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Redrow PLC

Redrow PLC Group revenue rose 9% to a first half record of £970m

Redrow PLC (LON:RDW), today announced interim results for the six months to 31 December 2018

Financial Results

H1 2019

H1 2018

% Change

Legal Completions

2,970

2,646

12

Revenue

£970m

£890m

9

Operating Profit

£187m

£175m

7

Profit Before Tax

£185m

£176m

5

EPS

41.5p

39.5p

5

ROCE

28%

25%

12

Interim Dividend per share

10p

9p

11

Additional cash return per share

30p

N/A

Total Order Book

£1.162bn

£1.047bn

11

 

Financial Highlights

· Group revenue rose 9% to a first half record of £970m

· Record first half pre-tax profit of £185m, up 5%

· Earnings per share (EPS) up 5% to 41.5p

· Return on capital employed of 28% (2018: 25%)

· Net cash of £101m (June 2018: £63m)

· Interim dividend of 10p per share (2018: 9p)

· Proposed additional cash return of 30p per share through a B Share Scheme representing £111m

Operational Highlights

· Legal completions rose 12% to 2,970 (2018: 2,646)

· Redrow completed its 100,000th home

· Average number of outlets increased to 129 (2018: 127)

· Total order book up 11% to a record £1.162bn (Dec 2017: £1.047bn)

· Current land holdings in line with June 2018 at 27,500 plots

Steve Morgan, Chairman of Redrow, said

“In this, my final report as Chairman, it gives me great pleasure to announce that Redrow has once again delivered record results for the first half of the financial year. During the period legal completions increased by 12% to 2,970, whilst pre-tax profits were up 5% to £185m.

As a result of our continuing strong earnings and cash performance, we are proposing a 30p per share cash return to shareholders through a B Share Scheme, in addition to a 10p per share interim dividend. This Scheme enables all shareholders to participate equally in proportion to their holdings and should be treated as capital for most UK tax resident shareholders.

The market during the run up to the festive period and the first two weeks of 2019 was subdued by macroeconomic and political uncertainty. However, sales over the last three weeks have bounced-back with reservations running at similar levels to last year’s strong market activity. Overall, private sales for the first 5 weeks of 2019 were £156m (2018: £166m). Nevertheless given our record £1.2 billion order book, our strategy remains on track giving me every confidence that this will be another year of significant progress for Redrow.

It is nearly 45 years since I founded Redrow and when I step down as Chairman next month it will be exactly 10 years since I returned to the business. I am proud of the legacy I leave behind having completed over 6,000 homes for the first time in 2018 and handed over our 100,000th Redrow home last October.

Redrow has a very strong team, an excellent balance sheet and the Heritage Collection product which I believe is the best in the industry. Most importantly, Redrow has a great future under John Tutte’s leadership who will take over from me as Chairman.”