Morgan to step back as Redrow reports another record year
Chairman Steve Morgan is to move to a non-executive role at the North Wales housebuilder, which has reported record figures for the fourth consecutive year, with pre-tax profits climbing 26% to £315m in the year to 30 June 2017.
Group revenue was up 20% to £1.66bn as the firm’s average selling price moved up 7% to £309,000. Redrow’s order book stands at £1.1bn and net debt has been reduced from £139m to £73m. There has been a 27% increase in earnings per share to 70.2p.
Morgan said: “Eight years after returning to Redrow, I have decided to ease back from a full time executive role towards a non-executive role; the transition is to take place during the current financial year.
“It is my intention to continue to focus with the board on the strategic development of the business and I will retain my keen involvement with the product and key projects.”
In July, Redrow announced that Vanda Murray would join the board as a non-executive director, with Liz Peace, the former chief executive of the British Property Federation, stepping down.
Morgan said that the firm shows no signs of slowing: “Redrow has continued to build much-needed new homes across England and Wales with completions up 15% to over 5,400.
“Redrow began the current financial year with a record order book, and sales in the first 9 weeks are very encouraging, up 8% on a strong comparator last year.
“Based on the strength of our current performance and the robust demand that we are seeing, we are today updating our medium-term guidance. We now expect turnover in 2020 of circa £2.2bn and pre-tax profit of circa £430m. We expect the dividend in 2020 to rise to 32p per share.
“Our strategy of continued growth for the business is on track. I am confident this will be another year of significant progress for Redrow.”
Chief executive John Tutte said that the development of a series of garden villages – projects entirely separate from government initiatives of the same name – were a vital part of the next stage of growth, with a scheme in Woodford, Cheshire among the key projects. The firm is also part of the Liverpool Housing Partnership, which is targeting delivery of 2,500 homes.
I’m surprised Morgan didn’t take the opportunity to have another moan about the planning system…. whilst announcing another increase in profits.
By A planner
The house in the photo is so boring..Such a pastiche…
By Schwyz
They all have terrible names like the Winchester, the Cambridge etc
By Andrew Lee
Nice house!
By Kevin McCloud