Laing Homes had
another excellent year.

The profit before interest of the UK business was £53.3 million (2000 – £53.0 million) on turnover of £381.3 million (2000 – £352.3 million). The UK market experienced continuing house price inflation that was most noticeable in the South East of England, where our operations are concentrated. The events of 11 September did not result in any discernable long-term change to home buyers’ confidence and the market has continued to hold up well. The business remains focused on product innovation and customer service and has developed the Laing Homes brand which is well respected. This is complimented by the Beechcroft brand, for retirement homes, and by Octagon, the upmarket house builder in which Laing Homes increased its interest from 20% to 30% in July.

In the USA we took a further step towards the strategic exit on which Laing Homes has been working. In June 2001 the holding in WL Homes LLC was reduced from 50% to 22.5% following a financial restructuring which enabled the Group to repatriate £33.3 million of its investment. Transaction costs of £3.5 million depressed the first half result in the US business but the share of the strong second half performance generated a trading profit for the year of £6.3 million and an overall profit before interest from US operations of £2.8 million (2000 – £11.3 million).

INNOVATION

In 2000, we introduced a number of technological innovations which are now widely established in our homes. In 2001, in line with our commitment to sustainability, we have introduced a new building system – the Jämerä System from Finland – which has tremendous energy saving potential. It is being used by Laing Partnership in the construction of new homes in Seabright Street, East London.

CUSTOMER SERVICE

Last year we were also particularly focused on improving our customer services.
Our objective has always been to offer the best service in the market, from the quality of our homes, to the choice and the ease of buying, rounded off by our after-sales service.
The impetus for further improvement comes from our day-to-day experience and from independent research carried out for us, in particular by the Henley Centre.
The Henley Centre report shows that, in today’s pressurised world, people have much higher expectations of service in the housing market. So, if we are to succeed, we must deliver.
Through our own internal monitoring systems and other independent surveys, we know that some 87% of our customers are currently satisfied with our service and that 90% of them would recommend Laing Homes to anyone they knew who was looking for a new home. Our objective is to improve on this.

SUPPORT FOR OUR BRANDS AND THE WEB

We have long recognised the importance of our brands and have consistently supported them over the years.
During the past year, we have rebranded Laing Partnership and Laing Training and given them identities which emphasise the concept of working together to achieve a common goal.
The performance of Beechcroft was affected by the events of 11 September and a slowdown in their building programme due to delays in the planning process. Nevertheless, the brand has expanded into regional markets familiar to Laing Homes and opened a new office in Cobham which will become the hub of their operations in the South East.
As one of the leading house builders engaged in internet marketing, we make it our business to continuously improve the design and broaden the features of our website as we move ever nearer to the day when customers will be able to choose and buy a new home online.

BUILDING TO ENABLE A SUSTAINABLE TOMORROW

We have continued to work within the framework of the Group’s environmental policies and have further developed our own Building to Enable a Sustainable Tomorrow (BEST) initiative.
For example, well in excess of Government recommendations, over 90% of our new developments are now carried out on previously developed land. We are making water savings of up to 1.3 million litres a year through rain water harvesting and other measures, and saving up to 20% of skip waste through plasterboard recycling. Moreover, many of our homes now achieve an energy rating of over 80 on the Government’s Standard Assessment Procedure measurement scale.

RECOGNITION FOR SUCCESS

We were several times honoured for the quality of our product during 2000, being twice voted Housebuilder of the Year.
During 2001 we struck gold five times in the Evening Standard’s Housebuilder of the Year competition.
We also won prizes for Best Energy Saving Development, Best Retirement Development, Best Future Home and Best Landscape Design at the What House? Awards.
Just as importantly, our commitment to customer service was recognised when the South West Thames division’s Construction Director, Bruce Heffer, was named Customer Services Leader of the Year and their Customer Services Manager, Matthew Occomore was named Customer Services Professional of the Year in the National Customer Service Awards.

PROSPECTS FOR A STEADY MARKET

With interest rates having been maintained at or near their present level for some time now, our business has been spared the debilitating peaks and troughs of the 1970s and 1980s. Provided the rates and the market remain stable, we can look forward to steady growth during the coming year.
We are committed to building the best homes in the best locations. We know who our customers are. Our objective is to progress by giving them the best service possible.