Additional Pro Forma Unaudited Financial Information

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Basis of preparation

The Group completed the merger with George Wimpey plc on 3 July 2007. The statutory results of the Group for the year to 31 December 2007 therefore exclude the first six months trading of the former George Wimpey plc businesses.

To assist investors in understanding the performance of the combined Taylor Wimpey plc Group, a summary pro forma income statement has been prepared by aggregating the underlying financial information for the year to 31 December 2007 of the former Taylor Woodrow plc ('TW') and the former George Wimpey Plc ('GW'), to illustrate the effect of the merger of TW and GW as if the transaction had taken place on 1 January 2006. The results from the two legacy businesses have been prepared on the basis of their historic accounting policies as published in the 2006 financial statements of the two Groups. In aggregating the two sets of financial information, intra-Group trading between the two entities has not been eliminated and fair value adjustments arising from the acquisition accounting have been excluded. This information has not been audited.

Pro Forma Unaudited Combined Group Summary Income Statement

for year to 31 December 2007

Pro forma
Combined before
exceptional items
Year to
31 December 2007
£m
Year to
31 December 2006
£m
Consolidated Revenue 5,887.5 6,719.5
Cost of sales (4,899.7) (5,514.6)
Gross profit 987.8 1,204.9
Net operating expenses (347.8) (342.0)
Share of results of joint ventures 27.0 29.7
Profit on ordinary activities before finance costs 667.0 892.6
Net finance costs (131.4) (116.1)
Profit on ordinary activities before taxation 535.6 776.5

Note to the Pro Forma Unaudited Combined Group Summary Income Statement

for year to 31 December 2007


Pro forma
Combined before
exceptional items
Revenue Year to
31 December 2007
£m
Year to
31 December 2006
£m
Housing United Kingdom 3,998.8 4,150.4
Housing North America 1,215.0 1,926.4
Housing Spain and Gibraltar 64.4 92.1
Construction 609.3 550.6
Corporate
5,887.5 6,719.5
     
Profit on ordinary activities before finance costs £m £m
Housing United Kingdom 608.5 533.0
Housing North America 62.4 336.8
Housing Spain and Gibraltar 7.9 26.4
Construction 2.0 8.1
Corporate (13.8) (11.7)
667.0 892.6