TIDMRDW
RNS Number : 6261Z
Redrow PLC
04 September 2018
Tuesday 4 September 2018
Redrow plc
Final results for the year to 30 June 2018
CONTINUING TO DELIVER GROWTH
Financial Results
2018 2017 % Change
Legal Completions (incl.
JV) 5,913 5,416 + 9
Revenue GBP1.92bn GBP1.66bn +16
Operating Profit GBP382m GBP322m +19
Profit before tax GBP380m GBP315m +21
EPS 85.3p 70.2p +22
Order Book (excl. JV) GBP1.1bn GBP1.0bn +10
ROCE 28.5% 26.0% +10
Full Year Dividend 28p 17p +65
Financial highlights
-- Group revenue up 16% to a record GBP1.92bn driven by higher legal completions
and a 7% increase in Average Selling Price to GBP332,300
-- Operating margin rose to 19.9% (2017: 19.4%)
-- Record pre-tax profit of GBP380m, up 21% (2017: GBP315m)
-- Earnings per share up 22% to 85.3p
-- Return on Capital Employed up 10% to 28.5% (2017: 26.0%)
-- Positive cash position of GBP63m at June 2018 (2017: net debt of GBP73m)
-- Proposed final dividend of 19p per share, making 28p for the full year, up 65%
Operational highlights
-- Continuing to deliver on growth strategy:
o Legal completions up 9% to 5,913 (2017: 5,416)
o Number of employees up 5% to 2,300
-- 7,455 plots added to current land holdings, 37% of which were converted from forward land
-- Record Order Book of GBP1.1bn (2017: GBP1.0bn)
Commenting on the results Steve Morgan, Chairman of Redrow,
said:
"I am delighted to report that Redrow has delivered another year
of strong growth and record results, achieved by completing 5,913
new homes a 9% increase on the previous year. Revenues reached
GBP1.92bn and pre-tax profit increased by 21% to GBP380m.
This excellent trading performance enabled us to achieve strong
cash generation such that we ended the year with net cash of
GBP63m. As a result we are proposing a final dividend of 19p which
would give a full year dividend of 28p per share, 65% up on last
year.
Redrow is committed to growing our output to help the country's
requirement to increase the number of new homes built. We have a
very strong forward order book, first class land holdings, an
excellent balance sheet and we are able to react quickly to
changing circumstances. However, there is no doubt that clarity
over Brexit and the future of Help to Buy would improve market
sentiment. Given that clarity, we will continue to deliver."
Enquiries:
Redrow plc
Steve Morgan, Chairman 01244 527411
Barbara Richmond, Group Finance Director 01244 527411
John Tutte, Group Chief Executive 01244 527411
Instinctif 0207 457 2020
Mark Garraway 07771 860 938
Helen Tarbet 07825 609 737
James Gray 07583 936 031
There will be an analyst and investor meeting at 9.00 am at The
London Stock Exchange,
10 Paternoster Square, London, EC4M 7LS. Coffee will be served
from 8.30 am.
A live audio webcast and slide presentation of this event will
be available at 9.00 am on www.redrowplc.co.uk.
Participants can also dial in to hear the presentation live at
9.00 am on +44 (0) 20 3003 2666 or
UK Toll Free on 0808 109 0700; password is Redrow.
Playback will be available by phone for the next 30 days +44 (0)
20 8196 1998 followed by
Access Pin 8223842#.
Chairman's Statement
I am delighted to report that Redrow has once again delivered
another year of strong growth and record financial results,
achieved by completing 5,913 new homes (including our Croydon Joint
Venture), an increase of 9% on the previous year.
Financial Results
Group turnover rose by 16% to GBP1.92bn (2017: GBP1.66bn) as a
result of the increase in legal completions to 5,913 together
combined with a 7% rise in average selling price to GBP332,300
(2017: GBP309,800). The increase in average selling price was
mainly due to the relatively faster growth of our southern
businesses.
Gross profit at GBP469m was GBP64m above the 2017 level and
gross margin was in line with last year at 24.4%.
With firm control of costs, operating expenses only increased by
GBP4m to GBP87m, resulting in operating expenses reducing as a
percentage of turnover from 5% in 2017 to 4.5% in 2018.
Operating profit was GBP382m, up 19% (2017: GBP322m), with an
operating margin of 19.9% (2017: 19.4%).
Pre-tax profits were GBP380m, up 21% (2017: GBP315m) including a
GBP5m after tax contribution from our Croydon Joint Venture.
Earnings per share increased by 22% to 85.3p (2017: 70.2p).
This excellent trading performance and tight control of working
capital enabled us to achieve strong cash generation which resulted
in the Group moving from a net debt position of GBP73m at the end
of the previous financial year to a positive cash position of
GBP63m at the end of June 2018.
Our Return on Capital Employed also improved from 26.0% to 28.5%
and Return on Equity from 27.7% to 28.0%.
In March 2017 we announced our intention to increase our
dividend payout ratio to 33% over the medium term. Due to our
ongoing strong cash position the Board is proposing a final
dividend of 19p per share for 2018 (2017: 11p), making 28p per
share for the full year an increase of 65% on the prior year. This
equates to a payout ratio of 33% (2017: 24%), achieving our target
ahead of plan.
Subject to shareholder approval at the Annual General Meeting,
this will be paid on 13 November 2018 to shareholders on the
register as at close of business on 21 September 2018.
Market
Despite the uncertainty surrounding Brexit, demand for new homes
continues to be robust, and overall house price inflation has
moderated to a sustainable 2%. We entered the current year with a
strong order book of GBP1.14bn, an increase of GBP110m over the
previous year.
Mortgage availability is excellent, and with low interest rates
by historic levels, the mortgage market remains very
competitive.
Help to Buy continues to support home buyers and the housing
industry. In the last financial year 1,794 of our private
reservations were secured through Help to Buy, a similar level to
the previous year.
Land & Planning
During the year we added 7,455 plots to our current land
holdings. Of these, 2,727 were converted from our strategic land.
As a result, net of completions and re-plans, our current land
holdings increased by 1,530 plots to 27,630 (2017: 26,100). Our
strategic land holdings also increased by a net 4,300 plots to
30,700 (2017: 26,400).
Growing the number of outlets in line with the increased land
holdings remains a challenge as the journey from 'outline planning
permission' to 'implementable planning permission' remains as
bureaucratic as ever.
The gross development value of our total land holdings now
stands at GBP20bn giving Redrow an outstanding platform for
continued growth.
People
As we continue to grow the business we continue to add to our
workforce, creating a further 100 jobs in 2018. We now directly
employ 2,300 people (2017: 2,200), with many thousands more
supported indirectly through our subcontractors and suppliers.
We have recruited 173 (2017: 150) new apprentices, trainees and
graduates in the last year making 343 in total, an industry leading
15% of the workforce. We have been awarded a Top 100 Apprentice
Employer by the National Apprentice Awards for the fifth
consecutive year.
Our excellent growth record is due to the ongoing commitment and
hard work of the whole Redrow workforce together with our
subcontractors and suppliers, for which I thank them.
Current Trading and Outlook
We have excellent products, especially the Heritage Collection,
and demand for our homes is strong. Despite Brexit uncertainty and
the exceptional summer weather, sales revenue in the first 9 weeks
is in line with last year. We expect to continue to grow our land
holdings and increase the number of average outlets in the current
year by 5% to 130 (2018: 124).
Redrow is committed to growing our output to help the country's
requirement to increase the number of new homes built. We have a
very strong forward order book, first class land holdings, an
excellent balance sheet and we are able to react quickly to
changing circumstances. However, there is no doubt that clarity
over Brexit and the future of Help to Buy would improve market
sentiment. Given that clarity, we will continue to deliver.
Steve Morgan
Chairman
Chief Executive's Review
Another year of exceptional results
Continued growth and expansion
The Group's successful growth strategy continues to deliver
exceptional results. Legal completions (including JV) increased by
9% to 5,913 in the year with revenue rising by 16% to GBP1.92bn and
profit before tax up 21% to GBP380m (2017: GBP315m).
We have continued to expand our geographical coverage. Our new
East Midlands division made its first full year trading
contribution and our Southern divisions continue to grow strongly
as we target increasing our market share in this area of high
demand. Colindale Gardens, our flagship development in North
London, also made a significant contribution delivering its first
completions.
To underpin our future growth we have announced the launch of a
new division in Thames Valley and reorganised our Greater London
operations into East and West divisions to focus on growth in the
capital. We have also re-structured Harrow Estates to draw on its
wealth of experience to help manage and support our group-wide
forward land activities.
Investing in places
The land market remained attractive throughout the year, we
acquired 7,455 plots and, after taking into account legal
completions, land sales and replans, our owned and contracted land
holdings with planning increased to 27,630 plots (2017: 26,100
plots) representing 4.8 years of supply. Pull-through from Forward
Land was again strong and accounted for 2,727 of the plots
acquired.
The average size of site acquired in the year was around 180
plots as we took advantage of being able to secure some larger
opportunities. These larger sites were generally acquired on more
favourable terms and relieve pressure on future outlet replacement.
They also allow us to make full use of our award winning product
range to both create great places to live for everyone and to
appeal to a wider market.
We have a reputation for designing individual homes that are
attractive and meet the modern-day needs of our customers. But of
equal importance is their setting. In recent years we have focused
on ensuring our developments enhance and make the most of natural
features as well as connecting to and sharing amenities with local
communities.
Developing thriving communities by valuing people and building
responsibly have become the key pillars of our operational
strategy. Over the course of the last year these principles have
been embedded into the business.
Thriving communities
Redrow 8 is a suite of placemaking design principles we have
adopted to ensure our developments include all the key requirements
to create great places. It is consistent with Building for Life 12
which is a government-endorsed standard for well-designed homes and
neighbourhoods.
We recognise that the quality of the places we create can have a
lasting impact upon the health and wellbeing of those who live in
our homes. We have recently joined the NHS Healthy Towns Network
which is an initiative to improve the health of those living on new
housing developments. We are also supporting the Wellcome Trust in
their research project to explore how urban development can impact
long-term health.
We know our customers are increasingly more concerned about the
environment in which they live. Nature for People is our way of
increasing biodiversity. We have a long-standing relationship with
the Bumblebee Conservation Trust and we have recently established a
new partnership with The Wildlife Trusts to help us develop a
strategy to achieve a net biodiversity gain across our
developments.
As well as building much-needed new homes we make significant
contributions to the infrastructure of the wider communities in
which we work. Last year we estimate we committed GBP184m to fund
local improvements including new schools, community centres,
medical and sporting facilities, footpaths and cycleways and
attractive areas of open space.
Valuing people
In response to our continued growth we created around 100 new
jobs during the year: we now employ just under 2,300 people
directly and many more times this through our supply-chain.
Our annual employee satisfaction survey that achieved a record
response, reassured us that overall we are a highly respected
employer with 95% of our people saying they are proud to work for
Redrow. This said, we continue to look at ways to improve the
working environment and we have recently launched a number of
initiatives around communication and health and wellbeing.
Training and developing the next generation of housebuilders
remains high on our agenda. 15% of the workforce are trainees on
structured training programmes and I am delighted that we retained
our listing as a Top 100 Apprenticeship Employer. We have a number
of strategic partnerships with colleges across the country and the
first students will enrol this year on our dedicated housebuilding
degree which has been developed in conjunction with Liverpool John
Moores University and Coleg Cambria.
We are a Patron of the 5% Club which is a movement of FTSE
employer-members working to tackle critical skills challenges. Its
members represent the gold standard of training and skills
development across all industries.
Building responsibly
Our responsibility to work safely and considerately is a top
priority for the business.
During the year we restructured our Health, Safety and
Environmental Management teams. Resources have been increased and
reorganised into two distinct areas of responsibility: compliance
through regular site audits and development to improve overall
health, safety and environmental management.
NextGeneration is an independent organisation which benchmarks
the UK's top 25 housebuilders on their sustainability performance.
During the year we retained our Gold standard and moved-up into
third place in the rankings. We are also Gold members of the UK
Green Building Council.
Quality and customer service is also a high priority for us. We
are currently rolling out a tablet based quality control system to
replace traditional out-dated checklists. This system will archive
inspections and images and allow direct communication with
contractors to better manage standards and quality.
In the annual HBF customer satisfaction survey we retained our
four stars rating with a recommendation level of 89.1%. With the
improvements we are making in this area of our business, our
recommendation level is currently trending above 90%.
We continue to explore opportunities to improve productivity
through the use of more offsite manufactured components. On our
Padcroft development in West Drayton we are using services pods and
in two of our divisions we are trialling modular garages. These
innovations not only reduce reliance upon site based skilled
workers but also give more certainty over costs. During the year we
estimate that build costs increased by around 4% with spikes in
some material costs being offset by easing labour cost
pressures.
The market and outlook
The new homes market remained fairly stable throughout the
financial year despite a continuing weak secondary market that in
particular affects sales chains in the upper-end of the price
range.
The Group secured just under 4,500 private reservations in the
year representing GBP1.7bn of revenue. With the exception of
Central London, where we only have a handful of properties to sell,
we continue to see encouraging levels of demand for our homes.
Outlet openings were as predicted weighted towards the
second-half. Although the Group opened 53 new outlets in the year,
these were more than offset by closures that ran ahead of forecast
including a few ongoing temporary closures due to planning and land
drawdown delays. We operated from an average of 124 outlets in the
year. As our larger sites come on-stream, we expect to open and
close fewer outlets in financial year 2019. As a consequence, we
are forecasting a small increase in the average number of outlets
that will be operating throughout the year.
We live in challenging political and economic times. We can
however draw comfort from knowing there remains a strong demand for
new homes supported by both a competitive mortgage market and the
highly successful Help to Buy scheme.
We are well-placed to meet the challenges ahead. Our focus on
design means our homes are desirable and in sought-after places and
we have entered the new financial year with a record order book. We
have some excellent new sites in the pipeline that will underpin
current sales rates as they come on-stream.
I am confident given the talent, dedication and commitment of
our team and wider workforce, we remain in a strong position to
overcome any political and economic stumbling-blocks to deliver
excellent results in 2019 and beyond.
John Tutte
Group Chief Executive
Financial Review
Profitability
The Group once again delivered record financial results with
revenue of GBP1.92bn (2017: GBP1.66bn) and profit before tax of
GBP380m (2017: GBP315m). This was achieved by completing a record
5,718 new homes (5,913 including our Joint Venture).
Total Group revenue rose 16% to GBP1.9bn. This comprised private
homes revenue which increased by 14% to GBP1.8bn (2017: GBP1.5bn)
as a result of a 7% increase in private homes legal completions and
a 7% increase in average selling price, social homes revenue of
GBP145m (2017: GBP115m) and other revenue of GBP20m (2017: GBP12m)
from land sales.
As a result of the increase in revenue, gross profit increased
by GBP64m in the year to GBP469m (2017: GBP405m) giving a gross
margin of 24.4% in line with the previous year.
The strong revenue growth has generated an operating profit for
the year of GBP382m (2017: GBP322m), a 19% increase. This
represents an operating margin of 19.9% (2017: 19.4%). This 50
basis point margin increase is due to tight control of costs
leading to a reduction in administrative expenses as a percentage
of revenue from 5.0% to 4.5%.
Net financing costs at GBP7m were GBP1m lower than the prior
year due to the improved cash position in 2018. We had an average
positive cash balance during the year of GBP22m compared to average
net debt of GBP67m in 2017.
There was also a GBP5m after tax contribution from our Joint
Venture on the Morello, Croydon development (2017: GBP1m) which
delivered 195 legal completions in (2017: 97). This Joint Venture
development is now complete.
As a result, the Group delivered a record profit before tax of
GBP380m (2017: GBP315m) in the year with basic earnings per share
up 22% at 85.3p (2017: 70.2p).
Tax
The corporation tax charge for the year was GBP72m (2017:
GBP62m). The Group's tax rate for 2018 was 19% (2017: 19.75%). The
normalised rate of tax for the year ending 30 June 2019 is
projected to be 19% based on rates which are substantively enacted
currently.
The Group paid GBP74m of corporation tax in the year (2017:
GBP56m) following the normal quarterly pattern. Payments will
continue in the normal quarterly pattern until the new legislation
for corporation tax payments by very large companies takes effect
for our financial year ending 30 June 2020, which will bring our
instalment payments forward by four months.
Dividends
The Board has proposed a 2018 final dividend of 19p per share
which will be paid on 13 November 2018 to Shareholders on the
register on 21 September 2018, subject to Shareholder approval at
the 2018 Annual General Meeting. This is a 73% increase on last
year. The full year dividend is 28p (2017:17p) and a payout ratio
of 33% of earnings (2017: 24%). In 2017 we announced our intention
to progressively increase the dividend payout ratio to 33% over the
medium term. As a result of our ongoing strong cash position we
have been able to meet this commitment earlier than expected.
The Group paid dividends of GBP74m (2017: GBP44m) during the
year.
Returns
Net assets at 30 June 2018 were GBP1,483m (2017: GBP1,235m), a
20% increase. Capital employed at the same date was GBP1,420m
(2017: GBP1,308m) up 9%. Our return on capital employed continued
to benefit from improved capital turn and higher profits and
increased in the year from 26.0% to 28.5%. Return on equity also
increased slightly from 27.7% to 28.0%.
Inventories
Our investment in land increased by GBP127m, or 10% in the year
to GBP1,439m (2017: GBP1,312m) reflecting the attractive land
market and our success in securing sites to best utilise our
product and placemaking skills on acceptable terms. Over a third of
our current land holdings additions in 2018 came from our forward
land holdings broadly in line with the c.40% five year average
contribution.
Our owned plot cost has increased by GBP1,000 per plot to
GBP71,000 at June 2018 (2017: GBP70,000), reducing slightly to 19%
of the average selling price of private legal completions in the
year (2017: 20%).
Our investment in work in progress increased by GBP48m, up 7%
year on year to GBP779m (2017: GBP731m). As a percentage of Homes
turnover it reduced from 44% to 41% in part benefiting from the
first legal completions off our Colindale Gardens development in
North London.
Land creditors increased by GBP36m to GBP387m at June 2018
(2017: GBP351m) representing 27% of gross land value in line with
the prior year.
Receivables
Trade receivables decreased by GBP5m during the year to GBP16m
(2017: GBP21m) due to the ongoing receipt of historic shared equity
scheme monies. Other receivables increased from GBP21m to GBP29m
partly due to the timing of the recovery of VAT on land
payments.
Payables
Trade payables, customer deposits and accruals increased by
GBP30m to GBP452m (2017: GBP422m) again reflecting increased levels
of production activity.
Cash flow and Net Cash/(Debt)
Net cash stood at GBP63m at June 2018 compared to net debt of
GBP73m at June 2017. This significant movement reflects a cash
inflow generated from operations of GBP276m (2017:GBP189m). This
equates to a cash conversion from EBITDA of 72% in 2018, up from
58% in 2017. Together with a net GBP26m cash inflow from our Joint
Ventures, this more than funded the growth in the business and the
increase in both dividend distributions and corporation tax
payments made in the year.
Financing and Treasury Management
In the light of the ongoing improving cash position, on 31
January 2018 we reduced our committed unsecured syndicated loan
facility by GBP100m to GBP250m and extended its maturity from March
2020 to December 2022. We also cancelled a GBP15m unsecured
bilateral facility.
Redrow remains a UK based housebuilder and therefore the main
focus of its financial risk management surrounds the management of
liquidity and interest rate risk. Financial management at Redrow is
conducted centrally using policies approved by the Board.
(i) Liquidity
The Group regularly prepares and reviews its cash flow forecasts
which are used to manage liquidity risks in conjunction with the
maintenance of appropriate committed banking facilities to ensure
adequate headroom.
Facilities are kept under regular review and the Group maintains
regular contact with its banks and other financial institutions;
this ensures Redrow remains attuned to new developments and
opportunities and that our facilities remain aligned to our
strategic and operational objectives and market conditions.
Our current banking syndicate comprises six banks and in
addition to our committed facilities, Redrow also has further
uncommitted bank facilities which are used to assist day to day
cash management.
(ii) Interest rate risk
The Group is exposed to interest rate risk as it borrows money
at floating rates. Redrow uses simple risk management products,
notably sterling denominated interest rate swaps, as appropriate to
manage this risk. Such products are not used for speculative or
trading purposes.
Redrow regularly reviews its hedging requirements. No hedging
was undertaken in the year.
Pensions
As at June 2018, the Group's financial statements showed a
GBP22m surplus (2017: GBP2m deficit) in respect of the defined
benefits section of The Redrow Staff Pension Scheme (which closed
to future accrual with effect from 1 March 2012). The GBP24m
improvement is mainly due to the increase in corporate bond yields
along with a decrease in the market's long-term expectations for
inflation which have served to decrease the liability values. In
addition new census data used for the Actuarial Valuation at 30
June 2017 was incorporated which reduced the benefit obligation by
GBP5m.
Barbara Richmond
Group Finance Director
Consolidated Income Statement
12 months ended 30 June 2018 2017
Note GBPm GBPm
Revenue 1,920 1,660
Cost of sales (1,451) (1,255)
Gross profit 469 405
Administrative expenses (87) (83)
Operating profit 382 322
Financial income 3 4
Financial costs (10) (12)
Net financing costs (7) (8)
Share of profit of joint ventures after interest
and taxation 5 1
Profit before tax 380 315
Income tax expense 2 (72) (62)
Profit for the year 308 253
Earnings per share - basic 4 85.3p 70.2p
- diluted 4 85.2p 70.0p
Statement of Comprehensive Income
2018 2017
12 months ended 30 June GBPm GBPm
Profit for the year 308 253
Other comprehensive income/(expense)
Items that will not be reclassified to profit
or loss
Remeasurements of post-employment benefit
obligations 22 (8)
Deferred tax on actuarial (gains)/losses taken
directly to equity (4) 1
Other comprehensive income/(expense) for the
year net of tax 18 (7)
Total comprehensive income for the year 326 246
Balance Sheet
As at 30 June
2018 2017
Note GBPm GBPm
Assets
Intangible assets 2 2
Property, plant and equipment 15 16
Investments 6 27
Deferred tax assets 4 5
Retirement benefit surplus 22 -
Trade and other receivables 8 11
Total non-current assets 57 61
Inventories 5 2,218 2,043
Trade and other receivables 42 35
Cash and cash equivalents 8 90 62
Total current assets 2,350 2,140
Total assets 2,407 2,201
Equity
Retained earnings at 1 July 2017 1,131 937
Profit for the year 308 253
Other comprehensive income/(expense) for the
year 18 (7)
Dividend Paid (74) (44)
Movement in LTIP/SAYE (4) (8)
Retained earnings 1,379 1,131
Share capital 9 37 37
Share premium account 59 59
Other reserves 8 8
Total equity 1,483 1,235
Liabilities
Bank loans 8 5 90
Trade and other payables 6 178 197
Deferred tax liabilities 5 3
Retirement benefit obligations - 2
Long-term provisions 9 8
Total non-current liabilities 197 300
Bank overdrafts and loans 8 22 45
Trade and other payables 6 671 585
Current income tax liabilities 34 36
Total current liabilities 727 666
Total liabilities 924 966
Total equity and liabilities 2,407 2,201
Redrow plc Registered no. 2877315
Statement of Changes in Equity
2018 2017
GBPm GBPm
12 months ended 30 June
Profit for the year 308 253
Other comprehensive income/(expense) for
the year 18 (7)
Total comprehensive income relating to the
year (net) 326 246
Dividend paid (74) (44)
Movement in LTIP/SAYE (4) (8)
Net increase in equity 248 194
Opening equity 1,235 1,041
Closing equity 1,483 1,235
Statement of Cash Flows
12 months
ended 30 June
2018 2017
Note GBPm GBPm
Cash flows from operating activities
Operating profit before financing costs 382 322
Depreciation and amortisation 3 2
Adjustment for non-cash items (6) (5)
Operating profit before changes in working capital
and provisions 379 319
(Increase)/decrease in trade and other receivables (5) 6
Increase in inventories (175) (140)
Increase in trade and other payables 76 3
Increase in provisions 1 1
Cash inflow generated from operations 276 189
Interest paid (4) (5)
Tax paid (74) (56)
Net cash inflow from operating activities 198 128
Cash flows from investing activities
Acquisition of software, property, plant
and equipment (2) (1)
Net receipts from/(payments to) joint ventures -
continuing operations 26 (1)
Net cash inflow/(outflow) from investing
activities 24 (2)
Cash flows from financing activities
Issue of bank borrowings 7 5 90
Repayment of bank borrowings 7 (90) (230)
Purchase of own shares (12) (16)
Dividend paid (74) (44)
Net cash (outflow) from financing activities (171) (200)
Increase/(decrease) in net cash and cash
equivalents 51 (74)
Net cash and cash equivalents at the beginning
of the year 17 91
Net cash and cash equivalents at the end
of the year 8 68 17
NOTES
1. Basis of preparation
The above results and the accompanying notes do not constitute
statutory accounts within the meaning of Section 435 of the
Companies Act 2006.
The Auditors have reported on the Group's statutory accounts for
the year ended 30 June 2018 under s495 of the Companies Act 2006,
which do not contain a statement under s498 (2) or s498 (3) of the
Companies Act 2006 and are unqualified. The statutory accounts for
the year ended 30 June 2017 have been delivered to the Registrar of
Companies and the statutory accounts for the year ended 30 June
2018 will be filed with the Registrar in due course.
The audited consolidated financial statements from which these
results are extracted have been prepared under the historical cost
convention and in accordance with International Financial Reporting
Standards (IFRS) as adopted by the European Union, IFRIC
interpretations and those parts of the Companies Act 2006
applicable to companies reporting under IFRS.
The principal accounting policies have been applied consistently
in the periods.
2. Income Tax expense
12 months
ended 30 June
2018 2017
GBPm GBPm
Current year
UK Corporation Tax 73 62
Deferred tax
Origination and reversal of temporary differences (1) -
Total income tax charge in income statement 72 62
Reconciliation of tax charge for the year
Profit before tax 380 315
Tax calculated at UK Corporation Tax Rate 72 62
Tax charge for the year 72 62
3. Dividends
The following dividends were paid by the Group:
2018 2017
GBPm GBPm
Prior year final dividend per share of 11.0p
(2017: 6.0p); current year interim dividend
per share of 9.0p (2017: 6.0p) 74 44
74 44
The Board decided to propose a final dividend of 19.0p per share
in respect of 2018 (GBP70m (2017: 11.0p GBP41m)). The dividend has
not been provided for and there are no income tax consequences.
4. Earnings per ordinary share
The basic earnings per share calculation for the year ended 30
June 2018 is based on the weighted average number of shares in
issue during the period of 361m (2017: 361m) excluding those held
in trust under the Redrow Long Term Incentive Plan (9m shares
(2017: 9m shares)), which are treated as cancelled.
Diluted earnings per share has been calculated after adjusting
the weighted average number of shares in issue for all potentially
dilutive shares held under unexercised options.
12 months ended 30 June 2018
Earnings No. of shares Per share
GBPm millions pence
Basic earnings per share 308 361 85.3
Effect of share options and SAYE - 1 (0.1)
Diluted earnings per share 308 362 85.2
12 months ended 30 June 2017
Earnings No. of shares Per share
GBPm millions pence
Basic earnings per share 253 361 70.2
Effect of share options and SAYE - 2 (0.2)
Diluted earnings per share 253 363 70.0
5. Inventories
As at
30 June
2018 2017
GBPm GBPm
Land for development 1,443 1,339
Work in progress 781 723
Stock of showhomes 67 57
2,291 2,119
Payments on account (73) (76)
2,218 2,043
Inventories of GBP1,375m were expensed in the year (2017:
GBP1,193m). Work in progress includes GBP2m (2017: GBP2m) in
respect of part exchange properties.
Payments on account comprises GBP4m (2017: GBP27m) attributable
to land and GBP69m (2017: GBP49m) attributable to work in
progress.
6. Land Creditors
(included in trade and other payables)
As at
30 June
2018 2017
GBPm GBPm
Due within one year 209 154
Due in more than one year 178 197
387 351
7. Borrowings and loans
As at
30 June
2018 2017
GBPm GBPm
Opening net book amount 90 230
Issue of bank borrowings 5 90
Repayment of bank borrowings (90) (230)
Closing net book amount 5 90
At 30 June 2018 the Group had total unsecured bank borrowing
facilities of GBP253m representing GBP250m committed facilities and
GBP3m uncommitted facilities.
8. Analysis of net cash/(debt)
As at
30 June
2018 2017
GBPm GBPm
Cash and cash equivalents 90 62
Bank overdrafts (22) (45)
Net cash and cash equivalents 68 17
Bank loans (5) (90)
63 (73)
9. Share capital
As at
30 June
2018 2017
GBPm GBPm
Authorised
480,000,000 ordinary shares of 10p each 48 48
Issued and fully paid 37 37
Number of ordinary
shares of 10p each
As at 1 July 2017 and 30 June 2018 369,799,938
10. Shareholder Enquiries
The Registrar is Computershare Investor Services PLC.
Shareholder enquiries should be addressed to the Registrar at
the following address:
Registrars Department
The Pavilions
Bridgwater Road
Bristol
BS99 6ZZ
11. Annual General Meeting
The Annual General Meeting of Redrow plc will be held at the
offices of Instinctif Partners, 1st floor, 65 Gresham Street,
London EC2V 7NQ on 7 November 2018, commencing at 11.30am. A copy
of this statement is available for inspection at the registered
office.
LEI Number:
2138008WJZBBA7EYEL28
Announcement Classification:
1.1: Annual financial and audit reports
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
FR SSIFIDFASEEU
(END) Dow Jones Newswires
September 04, 2018 02:00 ET (06:00 GMT)
Redrow (LSE:RDW)
Historical Stock Chart
From Apr 2024 to May 2024
Redrow (LSE:RDW)
Historical Stock Chart
From May 2023 to May 2024