Our Strategy

In February 2012, the Board announced the adoption of a new long term strategy designed to deliver £1.9bn (£6.20 per share) of surplus capital to shareholders over a nine and a half year period ending in 2021, whilst at the same time building a stronger, larger business. The delivery of the strategy will be based upon strong free cash generation, through a combination of achieving excellent levels of operating profitability and well judged land replacement, which will maximise our return on capital employed.

The Board's long term strategy includes the return of surplus capital of £1.9 billion (£6.20 per share) to shareholders according to the following timetable.

Our objective is to deliver our Capital Return Plan to shareholders by building a range of sustainable homes across the UK and selling to both the private market and housing associations. Our strategic priorities are set out below.

Improving margins

• Continue to control development costs
• Acquisition of new land at attractive prices
• Conversion of strategic land at enhanced margins
• Maximise sales prices
• Re-plan existing sites

Selective new site acquisitions

• Increased southern exposure
• More traditional site layouts
• Appropriate product mix

Build sustainable homes

• Improve the energy efficiency of our homes and reduce running costs
• Use modern methods of construction to support site production rates and overcome any potential labour shortages
• Invest in Space4

Continue to focus on cash generation

• Appropriate capital structure
• Capital discipline
• Deliver returns to shareholders
• Reduce finance costs
• Good flexibility

Health and Safety

• Continued management training
• Continue to improve safety culture
• Maintain a high level of compliance with health and safety standards

Customer Care

• Improve customer satisfaction and service levels
• Achieve HBF 5* rating
• Build good quality homes in attractive locations