Redrow Plc - Interim Results

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Redrow plc

Interim results

For the six months to 31 December 2019

ROBUST FIRST HALF PERFORMANCE AND

STRONG START TO SECOND HALF

EXPECTATIONS FOR FULL YEAR UNCHANGED

Financial Results

 

H1 2020

H1 2019

% Change

Private Net Reservations

£936m

£795m

18

Total Order Book

£1.2bn

£1.2bn

-

Revenue

£870m

£970m

(10)

Legal Completions

2,554

2,970

(14)

Profit Before Tax

£157m

£185m

(15)

EPS

37.2p

41.5p

(10)

ROCE

25%

28%

(11)

Interim Dividend per share

10.5p

10p

5


Operational Summary

  • Balance of Homes Turnover weighted to second half with 40:60 split (2019: 46:54)
  • Average number of outlets expected to rise to 131 for the year (2019: 126)
  • First half Private Net Reservations up 18% to £936m
  • Second half Private Net Reservations to date up 15% at £180m (2019: £156m)

Financial Summary

  • Group revenue of £870m (2019: £970m) due to the second half weighting of Homes Turnover
  • First half pre-tax profit of £157m (2019: £185m)
  • Earnings per share (EPS) of 37.2p (2019: 41.5p)
  • Return on capital employed of 25% (2019: 28%)
  • Net cash of £14m (Dec 2018: £101m)
  • Interim dividend of 10.5p per share (2019: 10p), up 5%

Board Changes

  • John Tutte to step-down to non-executive Chairman from July 2020 and retire ahead of the AGM in 2021
  • Search for an independent non-executive Chairman to commence towards end of 2020
  • Matthew Pratt to be appointed Group Chief Executive from 1st July 2020

John Tutte, Executive Chairman of Redrow, said

"Redrow has once again delivered a robust operational and financial first-half performance consistent with our expectation that revenue will be considerably more weighted than usual to the second half.

The Group delivered a record value of first half reservations at £936m (2019: £795m), a pre-tax profit of £157m (2019: £185m) and ended the period with net cash of £14m (2019: £101m). Given our confidence in the full year performance we have declared an interim dividend of 10.5p, up 5% on the previous year.

The market in the first five weeks of the second half has been resilient with the value of reservations up 15% at £180m (2019: £156m).

Current market conditions, combined with our very strong order book give me confidence this will be yet another year of progress for Redrow and our expectations for the full year remain unchanged."