Construction

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Quality reputation

Photo: Managing Director, Tim Peach

Tim Peach
Managing Director, Taylor Woodrow Construction

Construction strategy

  • Provide construction and facilities management services to high growth industry sectors throughout the UK and for key customers in selected overseas markets
Construction key performance indicators 2007
Operating margin* 0.6%
Order book £1,194m
Customer satisfaction 88%
Health and safety (incident rate per 1,000
employees and subcontractors)
6.8

Construction growth opportunities

  • Secure repeat business by building strong relationships with blue chip clients
  • Continue to grow our facilities management business

Performance

Revenue increased by 10.7% in 2007 to 609.3 million (2006: 550.6 million), delivering an operating profit* of 3.5 million (2006: 9.6 million). This fall is primarily due to the losses on a small number of road construction contracts in Ghana. We have no further similar contracts. The UK business delivered a strong performance, recording an operating profit of 17.8 million (2006: 6.8 million).

The year end order book stood at 1.19 billion (2006: 1.17 billion), reflecting a steady flow of contract awards in our chosen sectors. In particular, our facilities management operations have secured a number of new contracts from blue chip customers.

Going forward

Our strong forward order book gives us confidence in our abilities to grow profits in 2008.

* Profit on ordinary activities before finance costs, exceptional items and amortisation of brands.