25th May 2005 07:00
Redrow PLC25 May 2005 Redrow plc Update on Debut and Rollout Programme On Wednesday 25 May and Thursday 26 May 2005, Redrow plc will host a site visitfor sector analysts and institutions at Willans Green, Rugby to present its newDebut development. Debut, first unveiled at Redrow's interim results in March 2005, has received ahigh level of national media coverage. Debut is an exciting new addition toRedrow's housing product portfolio, specifically targeted at deliveringaffordable homes for people to buy. This segment of the market is largelyunaddressed by the new homes industry and forms a significant component of theGovernment's current initiatives to increase housing supply. Redrow's first Debut development in Rugby obtained planning consent on 2 March2005, within the statutory 13 week period and with the unanimous support of thePlanning Committee. Customer interest surrounding the scheme has been intenseahead of first sales release and when the development was launched on 14 May, 87of the 101 units released were sold within 24 hours. Construction at Rugby isnow well advanced, and with the benefits of embracing modern methods ofconstruction, all units are expected to be built within 12 months of the initialfoundations being commenced. Since the launch of the Debut scheme at Rugby, Redrow has obtained a planningconsent for a second Debut development at Buckshaw Village, Chorley. Thisplanning consent was similarly obtained within the statutory 13 week period andwith the unanimous support of the Planning Committee. It is currently envisagedthat planning applications for over 800 Debut homes across the UK will have beensubmitted by the end of December 2005. The initial success of Debut at Rugby underpins the Group's strong belief thatthe product will become an important, incremental part of Redrow's portfolio.Redrow is targeting to build 2,000 Debut homes per annum within the next fiveyears, with such output representing an additional growth opportunity over andabove Redrow's current product range. Gross profit margins from Debut areexpected to be broadly in line with those of more traditional products whilstthe fast speed of delivery provides enhancement to return on capital employed. Paul Pedley, Chief Executive of Redrow plc said "Debut satisfies a clear demandin the market for new homes and provides Redrow with further opportunities bothto extract additional benefits from its current land bank and to create moreopportunities in the land market generally. The modern building methods andmaterials used to develop Debut enable Redrow to produce a high quality productat an affordable price which has enormous appeal to our target customers. Inresearching and developing Debut, we have created a product which we can buildon land throughout the UK, which is incremental to our existing business andwhich delivers attractive overall financial returns. We are very excited aboutthe immediate prospects for Debut." The presentation given during the visit will be available on the Group's websitefrom 11.00am on 25 May 2005. At the meetings with analysts and institutions, nonew information on current trading will be released. Redrow will be publishinga trading update in respect of its financial year ended 30 June 2005 on 1 July2005. Ends Enquiries: Redrow 01244 520 044Paul Pedley, Chief ExecutiveDavid Arnold, Group Finance Director Brunswick 020 7404 5959Nina CoadKiran Bhagotra Note for editors: Debut is a new housing range from Redrow, designed to provide affordable homesfor people to buy. Utilising light steel frame and other modern methods ofconstruction, together with communal heating and hot water systems, it offers arange of homes that are innovative, exciting and designed to stand the test oftime. With a single monthly service charge to cover the main utility bills andexternal maintenance, Debut is geared towards making home ownership accessible,affordable and easy to manage. It is also available on a shared equity basis,with Redrow retaining up to 10% equity in the property as an interest free fixedsum for up to 10 years. At Redrow's first Debut development at Willans GreenRugby, cash prices for a one bedroom home start at £49,995. Images are available from Brunswick. Further information on Debut can be obtained at www.redrow.co.uk orwww.debutbyredrow.co.uk. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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