6th Jan 2005 07:00
Redrow PLC06 January 2005 6 January 2005 REDROW plc - TRADING UPDATE Redrow plc is issuing the following pre-close trading update ahead of thepublication on Tuesday 8 March 2005 of its interim results for the six monthsended 31 December 2004. At the Annual General Meeting in November we highlighted that, as a result ofhaving positioned the Group with a record forward sales position at the start ofthe financial year, Redrow's focus had been upon maximising selling prices andhence protecting margins, rather than chasing volume during this period ofadjustment between the strong markets of recent years and a return to morenormal levels of activity. This resulted in Redrow delivering 2,111 legalcompletions (H1 2003/04: 1,996) in the six months ended 31 December 2004, anincrease of 6% on the corresponding period last year, with an average sellingprice of approximately £175,000 (H1 2003/04: £152,700). This average sellingprice is marginally higher than the currently estimated average selling price of£172,500 for the full financial year due to both geographic and product mixdifferences between the first and second halves. Sales reservations have been maintained broadly in line with the level indicatedat the time of the preliminary results. Forward sales as at 31 December 2004total 1,948 units (31 Dec 2003: 2,072 units) and of these over 85% are exchangedcontracts, representing a strong foundation as the Group enters the New Year. Macroeconomic factors remain supportive of the housing market though consumerconfidence is a key component to market activity. The Spring sales market will,as usual, be an important factor in establishing a sound platform for thefollowing financial year. To capitalise on this market and as a result ofRedrow's continuing focus on land, the Group will be launching a significantnumber of new developments in the New Year with the number of outlets in the sixmonths ended 30 June 2005 anticipated to be at least 10% higher than during thesame period last year. Both the land market and build costs appear to be adjusting to expectations of amore normal housing market. The quality and number of potential landopportunities has increased and Redrow remains cautiously active in the marketto support the delivery of long term sustainable value for our shareholders. Over the last two years, Redrow has been positioned for more normal marketconditions. The introduction of the new housing range combined with ourenhanced customer service initiative, a cost effective quality land bank, arecognition of the importance of modern methods of construction and a focusedmanagement team means that Redrow remains well placed to capitalise on themarket conditions of 2005, and the Board reaffirms its previously stateddividend policy. Enquiries:Paul Pedley, Chief Executive Redrow plcDavid Arnold, Group Finance Director 0207 839 6072 (6 January) 01244 520044 (thereafter) Patrick Handley/Nina Coad Brunswick Public Relations 0207 404 5959 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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