5th Jul 2007 07:00
Redrow PLC05 July 2007 5 JULY 2007 REDROW PLC PRE-CLOSE TRADING UPDATE Redrow plc is issuing the following pre-close trading update in advance of itsPreliminary Results announcement for the twelve months ended 30 June 2007, whichis scheduled to be released on Tuesday 11 September 2007. The Group completed 4,823 new homes during the year, an increase of 2% on thesame period last year. The average selling price for the year was approximately£160,000 and operating margins are anticipated to be in line with ourexpectations. Our mixed use and regeneration activities recorded a number ofsuccesses during the year and delivered a strong second half performance.Overall, we expect our performance for the year to June 2007 to be in line withour expectations. The new homes market remained stable but competitive during the year albeit withstronger conditions experienced in the South East of England and Scotland. Oursales levels have remained satisfactory in the second half with sales of ourcore product up 3.5% on the same period last year. Total Group forward sales atJune 2007 were up over 6% at 2,148 homes as compared with 2,018 homes at thebeginning of the financial year. In the last 12 months our owned land bank with planning increased to over 17,700plots as compared with 16,750 at June 2006 and our current land bank which alsoincludes land controlled under contract, totalled 20,700 plots and remained inexcess of 4 years supply on an historic basis. During the year just over 25% ofour net additions to the owned land bank with planning were converted from ourforward land bank which at June 2007 amounted to 24,400 plots with realisticprospects of securing planning. Our balance sheet remains strong and with yearend gearing at c.31%, we retain the capacity to continue investing in our landbank to grow our business in the future. We welcome the Government's renewed focus upon the important role ofhousebuilding to the UK economy though at a local level, the planningenvironment continues to inhibit an increase in volumes. We look forward toengaging constructively with the Office of Fair Trading on its recentlyannounced market study. We are on track to increase outlets during the new financial year to provide thecapacity to increase our volumes and we have successfully implemented ourplanned steps to reduce costs and improve operating efficiency. Notwithstandingthe recent interest rate rises our sales rates in the last quarter remainedsatisfactory. We will continue to monitor lead indicators closely to assess theimpact of interest rates upon the housing market as we move into the autumn. The ongoing imbalance between supply and demand in the housing market continuesto make our industry attractive and Redrow has the land bank, product range andskill base to capitalise on opportunities for shareholders. Enquiries: Neil Fitzsimmons, Chief Executive RedrowDavid 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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