Redrow PLC (RDW) - AGM Statement and IMS
RNS Number : 8209Q
12 November 2012
12 November 2012
ANNUAL GENERAL MEETING AND INTERIM MANAGEMENT STATEMENT
Redrow plc is holding its Annual General Meeting today at 12 noon at St
David's Park Hotel, Ewloe, Flintshire, Wales. The following statement, which
also constitutes Redrow's Interim Management Statement, covering the first 19
weeks trading of the current financial year, will be made to shareholders.
At today's AGM Steve Morgan, Chairman, will say:
"Redrow has continued to make steady progress in what are challenging but
stable market conditions. Sales per outlet are marginally up at 0.58 per
week, compared to 0.55 in 2011. We have, however, operated from an average of
83 outlets during the year, compared to 72 last year, which has resulted in
reservations for the year to date increasing by 17% in the regional businesses
and 22% for the Group as a whole, including London. Cancellation rates have
remained stable at just over 17%.
The average price of private reservations to date is 13% ahead of the same
period last year, at £223,000 excluding London and up 22% at £243,000 when
London is included. This reflects both the increased percentage of our sales
coming through the very popular New Heritage Collection and the impact of the
London business. In the wider market, house prices have remained stable, as
indeed they have over the last two years.
Since the beginning of the new financial year we have added 1,480 plots across
14 sites to our current land bank. The total current land bank, both owned
and contracted, now stands at 13,100 plots, representing just over four and a
half years' supply at current sales rates.
Ongoing investment in land has resulted in our net debt increasing from £14m
in June to c.£90m now, representing a gearing level of 16%. Our balance sheet
remains strong, which leaves us well placed to pursue the right opportunities
as they arise.
Mortgage availability remains the principal constraint on the sector and there
will not be a significant recovery in housing numbers until this situation is
resolved. It is pleasing to note the support of the Government in recognising
the importance of new home building. The initiatives that the Government have
introduced in recent times, particularly the revamp of the planning system and
the NewBuy and FirstBuy schemes, have been of great assistance. Without a
doubt industry numbers would be considerably lower without this intervention.
Finally a quick word about the recent takeover speculation. On the 18th
October Bridgemere Securities Limited, Toscafund Asset Management LLP and
Penta Capital LLP issued a statement that they were not intending to make an
offer for Redrow. This followed discussions with the Board about the
preliminary expression of interest in relation to a possible offer. There are
no discussions ongoing.
I, along with the rest of the management team and the Board, am clearly
focused on driving Redrow forward under our existing successful strategy to
create value for all investors.
The next scheduled update will be Redrow's half-yearly results for the six
months ending 31 December 2012, which are due to be announced on Wednesday 27
Steve Morgan, Chairman 01244 527411
Barbara Richmond, Group Finance Director
Susanna Voyle 0207 353 4200
This information is provided by RNS
The company news service from the London Stock Exchange
AGMUKRBRUVAARAA -0- Nov/12/2012 07:00 GMT
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