Division

Short term priorities

Longer term objectives:

• Provide growth in earnings per share, in light of market conditions
• Deliver a return on capital employed above the level of our cost of funding
• Return the Group to an investment grade credit rating
• Attract and retain the highest calibre of employees and strive to be a company that people want to work for

• Return the Group to profitability following the recent downturns in both of our main markets through:
• Focusing on sales price increases rather than volume growth
• Continued focus on build cost reduction
• Maintaining tight control on overhead costs
• Deliver value from our existing landbank
• Continue to generate cash from operations through reduced level of investment in land and work in progress spend
• Maximise the potential of our employees through training and development programmes
• Deliver operating cash flows in excess of the levels set out within our financial covenants

• Goal is to be the leading homebuilder in the UK
• Current operational focus is margin improvement and cash management
• In the longer term we will look to grow volumes from increasing outlet numbers as the market recovers

• Deliver competitive offers in each local market
• Reduce build costs through merger savings, lower labour and materials costs and value engineering of sites
• Replan existing sites with detailed planning consents to change product mix and reduce planning obligations
• Add new plots to the landbank on attractive terms

• Goal is to be the homebuilder of choice in each of our markets
• Medium term objective is to grow volumes through taking advantage of land acquisition opportunities as they arise

• Drive sensible sales rates for each site
• Retain build cost and overhead savings
• Maintain reduced level of investment in land and work in progress spend where appropriate
• Grow market share in our key markets

• Deliver high quality homes in popular locations that appeal to both foreign and Spanish buyers
• Focus on cash generation and cost reduction
• Remain cautious on land purchasing at the current point in the market cycle

• As previously announced, we are exiting our business in Gibraltar