Interim Results

Redrow PLC
5 March 2001



                               PRESS RELEASE

Redrow plc today announces interim results for the six months to 31 December
2000:

Highlights:

*   Earnings per share increased by 17% to 13.4p (1999: 11.5p).
*   Interim dividend of 1.83p per share (1999: 1.65p), an increase of 11%.
*   Return on capital employed 27% (1999: 31%).
*   UK Homes operating margins increased to 17.8% (1999: 16.0%).
*   UK Homes operating profits increased by 12.1% to £35.2m.
*   Current land bank increased to 13,800 plots (June 2000: 13,500 plots).
*   Forward land bank at 26,500 plots (June 2000: 27,000 plots).
*   Value of forward sales up 6.8% to £112m.

Commenting on the results, Robert Jones, Chairman of Redrow plc said:

'These excellent results represent the first stage of delivering enhanced
shareholder value.  The Company's continuing focus on maintaining a strong
land bank and its quality products have once again resulted in impressive
returns.'



For further information contact:

Robert Jones, Chairman                       Redrow plc
Paul Pedley, Chief Executive                 0207-404-5959 (5 March)
Neil Fitzsimmons, Finance Director           01244 520044 (thereafter)
       
Gavin Partington                             Brunswick Public Relations
                                             0207-404-5959




                        Chairman's Interim Statement

This is the first time I have reported to you since taking over as Chairman at
last year's AGM.  I would like to place on record the Board's appreciation of
the unique contribution made by Steve Morgan during his 26 year Chairmanship
of the Company and I am delighted to report that the Company continues to be
in very sound health.

In September of last year, having carefully reviewed all of the available
options, the Board set out its strategy for enhancing Shareholder value.  The
principle of buying back 30% of the Company's shares for that purpose,
creating a more efficient capital structure, was extremely well received. 
These results reflect that with an increase in earnings per share of 17% to
13.4p (1999: 11.5p).  The full effects of the share buyback on the earnings
per share will be apparent in the second half of the year.  Return on capital
employed at 27% remains at the forefront of sector performance.  Following the
share buyback, net borrowings at 31 December 2000 were £132.4m representing
gearing of 80%, in line with the Board's projections.

Operating profits are 10% ahead of the corresponding period last year due
principally to enhanced margins of 17.8% (1999: 16.0%) within the UK Homes
Companies.  As a result of the share buyback, the interest charge increased to
£2.7m (1999: £0.1m) leaving profit before tax at £35.2m (1999: £34.2m).  The
Board is pleased to declare an 11% increase in the interim dividend to 1.83p
(1999: 1.65p) which is 7.3 times covered by earnings.

The housing market remains in a healthy condition with steady demand being
experienced throughout the country.  Against this backdrop, the Homes Division
achieved a 16% increase in operating profits to £38.3m (1999: £32.9m) mainly
as a result of the improved operating margins in the UK Homes operations. 
Legal completions in these companies were marginally ahead at 1,657 (1999:
1,642).

One of the objectives set out at the time of the share buyback was to place
greater emphasis on the complementary nature of the Group's housing
activities.  This has been achieved by expanding the availability of the
'Heritage', 'Harwood' and 'In the City' brands to all companies within the
division.  At the same time, the individual housing companies have been
re-organised into three geographic regions thereby providing a more
streamlined operating and reporting structure.

During the period, 'Heritage' increased legal completions by 3% to 1,319
(1999: 1,276) with a 6% increase in average selling price to £131,600 (1999:
£124,100).  Expansion of the 'Harwood' brand within the West Midlands and
Scotland resulted in 337 legal completions (1999: 257) and the average selling
price increased 5% to £69,100 (1999: £65,800).  Due to the timing of 'In the
City' projects the vast majority of legal completions from projects in Bristol
and Cardiff are expected in the second half with other developments in London
Docklands, Birmingham, Nottingham and Manchester coming on stream next
financial year.  The Group had forward sales at 31 December 2000 with a value
of £112m, up 7% on 1999 and since 1 January 2001, sales have maintained an
encouraging trend.

Quality of product and customer care is of paramount importance within the
housing market.  I am delighted to report that, for the third successive year,
Redrow Homes has been awarded 'Best National Housebuilder' by Express
Newspapers.  Redrow Homes was also the winner of the HSBC Quality Service
Award and in the recent Government sponsored Housing Forum Annual Customer
Satisfaction survey secured maximum ratings in all categories.  These awards
are particularly significant as they are based upon the views of our
customers.

The planning environment continues to present a major challenge for the
development industry.  However, Redrow's long term focus on forward land
combined with its multi faceted approach to both brownfield and greenfield
land acquisition continues to yield a land bank at highly competitive rates. 
At 31 December 2000, the Homes Division had 13,800 plots in its current land
bank including 3,800 plots awaiting planning permission (30 June 2000: 13,500
plots including 3,300 awaiting planning).  The forward land bank consists of
approximately 26,500 plots with a realistic prospect of securing planning, of
which 6,500 plots are allocated in draft local plans.  Our land strategy has
enabled the Group to maintain a land bank where the average plot cost is only
17% of the projected average selling price, one of the most competitive in the
industry.

The combined residential and commercial expertise within the Group is of great
strategic value as planners, nationally and locally, are placing increasing
importance on mixed use schemes.  Buckshaw Village in Lancashire, being
developed in joint venture, represents a prime example.  With a combined
development value of approximately £400m, Buckshaw Village will provide a
sustainable living and working environment.  Such schemes complement Redrow
Commercial's development programme and in the future are likely to represent a
growing proportion of its workload.

During the period no commercial schemes were completed.  However, the 138,500
sq. ft. office development at Windsor, fully let to Centrica, remains on
programme for completion this summer.  In Altrincham the 26,000 sq. ft. office
and 6,000 sq. ft. trade warehouse pre-let to ICI Paints nears practical
completion.

At the present time, the economic outlook for the UK remains favourable,
despite the recent slowdown in the US economy, providing a sound platform for
continuing growth.  The key issues of demographic growth and affordability
should underpin the housing market and the recent pre-emptive reduction in
interest rates by the Bank of England is to be welcomed.  These factors,
combined with Redrow's quality product and strong land bank, should enable the
Group to achieve further growth.


Robert Jones
Chairman





CONSOLIDATED PROFIT AND LOSS ACCOUNT
                                          Unaudited           Audited
                                          6 months          12 months
                                           ended               ended
                                         31 December          30 June 
                                       2000       1999         2000
                             Note       £m         £m           £m
                            
Turnover                       2      198.2       205.2       405.7 
                                     =============================== 
                            
Profit from operations         2       37.9        34.3        67.7 
                            
Interest payable                       (2.7)       (0.1)       (0.5)
                                     -------------------------------
                            
Profit before taxation                 35.2        34.2        67.2 
                               
Taxation                       3       (9.2)       (8.6)      (16.8)
                                     -------------------------------
                            
Profit after taxation                  26.0        25.6        50.4 
                            
Dividends                      4       (2.9)       (3.7)      (11.2)
                                     -------------------------------
                            
Profit retained                        23.1        21.9        39.2 
                                     ===============================
                            
Earnings per share - basic     5       13.4p       11.5p       22.5p
                                     ===============================
                   - diluted   5       13.4p       11.4p       22.4p
                                     ===============================
                            
Dividends per share            4        1.83p       1.65p      4.95p
                                     ===============================


The Group has no recognised gains or losses other than the profit for the
period, which has been achieved from continuing operations.




CONSOLIDATED BALANCE SHEET
     
                                         Unaudited           Audited
                                           As at              As at
                                       31 December           30 June 
                                     2000       1999          2000
                             Note     £m         £m            £m
                            
Fixed assets                         14.2       12.6          13.1 
                                   --------------------------------
                            
Current assets                            
                            
Land for development                237.8      199.2        236.7
Work in progress                    136.7      101.3        112.2 
Stock of showhomes                   11.2       14.2         12.7 
Debtors                               8.0        4.5          8.5 
Investments                             -          -          5.4
Bank and cash deposits       6        1.5        5.0          1.9 
                                   -------------------------------
                                    395.2      324.2        377.4 
                                   -------------------------------
Creditors                             
                            
Bank borrowings                    (133.9)         -        (13.5)
Land creditors               7      (25.0)     (17.3)       (30.9)
Other creditors and provisions      (84.7)     (78.0)       (86.9)
                                   -------------------------------
                                   (243.6)     (95.3)      (131.3)
                                   -------------------------------
                           
Equity shareholders' funds          165.8      241.5        259.2 
                                   ===============================
                            
Movement in shareholders' funds:                            
                            
Opening shareholders' funds         259.2      219.3        219.3 
Retained profit for the period       23.1       21.9         39.2 
Shares issued                         0.4        0.3          1.2 
Capital redemption           8     (116.9)         -            -
Contribution to QUEST                   -          -         (0.5)
                                   -------------------------------
Closing shareholders' funds         165.8      241.5        259.2 
                                   ===============================




CONSOLIDATED CASH FLOW STATEMENT

                                              Unaudited         Audited
                                              6 months         12 months
                                               ended             ended 
                                             31 December        30 June 
                                           2000       1999        2000
                                            £m         £m          £m
                            
Cash inflow from operating activities       6.4        5.8        16.8 
                                          ------------------------------
Returns on investments and servicing of 
finance                            
Interest received                           0.2        0.3         0.6 
Interest paid                              (2.9)      (0.4)       (1.2)
                                         -------------------------------
Net cash (outflow) from returns on 
investments and servicing of finance       (2.7)      (0.1)       (0.6)
                                         -------------------------------
Taxation                            
Corporation tax paid                       (4.6)         -       (17.2)
                                         -------------------------------
Capital expenditure and financial 
investment                            
Net purchases of tangible fixed assets     (1.4)      (1.8)       (2.9)
Net sales of financial investments          5.4          -        (5.4)
                                         -------------------------------
Dividends paid                             (7.4)      (6.7)      (10.5)
                                         -------------------------------
Net cash (outflow) before financing        (4.3)      (2.8)      (19.8)
                                         -------------------------------
Financing                            
Capital redemption costs                 (116.9)         -           -
Issue of ordinary share capital             0.4        0.3         0.7 
                                         ------------------------------
Net cash (outflow)/inflow from financing (116.5)       0.3         0.7 
                                         ------------------------------
Change in net cash in period             (120.8)      (2.5)      (19.1)
Net (debt)/cash at start of period        (11.6)       7.5         7.5 
                                         ------------------------------
Net (debt)/cash at end of period         (132.4)       5.0       (11.6)
                                         ==============================
                            
Analysis of cash inflow from operating 
activities:-                            
                            
Profit from operations                     37.9       34.3        67.7 
Depreciation                                0.3        0.3         0.9 
Increase in stocks and work in progress   (24.1)      (8.7)      (55.6)
Decrease/(increase) in debtors              0.5       (0.2)       (4.1)
(Decrease)/increase in creditors           (8.2)     (19.9)        7.9 
                                         -------------------------------
                                            6.4        5.8        16.8 
                                         ===============================


NOTES

1.   The interim report does not represent statutory accounts within the
     meaning of section 240 Companies Act 1985.  The comparative figures for
     the year ended 30 June 2000 are however an abridged version of the
     Group's statutory accounts which received an unqualified audit report
     and have been delivered to the Registrar of Companies. 

2.   Segmental information:- 
                                                                              
                                          Unaudited          Audited
                                          6 months          12 months
                                           ended              ended
                                         31 December         30 June 
                                      2000        1999        2000
                                       £m          £m          £m
Turnover                            
     Homes                           197.8       198.2       396.7 
     Commercial                        0.4         7.0         9.0 
                                   --------------------------------
                                     198.2       205.2       405.7 
                                   ================================
                            
Profit from operations                            
     Homes                            38.3        32.9        65.9 
     Commercial                       (0.4)        1.4         1.8 
                                    -------------------------------
                                      37.9        34.3        67.7 
                                    ===============================
Net assets                            
     Homes                           269.0       218.4       247.9 
     Commercial                       29.2        18.1        22.9 
                                    -------------------------------
                                     298.2       236.5       270.8 
Net (borrowings)/cash               (132.4)        5.0       (11.6)
                                    -------------------------------
Net assets                           165.8       241.5       259.2 
                                    ===============================

     The profit from operations for the Homes Division includes £1.4m 
     (1999: £nil) in respect of income from listed investments.

3.   The taxation charge takes account of tax losses within Redrow Homes
     (Southern) Limited (formerly Costain Homes Limited) established prior
     to its acquisition from Costain Group PLC and reflects the estimated
     effective rate for the full year to June 2001.

4.   The Directors have declared an interim dividend of 1.83p per share 
     (1999: 1.65p).  This gives an interim dividend of £2.9m (1999: £3.7m)
     which will be paid on 18 May 2001 to shareholders whose names are on the
     Register of Members at the close of business on 16 March 2001.  The
     shares will become ex-dividend on 14 March 2001.

NOTES (continued)

5.   The basic earnings per share calculation for the half year ended 
     31 December 2000 is based on the weighted average number of shares in
     issue during the period of 194.0m (1999: 223.9m) after adjusting for
     surplus shares held in trust under the Redrow Long Term Share Incentive
     Plan. The weighted average number of shares in issue for the year ended
     30 June 2000 was 224.3m.  Diluted earnings per share has been calculated
     after adjusting the weighted average number of shares in issue for shares
     held under unexercised options in accordance with FRS 14.

6.   Bank and cash deposits includes £1.5m (1999: £1.5m) in respect of land
     acquisitions held in stakeholder accounts by solicitors.

7.   Land creditors:-
             
                                      Unaudited             Audited
                                        As at                As at
                                     31 December            30 June 
                                   2000       1999           2000
                                    £m         £m             £m
                            
     Due within one year           21.7       16.8           27.6 
     Due in more than one year      3.3        0.5            3.3 
                                  ---------------------------------
                                   25.0       17.3           30.9 
                                  =================================

8.   On 9 October 2000, Redrow plc repurchased 67,620,642 ordinary shares at a
     price of 170 pence per share effected by means of a Tender Offer. This
     resulted in a reduction in Equity shareholders funds of £116.9m inclusive
     of associated costs.
 
9.   The interim report has been prepared using accounting policies consistent
     with those applied in the Group accounts for the year ended 30 June 2000.
     The interim report has not been audited or reviewed and was approved by
     the Board of Directors on 4 March 2001.

10.  The Registrar is Computershare Services PLC.  Shareholder enquiries
     should be addressed to the Registrar at the following address:

     Registrars Department
     PO Box 82
     The Pavilions
     Bridgwater Road
     Bristol
     BS99 7NH