george wimpey improving performance peter johnson group chief executive 11 december 2000
TRANSCRIPT
![Page 1: George Wimpey Improving performance Peter Johnson Group Chief Executive 11 December 2000](https://reader036.vdocuments.us/reader036/viewer/2022071807/56649e035503460f94aee32e/html5/thumbnails/1.jpg)
George Wimpey Improving performance
Peter Johnson
Group Chief Executive
11 December 2000
![Page 2: George Wimpey Improving performance Peter Johnson Group Chief Executive 11 December 2000](https://reader036.vdocuments.us/reader036/viewer/2022071807/56649e035503460f94aee32e/html5/thumbnails/2.jpg)
Agenda
• background
• objectives and strategy
• what we plan to do
• benefits
• current trading
• summary
![Page 3: George Wimpey Improving performance Peter Johnson Group Chief Executive 11 December 2000](https://reader036.vdocuments.us/reader036/viewer/2022071807/56649e035503460f94aee32e/html5/thumbnails/3.jpg)
Background
• market
– outlook stable with low price inflation
– changed planning environment
– continued demand for detached houses
![Page 4: George Wimpey Improving performance Peter Johnson Group Chief Executive 11 December 2000](https://reader036.vdocuments.us/reader036/viewer/2022071807/56649e035503460f94aee32e/html5/thumbnails/4.jpg)
Background
• Wimpey - strengths
– recognised in industry for build quality
– leading results in customer satisfaction survey
– improving product mix and land bank
![Page 5: George Wimpey Improving performance Peter Johnson Group Chief Executive 11 December 2000](https://reader036.vdocuments.us/reader036/viewer/2022071807/56649e035503460f94aee32e/html5/thumbnails/5.jpg)
Background
• Wimpey - issues to be addressed
– lack of benefits from Wimpey/McLean merger
– wasteful duplication of effort
– too many regions below critical mass
– large Head Office
– high cost culture
![Page 6: George Wimpey Improving performance Peter Johnson Group Chief Executive 11 December 2000](https://reader036.vdocuments.us/reader036/viewer/2022071807/56649e035503460f94aee32e/html5/thumbnails/6.jpg)
Objectives and Strategy
• objective - to create shareholder value
– reduce costs and bureaucracy
– speed up decision-making
– gain benefits from scale
– grow added value products and services
– change internal culture
![Page 7: George Wimpey Improving performance Peter Johnson Group Chief Executive 11 December 2000](https://reader036.vdocuments.us/reader036/viewer/2022071807/56649e035503460f94aee32e/html5/thumbnails/7.jpg)
Objectives and Strategy
• strategy
– make our business efficient
– move mix towards growing markets
– gain benefits from internal benchmarking etc
– invest more in new construction techniques
– develop new products and services
![Page 8: George Wimpey Improving performance Peter Johnson Group Chief Executive 11 December 2000](https://reader036.vdocuments.us/reader036/viewer/2022071807/56649e035503460f94aee32e/html5/thumbnails/8.jpg)
Initial targets
• eliminate high cost culture
• gain advantages from our scale
• show shareholders we can use capital well
![Page 9: George Wimpey Improving performance Peter Johnson Group Chief Executive 11 December 2000](https://reader036.vdocuments.us/reader036/viewer/2022071807/56649e035503460f94aee32e/html5/thumbnails/9.jpg)
What we plan to do
• create single UK housing business
• Keith Cushen appointed Managing Director of UK housing
• Keith Cushen and Stu Cline join Board with immediate effect
![Page 10: George Wimpey Improving performance Peter Johnson Group Chief Executive 11 December 2000](https://reader036.vdocuments.us/reader036/viewer/2022071807/56649e035503460f94aee32e/html5/thumbnails/10.jpg)
What we plan to do
• use McLean decentralised structure
• new, lean headquarters outside London
• slim corporate centre in central London
![Page 11: George Wimpey Improving performance Peter Johnson Group Chief Executive 11 December 2000](https://reader036.vdocuments.us/reader036/viewer/2022071807/56649e035503460f94aee32e/html5/thumbnails/11.jpg)
Benefits
• reducing our costs– up to £15mn pa– full benefits coming through by end 2001– some benefits in H2 2001– one-off exceptional costs of ~ £15mn
• exploiting the benefits of scale
• creating the potential for growth
![Page 12: George Wimpey Improving performance Peter Johnson Group Chief Executive 11 December 2000](https://reader036.vdocuments.us/reader036/viewer/2022071807/56649e035503460f94aee32e/html5/thumbnails/12.jpg)
Current trading
• 2000 to finish strongly - results on track
• stable market conditions set to continue in 2001
• lengthening planning process will result in H1 performance below same period in 2000
![Page 13: George Wimpey Improving performance Peter Johnson Group Chief Executive 11 December 2000](https://reader036.vdocuments.us/reader036/viewer/2022071807/56649e035503460f94aee32e/html5/thumbnails/13.jpg)
Summary
• historic high cost culture to go
• benefits of asset swap now to be realised
• management will be decentralised
• slim head office structure
• first steps to new structure already taken
• line management very supportive of plan
• led by experienced Managing Director: Keith Cushen