Morgan return heralds 81% fall in losses

Deeside-based house-builder Redrow posted improved first half results after sales and development activity both picked up.

Group revenue at the company, once more controlled by founder Steve Morgan, rose 25% to £187.2m. Legal completions were up 21% to 1,266 and an average selling price of £145,500 was achieved, a rise of 3%.

Losses were reduced dramatically by 81% to £8.7m in the six months to the end of December 2009. Net debt now stands at £49.3m with gearing reduced by 11.3% to 73%. A rights issue raising £150m was completed during the period.

Steve Morgan, chairman, said: "My first priorities on returning to Redrow were to refocus the business towards a high quality differentiated family housing product, which is where the overwhelming market demand lies. Having reduced gearing to 11%, the New Heritage Collection was launched on 11 February 2010 and brings traditional family housing back to the forefront of the Redrow product range.

"It has been greeted with huge enthusiasm by our customers, staff, subcontractors and suppliers alike. The only negative point is that the roll out is being constrained by the time taken by local authorities to give planning permission on both existing and new developments."

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