Our investment proposition

1. Increased resilience in weaker market conditions

  • Brand underpin to sales rate and cash flows
  • Understanding customer needs and constraints, innovating to widen routes to market
  • Quality of location (where people want to live) is a key determinant of a home purchase through the cycle
  • Strong balance sheet
  • Experienced management team and local regional business teams

2. Increased capacity for high-quality growth

  • Growth without compromising on quality or adding meaningful market risk
  • Factory approach to build can drive faster and controlled growth which can be scaled up to deliver increases in volumes and cash flow on existing assets, depending on market conditions
  • Excellent short term landbank and strategic land pipeline with high embedded margin
  • Underpinned by our approach to people and the right level of resourcing
  • Growing talent from within and resourcing future growth through our early talent programmes and by increasing apprentices and direct labour

3. Professional and principled business

  • Reputation and character of the business is important in a highly political industry and with increased scrutiny and increased customer expectations
  • Focusing on a unique and valued employee proposition means we attract and retain the best people
  • Culture embedded throughout the business of "doing the right thing"

4. Enhanced efficiency and returns

  • Operational efficiency gains to be made by realising investments in technology and our systems
  • Increased landbank efficiency
  • Cost and efficiency review ongoing
  • Reliable and recently enhanced dividend returns form key part of investor proposition

Stable annual income stream through the cycle

Ordinary dividend

At least £250m to be paid, subject to shareholder approval, on an annual basis from 2019, even through a normal downturn.

Special dividend

We have paid a special dividend in each of the last five years c.£350m to be paid in 2019, subject to shareholder approval.

We confirm our intention to continue to make further material cash returns in 2020 and beyond.

Annual Report Downloads

Annual Report

Chair's statement

Chief Executive's letter

Our strategy

Our business model

Creating value for stakeholders

Group financial review

Financial statements

Group Management Team Q&A

Principle risks and uncertainties

Directors' report: governance

Our key performance indicators

Our investment proposition

Other downloads and links

Sustainability report

Gender pay gap report


* Operating profit is defined as profit on ordinary activities before net finance costs, exceptional items and tax, after share of results of joint ventures.
** Return on net operating assets (RONOA) is defined as rolling 12-month operating profit divided by the average of the opening and closing net operating assets, which is defined as net assets less net cash, excluding net taxation balances and accrued dividends.
*** Return on capital employed is defined as rolling 12-month operating profit divided by average capital employed calculated on a monthly basis over the period.
**** Operating cash flow is defined as cash generated by operations (which is before taxes paid, interest paid and payments related to exceptional charges).
† Tangible net assets per share is defined as net assets before any accrued dividends excluding goodwill and intangible assets divided by the number of ordinary shares in issue at the end of the period.
†† Adjusted basic earnings per share represents earnings attributed to the shareholders of the parent, excluding exceptional items and tax on exceptional items, divided by the weighted average number of shares in issue during the period.
†* Net operating asset turn is defined as 12-month rolling total revenue divided by the average of opening and closing net operating assets.
†** WIP turn is defined as total revenue divided by the average of opening and closing work in progress.
‡ Net cash / (debt) is defined as total cash less total financing.
‡‡ Cash conversion is defined as operating cash flow divided by operating profit on a rolling 12-month basis.
‡‡‡ Contribution margin is defined as revenue less direct build costs, less gross land costs and less direct selling expenses. Contribution margin excludes the impact of supplier rebates, land provision utilisation and discounting of deferred land commitments.
‡‡‡‡ Adjusted gearing is defined as adjusted net debt divided by net assets. Adjusted net debt is defined as net cash less land creditors.