Redrow PLC — Interim / Quarterly Report 2016

Sep 6, 2016

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RNS Number : 0088J

Redrow PLC

06 September 2016

Tuesday 6 September 2016

Redrow plc

Final results for the year to 30 June 2016

REDROW DELIVERS A THIRD CONSECUTIVE YEAR OF RECORD RESULTS

Financial Results

	2016	2015	% Change
Revenue	£1.38bn	£1.15bn	+20
Operating Profit	£261m	£213m	+23
Profit before tax	£250m	£204m	+23
EPS	55.4p	44.5p	+24
Private Order Book	£807m	£524m	+54
ROCE	24.2%	22.8%	+6
Full Year Dividend	10p	6p	+67

Financial highlights

·         Group revenue up 20% to a record £1.38bn driven by a 17% increase in legal completions and a 7% increase in Average Selling Price to £288,600

·        Operating margin rose to 18.9% (2015: 18.5%)

·        Record pre-tax profit of £250m, up 23% (2015: £204m)

·        Earnings per share up 24% to 55.4p

·        Private Order Book up 54% at £807m

·        Return on Capital Employed up 6% to 24.2% (2015: 22.8%)

·        Net debt reduced to £139m from £154m in 2015

·        Proposed final dividend of 6p per share, making 10p for the full year, up 67%

Operational highlights

·        Continuing to deliver on growth strategy

·        Legal completions up 17% to 4,716 (2015: 4,022) spurred by Help to Buy

·        Outlets increased 9% to 128 (2015: 117)

·        Number of employees up 19% to 1,962

·        Owned and contracted land bank at the end of June 2016 was up 43% at 26,000 plots (2015: 18,216 plots)

Steve Morgan, Chairman of Redrow, said:

"I am delighted to report that for the third consecutive year Redrow has delivered a record set of results.  Pre-tax profits were £250m, achieved by completing over 4,700 much needed new homes, a 17% increase over last year.

Redrow entered the new financial year with a record private order book of £807m, up 54% year on year.  Sales in the first 10 weeks are very encouraging and up 8% on a strong comparator last year.  Our strategy of continued growth for the business is on track and I am confident this will be another year of significant progress for Redrow."

Enquiries:

Redrow plc

Steve Morgan, Chairman                                                     01244 527411

Barbara Richmond, Group Finance Director                         01244 527411

John Tutte, Group Chief Executive                                       01244 527411

Instinctif Partners                                                                 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 5242464#.

CHAIRMAN'S STATEMENT

I am delighted to report that for the third consecutive year Redrow has delivered a record set of results.  Pre-tax profits were £250m, achieved as a result of completing over 4,700 much needed new homes, a 17% increase over last year.

Financial Results

Group turnover rose by 20% to a record £1.38bn (2015: £1.15bn).  Revenue from residential legal completions increased by 26% to £1.36bn (2015: £1.08bn).  This was due to a 17% rise in legal completions to 4,716 (2015: 4,022), combined with a 7% rise in average selling price to £288,600 (2015: £269,800).

Gross margin improved by 40 basis points to 24.2% mainly due to 94% of our completions coming from sites purchased post downturn with normal margins.

Operating expenses remained stable at 5.3% of turnover, despite the additional overheads of opening two new divisions (Colindale and South East) at the beginning of the financial year.

Operating profit was £48m higher at £261m (2015: £213m), with the operating margin equating to 18.9% (2015: 18.5%).

Pre-tax profits increased by 23% to a record £250m (2015: £204m) and earnings per share rose 24% to 55.4 pence (2015: 44.5p).

This strong trading performance, together with increasing the level of deferred payments on our land purchases, has enabled us to reduce our net debt to £139m at the end of the financial year, giving gearing of 14% (2015: 18%).

Two key measures of our performance, Return on Capital Employed and Return on Equity, improved to 24.2% (2015: 22.8%) and 26.8% (2015: 26.4%) respectively.

As a result of this excellent performance, and as I reported in my Interim Statement in February, the Board is proposing a final dividend of 6p per share (2015: 4p) making 10p in total for the year, an increase of 67% on 2015.  Subject to shareholder approval at the Annual General Meeting, this will be paid on 11 November 2016 to shareholders on the register at the close of business on 23 September.

Last year we updated our medium term guidance, targeting turnover of £1.6bn, earnings per share of 62p and Return on Equity of 25%.  We remain comfortably on schedule to deliver these objectives.

Market

Demand for new homes was strong throughout the year.  Our growth in output has benefitted from the Government's Help to Buy scheme which has continued to be a major support, not only to Redrow, but to the industry as a whole. 

I reported in my Interim Statement in February that the higher end of the market, and in particular Central London, had slowed down, principally as a result of the Stamp Duty changes that came into effect last year and further hikes that came into effect in April this year.  Activity in this section of the market remains sluggish; however, Redrow's exposure is very limited and all other areas in which we operate, including Outer London, have shown strong growth.  We have seen very little impact as a result of the Brexit vote.

Land and Planning

Redrow has had a very successful year in acquiring land and obtaining planning permission on our forward land holdings, with the owned and contracted land bank increasing to 26,000 plots.  This gives the Group a significant platform for increasing the number of new homes built going forward and to maintain our expansion plans; however obtaining planning through Local Authorities remains tortuous.

People

As a result of the continuing growth of the business, we have also expanded our workforce in the last 12 months from just over 1,600 people to just under 2,000 adding over 300 direct jobs, an increase of 19%.  We continue our commitment to training and development and at the end of June employed 297 trainees across all disciplines, up 22% on 2015.

The record performances we have achieved in recent years have only been made possible by the hard work and commitment of our people and I would like to thank them for all their efforts in support of the business.

Current Trading and Outlook

Redrow entered the new financial year with a record private forward order book of £807m, up 54% on the previous year; including Social Housing, the total forward order book is £897m, up 51%.  Sales in the first 10 weeks are very encouraging and up 8% on a strong comparator last year. 

We have recently launched a number of significant new sites and have a strong pipeline in the planning process.  Our strategy is to continue to grow the business, increasing the number of outlets and hence the number of homes we build.  This process is on track and as such I am confident that this will be another year of significant progress for Redrow.

Steve Morgan

Chairman

CHIEF EXECUTIVE'S REVIEW

Group Performance

The Group has once again delivered record results. Turnover increased by 20% to £1.38bn and pre-tax profits were up 23% to £250m. Our growth in recent years has been exceptional. Over the past three years legal completions have grown by 67%, turnover by 128% and profit before tax by 262% and our strategy is to continue to grow, albeit we expect the pace to moderate. Our divisions in the South grew most strongly in the year and it is pleasing to report that the new South East division made a valuable contribution to the Group's results in its first year of trading.

Market

The market throughout the year was stronger than the previous year which resulted in our average sales per outlet per week increasing by 6% to 0.72 with a seasonally stronger performance in the second-half. The top-end of the market however suffered from the impact of successive SDLT increases and this was particularly notable in London.

In response to the weaker top-end of the market we have focused our land buying and development programmes more towards our mid-range homes that have proven to be so popular with buyers - with many also being able to take advantage of Help to Buy. In London we announced some time ago that our strategy was to concentrate on more affordable apartments in the outer boroughs and it is within these areas we have acquired new sites. We have made good progress working through our legacy of prime London apartments, including Connaught Place, and now have very little exposure to this sector of the market.

Delivering more Homes

To deliver more homes the industry needs more outlets.  Increasing outlets is essential, but is a huge challenge: it requires talented and determined teams to close land deals and progress sites through what is a long-winded, under-resourced planning system. Despite the frustrations of the system we have a good track record of growing outlets year-on-year. Over the past three years we have increased outlets by nearly 40% from 92 to 128 and we expect the number of outlets to rise in 2017.

To grow outlets you need land. 2016 was a very successful year for land acquisition across the Group. We took advantage of a benign market and benefitted from an exceptional pull-through from the forward land portfolio that included 2,900 plots at Colindale, North London.

Placemaking

Our product distinguishes us from our major competitors. Heritage is and will remain our core collection. We make continuous but subtle changes to the range to ensure it maintains its leading and award winning position in the new homes market.

But creating great places to live is not just about individual homes; it's about much more. It's about Placemaking: designing developments that are sympathetic to the surroundings where our customers can enhance their wellbeing and feel part of a community. It's about creating a Better Way to Live which we adopted as a new strap-line during the year.

We have also worked hard to make our developments more sustainable from an environmental perspective. We are working towards ISO14001 certification for our environmental management systems and became the first major housebuilder to score a maximum rating of 'three trees' in the WWF's Timber Scorecard.

Customers

We are a customer focused business and we recognised some time ago that our customers' expectations were rising at a faster rate than we could support. We responded by making a significant investment to raise our game in this area: we expanded our customer service teams, introduced new technology and most recently obtained accreditation from the Institute of Customer Service. It is comforting to know that in a fast growing business such as ours, close to 90% of our discerning customers continue to recommend us.

People

It is pleasing to report that a record 24 of our site managers received NHBC Pride in the Job awards in this year's competition. This is a great achievement at a time when the industry has a shortage of skilled trades, managers and technicians: a shortage that we recognised a number of years ago and have been doing more than our share to address ever since.

The wider industry needs to do more to address the skills crisis and I was delighted to accept the opportunity to Chair the Homebuilding Skills Partnership (HSP). The HSP is an HBF initiative and has secured four years of funding from the CITB to help tackle the country's skills shortage. The HSP will be looking to broaden the industry's appeal to attract a more diverse workforce as well as looking at ways to raise standards and productivity.

As we grow we have a responsibility for the welfare of an increasing number of people and we have to ensure our sites are safe places to live and work. We have expanded our Health and Safety teams during the year and despite a significant increase in build output, reduced the number of notifiable accidents per site.

Looking to the future

In summary, 2016 was an excellent year for the Group. We are an innovative organisation and our initiatives are aimed at both improving shareholder value and supporting our brand purpose - to create a better way for people to live. We produced a very strong set of record results but of equal importance made significant progress across those parts of the business that are essential to our strategy for sustainable growth. We have an excellent product with a strong brand, we have an operational structure with capacity to grow and expand and a land bank with which to do so. We have talented, dedicated and loyal teams of people that share the same values. The Group is in good shape and well-positioned for the future. I am confident 2017 will be another excellent year for the business.

John Tutte

Group Chief Executive

FINANCIAL REVIEW

Profitability

This was another record breaking financial year for the Group in terms of both revenue and profits.

Total Group revenue increased by 20% to £1.38bn. This comprised private homes revenue which increased by 24% to £1,275m (2015: £1,026m) as a result of a 12% increase in private legal completions and a 10% increase in average selling price, social homes revenue of £86m (2015: £59m) and other revenue of £21m (2015: £65m) from land sales.

As a consequence of the higher revenue, gross profit increased by £60m in the year to £334m (2015: £274m) giving a gross margin of 24.2% (2015: 23.8%). The improvement in gross margin benefitted from a further decrease, from 12% to 6%, in the proportion of our legal completions from provisioned land acquired before the downturn, offset in part by increased levels of social homes legally completed in the year. As reported previously, we expect to legally complete the remaining provisioned plots by the end of the 2017 financial year leaving us with full margin on all our remaining land bank.

Operating profit increased by 23% to £261m (2015: £213m) as a result of the strong revenue growth. This represents an operating margin of 18.9% (2015: 18.5%), just below the 19% target we have set for 2018.

Net financing costs at £11m were £2m higher than the prior year reflecting a £1m increase in bank interest and a £1m increase in imputed interest payable on deferred land creditors as we continue to be successful in negotiating deferred terms on our selected land opportunities.

The Group's record profit before tax of £250m (2015: £204m) for the year generated a basic earnings per share of 55.4p, up 24% on the prior year (2015: 44.5p).

Tax

The corporation tax charge for the year was £50m (2015: £42m). The Group's tax rate for 2016 was 20.0% (2015: 20.75%) and we expect our normalised rate of tax for the year ending 30 June 2017 to be 19.75% based on rates which are substantively enacted currently.

The Group paid £46m of corporation tax in the year (2015: £22m) in 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, when it will bring our instalment payments forward by four months.

Dividends

As reported at the time of our half year results, the Board has proposed a 2016 final dividend of 6p per share, a 50% increase on last year, which will be paid on 11 November 2016, subject to Shareholder approval at the 2016 Annual General Meeting.

The Group paid dividends totalling £30m (2015: £15m) during the year. This represented a 4.0p per share final dividend for 2015 paid in November 2015 and a 4.0p per share interim dividend for 2016 paid in March 2016.

Returns

Net assets at 30 June 2016 exceeded £1bn for the first time at £1,017m, a 20% increase on prior year levels (2015: £849m). Capital employed at 30 June 2016 was £1,156m (2015: £1,003m), up 15%. Despite the increase in capital employed, our capital turn rose to 1.3 times (2015: 1.2 times). As a result of our higher profits and capital turn, our return on capital employed increased from 22.8% to 24.2%, although we expect this to moderate going forward towards our 2018 guidance of 21%, due to ongoing investment in land and work in progress.

Return on equity increased from 26.4% to 26.8%, well ahead of our 2018 guidance of 25%. Again we expect this to moderate towards the 2018 guidance in 2017.

Inventories

Our investment in land increased to £1,215m (2015: £1,020m), up 19% year on year. However, our owned plot cost has remained unchanged at £68,000 per plot, reducing to 21% of the average selling price of private legal completions in the year (2015: 23%).

Our investment in work in progress increased to £593m (2015: £480m), up 24% year on year. This increase resulted from a combination of a 9% increase in active outlets, a higher number of strategic sites coming into production and an increase in the number of apartment schemes in the South East at later stages of the build process.

Our net realisable value provision on land and work in progress reduced by £9m to £19m in the year. Provisioned plots represented less than 1% of our owned land bank at June 2016 (2015: 2%), and will be eliminated by June 2017.

Land creditors increased by £112m to £378m at June 2016 representing 31% of land inventory (2015: 26%).  This reflects favourable land market conditions prevailing during the year.

Receivables

Trade receivables reduced by £6m during the year to £23m (2015: £29m) with the receipt of shared equity scheme monies.

Payables

Trade payables and accruals increased by £55m to £336m (2015: £281m) due to increased levels of production as a result of our increased outlets.

Current income tax liabilities increased by £5m to £24m at June 2016 (2015: £19m) as a result of our higher profitability.

Cash Flow and Net Debt

Net debt decreased by £15m to £139m at June 2016 (2015: £154m) which is 14% gearing (2015: 18%). This reduction in net debt reflects a cash inflow generated from operations of £130m (2015: £61m) which more than funded the growth in the business, the increased dividend payments and increased corporation tax payments in the year.

Financial and Treasury Management

Financial management at Redrow is conducted centrally using policies approved by the Board.

Redrow is a UK based housebuilder and therefore the main focus of its financial risk management surrounds the management of liquidity and interest rate risk.

(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 five 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 30 June 2016, the Group's financial statements showed a £6m surplus (2015: £3m 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 £9m improvement is mainly due to improvements in returns on scheme assets which more than offset actuarial losses arising from changes in financial assumptions.

Barbara Richmond

Group Finance Director

Consolidated Income Statement

12 months ended 30 June		2016	2015
	Note	£m	£m
Revenue		1,382	1,150
Cost of sales		(1,048)	(876)
# Gross profit		334	274
Administrative expenses		(73)	(61)
# Operating profit		261	213
Financial income		3	3
Financial costs		(14)	(12)
# Net financing costs		(11)	(9)
# Share of profit of joint ventures after interest and taxation		-	-
# Profit before tax		250	204
Income tax expense	2	(50)	(42)
Profit for the year		200	162
Earnings per share            -     basic	4	55.4p	44.5p
-     diluted	4	55.2p	44.4p

Consolidated Statement of Comprehensive Income

		2016	2015
12 months ended 30 June		£m	£m
Profit for the year		200	162
Other comprehensive income
Items that will not be reclassified to profit or loss
Remeasurements of post-employment benefit obligations		8	8
Deferred tax on actuarial gains taken directly to equity		(2)	(2)
Other comprehensive income for the year net of tax		6	6
Total comprehensive income for the year		206	168

Balance Sheet

			As at 30 June
			2016	2015
			£m	£m
		Note
Assets
Intangible assets			2	2
Property, plant and equipment			17	12
Investments			25	17
Deferred tax assets			5	5
Retirement benefit surplus			6	-
Trade and other receivables			12	13
Total non-current assets			67	49
Inventories		5	1,808	1,500
Trade and other receivables			36	39
Cash and cash equivalents		8	135	56
Total current assets			1,979	1,595
Total assets			2,046	1,644
Equity
Share capital		9	37	37
Share premium account			59	59
Other reserves			8	8
Retained earnings			913	745
Total equity			1,017	849
Liabilities
Bank loans		8	230	150
Trade and other payables		6	156	84
Deferred tax liabilities			2	1
Retirement benefit obligations			-	3
Long-term provisions			7	7
Total non-current liabilities			395	245
Bank overdrafts and loans		8	44	60
Trade and other payables		6	566	471
Current income tax liabilities			24	19
Total current liabilities			634	550
Total liabilities			1,029	795
Total equity and liabilities			2,046	1,644

Statement of Changes in Equity

		2016 £m	2015 £m
12 months ended 30 June
Profit for the year		200	162
Other comprehensive income for the year		6	6
Total comprehensive income relating to the year (net)		206	168
Dividend paid		(30)	(15)
Movement in LTIP/SAYE		(8)	-
Net increase in equity		168	153
Opening equity		849	696
Closing equity		1,017	849

The Statement of Cash Flows

			12 months        ended 30 June
			2016	2015
		Note	£m	£m
Cash flows from operating activities
Operating profit before financing costs			261	213
Depreciation and amortisation			1	1
Adjustment for non-cash items			(5)	(5)
Operating profit before changes in working capital and provisions			257	209
Decrease/(increase) in trade and other receivables			7	(2)
Increase in inventories			(308)	(343)
Increase in trade and other payables			174	196
Increase in provisions			-	1
Cash inflow generated from operations			130	61
Interest paid			(6)	(6)
Tax paid			(46)	(22)
Net cash inflow from operating activities			78	33
Cash flows from investing activities
Sale of business			-	9
Acquisition of software, property, plant and equipment			(6)	(1)
Net payments to joint ventures - continuing operations			(11)	(6)
Net cash (outflow)/inflow from investing activities			(17)	2
Cash flows from financing activities
Issue of bank borrowings		7	230	150
Repayment of bank borrowings		7	(150)	(175)
Purchase of own shares			(16)	(2)
Dividend paid			(30)	(15)
Net cash inflow/(outflow) from financing activities			34	(42)
Increase/(decrease) in net cash and cash equivalents			95	(7)	(7)
Net cash and cash equivalents at the beginning of the year			(4)	3	3
Net cash and cash equivalents at the end of the year		8	91	(4)

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 2016 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 2015 have been delivered to the Registrar of Companies and the statutory accounts for the year ended 30 June 2016 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 to all the periods presented.

2.         Income Tax expense

	12 months ended 30 June
	2016	2015
	£m	£m
Current year
UK Corporation Tax at 20.00% (2015: 20.75%)	51	41
Deferred tax
Origination and reversal of temporary differences	(1)	1
Impact of change in deferred tax rate	-	-
Total income tax charge in income statement	50	42
Reconciliation of tax charge for the year
Profit before tax	250	204
Tax on total profit at 20.00% (2015: 20.75%)	50	42
Impact of change in deferred tax rate	-	-
Short term temporary differences	-	-
Tax charge for the year	50	42

3.         Dividends

The following dividends were paid by the Group:

	2016	2015
	£m	£m
Prior year final dividend per share of 4.0p (2015: 2.0p); current year
interim dividend per share of 4.0p (2015: 2.0p)	30	15
	30	15

The Board decided to propose a final dividend of 6.0p per share in respect of 2016 (£22m (2015: £15m)).  The dividend has not been provided for and there are no income tax consequences.

4.         Earnings per share

The basic earnings per share calculation for the year ended 30 June 2016 is based on the weighted number of shares in issue during the period of 361m (2015: 364m) excluding those held in trust under the Redrow Long Term Incentive Plan (9m shares (2015: 6m 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 2016

	Earnings	No. of shares	Per share
	£m	millions	pence
Basic earnings per share	200	361	55.4
Effect of share options and SAYE	-	1	(0.2)
Diluted earnings per share	200	362	55.2

12 months ended 30 June 2015

	Earnings	No. of shares	Per share
	£m	millions	pence
Basic earnings per share	162	364	44.5
Effect of share options and SAYE	-	1	(0.1)
Diluted earnings per share	162	365	44.4

5.         Inventories

		As at 30 June
		2016	2015
		£m	£m
Land for development		1,215	1,020
Work in progress		539	426
Stock of showhomes		54	54
		1,808	1,500

Inventories of £992m net of £9m net realisable value provision utilisation, were expensed in the year (2015: £826m net of £20m net realisable value provision utilisation).  Work in progress includes £3m (2015: £3m) in respect of part exchange properties.

Of the net realisable value provision of £19m (2015: £28m), £9m (2015: £17m) is attributed to land and £10m (2015: £11m) is attributed to work in progress.

The net realisable value provision movement is analysed below:

	Total
	£m
As at 1 July 2015	28
Utilised during the year	(9)
Created during the year	3
Released during the year	(3)
As at 30 June 2016	19

The net realisable value provisions of £3m and £3m created and released in the year are the result of our review at the balance sheet date in the context of prevailing market conditions and the re-assessment of selling prices and costs. They represent the creation of additional provisions against sites acquired pre June 2009 and the reduction of provisions already in place against such sites as required.

6.         Land Creditors

(included in trade and other payables)

		As at 30 June
		2016	2015
		£m	£m
Due within one year		222	182
Due in more than one year		156	84
		378	266

7.         Borrowings and loans

		12 months ended 30 June
		2016	2015
		£m	£m
Opening net book amount		150	175
Issue of bank borrowings		230	150
Repayment of bank borrowings		(150)	(175)
Closing net book amount		230	150

At 30 June 2016 the Group had total unsecured bank borrowing facilities of £368m, representing £365m committed facilities and £3m uncommitted facilities.

8.         Analysis of net debt

		As at 30 June
		2016	2015
		£m	£m
Cash and cash equivalents		135	56
Bank overdrafts		(44)	(60)
Net cash and cash equivalents		91	(4)
Bank loans		(230)	(150)
		(139)	(154)

9.         Share capital

		As at 30 June
		2016	2015
		£m	£m
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 2015 and 30 June 2016			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 Village Urban Resort St Davids, St. David's Park, Flintshire on 9 November 2016, commencing at 12.00 noon.  A copy of this statement is available for inspection at the registered office.

This information is provided by RNS

The company news service from the London Stock Exchange

END

FR SSAFMIFMSELU

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