Interim Results

Redrow PLC
5 March 2002

            
Tuesday 5 March 2002

                                 PRESS RELEASE


Redrow plc today announces interim results for the six months to 31 December
2001:

                                  Highlights:

                                       Dec  2001         Dec  2000
                                           £m                  £m

Turnover                                 264.6               198.2       + 34%
Operating profit                          45.5                37.9       + 20%
Profit before tax                         41.6                35.2       + 18%
Earnings per share                        18.9p               13.4p      + 41%
Dividend per share                        2.02p               1.83p      + 10%

*    Return on capital employed increased to 30% (2000: 27%).

*    Value of forward sales up 30% to £146m (2000: £112m).

*    Current land bank increased to 15,000 plots (June 2001: 14,300)
     representing over 4 years supply.

*    Plot cost of land with planning at 15.8% of historic average selling price
     (June 2001: 17.4%).

*    Draft allocations maintained at over 30% of forward land bank of 25,750
     plots (June 2001: 26,500).

*    Acquisition of Tay Homes plc provides accelerated growth in Scotland and
     Yorkshire.

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

' I am delighted to report further significant progress by Redrow in the first 
six months of the financial year.

At the present time, the economic outlook for the UK remains favourable and the 
key drivers of the housing market remain positive. The acquisition of Tay Homes
plc has enhanced the combined strength of the Group's land bank and forward 
sales position.  These factors together with an excellent and diverse product 
range position Redrow favourably for the challenges of the future.'

            Enquiries:


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

Patrick Handley/Nina Richmond                         Brunswick Public Relations
                                                      0207-404-5959

Further information on Redrow plc can be found at www.redrow.co.uk

                          Chairman's Interim Statement

I am delighted to report further significant progress by the Group during the
first six months of this financial year.

The Board's objective of delivering enhanced Shareholder value is evident from
the substantial increase in earnings per share which has risen by 41%,
reflecting both the continuing strong growth in the Company's profitability and
the impact of the capital restructuring carried out in October 2000.

Profit before tax for the six month period has risen from £35.2m to £41.6m, an
increase of 18%.  I believe that this not only reflects the high quality of our
product but also our skilful long term approach to the acquisition of land.
These profits have been generated from a turnover which at £264.6m is up by 34%,
reflecting both a 14% increase in the average sales price to £136,000 within
Redrow Homes and the completion of the Windsor and Altrincham, Manchester office
developments within Redrow Commercial.  Due to the strength of these financial
results, the Board is pleased to continue its progressive dividend policy with
an increase of 10% in the interim dividend.

The policy of making available the full range of Redrow brands to each company
within the Homes Division continues to bear fruit with legal completions
increasing to 1,728 (2000: 1,658).  'In the City' schemes are now widely
available together with an increasing number of 'Harwood' developments outside
of their original market in the North West of England, complementing the well
established 'Heritage' Range.  Our housing range therefore caters for the
requirements of a very broad market, whether considered in geographical or price
terms, or according to lifestyle.  As a result, the hallmark of a Redrow home is
now far more its quality than any one architectural style.  Despite the capital
intensive nature of 'In the City' schemes, the Group's return on capital
employed at 30% continues to be amongst the very highest in the industry.

Our markets continue to be stable and sustainable.  Whilst many in the industry
held their breath after September 11 until the consequences for the housing
market became apparent, it is now clear market confidence has remained positive
and has enabled the Division to increase the number of forward sales by 9% at
the end of the half year.  This improvement, together with the increase in
average selling price referred to above, has resulted in the value of forward
sales at the end of December increasing by 30% to £146m (2000: £112m).

A successful development company has to underpin its sales performance with a
strong land bank.  In that regard, I am pleased to report a substantial increase
to 12,000 in the number of plots held with planning permission.  This increase
has been achieved whilst maintaining the cost effectiveness of the land bank,
with the ratio of plot cost to historic average selling price continuing to
decrease and now standing at 15.8%, one of the lowest in the industry.  These
plots, together with those under contract, bring our total current land bank to
15,000 plots.  Behind that lies a considerable pipeline of longer term land
totalling some 25,750 plots which have a realistic prospect of achieving a
planning consent and which includes 8,000 plots which have already been
allocated for development in emerging local plans.  The Government's policy on
brownfield development is reflected in Redrow's land bank, over 60% of which is
in this category.  At the same time, we control considerable quantities of land
in those areas where housing demand cannot fully be catered for by brownfield
allocations.

During the period, Redrow Commercial successfully completed the sale of the
office developments at both Windsor and Altrincham, Manchester generating
proceeds approaching £30m.  These funds were used to finance the successful
acquisition of Tay Homes plc which was declared wholly unconditional on 9
January 2002.  This acquisition will significantly expand the Group's operations
in both Scotland and Yorkshire whilst providing additional development
opportunities within the Midlands.  I would like to welcome those members of
Tay's staff who are now working within Redrow.  Our work in integrating Tay
Homes plc is now largely completed and the acquisition will contribute to the
ongoing future success of Redrow.


At the present time, the economic outlook for the UK remains favourable and the
key drivers of the housing market remain positive.  The acquisition of Tay Homes
plc has enhanced the combined strength of the Group's land bank and forward
sales position. These factors, together with an excellent and diverse product
range, position Redrow favourably for the challenges of the future.


Robert Jones
Chairman





CONSOLIDATED PROFIT AND LOSS ACCOUNT
                                                                               Unaudited             Audited
                                                                               6 months          12 months ended
                                                                                 ended               30 June
                                                                              31 December
                                                                           2001          2000          2001
                                                                Note         £m            £m            £m

Turnover                                                          2       264.6         198.2         421.2

Profit from operations                                            2       45.5          37.9          79.5

Interest payable                                                          (3.9)         (2.7)         (7.4)

Profit before taxation                                                    41.6          35.2          72.1

Taxation                                                          3       (11.9)        (9.2)         (19.0)

Profit after taxation                                                     29.7          26.0          53.1

Dividends                                                         4       (3.2)         (2.9)         (8.7)

Profit retained                                                           26.5          23.1          44.4

Earnings per share    - basic                                     5       18.9p         13.4p         30.2p
                      - diluted                                   5       18.8p         13.4p         30.1p

Dividends per share                                               4       2.02p         1.83p           5.5p


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

There is no material difference between the profit on ordinary activities before
taxation and the retained profit for the period stated above and their historic
cost equivalents.


CONSOLIDATED BALANCE SHEET


                                                                                 Unaudited            Audited
                                                                                   As at                As at

                                                                                31 December           30 June
                                                                             2001          2000          2001
                                                                   Note        £m            £m            £m

Fixed assets                                                                 14.4          14.2          13.9

Current assets

Assets held for resale                                                       -             -             0.6
Land for development                                                         252.2         237.8         252.0
Work in progress                                                             156.8         136.7         155.6
Stock of showhomes                                                           9.2           11.2          9.5
Debtors                                                                      7.3           8.0           6.2
Bank and cash deposits                                               6       5.1           1.5           8.1
                                                                             430.6         395.2         432.0
Creditors

Bank borrowings                                                              (94.2)        (133.9)       (120.3)
Land creditors                                                       7       (39.4)        (25.0)        (35.6)
Other creditors and provisions                                               (97.5)        (84.7)        (102.9)
                                                                             (231.1)       (243.6)       (258.8)


Equity shareholders' funds                                                   213.9         165.8         187.1

Movement in shareholders' funds:

Opening shareholders' funds                                                  187.1         259.2         259.2
Retained profit for the period                                               26.5          23.1          44.4
Shares issued                                                                0.3           0.4           0.5
Contribution to QUEST                                                        -             -             (0.1)
Capital redemption                                                           -             (116.9)       (116.9)
Closing shareholders' funds                                                  213.9         165.8         187.1



CONSOLIDATED CASH FLOW STATEMENT


                                                                            Unaudited                Audited
                                                                             6 months         12 months ended
                                                                              ended                  30 June
                                                                           31 December
                                                                         2001          2000             2001
                                                                           £m            £m               £m

  Cash inflow from operating activities                                  40.5           5.0             45.6
  Returns on investments and servicing of finance
  Net interest paid                                                      (3.2)          (2.6)           (6.1)
  Issue costs of new bank borrowings                                     -              (1.1)           (1.1)
  Net cash (outflow) from returns on                                     (3.2)          (3.7)           (7.2)

  investments and servicing of finance
  Corporation tax paid                                                   (7.5)          (4.6)           (17.4)

  Capital expenditure and financial investment
  Net purchases of tangible fixed assets                                 (1.0)          (1.4)           (2.5)
  Net sales of current asset investments                                 -              6.8             6.8
  Dividends paid                                                         (5.8)          (7.4)           (10.3)
  Net cash inflow/(outflow) before financing                             23.0           (5.3)           15.0
  Financing and liquid resources
  Capital redemption costs                                               -              (116.9)         (116.9)
  Issue of ordinary share capital                                        0.3            0.4             0.3
  Cash deposits-restricted use                                           -              0.4             2.0
  Net movement in bank borrowings                                        (30.0)         125.0           110.0
  Net cash (outflow)/inflow from financing                               (29.7)         8.9             (4.6)
  (Decrease)/increase in cash in period                                  (6.7)          3.6             10.4
  Cash deposits-restricted use                                           -              (0.4)           (2.0)
  Net movement in bank borrowings                                        30.0           (125.0)         (110.0)
  Net movement in issue costs of bank borrowings                         (0.2)          1.0             1.0
  Change in net (debt)                                                   23.1           (120.8)         (100.6)
  Net (debt) at start of period                                          (112.2)        (11.6)          (11.6)
  Net (debt) at end of period                                            (89.1)         (132.4)         (112.2)

  Analysis of cash inflow from operating activities:-

Profit from operations                                                   45.5           37.9           79.5
Depreciation and profit on disposal of fixed and current                 0.5           (1.1)          (0.5)
asset investments
Increase in stock and work in progress                                   (1.1)         (24.1)         (55.5)
Movement in other current assets, creditors and provisions               (4.4)         (7.7)          22.1
                                                                          40.5        5.0            45.6



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 2001 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                  30 June
                                                                         31 December
                                                                     2001          2000            2001
                                                                      £m             £m              £m
Turnover
            Homes                                                   234.6         197.8           417.0
            Commercial                                              30.0          0.4             4.2
                                                                    264.6         198.2           421.2

Profit on ordinary activities before taxation
            Homes                                                   41.3          36.9            76.3
            Commercial                                              4.2           (0.4)           1.8

                                                                    -             1.4             1.4
            Listed Investments
                                                                    45.5          37.9            79.5
            Interest                                                (3.9)         (2.7)           (7.4)
                                                                    41.6          35.2            72.1
Net assets
            Homes                                                   294.4         269.0           268.6
            Commercial                                              8.6           29.2            30.7
                                                                    303.0         298.2           299.3
Net (debt)                                                          (89.1)        (132.4)         (112.2)
Net assets                                                          213.9         165.8           187.1




3.     The taxation charge reflects the estimated effective rate for the
       full year to 30 June 2002.
       


4.     The Directors have declared an interim dividend of 2.02p per share
       (2000: 1.83p).  This gives an interim dividend of £3.2m (2000: £2.9m) 
       which will be paid on 10 May 2002 to shareholders whose names are on the 
       Register of Members at the close of business on 15 March 2002.  The 
       shares will become ex-dividend on 13 March 2002.



NOTES (continued)



5.     The basic earnings per share calculation for the half year ended 31
       December 2001 is based on the weighted average number of shares in issue 
       during the period of 157.7m (2000: 194.0m) 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 2001 
       was 175.5m.  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 £nil (2000: £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
                                                                                   2001         2000        2001
                                                                                    £m           £m          £m

          Due within one year                                                  25.9         21.7         24.5
          Due in more than one year                                            13.5         3.3          11.1
                                                                               39.4         25.0         35.6



8.     The interim report has been prepared using accounting policies
       consistent with those applied in the Group accounts for the year ended 
       30 June 2001.  The interim report has not been audited or reviewed and 
       was approved by the Board of Directors on 4 March 2002.



9.     On 5 December 2001, the Company announced a recommended cash offer
       for the entire issued share capital of Tay Homes plc of 110 pence per 
       share valuing Tay Homes plc at approximately £29.9m. On 9 January 2002, 
       the Company declared the offer unconditional in all respects following 
       the receipt of valid acceptances representing 95.2% of the issued share 
       capital of Tay Homes plc.



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







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