7th Nov 2018 08:34
LONDON (Alliance News) - FTSE 250-listed housebuilder Redrow PLC said on Wednesday trading for the first 18 weeks of its current financial year has been in line with expectations, with strong demand in regional businesses but a subdued performance in the London market.
In addition, Redrow announced Non-Executive Chairman Steve Morgan, who founded the firm, will retire at the end of March 2019. Chief Executive John Tutte will become executive chairman, following Morgan's departure.
Morgan has been chairman of Redrow for two stints, the first being from 1974 to 2000, and then since 2009.
Matthew Pratt, who is currently chief executive of the group's Southern businesses, will become group chief operating officer with effect at the end of March 2019.
"The board is very grateful to Steve for his inspired leadership of Redrow since he founded the group in 1974, a period in which the group has changed much and grown substantially. Steve has made a huge contribution to the industry over many years and his leadership since he returned to Redrow in 2009 has been immense. We wish him every happiness for the future," Tutte added.
Ahead of the annual general meeting later today, Morgan said the average selling price of private reservations, for the 18 weeks to November 3 was GBP388,000, up 4.6% from GBP371,000 for the same period the year before.
The value of net private reservations saw a slight lift at GBP588 million from GBP586 million, and the sales rate per outlet per week was 0.64 compared with 0.67 the prior year, due to a tougher London market.
Redrow's total order book rose by 11% to GBP1.2 billion.
In addition, Morgan said Redrow welcomes the extension of the Help to Buy scheme, announced in the UK Budget, but urged the government to review regional price caps which seem to favour the south of England over the north and Midlands.
Shares in Redrow were down 0.3% at 563.50 pence on Wednesday.
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