Redrow plc today announces preliminary results for the 12 months to 30 June 2005

Tue, Sep 13th 2005, 07:00

Highlights:
		June 2005		June 2004
Turnover		£781.0m		£670.3m		+17%
Operating profit		£151.0m		£132.7m		+14%
Profit before tax		£141.1m		£124.1m		+14%
Legal completions		4,372		4,284		+2%
Earnings per share - basic (pence)		62.1		54.8		+13%
Dividend per share (pence)		10.8		9.0		+20%

 

• Record profits achieved in more challenging trading conditions
• Second half profit before tax up by 7% to £72.0m (H2 2004: £67.4m)
• Continued focus on operating margins and return on capital employed:
   - Homes operating margin 19.6% (2004: 19.8%)
   - Group ROCE 28.2% (2004: 29.4%)
  
• Current land bank maintained at 17,300 plots (2004: 17,400) with strong pull through from forward land
• Proposed full year dividend per share increased by 20%. Intention to increase by the same percentage for 2006 reaffirmed
• Robust forward sales position with over 2,100 sales in hand as at June 2005
• Sales in first 10 weeks of the new financial year up 10% from just over 10% more outlets
• Successful launch of new Debut product providing affordable homes for customers at Rugby, Chorley and Castle Vale

 

Commenting on the results, Robert Jones, Chairman of Redrow plc said:

"Redrow has delivered another year of progress in a more challenging trading environment reflecting our strategy of building a strong forward sales position and increasing our outlets.

Consumer confidence will be a key factor in determining the strength of the housing market in the short term. However, the fundamentals for our industry are sound and we have a high quality land bank, effective product range and strong management team which in the medium term provide a platform for growth and the capability to deliver shareholder value."

 

Enquiries:

		Redrow plc
Neil Fitzsimmons, Chief Executive		0207 404 5959 (13 September)
David Arnold, Group Finance Director		01244 520044 (thereafter)
Patrick Handley / Nina Coad Brunswick		Brunswick 0207 404 5959

 

There will be an analyst and investor meeting at 0845 (BST). A live audio cast and slide presentation of this event will be available at 0845 (BST) on www.redrow.co.uk or live by phone on the following dial in number: +44 (0) 207 365 8426.

Playback available online through www.redrow.co.uk from 1200 (BST) or by phone until 27 September 2005, on the following dial in number: +44 (0) 207 365 8427; password: 69490341.