scrutiny of the
company’ s risk management processes and that there had
been further improvement in the quality of business reporting
through the evaluation the board has set speciﬁc objectives for
2007 and has reintensiﬁed its focus on succession planning
and further developing the interface with management
the risk management and audit rma function 
an evaluation of the internal 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 january 2007  judged
the effectiveness of the performance of the function to be very
strong demonstrably independent and wellmanaged the
audit committee assessed the function to be excellent 
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 2006 found the
performance of the external auditors to be very satisfactory
board committees and their work
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 37 to 45 
nomination committee
the members of the nomination committee and their attendance
at meetings during 2006 are shown on page 34 the nomination
committee focused its main efforts during the year on succession
planning for the board and senior management and utilising
executive search consultants the recruitment of the group chief
executive and the president of the north american operation in
addition the committee reviewed the balance of the board’ s
composition 
board nomination audit remuneration 
committee committee committee
no of meetings held in the year 8 4 4 5
norman askew 8 4 4 5
chairman chairman
mike davies 8 4 4 5
senior independent director
andrew dougal 8 4 4 5 
chairman
katherine innes ker 8 4 4 5 
chairman
vernon sankey 7 4 4 5
iain napier 8 4 4 3
chief executive
peter johnson 8  4 
finance director
graeme mccallum 8  4 
operations director
 by invitation corporate governance statement continued
taylor woodrow report and accounts 2006  35
audit committee and auditors 
the members of the audit committee are shown on page 34
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 group financial controller
katherine innes ker representatives of the external auditors
and senior executives of major group companies attend
meetings of the committee by invitation
the committee’ s remit includes reviewing 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 doing so the committee places reliance on
regular reports from the executive risk committee whose
activities are described below in monitoring the ﬁnancial
reporting practices the audit committee reviewed accounting
policies areas of judgement the going concern assumption
and compliance with accounting standards and the
requirements of the code the committee also reviewed prior
to publication the interim and annual ﬁnancial statements and
other major statements affecting the group concerning price
sensitive 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 
• advice on large it systems 
the board is satisﬁed that this policy is conducive to the
maintenance of auditor independence and objectivity 
other group committees 
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 
the group has a number of other committees which 
coordinate 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 report
and accounts 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 
an executive risk committee chaired by the 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 during 2006 the
committee assessed the risk management and the internal
control framework of the t aylor woodrow group reviewed
business change issues and rma activities and received
presentations from process owners covering 27 areas of the
business  corporate governance statement continued
36 taylor woodrow report and accounts 2006
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 for each process key
operational controls have been identiﬁed and these are subject
to 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
postinvestment 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 programme of controls self assessments
across the uk development construction and north american
businesses 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 and the chairman and the chief
executive 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 15
february 2007 it completed the annual assessment for the year
to 31 december 2006 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
during 2006 22 calls were made to safecall covering issues
including allegations of inappropriate personal behaviours in 
the workplace and other operational matters all cases were
investigated by the head of rma and the closure and
outcomes reported to the audit committee 
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
business governance remuneration and other issues this
provides the opportunity for meetings with the chairman the
senior independent director as well as the chief executive
finance director and other executives in order to establish a
mutual understanding of objectives the company also operates
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 wwwtaylorwoodrowcom
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 all 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
taylor woodrow report and accounts 2006  37
introduction
this report describes the principles and practices applied by
the board in setting and implementing the group’ s reward and
incentive arrangements it 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 also 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 2 may 2007 
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 are to establish and maintain formal and
transparent procedures for developing policy on executive
remuneration and for ﬁxing the remuneration packages of
individual directors and to monitor and report on them in
discharging these duties it makes recommendations to the
board the committee’ s remit includes
• agreeing performance thresholds and targets
• determining the remuneration of the chief executive
executive directors and senior executives of the group
• determining amounts payable under the bonus plan
• agreeing awards under the company’ s discretionary 
sharebased reward plans
the members of the committee during the ﬁnancial year were
katherine innes ker committee chairman norman askew
mike davies and vernon sankey all of whom are independent
nonexecutive directors their details including attendances at
meetings held during 2006 are listed in the corporate
governance statement on page 34 none of the committee
members has any personal ﬁnancial interest other than as
shareholders conﬂicts of interests arising from cross
directorships or daytoday involvement in running the business
no director plays a part in any decisions about his own
remuneration
during 2006 the committee reviewed the current and proposed
remuneration and reward structure for executive directors and
senior managers it considered the structure of the bonus plan
the performance share plan and the associated deferred share
arrangements and oversaw the implementation of uk and
overseas share plans subcommittees were established 
to deal with routine administration and discretionary matters
advice to the committee and the company
in determining the directors’ remuneration for the year the
committee drew on advice from t owers perrin on directors’
remuneration packages t owers perrin who were appointed 
in 2003 received fees during 2006 totalling £16500 2005
£1 1000 they did not provide any other services to the
company or the group 
during 2006 the committee appointed new bridge street
consultants llp nbs to advise them on remuneration policy
competitive levels and forms of pay and incentive plans for
executive directors to review all equitybased and longterm
incentive plans and to advise the committee of developments
and best practices in the areas of both remuneration and related
corporate governance requirements nbs received fees in
respect of their services in 2006 totalling £35000 they did not
provide any other services to the company or the group 
the committee also consulted iain napier as chief executive
and alec luhaste the group director of human resources 
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 
they received fees in respect of these services in 2006 
totalling £71300 2005 £55700
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 assessment of the executive
directors and key members of senior management and the
determination of their annual remuneration package is
undertaken by the committee the remuneration packages of
the executive directors and senior management 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 2006 the proportion of ﬁxed
pay of the executive directors was 561 per cent 2005 583 per
cent and variable pay was 439 per cent 2005 41 7 per cent
the committee reviews annually the basis and component
parts of executives’ reward to ensure that they remain
appropriate and competitive 
subject to prior board approval executive directors are entitled
to accept one board appointment of an external listed company
during 2006 iain napier and peter johnson were respectively
nonexecutive directors of imperial t obacco group plc itg and
shanks group plc from which they received the following fees
iain napier £85000 2005 £77 500 £20000 of these fees less
statutory deduction was applied in the purchase of itg shares
peter johnson £32083 2005 £18885 part year peter
johnson became a director of oriel securities limited on 
20 december 2006 and received fees of £1042 in respect 
of that period
the board has agreed that they may 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 and an industryspeciﬁc comparator group
comprising 26 companies representing the housing
development and construction industry the comparator group directors’ remuneration report continued
38 taylor woodrow report and accounts 2006
consists of amec balfour beatty barratt developments
bellway homes berkeley group holdings bovis homes group
british land costain crest nicholson galliford t ry george
wimpey hammerson hanson john laing kier group
lafarge lend lease liberty international m j gleeson
mccarthy  stone mowlem persimmon redrow group
rmc slough estates and wilson bowden 
beginning with our principle of paying market median base pay
and median to upper quartile total compensation 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 2006 with any consequent changes being made
from 1 january 2007  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 2007 annual
general meeting circular 
other beneﬁts including beneﬁtsinkind
the executive directors receive additional beneﬁts principally 
a companyprovided car or an allowance in lieu life assurance
private medical insurance and participation in an income
protection plan beneﬁtsinkind are not pensionable 
annual bonus and the deferred bonus plan
the company gives the opportunity for executive directors 
and senior managers to earn performancerelated bonuses 
the annual targets and objectives that must be met for each
ﬁnancial year are set by the committee drawing on research 
by nbs 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 overall strategic 
and operational objectives set by the board are being met
the maximum bonus award that can be made to an executive
director in any one year is currently 100 per cent of salary 2006
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 2006
a signiﬁcant element of the bonus is dependent on this
target
• achievement of improvement in health and safety
performance measured through safety management
performance and site inspection results
• achievement of speciﬁed customer satisfaction ratings
• other important and relevant business measures including
return on capital employed divisional operating proﬁt and
speciﬁc personal objectives
the majority of the targets were achieved 
bonus awards for executive directors for 2006 ranged from 
92 per cent to 99 per cent of basic 2006 salary 2005 7 43 
per cent to 982 per cent and for other executive committee
members from 79 per cent to 97 per cent of basic 2006 salary
2005 45 per cent to 79 per cent 
for 2007  bonus targets have been set based broadly on the
2006 framework 
no bonus or deferred bonus is pensionable 
deferred bonus plan share matching award 
the committee considers that share ownership by executive
directors and senior executives strengthens the link between
their interests and those of the company’ s shareholders for the
2006 ﬁnancial year the executive directors and selected senior
executives had 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 on either a gross or net
voluntary basis if these shares remain undrawn for a period of
three years the company will match them on a one for one
basis provided that group earnings per share eps shall have
grown by at least three per cent compound in real terms during
the ﬁnancial years 2006  2008 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 vesting occurs on the third anniversary of the
award provided that the performance criterion is fulﬁlled the
current plan rules have an over riding limit for awards of 200 per
cent of basic salary per annum the current general policy is to
restrict awards to 125 per cent other than in exceptional
circumstances such as senior level recruitment
the psp 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 the 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  directors’ remuneration report continued
taylor woodrow report and accounts 2006  39
in 2006 conditional awards were made to 286 participants
2005 296 including two executive directors in respect of a
total of 2120036 shares 2005 2644102 of these1910642
were basic awards 2005 2356526 and 209394 were
enhanced awards 2005 287 576 
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 bovis homes group crest nicholson george
wimpey mccarthy  stone persimmon redrow group 
and wilson bowden
the company’ s performance against these criteria is calculated
by the group financial controller from audited eps and
published rpi data and veriﬁed by the remuneration
committee 
the company is currently examining the present reward
arrangements for the senior management team and other key
executives in all of our markets the review is focusing on
driving superior economic performance and includes
consideration of alternatives to the current annual and deferred
bonus plans and the performance share plan
the board will announce its intentions once the review has
been concluded and will consult appropriately with
shareholders
executive share option plan 
the t aylor woodrow executive share option plan was
suspended on 9 october 2003 and is now closed for new
awards 
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 during 2006 1063 employees 
25 per cent of those eligible 2005 847 applied to join the
plan options were granted over 1409702 shares 
2005 11 10690 at an option price of 2788p per share 
a uk share purchase plan was introduced in 2004 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
during 2006 1213 participants contributed to the plan
20051162 and purchased 303313 shares 2005 332622
the executive directors are eligible to participate in these 
allemployee plans 
overseas plans
during 2005 the company implemented an allemployee stock
purchase plan in the united states and introduced a share
incentive plan in canada in 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 is 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 posttax
income to purchase shares of the company which if held for a
period of three years would be matched by the company
other matters affecting share plans
the rules of the psp  the deferred bonus plan the executive
share option plan and the company’ s allemployee share plans
referred to above 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 normal retirement 
during 2006 the board amended the rules of the deferred
bonus plan performance share plan and sharesave plan to
comply with the employment equality age regulations 2006
to remove the prohibition on granting awards to employees
who are within one year of retirement and to set age 65 as the
normal retirement age for the purposes of those plans
basic awards
enhanced awards
vesting of enhanced awards is dependent on the basic award
earnings criterion of 3 per cent 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 2006
in accordance with the scheme rules and as indicated in
previous directors’ remuneration reports eps 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 20 to the consolidated ﬁnancial statements
following changes to the taxation treatment of uk pension
schemes in april 2006 the company reviewed the
appropriateness of pension provision for all employees this
review resulted in a number of employees withdrawing from
company pension arrangements in such circumstances the
company maintains lump sum life assurance cover and pays an
additional salary allowancesupplement to the employee equal
to the pension contribution that the company would otherwise
have paid
of the executive directors iain napier and graeme mccallum
withdrew respectively from the personal choice plan pcp 
and the t aylor woodrow group pension and life assurance
fund they both retain beneﬁts accrued up to april 2006 in
these pension arrangements
t aylor woodrow group pension and life assurance 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 the fund ceased accrual of beneﬁts on 30
november 2006 and from 1 december 2006 existing active
fund members were invited to participate in the pcp  referred 
to below and to which members and the company contribute 
at 31 december 2006 graeme mccallum was a deferred
member of the wilson connolly holdings section of the fund
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 45 
the company contributed 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 for the three months to 31 march 2006
totalled £880 2005 £2603 
t aylor woodrow personal choice plan 
with effect from 1 april 2002 the company introduced the pcp 
a deﬁned contribution pension scheme which all new eligible
uk team members are invited to join 
during the year iain napier and peter johnson were members
of the pcp  although iain napier withdrew from the plan in april
2006 the company contributed to their plans at the rate of 38
per cent and 345 per cent respectively of their basic salary for
the relevant periods and these directors each contributed at the
rate of 5 per cent for those periods
pensions of former directors
denis mac daid retired from the board on 30 june 2005 his
pension is 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 him by monthly instalments the annual
equivalent of this payment is £19260 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 and the
ﬁrst such increase was paid on 1 may 2006 the additional
payment also attracts dependents’ beneﬁts in line with his 
fund pension 
iain napier retired from the board on 31december 2006 but 
will remain employed by the company until 30 april 2007  
graeme mccallum retired from the board and the company 
on attaining his normal retirement age on 16 january 2007  
no other arrangements were made during the year for the
provision of pensions for former directors
performance graph
the following graph shows the company’ s performance
measured by total shareholder return for the ﬁveyear period 
to 31 december 2006 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
2005 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 are based on the constituent
companies at each given date 
50
100
150
200
250
300
350
jan02 jan03 jan04 jan05 jan06
taylor woodrow plc
ftse 250
taylor woodrow plc
ftse 250 directors’ remuneration report continued
taylor woodrow report and accounts 2006  41
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
t erms and conditions of appointment of all directors are
available for inspection as described in the 2007 annual general
meeting circular to shareholders 
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 and are reviewed at twoyearly intervals the
chairman’ s fees were increased on 1 july 2005 from £150000
to £170000 per annum and will be reviewed in july 2007  the
basic fees of each nonexecutive director were previously
reviewed in january 2005 and were increased on 1 january
2007 from £39000 to £45000 the senior independent
director and the remuneration committee chairman each
receive an additional fee of £5000 and the audit committee
chairman receives an additional fee of £10000 in respect of
these services nonexecutive directors cannot participate 
in any of the company’ s share option plans and are not eligible
to join the company’ s pension scheme 
name date of contract unexpired term notice periods notice periods normal retirement current
months company months director months age age
ian smith 23 december 2006 12 12  6 65 53
peter johnson 1 november 2002 12 12 12 60 52
 ian smith’s contract contains a provision which was agreed to in connection with his recruitment that the company shall not serve notice before the earlier 
of the date of the first psp award made to him and 31 december 2007
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 casebycase 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 appointment date of initial letter term of notice period by notice period by
as a director of appointment appointment company months director months
norman askew 29 july 2003 25 july 2003 1year  reviewed 3 3
annually
mike davies 13 october 2003 29 september 2003 1year  reviewed 1 1
annually
katherine innes ker 
▲
1 july 2001 21 may 2001 1year  reviewed 1 1
annually
andrew dougal 18 november 2002 31 october 2002 1year  reviewed 1 1
annually
vernon sankey 
▲
1 january 2004 15 december 2003 1year  reviewed 1 1
annually
▲
proposed for reappointment at the annual general meeting  directors’ remuneration report continued
42 taylor woodrow report and accounts 2006
audited information
directors’ emoluments
basic salary benefits bonus in 2006 2005 basic salaryfee
salaryfees supplement in inkind respect of 2006 total total pawith effect
lieu of pension from 112007
£000 £000 £000 £000 £000 £000 £000
executive
ian smith      610
▲
iain napier 610 219 17 606 1452 1335 610
†
peter johnson 364 22 13 362 761 763 406
graeme mccallum 329 60 1 306 696 613 329
denis mac daid former director    295 
nonexecutive
norman askew 170    170 160 170
mike davies 44    44 43 50
katherine innes ker 44    44 43 50
andrew dougal 49    49 47 55
vernon sankey 39    39 39 45
aggregate emoluments 1649 301 31 1274 3255 
2005  3338
aggregate emoluments of the executive committee excluding executive directors 
basic salary benefits bonus in 2006 2005 salary pa
salaryfees supplement in inkind respect of 2006 total total with effect
lieu of pension from 112007
£000 £000 £000 £000 £000 £000 £000
8 members 1678 44 75 1363 3160 4338 2116
notes 
 includes noncash payments 
†
payable for 4 months to 30 april 2007 
▲ 
payable from 2 january 2007
no expense allowances are paid 
no termination payments were made to directors during the year 
no payments were made during the year to former directors directors’ remuneration report continued
taylor woodrow report and accounts 2006  43
directors’ sharebased reward and options
aggregate emoluments disclosed above do not include any amounts for the value of options to acquire ordinary shares in the
company and any other sharebased reward granted to or held by the directors details of the options exercised during the year are
name of director plan number of exercise market price at gains on gains on
option shares price exercise date exercise 2006 exercise 2005
exercised pence pence £ £
iain napier executive option 196754 2465 356375 216183 1794637
bonus plan 112046  374375 419473  
sharesave    12697 
635656 1807334
peter johnson executive option 174036 2465 353491 186203 563806
186203 563806
graeme mccallum executive option 111561 2465 356375 122578 
122578 
total 944437 2371140
details of options for directors who served during the year are as follows
name of plan 1 january granted lapsed exercised 31 december exercise date of date from expiry date
director 2006 2006 price grant which
number number number pence exercisable
iain napier executive option 196754   196754  2465 31003 31006 21013
bonus plan
matching award 112046   112046   7403 7406 6413
matching award 109232    109232  2404 2407 1414
matching award 24073    24073  8405 8408 7415
performance share plan 142857    142857  10504 10507 9509
performance share plan 227272    227272  7905 7908 6910
performance share plan  197923
2
  197923  12406 12409 11411
total 812234 197923  308800 701357
peter executive option 174036   174036  2465 31003 31006 21013
johnson sharesave 8037    8037 1972 71003 11208 31509
bonus plan
matching award 52636    52636  2404 2407 1414
matching award  9858
1
  9858  7406 7409 7512
performance share plan 84905    84905  10504 10507 9509
performance share plan 132410    132410  7905 7908 6910
performance share plan  92406
2
  92406  12406 12409 11411
total 452024 102264  174036 380252
graeme executive option 111561   111561  2465 31003 31006 21013
mccallum sharesave 4177    4177 2268 71004 11207 31508
performance share plan 80862    80862  10504 10507 9509
performance share plan 100078    100078  7905 7908 6910
total 296678   111561 185117
1 market value per share on date of grant 7 april 2006 was 4035 pence
2 market value per share on date of grant 12 april 2006 was 382 pence  directors’ remuneration report continued
44 taylor woodrow report and accounts 2006
there have been no variations to the terms and conditions or performance criteria for outstanding share options during the 
financial year 
the performance criteria relating to the deferred bonus plan and the performance share plan appear earlier in this directors’
remuneration report these plans replaced the executive bonus plan and executive share option plan which were subject 
to eps–related performance conditions
awards vesting under the executive bonus plan and executive share option plan in 2006 achieved the epsrelated performance
conditions and were consequently able to be exercised in full
the market price of the ordinary shares at 31 december 2006 was 42625p and the range during the year was 30325p to 436p
directors’ interests in shares and loan notes of the company
directors’ interests in 25 pence ordinary shares held fully paid and floating rate unsecured loan notes 2008 
at 1106 at 311206 executive
25p ordinary loan notes
†
25p ordinary loan notes
†
directors’ share
shares shares interests at 31
december 2006
expressed as a
percentage of
basic salary
norman askew 9974  9974 
iain napier 271951  134555  94
peter johnson 84549  94407  99
graeme mccallum 102123 172890 102123 172890 132
mike davies 5000  5000 
katherine innes ker 1000  1000 
andrew dougal 5000  5000 
vernon sankey 10778  10778 
 includes 1250 ordinary shares held by halifax corporate trustees limited under the taylor woodrow 2004 share purchase plan 
† the floating rate unsecured loan notes 2008 were created on 31 august 2003 in connection with the acquisition of wilson connolly holdings plc
at 31 december 2006 each executive director had a notional interest in 6039845 ordinary shares of the company being
unappropriated ordinary shares held by the trustee of the t aylor woodrow group esop t rust in connection with the t aylor woodrow
executive share option plan and the executive bonus plan by the trustee of the t aylor woodrow 2004 employee beneﬁt t rust in
connection with the t aylor woodrow performance share plan the 2004 deferred bonus plan and the 2004 sharesave plan by the
trustee of the wilson connolly employee share t rust in connection with the wilson connolly incentive share plan and the trustee 
of the wilson connolly quest in connection with the wilson connolly savingsrelated share option scheme 
executives shareholdings in the company
during january 2006 the remuneration committee approved a proposal recommending that executives accumulate holdings of
t aylor woodrow plc shares by april 2007 with values representing the following percentages of basic salary 
average holding 
t arget holding at 31 december 2006
executive directors of t aylor woodrow plc 100 122
uk members of the group executive committee 75 162
north american members of the group executive committee 100 na
uk regional managing directors and other executives eligible 
to participate in the deferred bonus plan 50 50 directors’ remuneration report continued
taylor woodrow report and accounts 2006  45
directors’ pension entitlements
deﬁned beneﬁt schemes
graeme mccallum is a member of the t aylor woodrow group pension and life assurance fund he has enhanced rights which
entitle him to beneﬁts at the age of 60 his accrued rights under the scheme are as follows 
accrued pension increase in increase in transfer value accrued pension
31 december accrued pension accrued pension in respect of 31 december
2005 in the year in the year increase in 2006
including inflation accrued pension
£ £££ £
6307 440 213 3522 6747
the following table sets out the transfer value of graeme mccallum’ s accrued beneﬁts under the scheme calculated in a manner
consistent with ‘retirement beneﬁt schemes – t ransfer values gn 1 1’ published by the institute of actuaries and the faculty of
actuaries 
transfer value contributions increase in transfer value
31 december made by the transfer value 31 december
2005 director in the year net of 2006
contributions
£ £ £ £
138506 1320 13416 153242
the transfer values disclosed above do not represent a sum paid or payable to the director instead they represent a potential liability
of the pension scheme increases in transfer values resulted from increases in salary and pensionable service until 30 november
2006 members of the scheme had the option to pay additional voluntary contributions neither the contributions nor the resulting
beneﬁts are included in the above tables 
money purchase schemes
t wo directors are members of money purchase schemes contributions paid by the company in respect of these directors were 
as follows
name of director 2006 2005
£ £
iain napier 6600 26175
peter johnson 98833 20940
approval
this report was approved by the board of directors on 19 february 2007 and signed on its behalf by the committee chairman 
katherine innes ker
19 february 2007 directors’ responsibilities statement 
46 taylor woodrow report and accounts 2006
the directors are responsible for preparing the annual report
and accounts and the ﬁnancial statements the directors are
required to prepare accounts for the group in accordance with
international financial reporting standards ifrss and have
chosen to prepare company ﬁnancial statements in accordance
with united kingdom generally accepted accounting practice
uk gaap
in the case of uk gaap accounts the directors are required to
prepare ﬁnancial statements for each ﬁnancial year which give 
a true and fair view of the state of affairs of the company and 
of the proﬁt or loss of the company for that period in preparing
these ﬁnancial statements the directors are required to
• select suitable accounting policies and then apply them
consistently
• make judgments and estimates that are reasonable and
prudent
• state whether applicable accounting standards have been
followed subject to any material departures disclosed and
explained in the ﬁnancial statements
• prepare the ﬁnancial statements on the going concern basis
unless it is inappropriate to presume that the company will
continue in business
the directors are responsible for keeping proper accounting
records which disclose with reasonable accuracy at any time
the ﬁnancial position of the company for safeguarding the
assets for taking reasonable steps for the prevention and
detection of fraud and other irregularities and for the preparation
of a directors’ report and directors’ remuneration report
which comply with the requirements of the companies act 1985
in the case of ifrs accounts international accounting standard
1 requires that ﬁnancial statements present fairly for each
ﬁnancial year the company’ s ﬁnancial position ﬁnancial
performance and cash ﬂows this requires the faithful
representation of the effects of transactions other events and
conditions in accordance with the deﬁnitions and recognition
criteria for assets liabilities income and expenses set out in the
international accounting standards board’ s ‘framework for the
preparation and presentation of financial statements’  in
virtually all circumstances a fair presentation will be achieved by
compliance with all applicable international financial reporting
standards directors are also required to
• properly select and apply accounting policies
• present information including accounting policies in a
manner that provides relevant reliable comparable and
understandable information
• provide additional disclosures when compliance with the
speciﬁc requirements in international financial reporting
standards is insufﬁcient to enable users to understand the
impact of particular transactions other events and conditions
on the entity’ s ﬁnancial position and ﬁnancial performance
• prepare the accounts on a going concern basis unless having
assessed the ability of the company to continue as a going
concern management either intends to liquidate the entity or
to cease trading or have no realistic alternative but to do so
the directors are responsible for the maintenance and integrity
of the company website legislation in the united kingdom
governing the preparation and dissemination of ﬁnancial
statements differ from legislation in other jurisdictions independent auditors’ report to the members of t aylor woodrow plc
taylor woodrow report and accounts 2006  47
we have audited the group ﬁnancial statements of t aylor
woodrow plc for the year ended 31 december 2006 which
comprise the income statement the balance sheet the cash
flow statement the statement of recognised income and
expense the related notes 1 to 35 and the reconciliation of
changes in shareholders’ equity these group ﬁnancial
statements have been prepared under the accounting policies
set out therein we have also audited the information in the
directors remuneration report that is described as having
been audited
we have reported separately on the parent company ﬁnancial
statements of t aylor woodrow plc for the year ended 31
december 2006 
this report is made solely to the company’ s members as a
body in accordance with section 235 of the companies act
1985 our audit work has been undertaken so that we might
state to the company’ s members those matters we are
required to state to them in an auditors’ report and for no other
purpose t o the fullest extent permitted by law we do not
accept or assume responsibility to anyone other than the
company and the company’ s members as a body for our audit
work for this report or for the opinions we have formed
respective responsibilities of directors and auditors
the directors responsibilities for preparing the annual report
the directors remuneration report and the group ﬁnancial
statements in accordance with applicable law and international
financial reporting standards ifrss as adopted by the
european union are set out in the statement of directors
responsibilities
our responsibility is to audit the group ﬁnancial statements 
in accordance with relevant legal and regulatory requirements
and international standards on auditing uk and ireland
we report to you our opinion as to whether the group ﬁnancial
statements give a true and fair view whether the group
ﬁnancial statements have been properly prepared in accordance
with the companies act 1985 and article 4 of the ias
regulation and whether the part of the directors remuneration
report described as having been audited has been properly
prepared in accordance with the companies act 1985 we also
report to you whether in our opinion the information given in 
the directors report is consistent with the group ﬁnancial
statements the information given in the directors report
includes that speciﬁc information presented in the chief
executive’ s review that is cross referred from the introduction
to the directors report
in addition we report to you if in our opinion we have not
received all the information and explanations we require for our
audit or if information speciﬁed by law regarding directors’
remuneration and other transactions is not disclosed
we review whether the corporate governance statement
reﬂects the companys compliance with the nine provisions of
the 2003 combined code speciﬁed for our review by the listing
rules of the financial services authority and we report if it
does not we are not required to consider whether the boards
statements on internal control cover all risks and controls or
form an opinion on the effectiveness of the groups corporate
governance procedures or its risk and control procedures
we read the other information contained in the annual report
as described in the contents section and consider whether 
it is consistent with the audited group ﬁnancial statements 
we consider the implications for our report if we become aware
of any apparent misstatements or material inconsistencies with
the group ﬁnancial statements our responsibilities do not
extend to any further information outside the annual report
basis of audit opinion
we conducted our audit in accordance with international
standards on auditing uk and ireland issued by the auditing
practices board an audit includes examination on a test basis
of evidence relevant to the amounts and disclosures in the
group ﬁnancial statements and the part of the directors
remuneration report to be audited it also includes an
assessment of the signiﬁcant estimates and judgments made
by the directors in the preparation of the group ﬁnancial
statements and of whether the accounting policies are
appropriate to the groups circumstances consistently applied
and adequately disclosed
we planned and performed our audit so as to obtain all the
information and explanations which we considered necessary
in order to provide us with sufﬁcient evidence to give
reasonable assurance that the group ﬁnancial statements and
the part of the directors remuneration report to be audited
are free from material misstatement whether caused by fraud
or other irregularity or error in forming our opinion we also
evaluated the overall adequacy of the presentation of
information in the group ﬁnancial statements and the part 
of the directors remuneration report to be audited
opinion
in our opinion
• the group ﬁnancial statements give a true and fair view in
accordance with ifrss as adopted by the european union 
of the state of the groups affairs as at 31 december 2006 
and of its proﬁt for the year then ended
• the group ﬁnancial statements have been properly prepared 
in accordance with the companies act 1985 and article 4 of
the ias regulation 
• the part of the directors remuneration report described as
having been audited has been properly prepared in
accordance with the companies act 1985 
• the information given in the directors report is consistent
with the group ﬁnancial statements
separate opinion in relation to ifrss
as explained in the accounting policies note to the group
ﬁnancial statements the group in addition to complying with 
its legal obligation to comply with ifrss as adopted by the
european union has also complied with the ifrss as issued 
by the international accounting standards board in our opinion
the group ﬁnancial statements give a true and fair view in
accordance with ifrss of the state of the groups affairs as 
at 31 december 2006 and of its proﬁt for the year then ended
deloitte  t ouche llp
chartered accountants and registered auditors 
london uk
19 february 2007 48 taylor woodrow report and accounts 2006
accounting policies
basis of accounting
the consolidated ﬁnancial statements have been prepared in
accordance with applicable international accounting standards
ias and international financial reporting standards ifrs as
adopted for use in the european union and as issued by the
international accounting standards board 
the consolidated ﬁnancial statements have been prepared on
the historical cost basis except where stated below the
principal accounting policies adopted are set out below
basis of consolidation
the consolidated ﬁnancial statements incorporate the ﬁnancial
statements of the company and entities controlled by the
company its subsidiaries made up to 31 december each year
control is achieved where the company has the power to
govern the ﬁnancial and operating policies of an investee entity
so as to obtain beneﬁts from its activities the existence and
effect of potential voting rights that are currently exercisable or
convertible are considered when assessing whether the group
controls another entity
on acquisition the assets and liabilities and contingent liabilities
of a subsidiary are measured at their fair values at the date of
acquisition any excess of the cost of acquisition over the fair
values of the identiﬁable net assets acquired is recognised as
goodwill any deﬁciency of the cost of acquisition below the fair
values of the identiﬁable net assets acquired ie discount on
acquisition is credited to proﬁt and loss in the period of
acquisition the interest of minority shareholders is stated at the
minority’ s proportion of the fair values of the assets and
liabilities recognised subsequently any losses applicable to the
minority interest in excess of the minority interest are allocated
against the interests of the parent
the results of subsidiaries acquired or disposed of during the
year are included in the consolidated income statement from
the effective date of acquisition or up to the effective date of
disposal as appropriate where necessary adjustments are
made to the ﬁnancial statements of subsidiaries to bring the
accounting policies used into line with those used by the group
all intragroup transactions balances income and expenses
are eliminated on consolidation 
joint ventures are consolidated under the equity accounting
method rather than the alternative treatment of proportionate
consolidation allowed under ias 31 ‘interests in joint ventures’  
goodwill
goodwill arising on consolidation represents the excess of the
cost of acquisition over the group’ s interest in the fair value of
the identiﬁable assets and liabilities of a subsidiary or jointly
controlled entity at the date of acquisition
goodwill is recognised as an asset and reviewed for impairment
at least annually any impairment is recognised immediately in
proﬁt or loss and is not subsequently reversed
on disposal of a subsidiary or jointlycontrolled entity the
attributable amount of goodwill is included in the determination
of the proﬁt or loss on disposal
goodwill arising on acquisitions before the date of transition 
to ifrs has been retained at the previous uk gaap amounts
subject to being tested for impairment at that date goodwill
written off to reserves under uk gaap prior to 1998 has not
been reinstated and is not included in determining any
subsequent proﬁt or loss on disposal
revenue
revenue comprises the fair value of the consideration received
or receivable net of valueadded tax rebates and discounts and
after eliminating sales within the group 
revenue and proﬁt are recognised as follows
a private housing development properties and land sales
revenue is recognised at the fair value of the consideration
received or receivable on legal completion
b contracting work
where the outcome of a construction contract can be
estimated reliably revenue and costs are recognised by
reference to the stage of completion of the contract activity at
the balance sheet date this is normally measured by surveys of
work performed to date variations in contract work claims and
incentive payments are included to the extent that it is probable
that they will result in revenue and they are capable of being
reliably measured
where the outcome of a construction contract cannot be
estimated reliably contract revenue is recognised to the extent
of contract costs incurred that it is probable will be recoverable
contract costs are recognised as expenses in the period in
which they are incurred when it is probable that total contract
costs will exceed total contract revenue the expected loss is
recognised as an expense immediately
t ender costs for construction
signiﬁcant tender costs are treated as recoverable once the
directors consider that it is probable that the contract will be
won this is presumed to be when preferred bidder status is
awarded 
foreign currencies
the individual statements of each group company are
presented in the currency of the primary economic
environment in which it operates its functional currency
t ransactions in currencies other than the functional currency are
recorded at the rates of exchange prevailing on the dates of the
transactions at each balance sheet date monetary assets and
liabilities that are denominated in foreign currencies other than
the functional currency are retranslated at the rates prevailing
on the balance sheet date nonmonetary assets and liabilities
carried at fair value that are denominated in foreign currencies
are translated at the rates prevailing at the date when the fair
value was determined gains and losses arising on retranslation
are included in net proﬁt or loss for the period
on consolidation the assets and liabilities of the group’ s
overseas operations are translated at exchange rates prevailing
on the balance sheet date income and expense items are
translated at the average exchange rates for the period unless accounting policies continued
taylor woodrow report and accounts 2006  49
exchange rates ﬂuctuate signiﬁcantly when a monthly average
exchange rate is used instead exchange differences arising 
are classiﬁed as reserves and transferred to the group’ s
translation reserve such translation differences are recognised
as income or as expenses in the period in which the operation 
is disposed of
goodwill and fair value adjustments arising on the acquisition of
a foreign entity are treated as assets and liabilities of the foreign
entity and translated at the closing rate the group has elected
to treat goodwill and fair value adjustments arising on
acquisitions before the date of transition to ifrs as assets and
liabilities denominated in the functional currency of the
company in which they arise
the group enters into forward contracts and currency options
in order to hedge its exposure to certain foreign exchange
transaction risks relating to the functional currency in
accordance with group policy it also uses foreign currency
borrowings and currency swaps to hedge its net investment
exposure to certain overseas subsidiaries see below for details
of the group’ s accounting policies in respect of such derivative
ﬁnancial instruments
operating leases
rentals payable under operating leases are charged to income
on a straightline basis over the term of the relevant lease
beneﬁts received and receivable and costs paid and payable 
as an incentive to enter into an operating lease are also spread
on a straightline basis over the lease term
property and plant
land and buildings held for use in the production or supply of
goods or services or for administrative purposes are stated in
the balance sheet at their revalued amounts being the fair value
at the date of revaluation determined from marketbased
evidence by appraisal undertaken by professional valuers less
any subsequent accumulated depreciation and subsequent
accumulated impairment losses revaluations are performed
with sufﬁcient regularity such that the carrying amount does not
differ materially from that which would be determined using fair
values at the balance sheet date
any revaluation increase arising on the revaluation of such land
and buildings is credited to the properties revaluation reserve
except to the extent that it reverses a revaluation decrease for
the same asset previously recognised as an expense in which
case the increase is credited to the income statement to the
extent of the decrease previously charged a decrease in
carrying amount arising on the revaluation of such land and
buildings is charged as an expense to the extent that it exceeds
the balance if any held in the properties revaluation reserve
relating to a previous revaluation of that asset
on the subsequent sale or retirement of a revalued property
the attributable revaluation surplus remaining in the properties
revaluation reserve is transferred directly to accumulated
proﬁts
depreciation is charged so as to write off the cost or valuation
of assets over their estimated useful lives depreciation is
charged where material on buildings over the expected useful
life of the asset other assets are depreciated using the
straightline method on the following bases
plant ﬁxtures and equipment 20  25 per cent
computer equipment 33 per cent
the gain or loss arising on the disposal or retirement of an asset
is determined as the difference between the sales proceeds
and the carrying amount of the asset and is recognised in proﬁt
or loss
financial instruments
financial assets and ﬁnancial liabilities are recognised on the
group’ s balance sheet when the group becomes a party to the
contractual provisions of the instrument
t rade receivables and other receivables
t rade receivables do not carry any interest and are stated at
their nominal value as reduced by appropriate allowances for
estimated irrecoverable amounts 
financial liability and equity
financial liabilities and equity instruments are classiﬁed
according to the substance of the contractual arrangements
entered into an equity instrument is any contract that
evidences a residual interest in the assets of the group after
deducting all of its liabilities
borrowings
interestbearing bank loans and overdrafts are recorded at the
proceeds received net of direct issue costs finance charges
including premiums payable on settlement or redemption and
direct issue costs are accounted for on an accrual basis to the
income statement using the effective interest method and are
added to the carrying amount of the instrument to the extent
that they are not settled in the period in which they arise
t rade payables
t rade payables on normal terms are not interest bearing and are
stated at their nominal value t rade payables on extended
terms particularly in respect of land are recorded at their fair
value at the date of acquisition of the asset to which they relate
the discount to nominal value is amortised over the period of
the credit term and charged to ﬁnance costs
equity instruments
equity instruments issued by the company are recorded at the
proceeds received net of direct issue costs
derivative ﬁnancial instruments and hedge accounting
the group uses forward exchange contracts and currency
options to hedge transactions denominated in foreign
currencies the group also uses foreign currency borrowings
and currency swaps to hedge its net investment exposure to
movements in exchange rates on translation of certain
individual ﬁnancial statements denominated in foreign
currencies other than pounds sterling which is the functional
currency of the company interest rate derivaties are used to
manage interest rate risk in respect of speciﬁc borrowings 
the group does not use derivative ﬁnancial instruments for
speculative purposes 50 taylor woodrow report and accounts 2006
accounting policies continued
the use of ﬁnancial derivatives is governed by the group’ s
policies approved by the board of directors which provide
written principles on the use of ﬁnancial derivatives 
changes in the fair value of derivative ﬁnancial instruments that
are designated and effective as hedges of net investments in
foreign operations are recognised directly in reserves and the
ineffective portion if any is recognised immediately in the
income statement 
for an effective hedge of an exposure to changes in the fair
value the hedged item is adjusted for changes in fair value
attributable to the risk being hedged with the corresponding
entry in proﬁt or loss gains or losses from remeasuring 
the derivative or for nonderivatives the foreign currency
component of its carrying amount are recognised in proﬁt 
or loss
changes in the fair value of derivative ﬁnancial instruments that
do not qualify for hedge accounting are recognised in the
income statement as they arise
hedge accounting is discontinued when the hedging
instrument expires or is sold terminated or exercised or no
longer qualiﬁes for hedge accounting at that time any
cumulative gain or loss on the hedging instrument recognised in
reserves is retained in reserves until the forecasted transaction
occurs if a hedged transaction is no longer expected to occur
the net cumulative gain or loss recognised in reserves is
transferred to the income statement for the period
inventories
inventories details of which are shown in note 14 are stated 
at the lower of cost and net realisable value cost comprises
direct materials and where applicable direct labour costs and
those overheads that have been incurred in bringing the
inventories to their present location and condition net
realisable value represents the estimated selling price less all
estimated costs of completion and costs to be incurred in
marketing selling and distribution
t axation
the tax expense represents the sum of the tax currently
payable and deferred tax
current tax 
the tax currently payable is based on taxable proﬁt for the year
t axable proﬁt differs from net proﬁt as reported in the income
statement because it excludes items of income or expense that
are taxable or deductible in other years and it further excludes
items that are never taxable or deductible the group’ s liability
for current tax is calculated using tax rates that have been
enacted or substantively enacted by the balance sheet date
deferred tax 
deferred tax is the tax expected to be payable or recoverable 
on differences between the carrying amounts of assets and
liabilities in the ﬁnancial statements and the corresponding tax
bases used in the computation of taxable proﬁt and is
accounted for using the balance sheet liability method deferred
tax liabilities are generally recognised for all taxable temporary
differences and deferred tax assets are recognised to the extent
that it is probable that taxable proﬁts will be available against
which deductible temporary differences can be utilised such
assets and liabilities are not recognised if the temporary
difference arises from goodwill or from the initial recognition
other than in a business combination of other assets and
liabilities in a transaction that affects neither the tax proﬁt nor
the accounting proﬁt
deferred tax liabilities are recognised for taxable temporary
differences arising on investments in subsidiaries and interests
in joint ventures except where the group is able to control the
reversal of the temporary difference and it is probable that the
temporary difference will not reverse in the foreseeable future
deferred taxation is measured on a nondiscounted basis using
the tax rates and laws that have then been enacted or
substantially enacted by the balance sheet date and are
expected to apply when the related deferred income tax asset
is realised or the deferred tax liability is settled
the carrying amount of deferred tax assets is reviewed at each
balance sheet date and reduced to the extent that it is no 
longer probable that sufﬁcient taxable proﬁts will be available 
to allow all or part of the asset to be recovered deferred tax 
is calculated at the tax rates that are expected to apply in the
period when the liability is settled or the asset is realised
deferred tax is charged or credited in the income statement
except when it relates to items charged or credited directly 
to reserves in which case the deferred tax is also dealt with 
in reserves
sharebased payments
the group has applied the requirements of ifrs 2 ‘sharebased
payments’  in accordance with the transitional provisions ifrs
2 has been applied to all grants of equity instruments after 7
november 2002 that were unvested as of 1 january 2005 
the group issues equitysettled sharebased payments to
certain employees equitysettled sharebased payments are
measured at fair value at the date of grant the fair value is
expensed on a straightline basis over the vesting period based
on the group’ s estimate of shares that will eventually vest
employee beneﬁts
the group accounts for pensions and similar beneﬁts under ias
19 ‘employee beneﬁts’  in respect of deﬁned beneﬁt plans
obligations are measured at discounted present value whilst
plan assets are recorded at fair value the operating and
ﬁnancing costs of such plans are recognised separately in the
income statement service costs are spread systematically over
the lives of employees and ﬁnancing costs are recognised in the
periods in which they arise actuarial gains and losses are
recognised immediately in the statement of recognised income
and expense rather than the ‘corridor method’ alternative
available under ias 19 
payments to deﬁned contribution schemes are charged as an
expense as they fall due taylor woodrow report and accounts 2006  51
consolidated income statement for the year to 31 december 2006
2006 2005
note £m £m
continuing operations
revenue group and share of joint ventures 36790 35564
less share of joint ventures 1069 795
consolidated revenue 3 35721 34769
cost of sales 29334 28317
gross profit 6387 6452
profit on disposal of properties and investments 4 91 102
administrative expenses 2001 1954
share of results of joint ventures 221 150
profit from operations 4 4698 4750
interest receivable 91 83
finance costs 6 733 723
profit before tax 4056 4110
tax 7 1150 1245
profit for the year 2906 2865
attributable to
equity holders of the parent 29 2895 2857
minority interest 11 08
2906 2865
earnings per share
from continuing operations
basic 9 505p 506p
diluted 9 501p 498p consolidated statement of recognised income and expense 
for the year to 31 december 2006
52 taylor woodrow report and accounts 2006
2006 2005
£m £m
net exchange differences on translation of foreign operations 490 364
actuarial losses on defined benefit pension schemes 16 733
t ax on actuarial losses taken directly to equity 05 220
net surplus on revaluation 10 
net expense recognised directly in equity 491 149
profit for the year 2906 2865
t otal recognised income for the year 2415 2716
attributable to
equity holders of parent 2404 2708
minority interests 11 08
2415 2716
reconciliation of movements in consolidated equity for the year to 31 december 2006
2006 2005
£m £m
t otal recognised income for the year 2415 2716
dividends on equity shares 797 713
new share capital subscribed 38 98
proceeds from sale of own shares 150 73
purchase of own shares 61 
increase in sharebased payment tax reserve 42 12
credit to equity relating to own shares  13
sharebased payment credit 61 59
cash cost of satisfying share options 80 
increase decrease in other reserve 06 06
decrease in minority interests  09
net increase in equity 1762 2255
opening equity 19293 17038
closing equity 21055 19293 consolidated balance sheet at 31 december 2006
taylor woodrow report and accounts 2006  53
2006 2005
note £m £m
noncurrent assets
goodwill 10 3631 3639
property and plant 11 255 244
interests in joint ventures 12 562 921
t rade and other receivables 15 560 372
deferred tax assets 13 954 1012
5962 6188
current assets
inventories 14 29465 26996
t rade and other receivables 15 2949 2783
t ax receivables 197 36
cash and cash equivalents 15 2365 1973
34976 31788
t otal assets 40938 37976
current liabilities
t rade and other payables 19 9260 8221
t ax payables 741 616
debenture loans 17 25 65
bank loans and overdrafts 16 123 90
10149 8992
net current assets 24827 22796
noncurrent liabilities
t rade payables 19 1231 762
debenture loans 17 6106 6380
bank loans 16 24 07
retirement benefit obligation 20 2086 2225
deferred tax liabilities 13 08 09
longterm provisions 21 279 308
9734 9691
t otal liabilities 19883 18683
net assets 21055 19293
equity
share capital 22 1485 1480
share premium account 23 7588 7562
revaluation reserve 24 15 05
own shares 25 450 539
sharebased payment tax reserve 26 82 40
capital redemption reserve 27 315 315
other reserve 48 54
t ranslation reserve 28 191 299
retained earnings 29 12143 10068
equity attributable to equity holders of the parent 21035 19284 
minority interests 20 09
t otal equity 21055 19293
the financial statements were approved by the board of directors and authorised for issue on 19 february 2007 they were signed
on its behalf by
n b m askew p t johnson
director director 2006 2005
note £m £m
net cash from operating activities 30 570 1302
investing activities
interest received 91 83
dividends received from joint ventures 226 30
proceeds on disposal of properties plant and investments including joint ventures 480 139
purchases of properties plant and investments 67 63
amounts invested in joint ventures 92 228
amounts repaid by joint ventures 53 272
net cash from investing activities 691 233
financing activities
equity dividends paid 797 713
dividends paid by subsidiaries to minority shareholders 01 09
issue of ordinary share capital 33 98
proceeds from sale of own shares 159 73
purchase of own shares 124 
new debenture loans raised  18
new bank loans raised 6087 4102
repayment of debenture loans 43 185
repayment of bank loans 6009 4162
decrease in bank overdrafts 27 23
net cash used in financing activities 722 801
net increasedecrease in cash and cash equivalents 539 734
cash and cash equivalents at beginning of year 1973 1149
effect of foreign exchange rate changes 147 90
cash and cash equivalents at end of year 2365 1973
consolidated cash flow statement for the year to 31 december 2006
54 taylor woodrow report and accounts 2006 notes to the consolidated financial statements for year to 31 december 2006
taylor woodrow report and accounts 2006  55
1  general information
t aylor woodrow plc is a company incorporated in the united kingdom under the companies act 1985 the address of the registered
ofﬁce is given on page 90 the nature of the group’ s operations and its principal activities are set out in note 3 and in the chief
executive’ s review on pages 5 to 27 
these ﬁnancial statements are presented in pounds sterling because that is the currency of the primary economic environment 
in which the group operates foreign operations are included in accordance with the policies set out on pages 48 and 49
key sources of estimation uncertainty and critical accounting judgments
site valuations and work in progress
internal site valuations are carried out at regular intervals throughout the year the valuations will include an estimation of the costs
to complete and remaining revenues in order to determine the proﬁt that the group is able to recognise on the proportion of
completions in the period for each development in addition the carrying value of work in progress can involve considerable
judgment around future margins from sites in assessing whether any impairment provisions need to be recognised
impairment of goodwill
the determination of whether goodwill is impaired requires an estimation of the value in use of the cashgenerating units to which
goodwill has been allocated the value in use calculation requires an estimate of the future cash ﬂows expected to arise from the
cash generating unit the future growth rate of revenue and costs and a suitable discount rate the carrying amount of goodwill at
the balance sheet date was £3631m
contracting work
proﬁts in respect of contracts will be recognised by reference to the stage of completion when an estimate of a proﬁtable outcome
can be measured reliably determining the outcome of a contract will require a survey this includes an estimate of the value of
costs to complete and in certain instances estimates of the contract price as well as any variations in the contract work
contingent liabilities
note 31 describes an ongoing legal dispute in florida in making its judgment management considered the detailed criteria for 
the recognition of a provision set out in ias 37  and in particular the existence of a present obligation having taken legal advice 
the directors are satisﬁed that recognition of a provision in the current year is not appropriate for all aspects of the dispute and that
some of the circumstances give rise to a possible obligation whose existence will be conﬁrmed by the occurrence of uncertain
future events
pensions
note 20 details the main assumptions made for the accounting of the group’ s deﬁned beneﬁt pension schemes
tax
aspects of tax accounting require considerable management judgment and interpretation of tax legislation across many
jurisdictions 
2 revenue
an analysis of the group’ s revenue is as follows
2006 2005
£m £m
housing 30215 27857
construction 5506 4992
property  1920
consolidated revenue 35721 34769
interest receivable 91 83
35812 34852 notes to the consolidated financial statements for year to 31 december 2006
56 taylor woodrow report and accounts 2006
3 business and geographical segments
business segments
for management purposes the group is currently organised into four operating divisions – housing  united kingdom housing –
north america housing – spain and gibraltar and construction from 2006 the property sector is no longer separately reported
these divisions are the basis on which the group reports its primary segment information   
segment information about these businesses is presented below 
housing housing housing
united north spain and housing
kingdom america gibraltar total construction consolidated
2006 £m £m £m £m £m £m
revenue
external sales 17592 11702 921 30215 5506 35721
intersegment sales 41   41 608 649
eliminations 41   41 608 649
t otal revenue 17592 11702 921 30215 5506 35721
share of joint 
ventures’ revenue 828 241  1069  1069
group and share 
of joint ventures 18420 11943 921 31284 5506 36790
result
profit before joint ventures 2068 2064 264 4396 81 4477
share of joint ventures’ 
profit 147 149  296  296
profit 2215 2213 264 4692 81 4773
share of joint ventures’ 
interest and tax 61 14  75  75
profit from operations 2154 2199 264 4617 81 4698
finance costs net 642
profit before tax 4056
tax 1150
profit for the year 2906
profit is profit from operations before joint ventures’ interest and tax
other information
property and plant additions 25 17 03 45 22 67
depreciation  plant 11 11 01 23 54 77
assets
segment assets 23105 8687 1737 33529 1007 34536
share of joint 
ventures’ assets 533 541  1074 33 1107
eliminations 354 347  701  701
23284 8881 1737 33902 1040 34942
goodwill 3631
cash and cash equivalents 2365
consolidated total assets 40938 notes to the consolidated financial statements for year to 31 december 2006
taylor woodrow report and accounts 2006  57
3 business and geographical segments continued
housing housing housing
united north spain and housing
kingdom america gibraltar total construction consolidated
2006 £m £m £m £m £m £m
liabilities
segment liabilities 7540 3109 841 11490 2115 13605
share of joint 
ventures’ liabilities 354 347  701  701
eliminations 354 347  701  701
7540 3109 841 11490 2115 13605
gross debt 6278
consolidated total liabilities 19883
capital employed 15744 5772 896 22412 1075 21337
goodwill 3631
net debt 3913
net assets 21055
the group is unable to allocate the defined benefit pension scheme assets and liabilities on an actuarial basis by entity however for the purposes of the
segmental analysis above the group has allocated the deficit on the basis of members in the plan this allocation is performed solely for the purposes of providing
a more meaningful segmental analysis and is not an appropriate apportionment in accordance with ias 19 
housing housing housing
united north spain and housing
kingdom america gibraltar total property construction consolidated
2005 £m £m £m £m £m £m £m
revenue
external sales 1607 9 11021 757 27857 1920 4992 34769
inter segment sales 48   48  71 1 759
eliminations 48   48  71 1 759
t otal revenue 1607 9 11021 757 27857 1920 4992 34769
share of joint 
ventures’ revenue 395 397  792  03 795
group and share of 
joint ventures 1647 4 1141 8 757 28649 1920 4995 35564
result
proﬁt before joint ventures 227 4 1856 230 4360 157 83 4600
share of joint 
ventures’ proﬁt 60 140  200  05 205
proﬁt 233419962304560157884805
share of joint ventures’ 
interest and tax 54 01  55   55
proﬁt from operations 2280 1995 230 4505 157 88 4750
finance costs net 640
proﬁt before tax 41 1 0
tax 1245
proﬁt for the year 2865
other information
property and plant 
additions 09 1 4 01 24  38 62
depreciation  plant 1 1 08 02 21  37 58 notes to the consolidated financial statements for year to 31 december 2006
58 taylor woodrow report and accounts 2006
3 business and geographical segments continued
housing housing housing
united north spain and housing
kingdom america gibraltar total property construction consolidated
2005 £m £m £m £m £m £m £m
assets
segment assets 21602 7 469 121 5 30286 252 1526 32064
share of joint 
ventures’ assets 1337 559  1896   1896
eliminations 1335 261  1596   1596
21604 7767 121 5 30586 252 1526 32364
goodwill 3639
cash and cash equivalents 197 3
consolidated total assets 3797 6
liabilities
segment liabilities 5753 281 1 640 9204 17 4 2763 12141
share of joint 
ventures’ liabilities 1335 261  1596   1596
eliminations 1335 261  1596   1596
5753 281 1 640 9204 17 4 2763 12141
gross debt 6542
consolidated total 
liabilities 18683
capital employed 15851 4956 57 5 21382 7 8 1237 20223
goodwill 3639
net debt 4569
net assets 19293
geographical segments
the group’s operations are located primarily in the united kingdom and north america the group’s housing divisions are already
segmented geographically above the construction division is primarily located in the united kingdom 
the following table provides an analysis of the group’s sales by geographical market irrespective of the origin of the
goodsservices
sales revenue by
geographical market
2006 2005
£m £m
united kingdom 22436 22484
north america 11701 11021
rest of the world 1584 1264
35721 34769 notes to the consolidated financial statements for year to 31 december 2006
taylor woodrow report and accounts 2006  59
3 business and geographical segments continued
the following is an analysis of the carrying amount of segment assets and additions to property and plant
analysed by the geographical area in which the assets are located
carrying amount additions to
of segment assets property and plant
2006 2005 2006 2005
£m £m £m £m
united kingdom 28549 27255 26 12
north america 10123 9022 17 14
rest of the world 2266 1699 24 36
40938 37976 67 62
4 proﬁt from operations
2006 2005
profit from operations includes £m £m
profit on disposal of investments 90 71
profit on disposal of fixed assets 01 
profit on disposal of investment and other noncurrent property  31
profit on disposal of property and investments 91 102
2006 2005
profit from operations has been arrived at after charging crediting £m £m
cost of inventories recognised as expense 29038 28250
specific writedowns of inventories 353 156
reversal of specific writedowns of inventories 57 89
depreciation  plant 77 58
minimum lease payments under operating leases 
recognised in income for the year 136 60
auditors’ remuneration for assurance services
recurring – external audit of group and company 03 02
nonrecurring – ifrs restatement audit  01
other services pursuant to legislation 01 01
other assurance 01 01
auditors’ remuneration for other services
recurring – external audit of subsidiaries 04 04
t ax services 01 08
5 staff costs
2006 2005
number number
average number employed
housing united kingdom 2658 2971
housing north america 1108 984
housing spain and gibraltar 157 167
construction 4235 4006
property  4
8158 8132
united kingdom 4079 4472
overseas 4079 3660
8158 8132 notes to the consolidated financial statements for year to 31 december 2006
60 taylor woodrow report and accounts 2006
5 staff costs continued
£m £m
remuneration
wages and salaries 2456 2259
social security costs 233 217
other pension costs 152 157
2841 2633
6 finance costs
2006 2005
£m £m
interest on bank overdrafts and loans 229 206
interest on debenture loans 412 421
641 627
amortisation of discount on land creditors 65 54
notional interest on pension liability note 20 27 42
733 723
7 t ax
2006 2005
£m £m
current tax
uk corporation tax current year 588 1118
prior year 99 97
relief for foreign tax 83 630
foreign tax current year 804 823
prior year 83 142
1127 1356
deferred tax
uk current year 30 90
prior year 02 12
foreign current year 48 73
prior year 103 140
23 111
1150 1245
corporation tax is calculated at 30 per cent 2005 30 per cent of the estimated assessable profit for the year in the uk
t axation for other jurisdictions is calculated at the rates prevailing in the respective jurisdictions
deferred tax recognised in the group statement of recognised income and expense is due to actuarial gains on postretirement
liability  notes to the consolidated financial statements for year to 31 december 2006
taylor woodrow report and accounts 2006  61
7  t ax continued
the charge for the year can be reconciled to the profit per the income statement as follows
2006 2005
£m £m
profit before tax 4056 4110
t ax at the uk corporation tax rate of 30 
2005 30 1217 1233
over provision in respect of prior years 81 83
t ax effect of share of results of joint ventures 48 45
t ax effect of expenses that are not deductible in determining taxable profit 48 120
non taxable income 225 180
net overseas income receivable  06
effect of higher rates of tax of subsidiaries operating in other jurisdictions 198 205
other 41 11
t ax expense for the year 1150 1245
8 dividends
2006 2005
£m £m
amounts recognised as distributions to equity holders in the year
final dividend for the year ended 31december 2005 of 89p 
2004 81p per share 510 455
interim dividend for the year ended 31december 2006 of 50p 
2005 45p per share 287 258
797 713
proposed final dividend for the year ended 31 december 2006 of 
975p 2005 89p per share 576 510
the proposed final dividend is subject to approval by shareholders at the annual general meeting and has not been included 
as a liability in these financial statements
9 earnings per share
from continuing operations
2006 2005
basic 505p 506p
diluted 501p 498p
the calculation of the basic and diluted earnings per share is based on the following data
2006 2005
earnings £m £m
earnings for basic earnings per share and diluted earnings per share 2895 2857
2006 2005
weighted average number of shares m m
for basic earnings per share 5729 5646
weighted average of dilutive options 50 78
weighted average of dilutive awards under bonus plans 05 11
for diluted earnings per share 5784 5735 notes to the consolidated financial statements for year to 31 december 2006
62 taylor woodrow report and accounts 2006
10 goodwill
£m
cost and carrying amount
at 1 january 2005 3632
changes in exchange rates 07
at 31 december 2005 3639
changes in exchange rates 08
at 31 december 2006 3631
goodwill of £3575m 2005 £3575m is allocated to the uk housing business the recoverable amount in respect of uk housing
has been determined on the basis of the current business plan which extends for six years
key assumptions are
i gross margins are consistent with latest forecasts
ii a pretax discount rate of 111 per cent based on the group’s weighted average cost of capital
1 1  property and plant
freehold
land and
buildings plant total
£m £m £m
cost or valuation
at 1 january 2005 75 557 632
changes in exchange rates  05 05
additions  62 62
disposals 03 28 31
at 31 december 2005 72 596 668
changes in exchange rates  07 07
additions  67 67
disposals  20 20
net surplus on revaluation 24  24
at 31 december 2006 96 636 732
comprising
properties valued
cost 93  93
net surplus 03  03
valuation in 2006 96  96
others not valued  cost  636 636
96 636 732
accumulated depreciation
at 1 january 2005  390 390
changes in exchange rates  03 03
disposals  27 27
charge for the year  58 58
at 31 december 2005  424 424
changes in exchange rates  04 04
disposals  20 20
charge for the year  77 77
at 31 december 2006  477 477 notes to the consolidated financial statements for year to 31 december 2006
taylor woodrow report and accounts 2006  63
1 1  property and plant continued
freehold
land and
buildings plant total
£m £m £m
carrying amount
at 31 december 2006 96 159 255
at 31 december 2005 72 172 244
the fixed asset properties of the group were valued as at 31 december 2006 by knight frank llp  independent valuers not
connected with the group on a fair value basis in accordance with rics valuation methodology and that valuation was £96m 
the income statement was credited with £14m of the £24m net surplus on revaluation in line with prior years’ deficit treatment 
the revaluation surplus arises in a subsidiary and cannot be distributed to the parent due to legal restrictions in the united kingdom 
12 interests in joint ventures
2006 2005
£m £m
aggregated amounts relating to share of joint ventures
t otal assets 1107 1896
t otal liabilities 701 1596
carrying amount 406 300
loans to joint ventures 156 621
t otal interests in joint ventures 562 921
revenues 1069 795
profit after interest and tax 221 150
particulars of signiﬁcant joint ventures are as follows 
name of joint venture equity accounted in the t aylor woodrow plc
consolidated financial statements interest in the issued
country of incorporation interests held by subsidiary undertakings ordinary share capital
great britain greenwich millennium village limited 50
north central management holdings limited 50
usa t aylor woodrow communitiessteiner ranch limited 75
olsen holdings llc 58
13 deferred tax
the following are the major deferred tax assets and liabilities recognised by the group and movements thereon during the current
and prior reporting year
shortterm retirement
capital timing benefit
allowances differences obligations total
£m £m £m £m
at 1 january 2005 11 197 435 643
changes in exchange rates  17  17
credit to income 04 97 10 111
credit to equity  12 220 232
at 31 december 2005 15 323 665 1003
changes in exchange rates  03  03
credit charge to income 16 77 16 45
credit charge to equity  14 05 09
at 31 december 2006 31 229 686 946 notes to the consolidated financial statements for year to 31 december 2006
64 taylor woodrow report and accounts 2006
13 deferred tax continued
the net deferred tax balance is analysed into assets and liabilities as follows
2006 2005
£m £m
deferred tax assets 954 1012
deferred tax liabilities 08 09
946 1003
at the balance sheet date the group has unused uk capital losses of £1872m 2005 £1634m of which £625m 2005 £617m
are agreed available for offset against future capital profits no deferred tax asset has been recognised in respect of these losses
because the directors do not consider that these capital losses will be utilised in the foreseeable future 
14 inventories
2006 2005
£m £m
raw materials and consumables 23 26
finished goods and goods for resale 587 668
residential developments
land note 19 18572 16837
development and construction costs 9991 8990
commercial industrial and mixed development properties 292 475
29465 26996
15 other ﬁnancial assets
t rade and other receivables 
noncurrent current
2006 2005 2006 2005
£m £m £m £m
t rade receivables 378 194 1448 628
amounts recoverable on contracts   652 518
joint ventures   96 315
currency and interest rate derivatives 152 67  
other receivables 30 111 753 1322
560 372 2949 2783
the average credit period taken on sales is 15 days 2005 8 days an allowance has been made for estimated irrecoverable
amounts from trade receivables and amounts recoverable on contracts of £37m 2005 £27m this allowance has been
determined by reference to past default experience
the directors consider that the carrying amount of trade and other receivables approximates their fair value
cash and cash equivalents 
this comprises of cash held by the group and shortterm bank deposits with an original maturity of three months or less 
the carrying amount of these assets approximates their fair value notes to the consolidated financial statements for year to 31 december 2006
taylor woodrow report and accounts 2006  65
15 other ﬁnancial assets continued
credit risk
the group’s principal financial assets are bank balances and cash and trade and other receivables which represent the group’s
maximum exposure to credit risk in relation to financial assets
the group’s credit risk is primarily attributable to its trade receivables the amounts presented in the balance sheet are net of
allowances for doubtful receivables estimated by the group’s management based on prior experience and their assessment 
of the current economic environment
the credit risk on liquid funds and derivative financial instruments is governed by group policy that specifies the minimum credit
rating maximum exposure and maximum tenor 
the group has no significant concentration of credit risk with exposure spread over a large number of counterparties and
customers
16 bank overdrafts and loans
2006 2005
£m £m
bank overdrafts repayable on demand 02 29
bank loans 145 68
147 97
bank loans are repayable as follows
within one year 121 61
in more than one year but not more than two years 24 07
145 68
less amounts due for settlement within 12 months 121 61
amount due for settlement after 12 months 24 07
bank bank
overdraft loans
£m £m
analysis of borrowings by currency
31 december 2006
sterling 02 
canadian dollars  84
ghanian cedis  39
us dollars  22
02 145
31 december 2005
sterling 29 
canadian dollars  15
ghanian cedis  53
29 68
bank borrowings are arranged at floating rates of interest from 195 per cent to 206 per cent 2005 185 per cent to 215 per
cent thus exposing the group to cash flow interest rate risk see chief executive’s review on pages 5 to 27
secured bank loans and overdrafts totalled £145m 2005 £68m secured bank loans and overdrafts are secured on certain fixed
asset properties and land
the directors estimate the fair value of the group’s bank borrowings to be equivalent to its book value
at 31 december 2006 the group had available £6295m 2005 £6850m of undrawn committed revolving credit facilities notes to the consolidated financial statements for year to 31 december 2006
66 taylor woodrow report and accounts 2006
17  debenture loans
2006 2006 2005 2005
book value fair value book value fair value
£m £m £m £m
floating rate notes 2006 – unsecured  16 16
659 us 81m notes 2008 – unsecured 413 418 471 498
floating rate notes 2008 – unsecured 20 20 26 26
6625 £250m guaranteed bonds 2012 – unsecured 2436 2570 2470 2679
553 us 75m notes 2011 – unsecured 382 382 435 432
603 us 175m notes 2014 – unsecured 890 892 1014 1017
6375 £200m bonds 2019 – unsecured 1973 1990 1971 2185
other secured loans 17 18 42 45
6131 6290 6445 6898
2006 2005
£m £m
repayable
in more than one year but not more than two years 06 05
in more than two years but not more than five years 801 485
in more than five years 5299 5890
t otal falling due in more than one year 6106 6380
within one year or on demand 25 65
6131 6445
interest rates and currencies of debenture loans fixed rate debt
weighted
weighted average
floating average time until
rate fixed rate interest rate maturity
£m £m  years 
31 december 2006
sterling 20 4409 67 86
us dollars  1685 61 53
canadian dollars  17 114 30
20 6111 65 77
31 december 2005
sterling 42 4441 65 94
us dollars  1920 62 63
canadian dollars 18 24 114 21
60 6385 64 85
interest on debenture loans of £100m 2005 £100m has been swapped from 6625 per cent to floating rates based on us libor
applicable to periods of three months the above table does not reflect the impact of these swaps
charges for secured loans have been given principally on certain development properties notes to the consolidated financial statements for year to 31 december 2006
taylor woodrow report and accounts 2006  67
18 derivative ﬁnancial instruments
the group has the following derivatives at 31 december 2006
• currency swaps relating to part of its 6625 per cent bonds 2012 which have swapped £100m into us1605m to hedge
part of its investment in the united states of america and the interest on this has been swapped from 6625 per cent to
floating rates based on us libor applicable to periods of three months
• currency swaps relating to the 704 per cent loan notes 2008 acquired with bryant group plc in 2001 these notes were
issued by way of a us81m 659 per cent fixed rate us private placement the dollar proceeds were swapped into
£495m at a fixed rate of interest of 704 per cent
• a five year collar limiting the three month libor interest rate to between 399 per cent and 65 per cent on £30m 
expired in december 2006
• a ten year interest swap to december 2012 acquired with wilson connolly in 2003 on £35m from floating rate to a fixed
interest rate of 58 per cent
• forward contracts to hedge transaction risks and intragroup loans to buy us12m and €16m against sterling
at 31 december 2006 the fair value of the group’s derivatives is a net debtor of £61m 2005 £16m these amounts are based 
on market values of equivalent instruments at the balance sheet date comprising £152 m 2005 £67m assets included in trade
and other receivables and £91m 2005 £51m liabilities included in trade and other payables the fair value of derivatives that are
designated and effective as net investment hedges amounting to £195m 2005 £72m has been deferred in equity changes in
the fair value of nonhedging currency derivatives amounting to £18m 2005 £05m have been credited  charged to income 
in the year 
19 other ﬁnancial liabilities
t rade and other payables 
current noncurrent
2006 2005 2006 2005
£m £m £m £m
t rade payables 5232 4356 1210 580
payments received on account 852 1149 17 176
joint ventures 28 04  
currency and interest rate derivatives 91 51  
other payables 3057 2661 04 06
9260 8221 1231 762
t rade payable days were 32 days 2005 31 days based on the ratio yearend trade payables excluding subcontract retentions 
and unagreed claims of £132m 2005 £129m and land creditors to amounts invoiced during the year by trade creditors 
the directors consider that the carrying amount of trade and other payables approximates to their fair value notes to the consolidated financial statements for year to 31 december 2006
68 taylor woodrow report and accounts 2006
19 other ﬁnancial liabilities continued
land creditors included within trade payables of £3504m 2005 £2419m are secured against land acquired for development
land creditors are due as follows
2006 2005
£m £m
due within one year 2520 1839
due in more than one year but not more than two years 736 340
due in more than two years but not more than five years 420 234
due in more than five years 54 06
3730 2419
current liability 2520 1839
noncurrent liability 1210 580
3730 2419
land creditors are denominated as follows
2006 2005
£m £m
sterling 2397 1888
us dollar 579 43
canadian dollar 249 127
euros 505 361
3730 2419
20 retirement beneﬁt schemes
retirement benefit obligation comprises gross pension liability of £2059m 2005 £2198m and gross postretirement health
care liability of £27m 2005 £27m
the group operates defined benefit and defined contribution pension schemes in the uk the t aylor woodrow group pension
and life assurance fund twgplaf and the t aylor woodrow nhs pension scheme twnhsps are funded defined benefit
schemes the twgplaf merged with the bryant group pension scheme bgps on 24 june 2002 and with the wilson
connolly holdings pension scheme wchps the wainhomes ltd pension scheme whlps and the prestoplan pension
scheme pps on 27 august 2004 the schemes are managed by trustees all scheme assets are held separately from the
group with the exception of the twnhsps the defined benefit schemes are closed to new entrants and with effect from 
30 november 2006 to future pension accrual an alternative defined contribution arrangement the t aylor woodrow personal
choice plan is offered to new employees and from 1 december 2006 to employees who previously accrued benefits in the
twgplaf  contributions of £67m 2005 £59m were charged to income in respect of defined contribution schemes the
group also operates a number of overseas pension schemes of the defined benefit and defined contribution type
the most recent formal actuarial valuation of the twgp  laf was carried out at 1 june 2004 and updated to 1 september 2004
to take account of subsequent mergers the twnhsps commenced in december 2003 and the actuary has completed his
initial valuation with an effective date of 31 december 2003 the projected unit method was used in all valuations and assets
were taken into account using market values the next formal valuations of the twgplaf and twnhsps are due to take place
on 1 june 2007 and 31 december 2006 respectively
as part of the discussions with the t rustees of the twgplaf around the closure of the scheme to future accrual the group
has agreed to increase deficit repair payments from the current level of £48m pa to £20m pa for the next 10 years these
payments will be reviewed at each valuation the first such payment was made on 19 december 2006 notes to the consolidated financial statements for year to 31 december 2006
taylor woodrow report and accounts 2006  69
20 retirement beneﬁt schemes continued
the main financial assumptions which were used for the triennial funding valuation and are all relative to the inflation assumption
are as set out below
assumptions twgplaf twnhsps
inflation 25 pa 25 pa
investment return – prepost retirement 5030 pa 3030 pa
general pay inflation 0 pa 10 pa
pension increases 0 pa 0 pa
valuation results twgplaf twnhsps
market value of assets £5633m £005m
past service liabilities £6279m £009m
scheme funding levels 90 58
the actuaries to each scheme calculated the longterm funding rates to be 160 per cent twgplaf and 18 per cent twnhsps
of each scheme’s respective pensionable salary roll 
the funding policy of the t rustees is to maintain a stable contribution rate with a funding level in excess of 100 per cent
the valuations of the group’s pension schemes have been updated to 31 december 2006 and the position of overseas schemes
has been included within the ias 19 disclosures the principal actuarial assumptions used in the calculation of the disclosure items
are as follows
united kingdom north america
2006 2005 2006 2005
as at 31 december
discount rate for scheme liabilities 510 475 5057 5054
expected return on scheme assets 587 58 5566 66
deferred pension increases 300 275 2535 2535
pension increases 275 26 3540 0030
the basis for the above assumptions are prescribed by ias 19 and do not reflect the assumptions that may be used in future
funding valuations of the group’s pension schemes
the key change in assumptions in the year relates to future bond yields in addition the company has strengthened its assumptions
in respect of underlying mortality by adoption of the 92 series tables which for a 65 yearold male the life expectancy assumed has
increased from 169 years to 19 years
the fair value of assets and present value of obligations of the group’s defined benefit pension arrangements are set out below
expected
rate of united north total percentage
return kingdom america plans of total plan 
 pa £m £m £m assets held
31 december 2006
assets
equities 797 3469 75 3544 47
bondsgilts 512  447 3764 40 3803 51
other assets 512 147 02 150 2
7380 117 7497 100
present value of defined benefit obligations 9444 112 9556
surplus deficit in schemes recognised 
as noncurrent liability 2064 05 2059 notes to the consolidated financial statements for year to 31 december 2006
70 taylor woodrow report and accounts 2006
20 retirement beneﬁt schemes continued
expected
rate of united north total percentage
return kingdom america plans of total plan 
 pa £m £m £m assets held
31 december 2005
assets
equities 62 3220 99 3319 470
bondsgilts 435  37 3494 57 3551 503
other assets 435 137 54 191 27
6851 210 7061 1000
present value of defined benefit obligations 9031 228 9259
deficit in schemes recognised as noncurrent liability 2180 18 2198
t o develop the expected longterm rate of return on assets assumption the group considered the current level of expected returns
on investments particularly government bonds the historical level of the risk premium associated with the other asset classes in
which the portfolio is invested and the expectations for future returns of each asset class the expected return for each asset class
was then weighted based on the asset allocation to develop the expected longterm rate of return on assets assumption for the
portfolio 
2006 2005
£m £m
amount charged againstcredited to income
current service cost 103 88
curtailment gain 24 
settlement loss 12 
operating cost 91 88
expected return on scheme assets 401 362
interest cost on scheme liabilities 428 404
finance charges 27 42
118 130
of the chargecredit for the year £68m 2005 £59m has been included in cost of sales and £35m 2005 £29m has been
included in administrative expenses before the £12m curtailment gain the actual return on scheme assets was £643m 2005
£976m
2006 2005
£m £m
actuarial lossesgains in the statement of recognised income and expenses
difference between actual and expected return on scheme assets 242 614
experience gains losses arising on scheme liabilities 02 326
changes in assumptions 260 1021
t otal loss recognised in the statement of recognised income and expense 16 733
2006 2005
£m £m
movement in present value of defined benefit obligations
1 january 9259 7695
changes in exchange rates 16 26
service cost 103 88
curtailment gain 24 
plan settlements 59 
benefits paid and expenses 413 328
contributions 20 27
interest cost 428 404
actuarial gains and losses 258 1347
31 december 9556 9259 notes to the consolidated financial statements for year to 31 december 2006
taylor woodrow report and accounts 2006  71
20 retirement beneﬁt schemes continued
2006 2005
£m £m
movement in fair value of scheme assets
1 january 7061 6270
changes in exchange rates 16 25
expected return on scheme assets and expenses 367 362
contributions 293 118
benefits paid 379 328
plan settlements 71 
actuarial gains and losses 242 614
31 december 7497 7061
2006 2005 2004 2003 2002
£m £m £m £m £m
history of experience gains and losses
fair value of scheme assets 7497 7061 6270 5816 4821
present value of defined benefit obligations 9556 9259 7695 7647 6451
deficit in the scheme 2059 2198 1425 1831 1630
difference between actual and expected 
return on scheme assets
amount 242 614 220 449 781
percentage of scheme assets 3 9 4 8 16
experience adjustments on scheme liabilities
amount 02 326 65 436 691
percentage of scheme liabilities 0 4 08 57 11
the estimated amounts of contributions expected to be paid to the scheme during the current financial year is £20m
the gross postretirement liability also includes £27m at 31 december 2006 2005 £27m in respect of continuing postretirement
health care insurance premiums for retired longservice employees the liability is based upon the actuarial assessment of the
remaining cost by a qualified actuary on a net present value basis at 31 december 2006 the cost is calculated assuming a discount
rate of 5 per cent per annum and an increase in medical expenses of 119 per cent per annum the premium cost to the group in
respect of retired longservice employees for 2006 was £02m 2005 £02m 
21  longterm provisions
housing
maintenance
£m
at 1 january 2005 299
changes in exchange rates 13
additional provision in the year 307
utilisation of provision 311
at 31 december 2005 308
changes in exchange rates 23
additional provision in the year 217
utilisation of provision 223
at 31 december 2006 279
the housing maintenance provision arises principally from warranties and other liabilities on housing sold whilst such warranties
extend to a period of ten years payment of these costs is likely to occur within a period of two years  notes to the consolidated financial statements for year to 31 december 2006
72 taylor woodrow report and accounts 2006
22 share capital
2006 2005
£m £m
authorised
780000000 2005 780000000 ordinary shares of 25p each 1950 1950
number of
shares £m
issued and fully paid
1 january 2005 586573253 1467
options exercised 5120487 13
share purchase plan 160298 
us employee stock purchase plan 36699 
long service awards 647 
31 december 2005 591891384 1480
options exercised 2227950 05
us employee stock purchase plan 30573 
long service awards 189 
31 december 2006 594150096 1485
during the year options were exercised on 8562360 2005 8993562 ordinary shares of which 2227950 were satisfied by 
the issue of new shares with the balance satisfied by t reasury shares or by shares from the employee share ownership t rust 
at varying prices from 1244p to 2610p and shares were issued for a total consideration of £16m 2005 £15m additionally 
189 2005 647 ordinary shares with a fair value of 3430p were issued and awarded to employees for twentyfive or forty years’ 
long service totalling £00m
under the group’s senior executives’ share option scheme and executive share option plan employees held options at 31 december
2006 to purchase 1821306 shares 2005 9248375 at prices between 1490p and 25275p per share exercisable up to 8 october
2013 under the group’s savings related share option schemes employees held options at 31 december 2006 to purchase
5135009 shares 2005 6031457 at prices between 1244p and 2610p per share exercisable up to 31 may 2012 under the
group’s cash bonus deferral plan and executive bonus plan employees held options at 31 december 2006 in respect of 991217
shares 2005 1512848 at nil p per share exercisable up to 1 april 2014 under the group’s performance share plan employees held
conditional awards at 31 december 2006 in respect of 6750224 shares 2005 5404999 at nil p per share exercisable up to 12 april
2009 under the group’s share purchase plan employees held conditional awards at 31 december 2006 in respect of 687045 shares
2005 446651 at nil p per share 
23 share premium account
share
premium
£m
balance at 1 january 2005 7481
t ransfer from own shares 03
amortisation of debt transferred from retained earnings 07
premium on ordinary shares issued during the year less expenses of issues 85
balance at 31 december 2005 7562
amortisation of debt transferred from retained earnings 07
premium on ordinary shares issued during the year less expenses of issues 33
balance at 31 december 2006 7588 notes to the consolidated financial statements for year to 31 december 2006
taylor woodrow report and accounts 2006  73
24 revaluation reserve
properties
revaluation 
reserve
£m
balance at 1 january 2005 07
t ransfer to retained earnings 02
balance at 31 december 2005 05
net surplus on revaluation 10
t ransfer to retained earnings 
balance at 31 december 2006 15
the revaluation reserve is not a distributable reserve until realised
25 own shares
own
shares
£m
balance at 1 january 2005 578
t ransfer to retained earnings 44
t ransfer to share premium account 03
disposed of on exercise of options 73
charge to income 13
balance at 31 december 2005 539
acquired in the year 81
disposed of on exercise of options 170
balance at 31 december 2006 450
the own shares reserve represents the cost of shares in t aylor woodrow plc purchased in the market and held as treasury shares
and held by the t aylor woodrow plc employee benefit t rust to satisfy options under the group’s share options schemes 
2006 2005
number number
these comprise ordinary shares of the company
t reasury shares 122m 176m
shares held in trust for bonus option and performance award plans 51m 44m
173m 220m notes to the consolidated financial statements for year to 31 december 2006
74 taylor woodrow report and accounts 2006
26 sharebased payment tax reserve
sharebased
payment
tax reserve
£m
balance at 1 january 2005 28
increase for the year 12
balance at 31 december 2005 40
increase for the year 42
balance at 31 december 2006 82
as explained in the statement of accounting policies an expense is recorded in the group’s income statement over the period from
the grant date to the vesting date of share options granted to employees as there is a temporary difference between the accounting
and tax bases a deferred tax asset is recorded the deferred tax asset arising is calculated by comparing the estimated amount of tax
deduction to be obtained in the future based on the company’s share price at the balance sheet date with the cumulative amount of
the expense recorded in the income statement if the amount of estimated future tax deduction exceeds the cumulative amount of
the remuneration expense at the statutory tax rate the excess is recorded directly in equity in this sharebased payment tax reserve 
27  capital redemption reserve
capital
redemption
reserve
£m
balance at 1 january 2005 315
balance at 31 december 2005 315
balance at 31 december 2006 315
28 t ranslation reserve
translation
reserve
£m
balance at 1 january 2005 65
exchange differences on translation of overseas operations 468
decrease in fair value of hedging derivatives 104
balance at 31 december 2005 299
exchange differences on translation of overseas operations net of tax 612
decrease in fair value of hedging derivatives 122
balance at 31 december 2006 191
t ranslation reserve consists of exchange differences arising on the translation of overseas operations it also includes changes in fair
values of hedging derivatives where such instruments are designated and effective as hedges of investment in overseas operations notes to the consolidated financial statements for year to 31 december 2006
taylor woodrow report and accounts 2006  75
29 retained earnings
retained
earnings
£m
balance at 1 january 2005 8325
dividends paid 713
t ransfers to share premium account 07
t ransfers from revaluation reserve 02
sharebased payment credit 59
t ransfers from own shares 44
actuarial losses net of deferred tax 513
net profit for the year 2857
balance at 31 december 2005 10068
dividends paid 797
t ransfers to share premium account 07
sharebased payment credit 61
cash cost of satisfying share options 80
actuarial losses net of deferred tax 11
net profit for the year 2895
balance at 31 december 2006 12143
30 notes to the cash ﬂow statement
2006 2005
£m £m
profit from operations 4698 4750
adjustments for
depreciation of plant 77 58
sharebased payment charge 61 59
gain on disposal of property and plant 91 102
share of joint ventures’ operating profit 221 150
increasedecrease in provisions 85 04
operating cash flows before movements in working capital 4609 4611
increase in inventories 3475 2049
increase in receivables 372 91
increase in payables 1744 1126
pension contributions 273 
cash generated by operations 2233 3597
income taxes paid 952 1537
interest paid 711 758
net cash from operating activities 570 1302
cash and cash equivalents which are presented as a single class of assets on the face of the balance sheet comprise cash at bank
and other shortterm highly liquid investments with an original maturity of three months or less notes to the consolidated financial statements for year to 31 december 2006
76 taylor woodrow report and accounts 2006
30 notes to the cash ﬂow statement continued
2006 2005
£m £m
net debt
cash and cash equivalents 2365 1973
bank overdrafts and bank loans 147 97
debenture loans 6131 6445
net debt 3913 4569
31  contingent liabilities
florida litigation
on 20 november 2006 a jury trial in florida awarded damages against several usbased t aylor woodrow subsidiaries totalling
us444m or £227m at 31 december 2006 exchange rates this award included us20m of punitive damages some elements of
this award were issued on a joint or joint and several liability basis with unrelated third parties the jury verdict does not become a
final judgment until posttrial motions filed by t aylor woodrow and other parties to the litigation have been heard and ruled upon by
the judge this case arose from the beach residences project in sarasota florida which contributed to profits in 2005 and 2006
external legal opinion is that this award should be reduced by 146m as several of the awards were duplicative in nature when the
original jury decision is confirmed in 2007 notwithstanding any reduction due to posttrial motions the reduction due to the
duplicative awards leaves a resulting us298 million which represents £152 million at 31 december 2006 exchange rates as the
external legal interpretation of the original jury award
in addition t aylor woodrow has an indemnity from one of the codefendants which should give a level of reimbursement of some of
the us298m referred to above 
the directors continue to be confident that the judge a posttrial motion or subsequent appeal will materially reduce the original jury
award on some aspects of the case however the directors have been able to make a reliable estimate of the likely outcome and a
suitable provision has been made due to commercial considerations that could prejudice t aylor woodrow the amount provided is
not disclosed 
however for the majority of the awards under the case due to the fundamental uncertainties around the possible outcome of the
trial no reliable estimate can be made to record a provision in the 2006 accounts for this preliminary jury award and accordingly no
provision has been recorded
general 
the company and certain subsidiary undertakings have in the normal course of business given guarantees and entered into counter
indemnities in respect of bonds relating to the group’s own contracts and given guarantees in respect of the group’s share of certain
contractual obligations of joint ventures 
provision is made for the directors’ best estimate of all known legal claims and all legal actions in progress the group takes legal
advice as to the likelihood of success of claims and actions and no provision is made where the directors consider based on that
advice that the action is unlikely to succeed or a sufficiently reliable estimate of the potential obligation cannot be made 
32 operating lease arrangements
the group as lessee
at the balance sheet date the group had outstanding commitments for future minimum lease payments under noncancellable
operating leases which fall due as follows
2006 2005
£m £m
within one year 146 140
in more than one year but not more than five years 411 329
after five years 307 319
864 788 notes to the consolidated financial statements for year to 31 december 2006
taylor woodrow report and accounts 2006  77
32 operating lease arrangements continued
operating lease payments principally represent rentals payable by the group for certain office properties and vehicles 
the group as lessor
at the balance sheet date the group had contracted with tenants for the following future minimum lease payments
2006 2005
£m £m
within one year 15 08
in more than one year but not more than five years 55 30
after five years 52 23
122 61
operating lease receipts represent rental income in respect of certain office and commercial properties
33 sharebased payments
equitysettled share option plan
details of all equitysettled sharebased payment arrangements in existence during the year are set out in the paragraphs on
‘executive sharebased reward’ in the directors’ remuneration report on pages 38 and 39
2006 2005
weighted weighted
average average
exercise exercise
price price
options in £ options in £
outstanding at beginning of period 22644330 142 28574177 163
granted during the period 4062355 097 4655232 062
lapsed during the period 2759524 135 1591517 137
exercised during the period 8562360 192 8993562 167
outstanding at the end of the period 15384801 103 22644330 142
exercisable at the end of the period 3389868 196 3269283 151
the weighted average share price at the date of exercise for share options exercised during the period was £374 2005 £317 
the options outstanding at 31 december 2006 had a range of exercise prices from £nil to £279 2005 £nil to £261 and a weighted
average remaining contractual life of 26 years 2005 49 years
for share options with nonmarket conditions granted during the current and preceding year the fair value of those options at grant
date were determined using the binomial model the inputs into that model were as follows
2006 2005
weighted average share price £374 £311
weighted average exercise price £102 £068
expected volatility 270293 324329
expected life 35 years 35 years
riskfree rate 4548 433436
expected dividend yield 41 3638
the weighed average fair value of share options granted during the year is £256 2005 £229 notes to the consolidated financial statements for year to 31 december 2006
78 taylor woodrow report and accounts 2006
33 sharebased payments continued
for shares options with market conditions granted during the current year the fair value of these options were determined using 
the monte carlo simulation model the inputs into that model were as follows
2006 2005
weighted average share price £382 £319
weighted average exercise price £nil £nil
expected volatility 27 2630
expected life 3 years 3 years
riskfree rate 45 42
expected dividend yield 41 36
the weighed average fair value of share options granted during the year is £101 2005 £175
expected volatility was determined by calculating the historical volatility of the group’s share price over the expected term 
the expected life used in the model is based on historic exercise patterns
the group recognised total expenses of £61m and £59m related to equitysettled sharebased payment transactions in 2006 
and 2005 respectively
34 related party transactions
t ransactions between the company and its subsidiaries which are related parties have been eliminated on consolidation and are 
not disclosed in this note t ransactions between the group and its joint ventures are disclosed below t ransactions between the
company and its subsidiaries and joint ventures are disclosed in the company’s separate financial statements
t rading transactions
during the year group companies’ purchases from joint ventures totalled £307m 2005 £73m purchases were based on open
market values
remuneration of key management personnel
details of the remuneration of the directors and members of the executive committee who are the key management personnel 
of the group are contained in the audited part of the remuneration report on pages 37 to 45 and form part of these financial
statements
35 standards and interpretations in issue but not yet effective
at the date of authorisation of these ﬁnancial statements the following standards and interpretations which have not been applied 
in these ﬁnancial statements were in issue but not yet effective
ifrs 7 financial instruments disclosures and the related amendment to ias 1 on capital disclosures
ifrs 8 operating segments
ifric 7 financial reporting in hyperinﬂationary economies
ifric 8 scope of ifrs 2
ifric 9 reassessment of embedded derivatives
ifric 10 interim financial reporting and impairment
ifric 1 1 ifrs 2 group and t reasury share t ransactions
ifric 12 service concession arrangements
the directors anticipate that the adoption of these standards and interpretations in future periods will have no material impact on the
ﬁnancial statements of the group except for additional disclosures on ﬁnancial instruments when the relevant standard comes into
effect for periods commencing on or after 1 january 2007  independent auditors’ report to the members of t aylor woodrow plc
taylor woodrow report and accounts 2006  79
we have audited the parent company ﬁnancial statements of
t aylor woodrow plc for the year ended 31 december 2006
which comprise the balance sheet the statement of
accounting policies and the related notes 1 to 18 these parent
company ﬁnancial statements have been prepared under the
accounting policies set out therein
we have reported separately on the group ﬁnancial statements
of t aylor woodrow plc for the year ended 31 december 2006
and on the information in the directors remuneration report
that is described as having been audited 
this report is made solely to the company’ s members as a
body in accordance with section 235 of the companies act
1985 our audit work has been undertaken so that we might
state to the company’ s members those matters we are
required to state to them in an auditors’ report and for no other
purpose t o the fullest extent permitted by law we do not
accept or assume responsibility to anyone other than the
company and the company’ s members as a body for our audit
work for this report or for the opinions we have formed
respective responsibilities of directors and auditors
the directors responsibilities for preparing the annual report
the directors remuneration report and the parent company
ﬁnancial statements in accordance with applicable law and
united kingdom accounting standards united kingdom
generally accepted accounting practice are set out in the
statement of directors responsibilities
our responsibility is to audit the parent company ﬁnancial
statements and the part of the directors remuneration report
to be audited in accordance with relevant legal and regulatory
requirements and international standards on auditing uk and
ireland
we report to you our opinion as to whether the parent company
ﬁnancial statements give a true and fair view and whether the
parent company ﬁnancial statements have been properly
prepared in accordance with the companies act 1985 we also
report to you whether in our opinion the directors report is
consistent with the parent company ﬁnancial statements the
information given in the directors report includes that speciﬁc
information presented in the chief executive’ s review that is
cross referred from the introduction to the directors report
in addition we report to you if in our opinion the company has
not kept proper accounting records if we have not received all
the information and explanations we require for our audit or if
information speciﬁed by law regarding directors remuneration
and other transactions is not disclosed
we read the other information contained in the annual report
as described in the contents section and consider whether it is
consistent with the audited parent company ﬁnancial
statements we consider the implications for our report if we
become aware of any apparent misstatements or material
inconsistencies with the parent company ﬁnancial statements
our responsibilities do not extend to any further information
outside the annual report
basis of audit opinion
we conducted our audit in accordance with international
standards on auditing uk and ireland issued by the auditing
practices board an audit includes examination on a test basis
of evidence relevant to the amounts and disclosures in the
parent company ﬁnancial statements it also includes an
assessment of the signiﬁcant estimates and judgments made
by the directors in the preparation of the parent company
ﬁnancial statements and of whether the accounting policies
are appropriate to the companys circumstances consistently
applied and adequately disclosed
we planned and performed our audit so as to obtain all the
information and explanations which we considered necessary
in order to provide us with sufﬁcient evidence to give
reasonable assurance that the parent company ﬁnancial
statements are free from material misstatement whether
caused by fraud or other irregularity or error in forming our
opinion we also evaluated the overall adequacy of the
presentation of information in the parent company ﬁnancial
statements
opinion
in our opinion
• the parent company ﬁnancial statements give a true and fair
view in accordance with united kingdom generally accepted
accounting practice of the state of the companys affairs as
at 31 december 2006
• the parent company ﬁnancial statements have been properly
prepared in accordance with the companies act 1985
• the information given in the directors report is consistent
with the parent company ﬁnancial statements
deloitte  t ouche llp
chartered accountants and registered auditors 
london uk
19 february 2007 accounting policies
80 taylor woodrow report and accounts 2006
the following accounting policies have been used
consistently unless otherwise stated in dealing with items
which are considered material
basis of preparation
the ﬁnancial statements have been prepared in accordance
with applicable united kingdom accounting standards under
the historical cost convention as permitted by the companies
act 1985 the company has not presented its own proﬁt and
loss account
under financial reporting standard 1 the company is exempt
from the requirement to prepare a cash ﬂow statement on the
grounds that its consolidated ﬁnancial statements which
include the company are publicly available 
note 20 on pages 68 to 71 and note 33 on pages 77 to 78
to the t aylor woodrow plc consolidated ﬁnancial statements
form part of these ﬁnancial statements 
the principal accounting policies adopted are set out below
group undertakings
investments are included in the balance sheet at cost less
any provision for permanent diminution in value
deferred taxation
deferred taxation is provided in full on timing differences that
result in an obligation at the balance sheet date to pay more
tax or a right to pay less tax at a future date at rates
expected to apply when they crystallise based on current tax
rates and law timing differences arise from the inclusion of
income and expenditure in taxation computations in periods
different from those in which they are included in the ﬁnancial
statements 
deferred tax assets are recognised to the extent that it is
regarded as more likely than not that they will be recovered
deferred tax assets and liabilities are not discounted 
overseas currencies
t ransactions denominated in foreign currencies are recorded
in sterling at actual rates as of the date of the transaction
monetary assets and liabilities denominated in foreign
currencies at the year end are reported at the rates of
exchange prevailing at the year end any gain or loss arising
from a change in exchange rates subsequent to the date of
the transaction is included as an exchange gain or loss in the
proﬁt and loss account unrealised exchange differences on
inter company longterm loans and foreign currency
borrowings to the extent that they hedge the company’ s
investment in overseas investments are taken to revaluation
reserve 
derivative ﬁnancial instruments and hedge accounting 
the company uses foreign currency borrowings and currency
swaps to hedge its investment in overseas investments
changes in the fair value of derivative ﬁnancial instruments
that are designated and effective as hedges of investment in
overseas operations are recognised directly in reserves and
the ineffective portion if any is recognised immediately in the
proﬁt and loss account the hedged items are adjusted for
changes in exchange rates with gains or losses from 
remeasuring the carrying amount being recognised directly
in reserves 
sharebased payments
the company has applied the requirements of frs 20 
‘sharebased payments’  in accordance with the transitional
provisions frs 20 has been applied to all grants of equity
instruments after 7 november 2002 that were unvested as 
of 1 january 2005
the company issues equitysettled sharebased payments to
certain employees equitysettled sharebased payments are
measured at fair value at the date of grant the fair value is
expensed on a straightline basis over the vesting period
based on the estimate of shares that will eventually vest 
employee beneﬁts
the company accounts for pensions and similar beneﬁts
under frs17 ‘retirement beneﬁts’  in respect of deﬁned
beneﬁt plans obligations are measured at discounted
present value whilst plan assets are recorded at fair value 
the operating and ﬁnancing costs of such plans are
recognised separately in the consolidated income statement
service costs are spread systematically over the lives of
employees and ﬁnancing costs are recognised in the periods
in which they arise actuarial gains and losses are recognised
immediately in the consolidated statement of recognised
income and expense 
payments to deﬁned contribution schemes are charged as an
expense as they fall due
own shares
the cost of the company’ s investment in its own shares
which comprise shares held in treasury by the company and
shares held by employee beneﬁt trusts for the purpose of
funding certain of the company’ s share option plans is
shown as a reduction in shareholders’ funds  company balance sheet at 31 december 2006
taylor woodrow report and accounts 2006  81
2006 2005
note £m £m
fixed assets
group undertakings 3 22024 16717
22024 16717
current assets
debtors 4 9654 8606
cash at bank and in hand 720 341
10374 8947
creditors amounts falling due within one year 5 6555 5810
net current assets 3819 3137
t otal assets less current liabilities 25843 19854
creditors amounts falling due after one year 6 5681 5890
net assets 20162 13964
capital and reserves
calledup share capital 9 1485 1480
share premium account 10 7588 7562
capital redemption reserve 11 315 315
t ranslation reserve 12 449 136
profit and loss account 13 11671 5281
own shares 14 448 538
shareholders’ funds 17 20162 13964
the financial statements were approved by the board of directors and authorised for issue on 19 february 2007 they were signed
on its behalf by
n b m askew p t johnson
director director notes to the company financial statements for year to 31 december 2006
82 taylor woodrow report and accounts 2006
1  particulars of employees
2006 2005
no no
directors 3 4
the executive directors received all of their remuneration as disclosed in the remuneration report on page 42 from t aylor
woodrow developments limited however it is not practicable to allocate such costs between their services as executives of
t aylor woodrow developments limited and their services as directors of t aylor woodrow plc and other group companies the
remuneration of the nonexecutive directors which is wholly attributable to the company is disclosed on page 42 of the
remuneration report
2 auditors’ remuneration
2006 2005
£m £m
external audit services 01 01
other assurance 01 01
other services
t ax services 01 01
3 investments in group undertakings
shares loans total
£m £m £m
cost and net values
31 december 2005 12474 4243 16717
changes in exchange rates 15 520 535
additions 9000  9000
reductions 3158  3158
31 december 2006 18301 3723 22024
all of the above investments are unlisted
particulars of principal subsidiary undertakings are listed on page 87 which forms part of these financial statements notes to the company financial statements for year to 31 december 2006
taylor woodrow report and accounts 2006  83
4 debtors
2006 2005
£m £m
receivable within one year
due from group undertakings 9443 8443
other debtors 08 61
prepayments and accrued income 19 30
receivable after one year
deferred taxation 32 05
currency and interest rate derivatives 152 67
9654 8606
the movement in the deferred taxation asset is as follows
£m
31 december 2005 05
credited to profit and loss account 27
31 december 2006 32
the deferred taxation asset relates to shortterm timing differences
5 creditors amounts falling due within one year
2006 2005
£m £m
debenture loans 20 40
due to group undertakings 6223 5560
other creditors 02 03
accruals and deferred income 241 207
corporation tax creditors 69 
6555 5810
6 creditors amounts falling due after one year
2006 2005
£m £m
debenture loans 5681 5890
7  debenture loans
2006 2005
£m £m
floating rate notes 2006 – unsecured  14
floating rate notes 2008 – unsecured 20 26
6625 £250m bonds 2012 – unsecured 2479 2470
553 us 75m notes 2011 – unsecured 382 435
603 us 175m notes 2014 – unsecured 890 1014
6375 £200m bonds 2019 – unsecured 1973 1971
5701 5930 notes to the company financial statements for year to 31 december 2006
84 taylor woodrow report and accounts 2006
7  debenture loans continued
2006 2005
£m £m
repayable
in more than five years 5681 5890
t otal falling due in more than one year 5681 5890
within one year or on demand 20 40
5701 5930
8 retirement beneﬁt obligations
the company participates in the t aylor woodrow group pension and life assurance fund this is a deﬁned beneﬁt multiemployer
plan the assets and liabilities of which are held independently from the group the company is unable to identify its share of the
underlying assets and liabilities of the scheme and accordingly accounts for the plan as if it were a deﬁned contribution plan 
information in respect of the scheme is provided in note 20 on pages 68 and 71 to the t aylor woodrow plc consolidated ﬁnancial
statements the fair value of assets as disclosed in those ﬁnancial statements has been calculated in accordance with international
accounting standard 19 ‘employee beneﬁts’  in accordance with financial reporting standard no 17 ‘retirement beneﬁts’ 
frs 17 the total fair value of scheme assets would be £7509m 2005 £707 2m all other information provided in those ﬁnancial
statements meets the disclosure requirements set out in frs 17  
contributions in respect of the deﬁned contribution scheme for directors can be found in the remuneration report on page 45
there were no outstanding contributions at the year end 
9 share capital
2006 2005
£m £m
authorised
780000000 2005 780000000 ordinary shares of 25p each 1950 1950
number of 
shares £m
issued and fully paid
31 december 2005 591891384 1480
options exercised 2227950 05
us employee stock purchase plan 30573 
long service awards 189 
31 december 2006 594150096 1485
10 share premium
£m
31 december 2005 7562
t ransfer from own shares 05
amortisation of debt transferred from retained earnings 07
premium on ordinary shares issued during the year less expenses of issues 28
balance at 31 december 2006 7588 notes to the company financial statements for year to 31 december 2006
taylor woodrow report and accounts 2006  85
1 1  capital redemption reserve
£m
31 december 2005 315
31 december 2006 315
1 2 t ranslation reserve
£m
31 december 2005 136
t ransfer from profit and loss reserve 466
t ransfer to profit and loss reserve 153
31 december 2006 449
13 proﬁt and loss account
£m
31 december 2005 5281
t ransfers to share premium account 07
profit for the financial year 6867
dividends 797
t ransfer from translation reserve 153
t ransfer to translation reserve 466
31 december 2006 11671
as permitted by section 230 of the companies act 1985 t aylor woodrow plc has not presented its own profit and loss account
the profit of the company for the financial year was £6867m 2005 £1579m
included in the company profit and loss account reserve is £6225m of nondistributable reserves 
14 own shares
2006 2005
£m £m
own shares 448 538
these comprise ordinary shares of the company number number
t reasury shares 122m 176m
shares held in trust for bonus options and performance award plans 50m 44m
the market value of the shares at 31 december 2006 was £736m 2005 £837m and their nominal value was £43m 2005 £55m
dividends on these shares have been waived except for 001p per share in respect of the shares held in trust the shares held in
trust are all held to meet options to be exercised by employees notes to the company financial statements for year to 31 december 2006
86 taylor woodrow report and accounts 2006
15 sharebased payments
details of share options granted by group companies to employees and that remain outstanding over the company’s shares are
set out in note 33 on pages 77 and 78 to the t aylor woodrow plc consolidated financial statements the company did not
recognise any expense related to equitysettled sharebased payment transactions in the current or preceding year 
16 contingent liabilities
the company has in the normal course of business given guarantees and entered into counterindemnities in respect of bonds
relating to the group’s own contracts
provision is made for the directors’ best estimate of known legal claims and legal actions in progress the group takes legal advice
as to the likelihood of success of claims and actions and no provision is made where the directors consider based on that advice
that the action is unlikely to succeed or a sufficiently reliable estimate of the potential obligation cannot be made 
the company is also party to litigation as discussed in note 31 on page 76 to the t aylor woodrow plc consolidated financial
statements
17  reconciliation of movement in shareholders’ funds
2006 2005
£m £m
opening shareholders’ funds 13964 12957
dividends paid 797 712
profit for the financial year 6867 1579
new share capital subscribed 33 98
proceeds from sale of own shares 167 73
purchase of own shares 72 
credit to equity relating to own shares  13
net currency translation differences  44
closing shareholders’ funds 20162 13964
18 post balance sheet event
on 19 february 2007 the board recommended a final dividend for the year to 31 december 2006 of 975p 2005 89p this
dividend has not been included as a liability as at 31 december 2006  particulars of principal subsidiary undertakings
taylor woodrow report and accounts 2006  87
country of taylor woodrow plc interest is 100 in the issued ordinary share 
incorporation and capital of these undertakings included in the consolidated accounts
principal operations interests held by subsidiary undertakings
housing
united kingdom t aylor woodrow developments limited
t aylor woodrow holdings limited
canada t aylor woodrow holdings of canada limited
monarch corporation 
monarch development corporation
irish republic 
resident in the united kingdom t aylor woodrow finance ireland
spain t aylor woodrow de espana sa
usa t aylor woodrow holdingsarizona inc
t aylor woodrow homes inc
t aylor woodrow homes florida inc
t aylor woodrow inc
monarch holdings usa inc
monarch homes of florida inc
property development and investment
united kingdom t aylor woodrow developments limited
t aylor woodrow property company limited
clipper investments limited
pennant investments limited
st katharine by the t ower limited
construction
united kingdom t aylor woodrow construction limited
notes  variable rate cumulative nonvoting irredeemable preference shares 
are additionally held
 95 noncumulative nonvoting redeemable preference shares and 9 
noncumulative nonvoting redeemable preference shares are additionally held
 9 cumulative redeemable preference shares are additionally held
 nonvoting redeemable preferred shares are additionally held five y ear r eview
88 taylor woodrow report and accounts 2006
uk uk
ifrs ifrs ifrs gaap gaap
2006 2005 2004 2003 2002 
£m £m £m £m £m
profit and loss account
group turnover plus share of joint ventures’ turnover 36790 35564 33612 26729 22158
group operating profit plus share of 
joint ventures’ operating profit 4607 4648 4908 3406 2597
profit on disposal of properties and investments 91 102 217 63 81
net interest payable and other finance charges 642 640 1086 464 347
profit before taxation 4056 4110 4039 3005 2331
t axation charge 1150 1245 1230 1006 769
minority interests 11 08 06 04 11
profit for the financial year 2895 2857 2803 1995 1551
balance sheet
intangible assets  goodwill 3631 3639 3632 3567 2414
investment properties    1602 1839
other fixed assets 255 244 242 336 243
interests in joint ventures 562 921 870  
noncurrent loans and receivables 560 372 265  
deferred tax asset 954 1012 711  
net current assets excluding cash and debt 22610 20978 19367 20416 13033
noncurrent creditors excluding debt and provisions 3604 3304 2661 2722 992
capital employed 24968 23862 22426 23199 16537
represented by
calledup nonequity preference share capital    100 
calledup equity ordinary share capital 1485 1480 1467 1461 1382
share premium account 7588 7562 7481 7457 5912
revaluation reserve 15 05 07 384 634
capital redemption reserve 315 315 315 215 215
other reserve 48 54 48 11 
sharebased payment tax reseve 82 40 28  
t ranslation reserve 191 299 65  
profit and loss account 12143 10068 8325 6278 5916
own shares 450 539 578 147 126
shareholders’ funds 21035 19284 17028 15759 13933
minority interests 20 09 10 11 
net debt 3913 4569 5388 7429 2604
24968 23862 22426 23199 16537
statistics
number of ordinary shares in issue at year end millions 5942 5919 5866 5842 5527
basic earnings per share 505p 506p 491p 360p 282p
dividends per ordinary share 1475p 134p 111p 89p 74p
equity shareholders’ funds per share 3647p 3384p 2903p 2562p 2556p
dividend cover times 34 38 44 40 38
net gearing 186 237 316 471 187 five y ear r eview continued
taylor woodrow report and accounts 2006  89
the figures for 2004 were restated in 2005 in respect of the transition from uk gaap to ifrs the figures for 2002 to 2003 above
have not been restated to an ifrs basis as it is not practicable to do so
the figures for 2003 were restated in 2004 in respect of the change of accounting policy for retirement benefits to comply with 
frs 17
the figures for 2002 were restated in 2003 to include investments in own shares as a deduction from shareholders’ funds rather than
within net debt
dividends per ordinary share comprise the interim and final dividends declared for the year  90 taylor woodrow report and accounts 2006
shareholder facilities
secretary and registered ofﬁce
richard i morbey
2 princes way
solihull
west midlands b91 3es
t elephone 44 0 121 600 8000
fax 44 0 121 600 8550
registrar
for any enquiries concerning your shareholding or details 
of shareholder services please contact
capita registrars
the registry
34 beckenham road
beckenham
kent br3 4tu
t elephone 44 0 870 162 3103
email ssdcapitaregistrarscom
auditors
deloitte  t ouche llp
bankers
hsbc bank plc
stockbrokers
ubs investment bank
morgan stanley  co international limited
financial calendar
latest date for receipt of proxy instructions for 
2007 annual general meeting
2pm 30 april 2007
annual general meeting 
2pm 2 may 2007
shares quoted exdividend on london 
stock exchange
23 may 2007
record date for ﬁnal dividend entitlement
25 may 2007
latest date for receipt of mandates to join the
dividend reinvestment plan to be effective 
for the 2006 ﬁnal dividend
1 june 2007
latest date for receipt of notice of withdrawal 
from the dividend reinvestment plan
to be effective for the 2006 ﬁnal dividend
15 june 2007
payment date for the 2006 ﬁnal dividend 
2 july 2007
despatch date for dividend reinvestment plan
share certiﬁcates and tax vouchers
16 july 2007 taylor woodrow report and accounts 2006  91
electronic communications
electronic communication offers mutual beneﬁts for the
company for shareholders and for the environment
the company already encourages all shareholders to receive
certain company documentation and publications electronically
via its website and many have already chosen this method
with the ﬁrst stages of the companies act 2006 now in
operation electronic communications has taken a further step
forward therefore we like most other listed companies will be
asking shareholders to approve an enabling resolution at the
2007 agm this would allow the company to establish 
ecommunications as the normal means of communication
with individual shareholders unless they choose otherwise
in the meantime we continue to encourage all shareholders 
to elect voluntarily to use ecommunications as their preferred
means of receiving company material shareholders can sign up
for this facility by completing and returning the form enclosed
with the notice of agm or by logging onto our website at
wwwtaylorwoodrowcom 
online facilities for shareholders
y ou can access our annual and interim reports and copies 
of recent shareholder communications online at
wwwtaylorwoodrowcom 
if you have registered for online access at capita registrars’
website you can make online enquiries about your
shareholding and advise the company of changes in personal
details t o register for online access go to
wwwtaylorwoodrowcom t o access some of these services
you will ﬁrst be required to apply online for a user id 
online proxies
shareholders may also submit forms of proxy for shareholder
meetings online at wwwtaylorwoodrowcom 
dividend reinvestment plan
y ou can choose to invest your cash dividends in purchasing
t aylor woodrow shares on the market under the terms of the
dividend reinvestment plan for further information on the
plan and how to join go to wwwtaylorwoodrowcom 
dividend mandates
we encourage all shareholders to receive their cash dividends
by direct transfer to a bank or building society account this
ensures that dividends are credited promptly to shareholders
without the cost and inconvenience of having to pay in dividend
cheques at a bank if you wish to use this costeffective and
simple facility complete and return the dividend mandate form
attached to your dividend cheque additional mandate forms
may be obtained from capita registrars
duplicate share register accounts
if you are receiving more than one copy of our annual report 
it may be that your shares are registered in two or more
accounts on the register of members if that was not your
intention you might consider merging them into one single
entry please contact capita registrars who will be pleased 
to carry out your instructions 
shareholder facilities
lowcost share dealing services
we have arranged both telephone and online share dealing
services for buying and selling up to £25000 worth of shares 
in t aylor woodrow both services are operated by capita
registrars t o use the services either telephone 
44 0 870 458 4577 or visit wwwcapitadealcom t o deal 
you will need to provide your surname postcode date of birth
and investor code which can be found on your share
certiﬁcate
t aylor w oodrow and ‘crest’
t aylor woodrow shares can be held in ‘crest’ accounts which
do not require share certiﬁcates this may make it quicker and
easier for some shareholders to settle stock market
transactions shareholders who deal infrequently may however
prefer to continue to hold their shares in certiﬁcated form and
this facility will remain available for the time being pending the
introduction of dematerialised shareholdings in due course
t aylor w oodrow share pr ice 
our share price is printed in most uk daily newspapers and is
also available on our website wwwtaylorwoodrowcom it
appears on ceefax bbc1 page 232 bbc2 page 223 and c4
t eletext page 520 and may be obtained by telephoning the
financial times cityline service telephone 44 0 906 003
4177 or 44 0 906 843 4177 calls cost 60 pence per minute
gifting shares to charity
if you have a small holding of t aylor woodrow shares you may
wish to consider gifting them to charity y ou can do so through
‘sharegift’  run by a registered charity orr mackintosh
foundation limited shares gifted are reregistered into the
name of the charity combined with other donated shares and
then sold through stockbrokers who charge no commission
the proceeds are distributed to a wide range of recognised
charities for further details contact capita registrars or
approach sharegift directly on wwwsharegiftorgsharegift 
or telephone them on  44 0 20 7337 0501 
personal equity plan
the t aylor woodrow general and single company peps
through bradford  bingley peps limited closed for new
investments on 5 april 1999 they are now managed by the
share centre 1st floor oxford house oxford road aylesbury
bucks hp21 8pb t elephone 44 0 1296 439000 principalt aylor w oodrow ofﬁces
92 taylor woodrow report and accounts 2006
uk central 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 
regional ofﬁces
scotland
t aylor woodrow developments limited
2 garbett road kirkton campus
livingston eh54 7dl
t el  44 01506 405 700
fax  44 01506 405 701 
yorkshire and north east
t aylor woodrow developments limited
century way thorpe business park
leeds west y orkshire ls15 8zb
t el  44 01 13 232 1400
fax  44 01 13 232 1401
north w est
t aylor woodrow developments limited
t aylor woodrow house
the beacons warrington road
birchwood warrington
cheshire wa3 6xu
t el  44 01925 849 500
fax  44 01925 849 501 
east midlands
t aylor woodrow developments limited
taylor woodrow house meridian east
meridian business park
leicester le19 1wz
t el  44 01 16 245 6000
fax  44 01 16 245 6090 
west midlands
t aylor woodrow developments limited
2 princes way solihull
west midlands b91 3es
t el  44 0121 600 8000
fax  44 0121 600 8001 
eastern
t aylor woodrow developments limited
1 falcon gate shire park
welwyn garden city
hertfordshire al7 1tw
t el  44 01707 378 900
fax  44 01707 378 910
london
t aylor woodrow developments limited
2nd floor 5 hercules way
watford hertfordshire wd25 7gu
t el  44 01923 892 200
fax  44 01923 892 222
south
t aylor woodrow developments limited
st catherine’s house oxford square
oxford street newbury 
berkshire rg14 1jq
t el  44 01635 275 400
fax  44 01635 275 444
south east
t aylor woodrow developments limited
central house
1 113 brighton road
crawley west sussex rh10 6ae
t el  44 01293 7 44 000
fax  44 01293 7 44 100 
south w ales
t aylor woodrow developments limited
eastern business park
wern fawr lane st mellons
cardiff cf3 5ea
t el  44 029 20 534 700 
fax  44 029 20 534 777
south w est
t aylor woodrow developments limited
riverside court bowling hill
chipping sodbury bristol bs37 6jx
t el  44 01454 323 540
fax  44 01454 310 759 
anglia
t aylor woodrow developments limited
unit 1 craven court
willie snaith road newmarket
suffolk cb8 7fa
t el  44 01638 665 036
fax  44 01638 666 519
construction
t aylor woodrow construction limited
41 clarendon road
watford hertfordshire wd17 1tr
t el  44 01923 478 400
fax  44 01923 478 401
taysec construction limited
2 kwashie street north industrial area 
po box os1010 osu
accra ghana
t el  00 233 21228544
fax  00 233 21220280
north america
north american corporate ofﬁce
t aylor woodrow  inc
8430 enterprise circle ste 100
bradenton fl 34202
t el  00 1941 554 2000
fax  00 1941 554 3005
arizona 
t aylor woodrow holdings
arizona inc
6720 north scottsdale road
ste 390 
scottsdale az 85253
t el  00 1 480 344 7000
fax  00 1 480 344 7001
california 
taylor woodrow homes inc
15 cushing
irvine ca 92618
t el  00 1 949 341 1200
fax  00 1 949 341 1400
canada 
monarch corporation
heron’s hill
2025 sheppard avenue east
ste 1201
willowdale ontario m2j 1v7 
canada
t el  00 1 416 491 7 440
fax  00 1 416 491 7216
florida 
taylor woodrow homes florida inc
9401 corkscrew palms circle
estero fl 33928
t el  00 1 2394442900
fax  00 1 2394442999
t exas 
taylor woodrow homes southwest llc
7800 nmopac expressway 
suite 1 10 austin tx 78759
t el  00 1 512 691 6640
fax  00 1 512 691 6650
europe
spain
taylor woodrow de españa sa
caragón 223223a
07008 palma de mallorca
mallorca spain
t el  00 34 971 706 570
fax  00 34 971 706 565
gibraltar
taylor woodrow gibraltar limited
17 bayside road
po box 126
gibraltar
t el  00 350 78780
fax  00 350 75529 designed and produced by identity limited
printed by streamline press
printed on 9lives paper stock
9lives 55 is produced with 55 per cent recycled ﬁbre
from both pre and postconsumer sources together
with 45 per cent virgin ecf ﬁbre comprising a
carefully selected combination of fsc pefc and 
sfi ﬁbre  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


Summary:
 taylor woodrow operates a portfolio of 
housing businesses in selected markets in the
uk north america spain and gibraltar which
account for 98 per cent of our operating profits
in addition to building new homes we also 
have expertise in mixeduse development 
and construction which help to support our
development of sustainable new communities
chief executive’s review 
it also enables us to mitigate the
impact of any shortterm weakness 
in any particular market or submarket
consequently as the markets in arizona
california and florida started to weaken
in 2005 we were able to reduce our
planned land spend in north america
for 2006 and allocate additional funding
to our uk housing business
each business is targeted to
• deliver highquality homes in which 
our customers want to live
• use capital efficiently
• identify and manage risk effectively
• deploy effective and disciplined 
processes and systems which 
encourage continuous improvement 
and support ‘right first time’ results
• work closely with supply chain 
partners to improve the way in 
which business is conducted 
• recruit retain and develop high
quality staff
strategic priorities
the group’s key strategic priorities 
are to
• improve operating margins and 
returns on capital from our uk 
housing business
• deliver competitive operating profit
margins and return on capital in
north america whilst positioning 
the business for growth as market
conditions allow
• consolidate stable performance from 
our business in spain and gibraltar 
whilst building a platform for future 
growth 
• grow the profits of our construction
business while managing risk
effectively
structure and strategy
our aim is to be the homebuilder 
of choice our primary business is 
the development of sustainable
communities of highquality 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 effective capital management 
our performance in delivering total
shareholder return can be seen on
page 40
we are a national homebuilder in the
uk in the united states we operate 
in arizona california florida and texas
we also build in ontario canada 
our operations in spain are focused on
the popular holiday destinations of the
costa blanca costa del sol and mallorca
operating a portfolio of housing
businesses allows us to allocate our
capital where we see the best
opportunities for riskadjusted returns 
taylor woodrow report and accounts 2006 05
ian smith chief executive 130
135
2006
2005
2006
2005
230
246
2006
2005
2235
2025
2006
2005
68662
75160
2006
2005
186
237
06 taylor woodrow report and accounts 2006
chief executive’s review continued
group housing
2006 2005
revenue including 
joint ventures £m 31284 28649
profit from 
operations £m 4692 4560
operating margin  150 159
ending capital 
employed £m 22412 21382
roace  214 229
home completions 13165 12516
home average selling 
price £’000 207 204
lot completions 6413 4495
order book £m 1070 1318
landbank plots 68662 75160
monitoring our performance
operating margin is
calculated using profit from
operations excluding joint
ventures’ interest and tax and
revenue including that of joint
ventures please see note 3
of the consolidated financial
statements on page 56 for
further information this
measure represents the
profitability of our operations
return on average capital
employed roace is
calculated using profit from
operations excluding joint
ventures’ interest and tax 
and capital employed 
pregoodwill this measure
indicates how efficiently the
business is using its capital 
to generate profits
gearing is calculated as net
debt divided by shareholders’
funds and represents the 
level of borrowing within the
business
home completions include
sales from within joint ventures
which are counted as a
proportion of a unit in line 
with the percentage of the
joint venture owned by 
taylor woodrow
the order book represents
future business consisting 
of houses or lots reserved 
or amounts yet to be invoiced
on construction contracts
landbank indicates the
‘stock’ available for new
housing for which planning
consent has been received
some of the landbank is
owned outright whilst other
plots are controlled through
options
customer satisfaction is
measured by each of our
businesses through the use 
of customer surveys the way
in which these surveys are
conducted and the questions
that they contain vary by
business
results
consolidated revenue for the year 
to 31 december 2006 was up 3 per
cent at £35721m 2005 £34769m
profit before tax was £4056m 2005
£411 0m
at 31 december 2006 total equity
before minority interests was £21035m
2005 £19284m net debt was
£391 3m 2005 £4569m net gearing
was 186 per cent 2005 237 per cent
basic earnings per share was 505
pence 2005 506 pence equity
shareholders’ funds per share increased
by 7 8 per cent to 3647 pence
group housing has had a good year
with our north american business
reporting another year of record profits
revenue increased to £31284m
2005 £28649m reflecting an
increase in both home and lot
completions profits from operations
were higher than last year at £4692m
as the increase in completions
outweighed the reduction in overall
group housing operating margin
some 53 per cent of 2006 group
housing profit from operations came
from overseas operations 2005 49 per
cent this reflects our decision to
increase investment into those markets
over the last few years
the group housing landbank owned
and controlled was reduced to 68662 
plots 2005 75160 as a result of our
more cautious approach to land buying
in north america the group housing
order book stood at £1070m 
2005 £1318m with a decrease 
in north america offsetting increases 
in the uk and spain
throughout the chief executives review profit from operations and operating margins 
exclude joint ventures interest and tax see note 3 page 56 the group’s share of joint 
venture revenue is used in the margin calculation see note 3 page 56
operating margin 
return on average capital employed 
gearing 
order book £m
landbank plots
home completions
12516 13165
2006 2005 dan y graig gwent wales 08 taylor woodrow report and accounts 2006
grand union village is a £130 million redevelopment of a 54 acre
brownfield site in west london into a mixed use sustainable urban
village set alongside the grand union canal 
when complete over 800 homes including apartments and family
homes will be provided as well as a new canal basin known as
engineer’s wharf a community development trust set up and part
funded by taylor woodrow is now actively involving residents in the
creation and management of community facilities provided at the site
the development was recognised with a prince’s foundation award in
february 2007 for creating a community design that has helped to
improve the quality of life for the people who live there
above grand union village northolt west london england taylor woodrow report and accounts 2006 09
2006 saw a return to more stable
market conditions in the uk there
was however considerable regional
variation in the strength of markets
london and the southeast were
particularly strong while the midlands
and north remained subdued overall
visitor levels per site per week were 
up 12 per cent on 2005 and we also
saw an increase in the reservation rate
to 083 homes per site per week 2005
081 cancellation rates have also
improved with the 2006 level of 17 per
cent being broadly in line with the long
run industry average 2005 20 per cent
we have increased our average
number of active sites in 2006 to 207
2005 204 home completions for 
the year were up 1 per cent to 8294
2005 8178 and we entered 2007
with an order book up by 30 per cent
to £534m 2005 £411m
average selling prices were higher at
£193k 2005 £185k an increase in the
underlying price per square foot offset
the slight reduction in average square
footage of our homes from 960 sq ft 
to 952 sq ft the latter was a result of
an increase in the proportion of social
housing completions to 15 per cent
2005 13 per cent and the proportion
of apartment completions to 45 per
cent 2005 40 per cent 
uk housing revenue increased by 11 8
per cent driven by the increases in
home completions and average selling
prices operating margins were lower
at 120 per cent 2005 142 per cent
results in 2005 benefited from a
higher level of land profits primarily
due to the disposal of the quartermile
project in edinburgh revenue from
land sales in 2006 was £1946m 2005
£1344m and yielded lower profits and
margins than in 2005 due to an increased
proportion of recentlyacquired land in
the mix this is a result of our strategy
of acquiring large sites and selling on
those parcels of land that we do not
require for our homebuilding business
return on average capital employed for
the year was 140 per cent 2005 152
per cent
our operating margin has declined in
2006 and consequently growth in margin
is the longterm key focus of our uk
management we are preparing a
number of new measures to extract
greater value from our sites these will
complement our ongoing activity to
better manage cost
uk housing
2006 2005
revenue including 
joint ventures £m 18420 16474
profit from 
operations £m 2215 2334
operating margin  120 142
ending capital 
employed £m 15744 15851
roace  140 152
home completions 8294 8178
home average selling 
price £’000s 193 185
lot completions 3695 1748
active sites average 207 204
order book £m 534 411
landbank plots 34827 34985
strategic landbank 
potential plots 79000 80000
customer satisfaction 
7875
chief executive’s review continued
8178 8294
2006 2005
1 4
uk home completions
43
uk home average 
selling price 
£185k £193k
2006 2005 chief executive’s review continued
• increasing the proportion of our 
homes that are built using our core 
range which provides customers 
with the choice that they need 
whilst also enabling us to achieve 
lower build costs
• further developing our ‘right 
first time’ approach to reduce
maintenance costs and increase
customer satisfaction 
• increasing build process efficiency
we will be providing an update on our
progress with these initiatives when
we announce our interim results on 
31 july 2007 
our supply chain team works to deliver
value throughout the build process
their skills were recognised by the
chartered institute of purchasing and
supply when taylor woodrow’s supplier
management solution won the award
for ‘best use of technology’ in 2006
we continue to make good progress
with our strategic landbank which
represents land that does not currently
have planning consent having
identified a site with strategic potential
we will typically agree a purchase
option arrangement with the landowner
and then work together to promote 
the land through the planning process
such options generally provide us with
the ability to purchase the land at a
discount to market value when suitable
planning consents are obtained 
sites brought through from the
strategic landbank typically generate
higher margins than those bought 
in the open market with a planning
consent in place during 2006 22 per
cent of our home completions were
strategically sourced 2005 19 per
cent and we aim to increase this to 
25 per cent of our completions by
2008 at the end of 2006 we had
79000 potential plots within our
strategic landbank 2005 80000 and
39 per cent of the land in our landbank
originally came from strategic sources
2005 41 per cent
10 taylor woodrow report and accounts 2006
the quality of the landbank is critical 
to delivering growth in future years 
as well as the strength of the strategic
land outlined above we have
maintained our investment in the 
uk landbank during 2006 as a result
our year end landbank stood at 34827
plots owned or controlled broadly in
line with the position a year ago this
represents 42 years of supply
we are committed to developing
communities where people want to 
live rather than just building a collection
of houses for example the green
building at macintosh village in
manchester won the civic trust
sustainability award for its urban design
and use of materials 
customer satisfaction is a key priority
and our efforts in this area are reflected
in the improvements to our customer
satisfaction score in 2006 the score
for our uk housing business rose to 78
per cent 2005 75 per cent
chief executive’s review continued
uk housing revenue including joint ventures
£m
uk housing profit from operations
£m
2006
16474
18420
2005
2006
2334 2005
2215 taylor woodrow report and accounts 2006 11
at victoria wharf in cardiff for the second year running we have
received the nhbc uk supreme award for our management of
this waterfront development
this is a 479 home residential waterfront community situated 
on a prestigious peninsula in cardiff bay with its wealth of
shopping leisure and sporting amenities the development is
being built by taylor woodrow construction limited for our uk
housing business 
above victoria wharf cardiff wales 12 taylor woodrow report and accounts 2006
eastern
the eastern division has four operating
regions – eastern london the south
east and anglia 
2006 2005
home completions 2595 2596
average selling price £202k £193k
total plots owned 
and controlled with 
consent 11571 11947
eastern
based in welwyn garden city the region
covers essex hertfordshire and
bedfordshire 
anglia
the anglia region covers the counties of
norfolk suffolk and cambridgeshire from
its office in newmarket
london
based in watford the london regional
team sells new homes across central 
and greater london
holwood in keston sits within
approximately 74 acres the development
offers new homes positioned within the
historic surroundings of a stately english
mansion built primarily on the footprints
of former buildings with additional
conversion of period buildings this
exclusive project of 94 homes has been
carefully created to complement the 
wellestablished holwood estate
south east
our south east region covers sussex
surrey and kent from its office in crawley
chief executive’s review continued
uk housing organisation
our uk business provides around 8000 new homes
each year through approximately 200 sites currently
in development across england scotland and wales
the business operates currently from three divisions
northern eastern and western which incorporate 
our network of 12 regional offices this structure may
be subject to change going forward
northern
the northern division has four operating
regions  scotland the north west
yorkshire and north east and the east
midlands 
2006 2005
home completions 3150 3132
average selling price £194k £179k
total plots owned 
and controlled with 
consent 14150 13862
scotland
based in livingstone the region covers
mainly the central belt of the country
duloch grange dunfermline in scotland
is a development of 380 homes including
apartments and houses in this thriving
and growing town in west fife buyers
will have the choice of 18 different house
types many with garden rooms
north west
the regional office is located at
warrington and covers cheshire and
greater manchester up to lancashire 
and west in to denbyshire 
stamford brook altrincham in cheshire 
is part of the national trust’s dunham
massey estate the scheme is a proving
ground for a variety of sustainable
development features and techniques
our joint venture will provide 650 new
homes of high environmental
performance standards over a period 
of six years
north east and y orkshire
the region covers northumberland
county durham and yorkshire from its
office in leeds 
east midlands
with its base in leicester the east
midlands region provides new homes
across northamptonshire leicestershire
derbyshire and lincolnshire
western
the western division has four operating
regions – west midlands south west
south and south wales 
2006 2005
home completions 2549 2450
average selling price £182k £184k
total plots owned 
and controlled with 
consent 9106 9176
west midlands
the west midlands region is based in
solihull and spans the west midlands
shropshire north oxfordshire
herefordshire warwickshire and
worcestershire 
telford millennium community telford in
shropshire is a major regeneration project
of a former colliery plans for the site
include up to 800 highly sustainable high
quality homes at least 25 per cent of
which will be affordable and associated
community education and commercial
facilities the development is one of the
seven millennium communities
commissioned by english partnerships 
south wales
our latest operating region opened for
business in january 2007  with its office
based in cardiff it covers areas from
newport and cardiff to swansea the
region aims to sell around 400 homes 
in 2007 and intends to increase this
number in 2008 by securing further 
land opportunities and expanding into
camarthenshire
south west
based in chipping sodbury near bristol
the south west region covers
gloucestershire wiltshire somerset 
and north devon 
south
based in newbury the south region
covers berkshire hampshire dorset 
and straddles south wiltshire taylor woodrow report and accounts 2006 13
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
northern
eastern
western
anglia
east midlands
eastern
south east
south
london
west midlands
north west
y orkshire
north east
south west
south wales
duloch grange dunfermline 
fife scotland
stamford brook altrincham
cheshire england
telford millennium community
shropshire england
holwood keston surrey england the senna hills community is situated within a scenic area of
austin yet only a short driving distance from the city centre
senna hills features a community centre with playground pool
tennis basketball and an active homeowners association
14 taylor woodrow report and accounts 2006
above senna hill austin texas usa at the start of the year were converted
into completions return on average
capital employed has reduced from 
the wholly exceptional levels achieved
last year but still represents a very
strong result
we entered 2006 with a record order
book of us1421m as a result of our
focus on preselling our order book 
of us854m at the end of 2006
reflected the weaker market conditions
experienced during the year 
we have been more cautious in the
land market in 2006 as land prices
adjusted downwards to reflect the
market conditions much of our land is
acquired under option initially and only
bought outright once planning consents
are in place we carefully review the
terms of each option as it becomes
exercisable and where terms are no
longer attractive due to changes in
market conditions we approach the
land vendor to renegotiate in many
instances we have managed to
improve terms but there have also
been cases where we have allowed
options to lapse we have undertaken 
a full review of our yearend land
positions which in conjunction with
deposits on options not taken up has
resulted in a pretax land writeoff of
us40m
while we have continued to buy land
through our existing portfolio of
options we have been very selective 
in replacing options during 2006 as 
a result our landbank at the year end
stood at 31353 plots 2005 37 910
plots this represents 44 years of
supply and allows us to continue to be
selective in our land purchasing in 2007 
while shortterm market prospects 
are difficult commentators are united
in the belief that a recovery will occur
there is very significant potential for
taylor woodrow in north america in
the mediumterm our home
completions in north america are just
over a half of our completions in the uk
for 2006 but the florida market alone 
is larger than the entire uk market
our business in arizona which is
focused on the phoenix market has
been tremendously successful since it
was acquired in 2002 having originally
been centred on entrylevel homes the
business has been diversifying into the
midmarket and during 2006 launched 
a new product range targeting growing
families and executive buyers we
completed 1245 homes in arizona in
2006 2005 1009 at an average selling
price of us287k 2005 us209k the
business is also a highly successful
land developer buying larger tracts of
land identifying the plots that best suit
our product and selling on the remaining
plots to other builders during the year
we completed the sale of 1171 lots
2005 1076 whilst the market in
arizona cooled during 2006 the long
term fundamentals of population growth
job growth and relative affordability
remain in place
chief executive’s review continued
north america housing
2006 2005
revenue including 
joint ventures £m 11943 11418
profit from 
operations £m 2213 1996
operating margin  185 175
ending capital 
employed £m 5772 4956
roace  413 492
home completions 4492 3932
home average selling 
price £’000s 233 248
lot completions 2640 2735
active sites average 108 85
order book usm 854 1421
landbank plots 31353 37910
customer satisfaction
8786
our north american business has
delivered another excellent year of
profit growth with profit from
operations increasing by 11 per 
cent to £221 3m 2005 £1996m 
this reflects the success of our
strategy of maximising forward sales 
in the buoyant market conditions of
2005 in order to mitigate the anticipated
impact of market weakness in arizona
california and florida during 2006
home completions increased by 14 per
cent to 4492 2005 3932 with lot
completions slighter lower at 2640
2005 2735 despite the challenging
market conditions our operating
margin increased to 185 per cent 
as the reservations in our order book 
taylor woodrow report and accounts 2006 15
142
north america
home completions
north america
home average selling price 
60
3932 4492
2006 2005
£248k
2005
£233k
2006 16 taylor woodrow report and accounts 2006
north american housing organisation
we operate in five of the fastest growing markets in
north america which are underpinned by economic
growth household formation immigration and some
retirement wealth
arizona
key markets phoenix
home completions 1245 2005 1009
lot completions 1171 2005 1076
landbank plots 6250 2005 9080
california
key markets bay area palm springs
riverside county san bernandino
county san diego
home completions 540 2005 721
lot completions 156 2005 378
landbank plots 3379 2005 3768
florida
key markets fort myers naples palm
beach sarasota st petersburg tampa
home completions 835 2005 752
lot completions 499 2005 219
landbank plots 9597 2005 11459
t exas
key markets austin houston
home completions 280 2005 190
lot completions 306 2005 353
landbank plots 3017 2005 3375
ontario
key markets ottawa toronto
home completions 1592 2005 1260
lot completions 508 2005 709
landbank plots 9110 2005 10228
irvine
phoenix
t oronto
ottawa
san 
ramon
sarasota
austin houston
naples
t ampa
palm 
beach 
gardens
arizona
florida
ontario
t exas
california
founders club sarasota florida
usa
streetsville glen brampton
ontario canada
cliffhaven corona hills southern
california usa 
the summit collection at shamrock
estates phoenix arizona usa in california we operate in two key
markets in the north our business 
is focused on the lower end of the 
midmarket in the san francisco bay
area in southern california we build 
in selected submarkets from riverside
and san bernardino counties
southwards to san diego and eastwards
towards palm springs californian
markets in general weakened
significantly during 2006 primarily due
to interest rate rises and affordability
issues however our focus on the 
midmarket and providing highquality
homes allows us to offer an attractive
proposition to our customers during
the year we completed the sale of 
540 homes 2005 721 homes at an
average selling price of us812k 
2005 us835k we also achieved 156 
lot completions 2005 378
we operate from three divisions in
florida our central florida division
covers the areas around st petersburg
tampa bradenton and sarasota 
in southeast florida we operate in the
palm beach area whilst in southwest
florida we are focused on the markets
between fort myers and naples 
we offer a wide range from middle
market to luxury homes and
condominiums targeted to moveup
families retirees and second home
purchasers the florida market has also
experienced more difficult conditions
following a number of years of very
strong house price appreciation 
home completions in 2006 were 835
2005 752 at an average selling price
of us653k 2005 us727k our land
development business in florida is
primarily centred around our largescale
developments where we sell lots to
other homebuilders in 2006 we
completed the sale of 499 lots 2005
219 lots
our operations in texas are active in
both austin and houston these
markets did not experience the price
growth of other us regions in recent
years and are proving more stable
while other markets weaken they offer 
good levels of affordability particularly
in comparison to the western united
states we have a strong reputation 
in texas as a highquality community
developer which enables us to target
the ‘moveup’ market we offer our
customers a range of innovative home
designs that deliver ‘affordable luxury’
home completions increased to 280
2005 190 with average sales prices 
up 5 per cent to us447k 2005
us424k we also have a strong 
land development business in texas
centred on our community at steiner
ranch in austin we completed on 306
lots in 2006 2005 353
in ontario canada the group trades
under the monarch brand which
benefits from a longstanding reputation
for quality and value operating in the
greater toronto area and in ottawa in
eastern ontario monarch builds 
lowrise midmarket family homes 
chief executive’s review continued
and highrise condominiums as well 
as affordable urban townhomes the
ontario market has not seen significant
house price inflation over recent years
and retains a good level of affordability
in addition the market was assisted by
the reduction in the level of canadian
goods and services tax during the
year completions in 2006 were 1592
homes 2005 1260 the average sales
price was can322k 2005 can326k
we also sell lots in canada and
completed 508 during 2006 2005 709
the continuing success of our business
in north america is a result of our
focus on highquality developments
professional finishes and exceptional
customer service in october 2006
taylor woodrow received the honour 
of being the first homebuilder ever to
be inducted into the builder magazine
‘hall of fame for design excellence’ 
this prestigious award recognises
outstanding contributions to residential
design
our north america divisions are
consistently recognised by customers
and industry peers winning some of
the most soughtafter awards in the
business in particular our arizona
division received five awards at ‘the
nationals’ awards 2006 recognising
taylor woodrow’s contribution to
innovation in home design marketing
and sales
taylor woodrow report and accounts 2006 17
2006
11418
11943
2005
2006
1996 2005
2213
north america
profit from operations
£m
north america
revenue including joint ventures
£m new properties on the island which has
become a soughtafter destination
we sold a total of 379 homes in 2006
2005 406 at an average selling price
of £205k 2005 £169k this increase 
in average selling price reflects a
change in the mix of completions with
a higher proportion of completions in
2006 coming from our developments in
mallorca we also took the opportunity
during the year to rebalance the land
portfolio by selling some of our holding
in the malaga area
operating margins and returns on
capital have remained strong albeit
below the exceptional levels achieved
in recent years
the order book increased 23 per cent
to £100m 2005 £81m and our year
end landbank stood at 2482 plots up 
10 per cent 2005 2265
the disappointing reduction in our
customer satisfaction score
predominantly results from difficulties
in obtaining habitation certificates as
high levels of development activity
have put pressure on local town halls
construction
our construction business has
developed an excellent reputation within
its chosen markets focusing on repeat
work for blue chip clients facilities
management infrastructure and
government projects this excellence
has once again been recognised with 
a number of industry awards in 2006
including being named building
magazine’s ‘major contractor of the
year’ and winner of the overall
‘constructing excellence’ award profit
from operations was £81m 2005
£88m and our increased order book 
of £1165m at the year end 2005
£707m provides us with a solid
platform for 2007 
during the year we have undertaken
projects ranging from the redevelopment
of the ticket hall at kings cross
underground station in london to the
design and build of the national
assembly for wales in cardiff we have
recently commenced work on the 
st helens and knowsley hospitals pfi
scheme and are also preferred bidder
on the sheffield ‘building schools for the
future’ programme we achieved a
customer satisfaction score of 87 per
cent in 2006 2005 91 per cent
principal risks and uncertainties
as with any business taylor woodrow
faces a number of risks and
uncertainties in the course of its 
daytoday operations by effectively
identifying and managing these risks
we are able to improve our returns
thereby adding value for shareholders
economic and market environment
customer demand is dependent upon
underlying economic conditions such
as interest rates unemployment levels
and general consumer confidence
which are outside the group’s control
spain and gibraltar housing
2006 2005
revenue including 
joint ventures £m 921 757
profit from 
operations £m 264 230
operating margin  287 304
roace  359 457
ending capital 
employed £m 896 575
home completions 379 406
home average selling 
price £’000s 205 169
lot completions 78 12
active sites average 28 22
order book £m 100 81
landbank plots 2482 2265
customer satisfaction
6273
chief executive’s review continued
18 taylor woodrow report and accounts 2006
spain and gibraltar
revenue including joint ventures
£m
spain and gibraltar
profit from operations
£m
2006
757
921
2005
2006
230 2005
264
our business in spain trades under the
taylor woodrow brand and is primarily
focused on developing sites in popular
holiday destinations where we identify
appropriate opportunities we also 
build homes designed to meet the
requirements of the local population
in gibraltar taylor woodrow serves 
the luxury market through apartment
developments selling offplan well 
in advance of the start of construction
after a strong performance in 2005 we
saw our markets in the costa blanca
and costa del sol slowing during 
2006 however the market in mallorca
continues to be good as a result of the
limited supply to meet the demand for los balcones los arqueros golf and
country club marbella spain  the impact of these factors on the
group’s sales is mitigated to a degree
by operating in different geographic
markets which may exhibit different
economic conditions at any particular
point in time
we use the detailed knowledge of 
our local teams to select the locations
for our communities and the
appropriate home designs to meet
customer demand we minimise the
level of speculative build that we
undertake by opening a sales office 
and showhomes at an early stage 
of development our selective use of
partexchange has proved successful 
in making the process of buying a
home easier for our customers
planning system
the number of homes that we are able
to build in the course of a financial year
is dependent on the granting of suitable
planning permissions due to the time
taken to obtain planning permissions
on land we hold a landbank to provide
greater certainty of the number of plots
available to be developed in the
following 12 months we also look to
use option contracts to control land
with ownership not being taken until
planning is more certain
delays to the expected timescale for
receipt of planning on a site may result
in a reduction in the number of homes
that we have available for sale
planners may also impose conditions
within planning consents which may
lead to additional costs of developing 
a site our land specialists mitigate
these risks by working closely with 
the relevant planning authorities and
through the structure of land purchase
agreements
in the uk planning permissions can be
very specific including the density types
of housing and availability of car parking
spaces if the views of the planners do
not coincide with our customers’
aspirations there will be an impact on
demand for our product we work closely
with the government both directly
and as a member of industry groups 
to highlight such potential issues
land purchasing
land is the major ‘raw material’ for the
group and as such overpaying for land
would have a detrimental impact on our
profitability to mitigate this risk we
operate an investment appraisal process
for all significant land purchases with
approval required from our investment
committee prior to such purchases
being completed the investment
committee reviews the key information
on which bids are based and ensures
that projects meet our internal hurdle
rates for operating margin and return
on average capital employed
availability of subcontractors
the vast majority of the work carried
out on site is performed by sub
contractors if they are not able to
chief executive’s review continued
20 taylor woodrow report and accounts 2006 recruit sufficient numbers of skilled
employees our developments may
suffer from delays or quality issues
we vet all suppliers thoroughly prior 
to working with them to ensure 
that they meet our requirements for
environmental impact health and
safety quality and financial stability 
we also play our part in addressing 
the skills shortage in the building
industry through apprenticeship
schemes and membership of the
construction industry training board
availability of materials
the key materials used within our
operations such as bricks blocks
concrete steel and timber are in heavy
demand across the world changing
patterns of construction demand due to
factors ranging from changes in public
sector construction programmes to
natural disasters can have an influence
on the availability of such materials
our vetting process ensures that
materials are responsibly sourced from
financially stable suppliers and meet
our requirements for health safety and
quality we work closely with our key
supply chain partners providing
forecasts of our demand to assist with
ensuring the availability of supply
site safety
building sites are inherently dangerous
places we recognise our responsibility
to provide our workforce with a safe
place of work and have a team of 
inhouse health and safety specialists
who provide training and site reviews
as detailed later in this review we 
have a strong commitment to health and
safety but we are continually looking
for ways to make further improvements
construction process
construction both of homes and other
projects can be subject to delays 
and cost overruns arising for a wide
variety of reasons these include
left south hook lng terminal
milford haven pembrokeshire wales
following the successful construction
three months ahead of schedule for
liquefied natural gas lng
containment tanks taylor woodrow
construction twc secured a further
contract at the south hook lng
terminal near milford haven
pembrokeshire 
right 
explorer t oronto canada
construction of the highrise
development explorer located
against the backdrop of the toronto
skyline the two 14storey towers are
connected by a five storey podium
this photograph captures the east
view showing construction in
progress on one of the towers
taylor woodrow report and accounts 2006 21
adverse ground conditions changes 
to the original design once build has
commenced and unfavourable weather
we target selectively the type of 
work that we bid for choosing not to
participate in projects where we
consider that the risks are too great
we maintain detailed risk registers
ensuring that risks are identified 
priced or hedged and approved at the
appropriate level before taking on a
project these registers are maintained
throughout the life of the project and
reviewed following the completion 
of the job to identify any key learning
points for future projects we also
actively promote developments in
areas such as offsite manufacturing
which have the potential to reduce 
the risk of delay the calders green development near weston sits in 
the middle of some of the most beautiful parkland that
cheshire has to offer it is a gated development of family
homes and apartments in a setting of lakes streams 
and trees 
22 taylor woodrow report and accounts 2006
above calders green crewe cheshire england sustainability and the environment
taylor woodrow is committed to
continuous improvement in the design
and construction of new homes and
enhancing the built environment for
people who live in and near its new
communities both now and in the
future in order to measure our progress
against this aim we focus on four key
areas of sustainability
urban regeneration is a major part of
our business transforming areas of land
that are often derelict and sometimes
contaminated into desirable places to
live during 2006 we commenced work
on telford millennium community which
will include up to 800 highly sustainable
homes along with associated
community education and commercial
facilities on the site of a former colliery
in 2006 63 per cent of our uk homes
and 21 per cent of our north american
homes were developed on brownfield
previously developed land 2005 uk
68 per cent north america 17 per
cent our construction business also
undertakes regeneration projects and 
is currently working with sandwell
homes to deliver a five year package of
repairs and improvements to homes
across six towns in the west midlands
as the cost of buying a new home in
the uk continues to increase
affordable housing homes built for
registered social landlords or as part of
key worker programmes is becoming
an increasing part of our business 
we have developed a reputation for
delivering highquality affordable
housing making us a partner of choice
for housing associations affordable
housing increased as a proportion of
our business from 13 per cent in 2005
to 15 per cent in 2006
around 25 per cent of the uk’s carbon
dioxide emissions a major cause of
climate change come from the energy
that people use to heat light and run
their homes during the year we
commissioned thermal photography 
to compare the energy efficiency of
brand new and secondhand homes
the results showed that new homes
are significantly more energy efficient
than those built twenty or thirty years
ago the average sap standard
assessment procedure rating for our
uk homes was 97 in 2006 2005 98
against a maximum possible score 
of 120
taylor woodrow has also taken a
leading role in the deployment of the
ecohomes scheme an environmental
assessment method for house building
and refurbishment in 2006 950 of our
homes were certified to ecohomes
standards representing 11 per cent of
our total uk completions 2005 736 
9 per cent 
as a major homebuilder we have a
responsibility to play a major role in the
sustainability debate as such we
contributed to the consultation on the
uk government’s draft code for
sustainable homes and held our first
sustainability conference
we closely monitor the environmental
performance of our business and have
continuous improvement initiatives
underway in three key areas
• we successfully reduced the average
amount of construction waste
generated per uk home to 321 cu yds
and the associated cost of disposal to
£291 2005 396 cu yds and £351
• we reduced the carbon dioxide
emissions from our uk operations
including those generated during the
construction process by our offices
and showhomes and by our company
vehicle fleet from an estimated
20204 tonnes in 2005 to an
estimated 19034 tonnes in 2006 
• we received a reduced total number 
of environmental prosecutions 
notices and incidents during the year 
of 19 2005 29
sustainability and environmental issues
are becoming increasingly important in
north america and we have a number
of initiatives underway in our different
regions for instance our florida
business has implemented a recycling
programme at its palma sola trace
community which has successfully
increased the amount of waste
material that is recycled or reused
chief executive’s review continued
taylor woodrow report and accounts 2006 23
community
taylor woodrow has a long history 
of contributing to local communities
through voluntary projects and other
activities we set ourselves the
objective of further developing our
community programmes during 2006
examples of our work with
communities in the uk include
• our ongoing relationship with the 
charity barnardo’s through our 
‘building futures’ partnership 
through which team members raised
£11447 for their local barnardo’s 
projects 2005 £4913 many other 
company events raised additional 
funding for barnardo’s of £26000 
2005 £19200
• continuing our ‘support the team’ 
programme we donated £28959 
to match team members’ charitable 
fundraising efforts 2005 35918
• rolling out our ‘community in the 
curriculum’ initiative to schools 
neighbouring our developments in 
scotland and the west midlands 
• developing policies for a company
wide process for community 
consultation
our team in north america has a
strong culture of community
participation which was further
enhanced during 2006 examples of
the team’s contributions include
• team members from texas raised 
more than 50000 in walks 
benefiting the juvenile diabetes 
research foundation
• our team in southern california 
raised more than 25000 for 
homeaid orange county a non
profit organisation that helps build 
and renovate shelters for the 
transitionally homeless men women
and children in the community 
• the arizona division hosted an 
‘easter eggstravaganza’ for 
residents of one of its communities 
which was attended by over 100 
residents with their children more 
than 1000 eggs were hidden with 
prizes including gift certificates toys 
and bicycles 2006
736 2005
950
2006
1212
1382
2005
employees
the development of effective teams is
vital to our company we are committed
to recruiting and retaining a talented
team that is motivated and focused to
deliver and exceed our business
objectives this commitment is
supported by regular benchmarking of
our remuneration and benefits packages 
we respect the rights of our people
we promote
• good and safe conditions of work
• the development and best use of 
talent
• equal opportunity employment 
• involvement of our people in the
planning and direction of their work
we strive to make our project sites and
our offices safe working environments
our objective is to improve safety
performance through awareness
raising monitoring and incentivisation 
in the uk we have a programme of
active monitoring for site safety and
project performance is linked to bonus
schemes for site managers and senior
managers during 2006 we conducted
• 1382 site inspections which 
measure how well our project teams 
are implementing health and safety 
management 2005 1212 
• 326 safety management audits 
which measure how well our project 
teams have planned the management
of health and safety 2005 342
we have been recognised for our
leadership position within the sector in
2006 our uk housing and construction
businesses each received gold awards
from the royal society for the
prevention of accidents during 2006
our accident frequency rate was 034
accidents per 100000 man hours
2005 034
in north america we conduct
independent health and safety audits
of all construction sites twice a year
and set continuous improvement
targets the results of the 2006 audits
were very good with average scores of
93 per cent exceeding the target of 88
per cent
our spanish business has achieved
certification to the occupational health
and safety management standard
18001  the standard has been
successfully audited by lloyds register
and is being promoted to our
contractors and suppliers
despite the good progress made in
advancing the quality of our safety
management processes we are deeply
saddened to report three fatalities in
our operations during the year
we are committed to keeping our
employees informed of developments
within the business internal
communication methods include
weekly news bulletins regular team
chief executive’s review continued
24 taylor woodrow report and accounts 2006
briefings and frequent opportunities to
meet senior management facetoface
we undertake regular employee
surveys and benchmark the responses
against both previous results and
industry standards our 2006 survey
showed that 79 per cent of our
employees would recommend taylor
woodrow to others as a good place 
to work an improvement on the 2004
figure of 74 per cent
our people are a key strength of our
business and their skills have once
again been recognised in industry
awards jerry williams from our
construction business was named
‘project manager of the year’ for the
national assembly for wales at the
chartered institute of building awards
12 of our uk housing site managers
received nhbc ‘seal of excellence’
awards with three winning ‘regional
awards’ and going through to the
overall uk final steve vorres received
the nhbc uk supreme award in the
multistorey category for the second
year running for our victoria wharf
development in cardiff
details of the number of employees
and related costs can be found in 
note 5 to the consolidated financial
statements on page 59
uk homes certified to ecohomes standards
uk site safety inspections site workers at calders green crewe cheshire england pensions
at 31 december 2006 the gross ias19
deficit was £206m 2005 £220m net
of deferred tax the deficit was £144m
2005 £154m further information is
contained in note 20 on page 68
the company has now completed
discussions with the trustees of the
main defined benefit pension scheme
in the uk on the means of mitigating
this deficit as we announced at our
interim results the company has
agreed to increase its past service
deficit funding payments from £48m
per annum to £20m per annum for a
period of 10 years this increase impacts
on cashflow but profit from operations
will not be affected also in line with
our previous announcement the fund
was closed to future accrual for existing
members on 1 december 2006
equity shareholders’ funds
at the end of 2006 shareholders’ funds
were £21035m up from £19284m at
the end of 2005 equity shareholders’
funds per ordinary share rose to 3647
pence at the end of 2006 this
represents an increase of 7 8 per cent
from the previous yearend
shareholders returns
basic earnings per share stood at 
505 pence 2005 506 pence the
proposed final dividend of 975 pence
produces a total return of 1475 pence
per ordinary share an increase of 10
per cent over last year this level of
dividend is consistent with the board’s
policy of paying progressive dividends
through the business cycle
the dividend is covered 34 times 
by earnings
cash flow and net debt
operating cashflows before movements
in working capital were £4609m 2005
£461 1m inventories increased by
£347 5m which was partly funded by an
increase in creditors of £17 44m of this
26 taylor woodrow report and accounts 2006
chief executive’s review continued
latter increase £131 1m is represented 
by an increase in land creditors cash
generated by operations was £2233m
2005 £3597m income taxes and
interest payments totalled £1663m
2005 £2295m resulting in net cash
from operating activities of £57 0m
2005£1302m
net debt at the yearend stood at
£391 3m 2005 £4569m equivalent to
net gearing of 186 per cent 2005 237
per cent interest on borrowings net of
interest receivable was £550m 2005
£544m average net debt for the year
was £837 8m 2005 £8234m at the
yearend taylor woodrow had undrawn
committed revolving credit facilities
totalling £6295m
t axation
the effective tax rate in 2006 was 284
per cent 2005 303 per cent
left twenty gothic development toronto
canada
twenty gothic is an eightstorey monarch
highrise development located on gothic
avenue in toronto the apartments are close
to the subway station local shops and
restaurants 
175 luxurious suites will be offered with 
one bedroom and two bedroom apartments
– all with balconies or terraces a limited
selection of penthouse suites will also be
available
right diglis water worcester england
a waterside regeneration development of
approximately 420 new homes on the banks
of the river severn and the worcester and
birmingham canal network the scheme
encompasses restoration of the river and
canal basins and some historic buildings as
well as providing retail shopping community
and leisure units public and private
waterside park areas will also be created
the scheme consists mainly of apartments
along with a number of threestorey
townhouses the development has launched
successfully with an indepth knowledge of the
markets in which we operate we are
wellplaced to benefit from any land
acquisition opportunities that market
conditions might present
we will continue to invest across our
portfolio where we see the best returns
for shareholders and i look forward to
updating you on our progress through
the year
ian smith
chief executive
19 february 2007
prospects for 2007
our geographic portfolio of businesses
continues to provide us with alternative
investment and growth options
the uk housing market remains good
underlying fundamentals are strong
due to the continuing significant
undersupply of new housing whilst
government is committed to introducing
policies that will increase the availability
of land for development we have not
yet seen any increase in supply despite
strong price appreciation during 2006
there were wide regional variations and
customer confidence could be damaged
in some of the weaker markets if
further interest rate rises materialise 
in 2007  we anticipate an increase in
the number of home completions
during 2007 and will continue to focus
on improving our operating margins
in north america although the markets
in arizona california and parts of florida
remain challenging and difficult to predict
current market conditions in texas 
and ontario are healthy we continue 
to be confident in the prospects for 
the business in the mediumterm but
expect to see significant reductions 
in both operating margin and return on
capital employed during 2007  in 2007
the priority for our north american
management is to minimise the impact
of the market downturn in the short
term whilst taking the opportunity 
of the market downturn to position 
the business for accelerated growth 
in the future
the market in spain remains attractive
on a mediumterm view although any
weakness in the uk market in the
shortterm could reduce demand for
property in spain from british buyers
taylor woodrow report and accounts 2006 27