9th Nov 2005 12:00
Redrow PLC09 November 2005 ANNUAL GENERAL MEETING - 9 NOVEMBER 2005 At the Annual General Meeting of Redrow plc commencing today at 12 noon, theChairman, Robert Jones will be making the following statement: "As anticipated, the autumn sales market has reflected a normal seasonal upturnfollowing the weaker trading months of July and August. The market has remainedcompetitive with incentives continuing to be widely promoted within the industryand Redrow has maintained its focus on the protection of margin to maximise thevalue derived from its land bank. Redrow's strong forward sales position atJune 2005 has been supported by our sales performance in the new financial yearwith both reservations and sales outlets approximately 10% higher than in thesame period last year. The Group's strong land bank has provided the platform to increase sales outletsand this should enable us to increase the number of legal completions from theSignature range in the first half of the financial year over the correspondingperiod. As regards In the City schemes, whilst due to the timing ofconstruction there will be a weighting of legal completions towards the secondhalf, the Group has already sold over 90% of its anticipated legal completionsfor the year to June 2006. As previously indicated, legal completions from Inthe City will be lower in number than in the last financial year and the averageselling price will also be below last year reflecting geographical mix. The influence of In the City developments, together with the increasedproportion of legal completions from Debut, will cause the Group's averageselling price in the six months to December 2005 to be marginally below thesecond half of last financial year. This, combined with our previouslyexpressed view that margins will ease during the course of this financial year,will lead to the profitability for the six months to December 2005 being belowthe level in the corresponding period last year with the Group's profits in theyear to June 2006 being more weighted towards the second half. The highly successful launch of Debut at Rugby has been followed by the salesrelease of our second scheme at Buckshaw Village, Chorley in September. Demandwas equally strong and we now look forward to the December launch of our thirdscheme at Castle Vale, Birmingham which has already attracted substantialinterest. Redrow was positioned to manage the period of adjustment to a normal housingmarket by building a strong forward sales position and increasing the number ofsales outlets. We have sold over 60% of the current financial year'santicipated legal completions and continue to expect to increase our outlets toover 120 in the spring of 2006. Although recent statistics from the housingmarket in respect of mortgage approvals have been encouraging, consumerconfidence will still be a key factor in determining the strength of the housingmarket in 2006 which will, as a matter of course, influence the full yearoutturn. In the medium term, we have opportunities to deliver organic growththrough our regional structure, mixed use and regeneration skills, theincremental benefits of Debut and by continuing to build relationships withmajor landowners. With our high quality land bank, effective product range andstrong management team, Redrow has the capability to deliver further success foryou our Shareholders." Redrow plc will be issuing a trading update on the Group's performance for thesix months ended 31 December 2005 on Thursday 5 January 2006. In addition, anannouncement will be made regarding the implementation of InternationalFinancial Reporting Standards on 30 November 2005. Enquiries: Neil Fitzsimmons, Chief Executive Redrow plc David Arnold, Group Finance Director 01244 520044 Patrick Handley/Nina Coad Brunswick 020 7404 5959 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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