6th Nov 2019 08:44
(Alliance News) - Redrow PLC on Wednesday reported a positive start to its current financial year but warned on uncertainty created by the general election in the UK.
In addition, the FTSE 250-listed housebuilder said it appointed Nicky Dulieu as a non-executive director with immediate effect. She will also join the Audit, Remuneration and Nomination Committees, Redrow noted.
Dulieu is currently a non-executive director of public relations firm Huntsworth PLC and brewer Adnams PLC and holds the chair position in Notcutts Group Ltd. Nicky also will join the board of motor dealer Marshall Motor Holdings PLC as a non-executive director from January 2020.
"On behalf of the board, I am pleased to welcome Nicky to Redrow. She brings strong financial experience and has extensive knowledge of retailing and customer service," said Executive Chair John Tutte.
Turning back to year-to-date trading, Redrow said it has remained "encouragingly resilient" despite ongoing Brexit uncertainty and relatively weak demand in the wider UK housing market.
The value of net private reservations in the first 18 weeks to Friday last week, excluding a GBP119.5 million private rented sector sale at Colindale Gardens, was 2% ahead of last year at GBP598 million. Including that sale, the value of private reservations is up 22% at GBP717 million.
The average selling price of private reservations for the first 18 weeks, also excluding the Colindale Gardens sale, was broadly the same as last year, Redrow said, at GBP389,000.
The Ewloe, Wales-headquartered company reported a record overall order book of GBP1.3 billion, an 8% increase on last year.
Less positively, Redrow said outlet growth continues to be affected by planning delays and "the cautious approach to land acquisition we have adopted during this unceasing period of economic and political uncertainty".
"As highlighted in September, the combination of constrained outlet growth and the timing of block completions in London, will result in revenue, profit and cash generation being considerably more weighted than usual to the second-half," Tutte noted.
The company said that the further uncertainty created by the UK general election, and the impact this will have on the terms of the country's withdrawal from the EU, leave the prospects for the economy and housing market in an "unpredictable" state.
Looking ahead, Tutte said: "I am confident that, providing trading conditions remain stable, Redrow is on course to achieve another set of excellent results."
Redrow shares were trading marginally lower in London on Wednesday at 610.70 pence each.
By Evelina Grecenko; [email protected]
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