Redrow PLC Trading Statement (3601E)
July 07 2021 - 1:00AM
UK Regulatory
TIDMRDW
RNS Number : 3601E
Redrow PLC
07 July 2021
FOR IMMEDIATE RELEASE
7 July 2021
REDROW plc
TRADING UPDATE
Redrow plc (the 'Group') is today issuing a trading update for
the financial year ended 27 June 2021 ahead of publication of its
annual results in September.
Since the Group announced its interim results on 10 February
2021, the sales market remains strong. The reservations per outlet
per week for the financial year amounted to 0.70 (2020: 0.67, 2019:
0.63) and the revenue per outlet per week was GBP288k (2020:
GBP259k, 2019: GBP246k), all excluding private rented sector (PRS)
reservations. This high sales rate has been achieved despite the
reduction in the use of Help to Buy which only accounted for 13% of
private reservations in the second half of 2021 (2020: 50%).
The continuing strong sales market combined with the tapering of
the stamp duty holiday at the end of June has resulted in Homes
turnover in the regional businesses being ahead of expectations. In
addition, in June the Group completed the final phase of a PRS
sector scheme in London ahead of schedule adding GBP43m to turnover
in the 2021 Financial Year.
Also in June, the Group has sold the final two London sites it
decided not to build out, albeit one of those disposals was at the
start of the 2022 Financial Year. The proceeds of these disposals
will be reinvested in the Group's regional businesses, including
the new Southern division, which is expected to contribute to
turnover in the 2023 Financial Year.
As a result, the Group now expects turnover for 2021 to be
cGBP1.94bn (2020: GBP1.34bn, 2019: GBP2.11bn) on legal completions
of 5,620 (2020: 4,032, 2019: 6,443).
The Group also expects an operating margin in excess of 15.5%
(2020: 11.1%, 2019: 19.5%).
At the end of the financial year the Total Order Book stood at
GBP1.43bn, in line with June 2020.
The business has ended the financial year with a net cash
balance of GBP160m (June 2020 net debt of GBP126m). The average
monthly cash balance was GBP142m (2020: GBP2m).
The Group has entered the 2022 Financial Year with a very strong
Order Book and the sales market remains robust. As a result,
despite the earlier completion of the PRS block referred to above,
the Group expects 2022 turnover to be above GBP2bn. The operating
margin is expected to improve to c18%.
Enquiries:
Redrow plc
John Tutte, Chairman 01244 527411
Matthew Pratt, Group Chief Executive 01244 527411
Barbara Richmond, Group Finance
Director 01244 527411
Instinctif Partners 0207 457 2020
Tim Linacre, Chief Executive 07949 939237
Bryn Woodward, Associate Partner 0207 457 2045
LEI Number:
2138008WJZBBA7EYEL28
Announcement Classification:
3.1: Additional regulated information required to be disclosed
under the laws of a Member State
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END
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