7th Nov 2006 12:00
Redrow PLC07 November 2006 ANNUAL GENERAL MEETING STATEMENT Redrow plc is holding its Annual General Meeting today at 12 noon at St David'sPark Hotel, Ewloe, Flintshire. At the meeting Robert Jones, Chairman will make the following statement toShareholders:- "On 11 September in our preliminary results announcement, I reported that in2006 we had experienced improved levels of consumer confidence which hadresulted in increased transaction levels in the housing market. We now have acumulative sales position representing nearly 65% of our anticipated increasedlegal completions for financial year 2006/07. We expect that our performance in the six months to 31 December 2006 willreflect growth in both legal completions and turnover in our Homes operations.The proportion of full year legal completions, excluding Debut, anticipated fordelivery in the first half should be broadly in line with 2005/06. We expect tolegally complete approximately double the number of Debut units as compared withthe same period last year. Our view on operating margins for Homes remainsunchanged. The housing market in many parts of the country remains competitive and thestronger conditions being experienced in certain areas, notably central London,are not necessarily representative of the wider housing market. In thisenvironment, our strategy is to protect margins by optimising selling prices onselected sites where the trading conditions are more robust and to manageincentives on other sites. We continue to keep close control on build costs andare maintaining our focus on increasing the use of our core house types whilstpromoting the importance of design to add value. We are still experiencing good demand for Debut and secured an excellentresponse to our first Debut site in the South East at Sittingbourne in Kent.This leaves us well placed to deliver increased output for this product in thefull year in line with our expectations. In addition, two further Debut sitesare expected to be launched prior to the end of December 2006. The planning system continues to frustrate the industry in its desire toincrease output but we are making good progress with a number of importantcurrent land sites. Since the year end we have submitted a planning applicationin respect of our forward land opportunity near Northampton for approximately750 new homes. Other major forward land sites are also progressing positivelythrough the planning process notably at Taunton and Exeter. Recent and heightened expectation of interest rate increases may have aninfluence on homebuyer confidence and consequently on the strength of thehousing market as we move into 2007. However, we remain of the view that 2006/07 will be a year of growth for Redrow with a full year outcome in line with ourprevious expectations. We are confident that Redrow has the capability tocontinue to deliver value for its shareholders." In accordance with normal practice, Redrow plc will be issuing a trading updateon 11 January 2007. Enquiries: Redrow plc 01244 520044Neil Fitzsimmons, Chief ExecutiveDavid Arnold, Group Finance Director Brunswick Group LLP 020 7404 5959Patrick HandleyNina CoadJayne Rosefield This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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