Annual Report and Accounts 2010

After the challenges of recent years, Taylor Wimpey has made strong progress during 2010. We have:

• Delivered significant operational improvement, which is reflected in the Group's enhanced profitability;
• Increased the tangible net asset value per share;
• Completed the refinancing of the debt facilities entered into in April 2009; and
• Continued to support and develop our people, including making a number of changes to the membership of the Board.

2010 performance

In my first Chairman's statement, I am delighted to be able to report a strong improvement in the Company's financial performance during 2010 as the benefits of the strategy for recovery set out in last year's Annual Report take effect. I look forward to building on this success during the course of my tenure.

We have recorded a profit before exceptional items and tax of £75.1 million (2009 loss: £96.1 million). Pre-tax exceptional items for the year are £146.4 million (2009: £603.8 million), with the major constituents being the costs of refinancing and further reviews of the carrying value of our land and work in progress in the United States and Spain. This gives a loss before tax of £71.3 million (2009 loss: £699.9 million).

This recovery in underlying profitability owes much to the improvements made in all areas of our business processes, which I have been very impressed by and which will add significant value as we move forward.

Refinancing

In addition to this improvement in the Company's financial performance, we have also made further progress in strengthening the Company's balance sheet. As we announced on 15 December 2010, we have completed the refinancing of our existing debt facilities, ahead of their maturity date in July 2012.

The new arrangements provide a number of benefits, including:

• a simplified debt structure with extended maturity profile;
• better blended interest rate of around 7.5%; and
• greater operational flexibility.

I would like to thank our shareholders and debt providers for their ongoing support to the Group.

Further information regarding the refinancing is contained within Ryan Mangold's Group Financial Review.

North American operations

As recently announced, we are evaluating proposals for our North American business and will update the market in due course.

Dividends

The Board did not consider it appropriate to propose an interim dividend for 2010. The uncertainty in the wider economy has eased somewhat during the second half of 2010, however, we are not proposing a final dividend for 2010 (2009 full year dividend: nil).

We will continue to review our dividend policy in the light of Taylor Wimpey's financial position and prevailing economic and market conditions in the future.