Interim Results

Redrow PLC
09 March 2004

Redrow plc today announces interim results for the six months to 31 December
2003:
                                             Highlights:
                                    Dec 2003           Dec 2002
                                          £m                 £m
            Turnover                   310.8              296.4              +5%
            Operating Profit            60.6               55.1             +10%
            Profit before tax           56.7               51.5             +10%
            Earnings per share         25.1p              22.8p             +10%
            Dividend per share          3.0p               2.5p             +20%

•         Business positioned for future above trend organic growth in 2004/05

•         Record forward sales with value up by 56% to £330m

•         Enhanced land bank of 16,100 plots

•         Strong combination of financial returns: operating margins of 19.5%
          and return on capital employed of 28.4%

•         Earnings per share increased by 10% to 25.1p

•         Dividend pledge re-confirmed with interim dividend up by 20%

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

'I am delighted to report continued progress for Redrow.  Redrow's high quality
land bank affords us confidence in our future development programme which, in
conjunction with the Group's strong forward sales position, gives us the
capability to deliver above trend volume growth next year.

The Board anticipates increasing the final dividend, subject to shareholder
approval, by at least 20%.  It reaffirms its commitment, barring unforeseen
circumstances, to increasing the dividend by a similar percentage in the next
financial year.'

Enquiries:
                                                      Redrow plc
Paul Pedley, Chief Executive                          020-7404-5959 (9 March)
David Arnold, Group Finance Director                  01244-520044 (thereafter)

Patrick Handley/Nina Richmond                         Brunswick Public Relations
                                                      020-7404-5959


Information on Redrow can be found at www.redrow.co.uk


CHAIRMAN'S STATEMENT

Overview

Following last year's outstanding achievements, I am delighted to report
continued progress for Redrow during the half-year ended 31 December 2003.  As a
result of improved margins and increased turnover within the Homes Division, the
profit before tax in the period increased by 10% to £56.7m.  In addition, return
on capital employed at 28.4% remains strong.

To reflect this result and our confidence in the business, the Board has
increased the interim dividend by 20% to 3.0p per share and anticipates
increasing the final dividend, subject to shareholder approval, by at least 20%.
The Board reaffirms its commitment, barring unforeseen circumstances, to
increasing the dividend by a similar percentage in the next financial year.

I am delighted that many smaller shareholders have taken advantage of the
Dividend Reinvestment Plan to reinvest their dividends in additional shares. To
encourage further participation by these shareholders, a low cost monthly
purchase scheme is being introduced.

OPERATING PERFORMANCE

The increased turnover of the Homes Division represents both growth in volume
and selling prices, with the number of legal completions rising to 1,996 and the
average selling price increasing to £152,700.  Operating margins have continued
to increase, rising to 19.5% as compared to 18.4% in the corresponding period
last year.  The combination of increased turnover and higher margins resulted in
the operating profit in the Homes Division rising by 12% to £59.6m (2002:
£53.1m).

In recent years, house price inflation has reflected the significant change
within the UK from a high interest/high inflation economy to a low interest/low
inflation one.  This transition has inevitably resulted in house price inflation
above its long term trend rate, namely growth in line with earnings.  Redrow
maintains the view that as this rate of growth moderates, margins will revert to
a slightly lower but more sustainable level.

Redrow Commercial delivered an operating profit of £1.6m. The major contributor
to this profitability was Buckshaw Village and in particular the sale of a 31
acre parcel of land to Aldi Stores Limited, for the development of a 650,000 sq.
ft. distribution warehouse.  Redrow continues to develop the working
relationships between our Homes and Commercial development teams as the mixed
use capability within Redrow remains an important source of land supply and
development opportunities.

Redrow remains financially strong with debt as at 31 December 2003 of £123.1m,
representing gearing of 37%, and with the interest charge of £3.9m covered 15.5
times by operating profits. The increase in debt during the first half of this
financial year reflects the Group's further investment in land and
work-in-progress.  This higher level of investment is supported by a record
forward sales position of £330m, 56% higher than at the corresponding time last
year.

LAND

Land continues to be the life-blood of our industry and Redrow places
significant emphasis on acquiring it competitively, both through the forward
land route and by securing off-market shorter term opportunities.  Our current
land bank has been maintained at 16,100 plots of which 14,000 plots are owned
with planning.  These latter plots have an average cost of £25,000, 16.4% of the
historic average selling price, representing one of the most cost advantageous 
ratios within our industry.  In addition, the Group controls a further 23,250 
plots with a realistic prospect of securing planning permission, of which 8,500 
plots are currently allocated in local plans.  Due to the long term nature of 
the planning system, the benefits of forward land require a number of years 
before the impact is reflected within each of our companies.  It is, therefore, 
particularly pleasing to report that these allocated sites have in recent years 
become far more broadly spread across the UK and are no longer focussed on the 
North West companies.  In particular, significant benefits will shortly be 
recognised in the South West, South Wales and Southern companies and as regards 
the first of these, a new company, Redrow Homes (West Country) Limited, is being 
formed to fully exploit these land interests and provide further potential for 
future organic growth.

This high quality land bank affords us confidence in our future development
programme.  Indeed we own with planning all of the plots forecast for next year,
with over 90% on developments currently under production.  In addition, 90% of
plots required two years hence are on sites currently owned or controlled.

As the industry faces further changes to the planning system, with the resultant
delays in securing planning consents, the strength of the Division's land bank
provides Redrow with considerable security.  This, in conjunction with our
strong forward sales, gives Redrow the capability to deliver above trend volume
growth in the next financial year.

QUALITY

The quality of our product remains outstanding, with yet more prestigious design
awards won during the last few months. Whether we are building traditional
homes, more contemporary high density urban developments, or playing our part in
the refurbishment of Britain's heritage, quality and attention to detail are
deeply ingrained in the company ethos. This in turn poses challenges for how we
build, to ensure that we can take advantage of technological change and combat
skill shortages within our industry. Our joint venture to manufacture steel
frames is part of that process, and is continuing to develop in accordance with
our plans and expectations. This should be seen, however, in conjunction with
other Redrow initiatives, for example the creation two years ago of our Research
and Development department and the opening of the Training Centre in September
2003, both of which are adding considerable value to the way we operate.

We reported last year on the introduction of the new housing range.  Due to the
protracted nature of the planning system, the number of developments where the
new range is in production remains relatively low, but where introduced it has
been well received by our customers and is giving rise to enhanced land
utilisation.

THE FUTURE

The Board's strategy remains to deliver shareholder value principally through
continued organic growth with a sound focus on the key financial indicators of
margin and return on capital employed.  Our record results are the direct
achievement of the Redrow team together with our suppliers and sub-contractors.
Their dedication is greatly appreciated. Our customers continue to value our
many and varied types of home. Whilst economic circumstances can and do vary
from time to time, there remains a fundamental shortage of new housing stock,
due to the restrictive planning regime, and a huge pool of our fellow citizens
who aspire to own their own homes.  The housing market is supported by these
characteristics as well as by low interest rates that make homes affordable and
high employment rates that buoy ongoing consumer confidence.  Against this
positive backdrop for taking our business forward, the Board is confident of
future growth.

CONSOLIDATED PROFIT AND LOSS ACCOUNT
                                                                                      Unaudited      Audited
                                                                                       6 months    12 months
                                                                                          ended        ended
                                                                                   31 December       30 June
                                                                              2003        2002          2003
                                                               Note             £m          £m            £m

Turnover                                                        2            310.8       296.4         607.9

Total operating profit                                          2             60.6        55.1         113.7

Interest payable                                                              (3.9)       (3.6)         (7.6)

Profit before taxation                                                        56.7        51.5         106.1

Taxation                                                        3            (17.0)      (15.4)        (31.8)

Profit after taxation                                                         39.7        36.1          74.3

Dividends                                                       4             (4.8)       (4.0)        (11.9)

Profit retained                                                               34.9        32.1          62.4

Earnings per share     - basic                                  5             25.1p       22.8p         46.9p
                       - diluted                                5             25.0p       22.8p         46.8p

Dividends per share                                             4              3.0p        2.5p          7.5p


There are no material recognised gains or losses other than as shown above.

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
                                                                          2003         2002          2003
                                                            Note            £m           £m            £m

Fixed assets
Tangible assets                                                           21.5         16.3          16.5
Investments                                                                1.7          2.5           2.6
                                                                          23.2         18.8          19.1

Current assets
Land for development                                                     359.4        300.9         327.3
Work in progress                                                         272.9        202.4         242.3
Stock of showhomes                                                         9.5          8.9           9.4
Debtors                                                                   15.2          9.8          11.0
Bank and cash deposits                                                     1.0          7.2           6.2
                                                                         658.0        529.2         596.2
Creditors
Bank borrowings                                                         (124.1)       (90.5)        (99.4)
Land creditors                                                6          (72.6)       (64.9)        (75.3)
Other creditors and provisions                                          (148.2)      (121.5)       (139.3)
                                                                        (344.9)      (276.9)       (314.0)

Equity shareholders' funds                                               336.3        271.1         301.3


Reconciliation of movement in Equity
shareholders' funds
Opening shareholders' funds                                              301.3        238.6         238.6
Retained profit for the period                                            34.9         32.1          62.4
Shares issued                                                              0.2          0.4           0.5
Interest in own shares                                                    (0.1)           -             -
Contribution to QUEST                                                        -            -          (0.2)
Closing shareholders' funds                                              336.3        271.1         301.3


CONSOLIDATED CASH FLOW STATEMENT

                                                                                        Unaudited       Audited
                                                                                         6 months     12 months
                                                                                            ended         ended
                                                                                      31 December       30 June
                                                                                 2003        2002          2003
                                                                 Note              £m          £m            £m

Cash inflow from operating activities                              7             2.4        34.4          59.6
Returns on investments and servicing of finance
Net interest paid                                                               (3.2)       (3.0)         (7.3)
Issue costs of new bank borrowings                                                 -        (0.5)         (0.5)
Net cash (outflow) from returns on investments                                  (3.2)       (3.5)         (7.8)
and servicing of finance
Corporation tax paid                                                           (15.6)      (11.8)        (29.2)

Capital expenditure and financial investment
Net purchase of tangible fixed assets                                           (5.7)       (1.1)         (2.4)
Payment to Joint Venture                                                            -       (2.7)         (2.7)
Net cash (outflow) from capital expenditure                                     (5.7)       (3.8)         (5.1)
and financial investment
Acquisition
Net overdrafts acquired                                                            -           -          (7.9)
Net cash (outflow) from acquisition                                                -           -          (7.9)

Dividends paid                                                                  (7.9)       (6.4)        (10.4)
Net cash (outflow)/inflow before financing                                     (30.0)        8.9          (0.8)
Financing and liquid resources
Issue of ordinary share capital                                                  0.2         0.4           0.3
Issue of bank borrowings                                                        55.0        75.0          95.0
Repayment of bank borrowings                                                   (30.0)      (40.0)        (40.0)
Net cash inflow from financing                                                  25.2        35.4          55.3
(Decrease)/increase in cash in period                                           (4.8)       44.3          54.5
Net movement in bank borrowings                                                (25.0)      (35.0)        (55.0)
Other non-cash movements                                                        (0.1)        0.5           0.4
Change in net (debt)                                                           (29.9)        9.8          (0.1)
Net (debt) at start of period                                                  (93.2)      (93.1)        (93.1)
Net (debt) at end of period                                                   (123.1)      (83.3)        (93.2)


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 2003 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
                                                                            2003         2002       2003
                                                                              £m           £m         £m
            Turnover
            Homes                                                          304.8        288.7      596.0
            Commercial                                                       6.0          7.7       11.9
            Turnover                                                       310.8        296.4      607.9
            Framing Solutions plc - share of Joint Venture                   0.2            -        0.4
            Turnover (including share of Joint Venture)                    311.0        296.4      608.3

            Profit on ordinary activities before taxation
            Homes                                                          59.6         53.1      111.5
            Commercial                                                      1.6          2.3        3.0
            Framing Solutions plc - Joint Venture                          (0.6)        (0.3)      (0.8)
            Total Operating Profit                                         60.6         55.1      113.7
            Interest                                                       (3.9)        (3.6)      (7.6)
                                                                           56.7         51.5      106.1
            Net assets
            Homes                                                         443.5        338.6      376.2
            Commercial                                                     14.2         13.4       16.2
            Framing Solutions plc - Joint Venture                           1.7          2.4        2.1
                                                                          459.4        354.4      394.5
            Net (debt)                                                   (123.1)       (83.3)     (93.2)
            Net assets                                                    336.3        271.1      301.3


3.         The taxation charge reflects the estimated effective rate for the
full year to 30 June 2004.

4.         The Directors have declared an interim dividend of 3.0p per share
(2002: 2.5p).  This gives an interim dividend of £4.8m (2002: £4.0m) which will
be paid on 7 May 2004 to shareholders whose names are on the Register of Members
at the close of business on 19 March 2004.  The shares will become ex-dividend
on 17 March 2004.

5.         The basic earnings per share calculation for the half year ended 31
December 2003 is based on the weighted average number of shares in issue during
the period of 158.5m (2002:158.4m) 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 2003 was 158.3m.  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.         Land creditors:-
                                                                             Unaudited           Audited
                                                                               As at               As at
                                                                            31 December          30 June
                                                                           2003       2002          2003
                                                                             £m         £m            £m

Due within one year                                                        34.3       39.7          35.2
Due in more than one year                                                  38.3       25.2          40.1
                                                                           72.6       64.9          75.3

7.         Analysis of cash inflow from operating activities:-
                                                                           Unaudited           Audited
                                                                           6 months          12 months
                                                                             ended               ended
                                                                          31 December          30 June
                                                                        2003      2002            2003
                                                                         £m         £m              £m

        Total operating profit                                         60.6       55.1           113.7
        Add back share of Joint Venture operating loss                  0.6        0.3             0.8
        Group operating profit                                         61.2       55.4           114.5
        Depreciation including profits and losses on
        disposals of fixed assets                                       0.7        0.6             1.7
        Increase in stocks and work in progress and
        assets held for resale                                        (62.8)     (14.6)          (61.1)
        Movement in other current assets, creditors and
        provisions                                                      3.3       (7.0)            4.5
                                                                        2.4       34.4            59.6



8.         The interim report has been prepared using accounting policies
consistent with those applied in the Group accounts for the year ended 
30 June 2003.  The interim  report has not been audited or reviewed and was 
approved by the Board of Directors on 8 March 2004.

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

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


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