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.

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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

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