Redrow plc
Final results for the year to 28 June 2020
ENTERED THE NEW FINANCIAL YEAR IN A POSITION OF STRENGTH
John Tutte, executive Chairman of Redrow, said:
“I am immensely proud of the way our team and the wider workforce responded to the crisis and continue to do so. I am also grateful to everyone associated with Redrow for their willingness to embrace our new ways of working that prioritise the health and wellbeing of our customers, employees, subcontractors and suppliers.
“The COVID-19 pandemic had a profound impact upon the Group's performance in the 2020 financial year but we entered the new financial year in a position of strength. We have a record order book and brought forward very high levels of work in progress. This was due in part, to increased investment earlier in the year in anticipation of strong demand for the Help to Buy scheme ahead of changes to the scheme next year.
“We brought forward an order book of £1.42bn: up 39%, and reservations, in terms of value, in the first eleven weeks of the new financial year, are 12% ahead.
“The Group is well-placed to deliver a robust performance. We have completed substantially more homes in the first few weeks of the new financial year than during the same comparable period last year whilst maintaining a record order book.
“This, combined with reduced investment in London, will deliver strong operating cash flow over the coming months to support our regional growth plans and, subject to market conditions, allow dividend payments to resume in 2021”.
Highlight
|
|
2020 |
2019 |
|
Legal Completions |
4,032 |
6,443 |
|
Revenue |
£1.34bn |
£2.11bn |
|
Profit before tax |
£140m |
£406m |
|
EPS |
32.9p |
92.3p |
|
Debt/cash |
£126m net debt |
£124m net cash |
|
Total order book |
£1.42bn |
£1.02bn |
|
Reservations to financial year week 11 |
£416m |
£372m* |
* excluding PRS
· Legal completions down 37% due to COVID-19
· Revenue down 37%
· Profit before tax down 66% due to COVID-19 and costs and impairments in connection with the scaling-back of the London business.
· EPS down 64%
· Debt tightly managed as part of measures to protect cash flow.
· Record Order Book supported by a strong work in progress position.
· Encouraging trading since start of financial new year with reservations 12% ahead.