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Redrow PLC

Redrow plc Record pre-tax profit of £406m, up 7%

Redrow plc (LON: RDW) today provided final results for the year to 30th June 2019.

Financial Results

 20192018% Change
Legal Completions6,4435,71813
Revenue£2.1bn£1.9bn10
Operating Profit£411m£382m8
Profit before tax£406m£380m7
EPS92.3p85.3p8
ROCE28.5%28.5%
Full Year cash return (incl. B Share)60.5p28p116

Financial highlights

· Group revenue up 10% to a record £2.1bn driven by 13% increase in legal completions

· Record pre-tax profit of £406m, up 7% (2018: £380m)

· Earnings per share up 8% to 92.3p

· Return on Capital Employed in line with 2018 at 28.5%

· Strong cash generation delivered net cash of £124m (2018: £63m)

· Proposed final dividend of 20.5p per share, making 60.5p cash return per share to shareholders for the full year (including the B Share Scheme), up 116%

Operational highlights

· Continuing to deliver on growth strategy:

o Legal completions up 13% to 6,443 (2018: 5,718)

o New Thames Valley division opened July 2019

· 1,712 affordable homes delivered, up 55%

· 7,379 plots added to current land holdings, 40% of which were converted from forward land

Commenting on the results John Tutte, Executive Chairman of Redrow, said:

“I am delighted to report that Redrow for the sixth consecutive year has delivered record results. The Group completed 6,443 homes, 13% up on the previous year and passing the 6,000 milestone for the first time. Revenue reached £2.1bn and pre-tax profit increased by 7% to £406m.

This excellent trading performance led to strong cash generation and we ended the year with net cash of £124m after making the ‘B share’ payout in April. As a result we are proposing a final dividend of 20.5p per share giving a full year dividend of 30.5p per share, 9% up on last year.

We are understandably cautious about the post-Brexit future and also the eventual impact of the impending changes to the Help to Buy scheme. We do however, have a clear strategy to continue to grow centred on our award winning Heritage Collection that is so popular across a broad range of buyers.

Since the start of the new financial year, trading has been encouraging and the demand for our homes is strong with reservations running ahead of last year. Notwithstanding the political and economic uncertainty we face, we have every reason to be confident that 2020 will be another successful year for the Group.”