The statement said:

"Despite a challenging second half in 2007, we have delivered on our key objective of improving UK housing margins. We expect the 2007 pro forma operating margin, before the impact of accounting policy changes and fair value adjustments, to be around 2 percentage points ahead of the 12.5%achieved on a pro forma basis in 2006.

"We continue to make excellent progress on our integration targets. We remain on course to deliver our previously stated synergy run rate targets of £70m by the end of 2008 and £100m in aggregate by the end of 2009. As expected, one-off merger costs of circa £60m will be recognised in the 2007 results.

"Gearing stood at around 40% at the year end, following the repurchase of 8.3% of Taylor Wimpey’s shares in issue through our buyback programme to date.

UK Housing

"We completed 20,645 homes on a pro forma basis (2006 pro forma: 21,910). Prices remained stable in the second half of the year, following the growth seen in the first half, resulting in a full year average selling price of £190k (2006 pro forma: £185k). The year end order book stood at £1,064m (2006 pro forma: £1,316m). Margins in the order book are in line with those achieved in 2007.