Interim Results

RNS Number : 1688P

Redrow PLC

06 February 2019

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE REGULATION EU 596/2016. UPON PUBLICATION OF THIS ANNOUNCEMENT, THE INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN. THE INFORMATION CONTAINED IN THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION.

FOR IMMEDIATE RELEASE

Wednesday 6 February 2019

Redrow plc

Interim results for the six months to 31 December 2018

ANOTHER RECORD FIRST HALF - STRONG EARNINGS

AND CASH PERFORMANCE UNDERPIN PROPOSED £111M CASH RETURN

TO SHAREHOLDERS

Financial Results

	H1 2019	H1 2018	% Change
Legal Completions	2,970	2,646	12
Revenue	£970m	£890m	9
Operating Profit	£187m	£175m	7
Profit Before Tax	£185m	£176m	5
EPS	41.5p	39.5p	5
ROCE	28%	25%	12
Interim Dividend per share	10p	9p	11
Additional cash return per share	30p	-	N/A
Total Order Book	£1.162bn	£1.047bn	11

Financial Highlights

·      Group revenue rose 9% to a first half record of £970m

·      Record first half pre-tax profit of £185m, up 5%

·      Earnings per share (EPS) up 5% to 41.5p

·      Return on capital employed of 28% (2018: 25%)

·      Net cash of £101m (June 2018: £63m)

·      Interim dividend of 10p per share (2018: 9p)

·      Proposed additional cash return of 30p per share through a B Share Scheme representing £111m

Operational Highlights

·      Legal completions rose 12% to 2,970 (2018: 2,646)

·      Redrow completed its 100,000^th home

·      Average number of outlets increased to 129 (2018: 127)

·      Total order book up 11% to a record £1.162bn (Dec 2017: £1.047bn)

·      Current land holdings in line with June 2018 at 27,500 plots

Steve Morgan, Chairman of Redrow, said

"In this, my final report as Chairman, it gives me great pleasure to announce that Redrow has once again delivered record results for the first half of the financial year. During the period legal completions increased by 12% to 2,970, whilst pre-tax profits were up 5% to £185m.

As a result of our continuing strong earnings and cash performance, we are proposing a 30p per share cash return to shareholders through a B Share Scheme, in addition to a 10p per share interim dividend. This Scheme enables all shareholders to participate equally in proportion to their holdings and should be treated as capital for most UK tax resident shareholders.

The market during the run up to the festive period and the first two weeks of 2019 was subdued by macroeconomic and political uncertainty. However, sales over the last three weeks have bounced-back with reservations running at similar levels to last year's strong market activity. Overall, private sales for the first 5 weeks of 2019 were £156m (2018: £166m). Nevertheless given our record £1.2 billion order book, our strategy remains on track giving me every confidence that this will be another year of significant progress for Redrow.

It is nearly 45 years since I founded Redrow and when I step down as Chairman next month it will be exactly 10 years since I returned to the business. I am proud of the legacy I leave behind having completed over 6,000 homes for the first time in 2018 and handed over our 100,000^th Redrow home last October.

Redrow has a very strong team, an excellent balance sheet and the Heritage Collection product which I believe is the best in the industry. Most importantly, Redrow has a great future under John Tutte's leadership who will take over from me as Chairman."

Enquiries:

Redrow plc

Steve Morgan, Chairman                                             01244 527411

Barbara Richmond, Group Finance Director               01244 527411

Instinctif Partners                                                         0207 457 2020

Mark Garraway                                                            07771 860938

James Gray                                                                   07583 936031                                                   

There will be an analyst and investor meeting at 10.30 am at The London Stock Exchange, 10 Paternoster Square, London, EC4M 7LS. Coffee will be served from 10.00 am.

A live audio webcast and slide presentation of this event will be available at 10.30 am on www.redrowplc.co.uk. Participants can also dial in to hear the presentation live at 10.30 am on [phone] or UK Toll Free 0808 109 0700; password is Redrow.

Playback will be available by phone for the next 30 days on [phone] or UK Freephone 0800 633 8453; access pin 8438916#.

Chairman's Statement

In this, my final report as Chairman, it gives me great pleasure to announce that Redrow has once again delivered record results for the first half of the financial year. During the period legal completions increased by 12% to 2,970, whilst pre-tax profits were up 5% to £185m.

Financial Results

Group Revenue increased by 9% to £970m, due to the increase in legal completions. Revenue from private legal completions increased by 4% to £847m (2018: £816m) and from affordable completions was 97% higher at £114m (2018: £58m). The average selling price of our private homes increased by 4% from £375,000 to £391,000 and affordable homes by 15% to £141,000 (2018: £123,000), mainly due to the growth of the Southern businesses.

As a consequence of the change in balance of tenure, gross margin reduced slightly from 24.5% to 24%.

Overheads increased from £43m to £46m, due to the further growth in the business. However, as a percentage of turnover they reduced from 4.8% to 4.7%.

Operating profit increased by 7% to £187m (2018: £175m) and pre-tax profits were 5% higher at £185m (2018: £176m), despite there being no Joint Venture contribution this year (2018: £4m after tax). Earnings per share at 41.5p were 5% up on the previous year (2018: 39.5p).

Net cash at the end of December 2018 was £101m (June 2018: £63m).

In line with our policy of a 33% full year dividend payout ratio, the Board has declared an interim dividend of 10p per share (2018: 9p). The interim dividend will be paid on 9 April 2019 to holders of ordinary shares on the register at the close of business on 8 March 2019.

As a result of our continuing strong earnings and cash performance, we are proposing a 30p per share cash return to shareholders through a B Share Scheme, which will be in addition to the interim dividend. This Scheme enables all shareholders to participate equally in proportion to their holdings and should be treated as capital for most UK tax resident shareholders. Assuming it is approved by shareholders payment is expected to be made in April 2019. The Scheme will be accompanied by a share consolidation to maintain share price comparability.

Trading

Our sales rate per outlet per week for the first half was 0.61, slightly lower than the 0.64 for the same period last year. Sales were negatively affected towards the end of the calendar year as a result of the political uncertainty surrounding Brexit and the effect of high Stamp Duty Tax, which has disrupted the normal trade-up/down-sizing market. Despite this, the value of private reservations in the first half was in line with the prior year at £795m (2018: £795m).

At the end of December 2018 we had a record total order book of £1.2bn, up 11% on December 2017. In the first half of the financial year 39% of our private reservations utilised Help to Buy. Outlets averaged 129 in the period, two higher than the first half last year. We expect the full year average outlets to be at a similar level.

Over the period we have experienced a reduction in cost pressures with sub contract, materials and labour markets all easing.

I am delighted that our customer satisfaction scores have run at 91% over the last 12 months which should ensure Redrow's status as a 5 Star Builder under the Home Builders Federation Survey. I am also delighted that Redrow were awarded the coveted titles of Large Housebuilder of the Year and UK Housebuilder of the Year at the 2018 WhatHouse Awards.

Land and Planning

We continue to see excellent opportunities in the land market. However, we have taken a cautious approach to land acquisition, preferring to concentrate on those select sites which suit the Redrow product.

Our owned and contracted current land holdings at 31 December 2018 are in line with those at the end of the last financial year at 27,540 plots (June 2018: 27,630). Our forward land holdings at 31 December 2018 are also in line with those at the end of June at 30,500 (June 2018: 30,700).

People

Our directly employed workforce continued to increase due to the ongoing growth of the business.

Over the last 10 years, since I returned to Redrow, the then 600 employees has increased four-fold to just under 2,400 today. During that time we have recruited over 1,000 trainees into the business, ranging from apprentices to graduates.

We have an ongoing commitment to develop our own talent, leading the way in trying to resolve the shortage of skilled labour in the industry. Redrow is at the forefront of actively encouraging young people to develop successful careers across all disciplines.

I am proud of the Redrow team as we continue to grow the business and, as always, I thank them for their commitment.

Current Trading and Outlook

The market during the run up to the festive period and the first two weeks of 2019 was subdued by macroeconomic and political uncertainty. However, sales over the last three weeks have bounced-back with reservations running at similar levels to last year's strong market activity. Overall, private sales for the first 5 weeks of 2019 were £156m (2018: £166m). Nevertheless our strategy remains on track and given our record £1.2 billion order book, I have every confidence that this will be another year of significant progress for Redrow.

It is nearly 45 years since I founded Redrow and when I step down as Chairman next month it will be exactly 10 years since I returned to the business. I am proud of the legacy I leave behind having completed over 6,000 homes for the first time in 2018 and handed over our 100,000^th Redrow home last October.

Redrow has a very strong team, an excellent balance sheet and the Heritage Collection product which I believe is the best in the industry. Most importantly, Redrow has a great future under John Tutte's leadership who will take over from me as Chairman.

Steve Morgan
Chairman

Consolidated Income Statement

		Unaudited		Audited
		6 months ended 31 December		12 months ended 30 June
		2018	2017	2018
	Note	£m	£m	£m
Revenue		970	890	1,920
Cost of sales		(737)	(672)	(1,451)
Gross profit		233	218	469
Administrative expenses		(46)	(43)	(87)
Operating profit		187	175	382
Financial income		1	2	3
Financial costs		(3)	(5)	(10)
Net financing costs		(2)	(3)	(7)
Share of profit of joint ventures after interest and taxation		-	4	5
Profit before tax		185	176	380
Income tax expense	2	(35)	(33)	(72)
Profit for the period		150	143	308
Earnings per share - basic	4	41.5p	39.5p	85.3p
- diluted	4	41.4p	39.3p	85.2p

Consolidated Statement of Comprehensive Income

		Unaudited		Audited
		6 months ended 31 December		12 months ended 30 June
		2018	2017	2018
	Note	£m	£m	£m
Profit for the period		150	143	308
Other comprehensive (expense)/income:
Items that will not be reclassified to profit or loss
Remeasurements of post-employment benefit obligations	5	(5)	6	22
Deferred tax on remeasurements taken directly to equity		1	(1)	(4)
Other comprehensive (expense)/income for the period net of tax		(4)	5	18
Total comprehensive income for the period		146	148	326

Consolidated Balance Sheet

			Unaudited				Audited
			As at 31 December				As at 30 June
			2018		2017		2018
	Note		£m		£m		£m
Assets
Intangible assets			2		2		2
Property, plant and equipment			15		16		15
Investments			6		19		6
Deferred tax assets			4		4		4
Retirement benefit surplus	5		16		4		22
Trade and other receivables			7		10		8
Total non-current assets			50		55		57
Inventories	6		2,258		2,154		2,218
Trade and other receivables			43		32		42
Cash and cash equivalents	8		102		49		90
Total current assets			2,403		2,235		2,350
Total assets			2,453		2,290		2,407
Equity
Retained earnings at 1 July 2018			1,379		1,131		1,131
Profit for the period			150		143		308
Other comprehensive (expense)/income for the period			(4)		5		18
Dividends paid			(70)		(41)		(74)
Movement in LTIP/SAYE			1		1		(4)
Retained earnings			1,456		1,239		1,379
Share capital	10		37		37		37
Share premium account			59		59		59
Other reserves			8		8		8
Total equity			1,560		1,343		1,483
Liabilities
Bank loans	8		1		80		5
Trade and other payables	7		143		173		178
Deferred tax liabilities			4		3		5
Long-term provisions			9		8		9
Total non-current liabilities			157		264		197
Bank overdrafts and loans	8		-		4		22
Trade and other payables	7		702		642		671
Current income tax liabilities			34		37		34
Total current liabilities			736		683		727
Total liabilities			893		947		924
Total equity and liabilities			2,453		2,290		2,407
Redrow plc Registered no. 2877315

Consolidated Statement of Changes in Equity

		Share
	Share	premium	Other	Retained
	capital	account	reserves	earnings	Total
	£m	£m	£m	£m	£m
At 1 July 2017	37	59	8	1,131	1,235
Total comprehensive income for the period	-	-	-	148	148
Dividends paid	-	-	-	(41)	(41)
Movement in LTIP/SAYE	-	-	-	1	1
At 31 December 2017 (Unaudited)	37	59	8	1,239	1,343
At 1 July 2017	37	59	8	1,131	1,235
Total comprehensive income for the period	-	-	-	326	326
Dividends paid	-	-	-	(74)	(74)
Movement in LTIP/SAYE	-	-	-	(4)	(4)
At 30 June 2018 (Audited)	37	59	8	1,379	1,483
At 1 July 2018	37	59	8	1,379	1,483
Total comprehensive income for the period	-	-	-	146	146
Dividends paid	-	-	-	(70)	(70)
Movement in LTIP/SAYE	-	-	-	1	1
At 31 December 2018 (Unaudited)	37	59	8	1,456	1,560

Consolidated Statement of Cash Flows
			Unaudited			Audited
			6 months ended 31 December			12 months ended 30 June
			2018		2017	2018
	Note		£m		£m	£m
Cash flows from operating activities
Operating profit			187		175	382
Depreciation and amortisation			1		1	3
Adjustment for non-cash items			(1)		(2)	(6)
Operating profit before changes in working capital and provisions			187		174	379
Decrease/(increase) in trade and other receivables			1		3	(5)
Increase in inventories			(40)		(111)	(175)
(Decrease)/increase in trade and other payables			(3)		32	76
Increase in provisions			-		-	1
Cash inflow generated from operations			145		98	276
Interest paid			(1)		(2)	(4)
Tax paid			(35)		(32)	(74)
Net cash inflow from operating activities			109		64	198
Cash flows from investing activities
Acquisition of software, property, plant and equipment			(1)		(1)	(2)
Interest received			-		3	-
Net receipts from joint ventures			-		13	26
Net cash (outflow)/inflow from investing activities			(1)		15	24
Cash flows from financing activities
Issue of bank borrowings			1		80	5
Repayment of bank borrowings			(5)		(90)	(90)
Purchase of own shares			-		-	(12)
Dividends paid	3		(70)		(41)	(74)
Net cash outflow from financing activities			(74)		(51)	(171)
Increase in net cash and cash equivalents			34		28	51
Net cash and cash equivalents at the beginning of the period			68		17	17
Net cash and cash equivalents at the end of the period	8		102		45	68

NOTES (Unaudited)

1.       Accounting policies

Basis of preparation

The condensed consolidated half-yearly financial information for the half-year ended 31 December 2018 has been prepared on a going concern basis in accordance with the Disclosure and Transparency Rules of the Financial Conduct Authority and with IAS 34, 'Interim financial reporting' as adopted by the European Union. The half-yearly condensed consolidated report should be read in conjunction with the annual consolidated financial statements for the year ended 30 June 2018, which have been prepared in accordance with IFRSs as adopted by the European Union.

These half-yearly financial results do not comprise statutory accounts within the meaning of section 434 of the Companies Act 2006. These condensed half-yearly financial statements have been reviewed, not audited. Audited statutory accounts for the year ended 30 June 2018 were approved by the Board of Directors on 3 September 2018 and delivered to the Registrar of Companies. The report of the auditors on those accounts was unqualified, did not contain an emphasis of matter paragraph, and did not contain any statement under section 498 of the Companies Act 2006.

The principal accounting policies adopted in the preparation of this consolidated half-yearly report are included in the annual consolidated financial statements for the year ended 30 June 2018. The accounting policies are consistent with those followed in the preparation of the financial statements to the year ended 30 June 2018 with the exception of two new accounting standards which have been adopted by the Group from 1 July 2018.

IFRS 15, 'Revenue from contracts with customers' is a converged standard of IAS 18 'Revenue', IAS 11 'Construction Contracts' and a number of revenue-related interpretations from the IASB and FASB on revenue recognition. The standard is more prescriptive in terms of what should be included within revenue, and is effective for the year ending 30 June 2019.

The Group currently recognises revenue in respect of the sale of residential housing, residential land and of commercial land and developments on legal completion. This will not change under IFRS 15 as control on these, including for example revenue of housing association funded contracts for homes passes on completion of the finished units.

The Group does not currently recognise revenue on the proceeds from the disposal of properties taken in part exchange against a new home. The net profit or loss on disposal is shown within gross profit. The gross proceeds and net profit/loss are immaterial. This treatment will be unchanged under IFRS 15 as the Group considers properties taken in part exchange to be incidental to its main activity and therefore outside the scope of IFRS 15.

IFRS 9 'Financial instruments' replaces the guidance in IAS 39 and is effective for the year ending 30 June 2019. It affects the classification, measurement, impairment and de-recognition of financial instruments. The Group has reviewed its existing classification and confirmed that most financial assets will continue to be recognised at amortised cost, with other financial assets being classified at fair value through the profit or loss. The Group reviews the future recoverability of debtors, most of which is from housing associations which are government funded, in assessing exposure to expected credit loss. Given the nature of the receivables and lack of significant exposure to expected credit loss, the impact on Group profits of adopting IFRS 9 is immaterial.

There were no other key judgements or estimates made in assessing the impact of IFRS 15 and 9 on the Group.

The preparation of condensed half-yearly financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may subsequently differ from these estimates. In preparing these condensed half-yearly financial statements, the significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the annual consolidated financial statements for the year ended 30 June 2018.

After making due enquiries and in accordance with the FRC's 'Going Concern and Liquidity Risk: Guidance for Directors of UK Companies 2009', the Directors have a reasonable expectation that the Group has adequate resources to continue trading for the foreseeable future. Accordingly, the Directors continue to adopt the going concern basis in preparing the condensed consolidated half-yearly financial statements.

The main operation of the Group is focused on housebuilding. As it operates entirely within the United Kingdom, the Group has only one reportable business and geographic segment. After considering the requirements of IFRS 15 to present disaggregated revenue, the Group does not believe there is any disaggregation criteria applicable to its one reportable business and geographic segment. There is no material difference between any assets or liabilities held at cost and their fair value.

Standards and interpretations in issue but not yet effective

IFRS 16 'Leases'. This standard replaces the current guidance in IAS 17 and is a far-reaching change in accounting by lessees in particular. Under IAS 17, lessees were required to make a distinction between a finance lease (on balance sheet) and an operating lease (off balance sheet). IFRS 16 now requires lessees to recognise a lease liability reflecting future lease payments and a 'right-of-use asset' for virtually all lease contracts. The IASB has included an optional exemption for certain short-term leases and leases of low-value assets; however, this exemption can only be applied by lessees. For lessors, the accounting stays almost the same. However, as the IASB has updated the guidance on the definition of a lease (as well as the guidance on the combination and separation of contracts), lessors will also be affected by the new standard. At the very least, the new accounting model for lessees is expected to impact negotiations between lessors and lessees. Under IFRS 16, a contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Published January 2016, effective Annual periods beginning on or after 1 January 2019 with earlier application permitted if IFRS 15, 'Revenue from Contracts with Customers', is also applied. The Group has a number of operating leases, mainly in relation to cars and some office properties, which the Group currently anticipates will be required to be brought onto the balance sheet together with corresponding assets. The Group does not expect the net impact on profit to be significant.

Principal risks and uncertainties

As with any business, Redrow plc faces a number of risks and uncertainties in the course of its day to day operations.

The principal risks and uncertainties facing the Group are outlined within our half-yearly report 2019. We have reviewed the risks pertinent to our business in the six months to 31 December 2018 and which we believe to be relevant for the remaining six months to 30 June 2019. The only material changes to those outlined in our Annual Report 2018 are that economic uncertainty has increased with the possibility of a 'no-deal Brexit' and the risk of the withdrawal of the Help to Buy Scheme has receded with the extension of the scheme having been announced by the Government.

2.       Income Tax expense

Income tax charge is recognised based on management's best estimate of the weighted average annual income tax rate expected for the full financial year (19.0% (2018: 19.0%)).

3.       Dividends

A dividend of £70m was paid in the six months to 31 December 2018 (six months to 31 December 2017: £41m).

4.       Earnings per ordinary share

The basic earnings per share calculation for the six months ended 31 December 2018 is based on the weighted number of shares in issue during the period of 362m (31 December 2017: 362m) excluding those held in trust under the Redrow Long Term Incentive Plan, 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.

6 months ended 31 December 2018 (Unaudited)

			Earnings		No. of shares		Per share
			£m		millions		Pence
Basic earnings per share		150		362		41.5
Effect of share options and SAYE		-		1		(0.1)
Diluted earnings per share		150		363		41.4

6 months ended 31 December 2017 (Unaudited)

			Earnings		No. of shares		Per share
			£m		millions		Pence
Basic earnings per share		143		362		39.5
Effect of share options and SAYE		-		2		(0.2)
Diluted earnings per share		143		364		39.3

12 months ended 30 June 2018 (Audited)

			Earnings		No. of shares		Per share
			£m		millions		pence
Basic earnings per share		308		361		85.3
Effect of share options and SAYE		-		1		(0.1)
Diluted earnings per share		308		362		85.2

5.       Pensions

The amounts recognised in respect of the defined benefit section of the Group's Pension Scheme are as follows:

		Unaudited		Audited
		6 months ended 31 December		12 months ended 30 June
		2018	2017	2018
		£m	£m	£m
Amounts included within the consolidated income statement
Period operating costs
Scheme administration expenses		1	-	-
Net interest on defined benefit liability		-	-	-
		1	-	-
Amounts recognised in the consolidated income statement
of comprehensive income
Return on scheme assets excluding interest income		(5)	4	5
Actuarial gains arising from change in financial assumptions		-	2	11
Actuarial gains arising from change in demographic assumptions		-	-	1
Actuarial gains arising from experience adjustments		-	-	5
		(5)	6	22
Amounts recognised in the consolidated balance sheet
Present value of the defined benefit obligation		(112)	(127)	(111)
Fair value of the Scheme's assets		128	131	133
Surplus in the consolidated balance sheet		16	4	22

6.       Inventories

		Unaudited		Audited
		As at 31 December		As at 30 June
		2018	2017	2018
		£m	£m	£m
Land for development		1,460	1,376	1,439
Work in progress		723	715	712
Stock of showhomes		75	63	67
		2,258	2,154	2,218

7.       Land Creditors    

          (included in trade and other payables)

		Unaudited		Audited
		As at 31 December		As at 30 June
		2018	2017	2018
		£m	£m	£m
Due within one year		244	209	209
Due in more than one year		143	173	178
		387	382	387

8.       Analysis of Net Cash/(Debt)

		Unaudited		Audited
		As at 31 December		As at 30 June
		2018	2017	2018
		£m	£m	£m
Cash and cash equivalents		102	49	90
Bank overdrafts		-	(4)	(22)
Net cash and cash equivalents		102	45	68
Bank loans		(1)	(80)	(5)
		101	(35)	63

9.       Bank facilities

At 31 December 2018, the Group had total unsecured bank borrowing facilities of £253m, representing £250m committed facilities and £3m uncommitted facilities.

The Group's syndicated loan facility matures in December 2022.

10.        Issued Share capital

		Unaudited		Audited
		As at 31 December		As at 30 June
		2018	2017	2018
		£m	£m	£m
Allotted, called up and fully paid ordinary shares of 10p each		37	37	37

		Number of ordinary
		shares of 10p each
As at 1 July 2018 and 31 December 2018		369,799,938

11.     Contingent Liabilities

Performance bonds, financial guarantees in respect of certain deferred land creditors and other building or performance guarantees have been entered into in the normal course of business.

12.     Related parties

Key management personnel, as defined under IAS 24 'Related Party Disclosures', are identified as the Executive Management Team and the Non-Executive Directors. Summary key management remuneration is as follows:

		Unaudited		Audited
		6 months ended 31 December		12 months ended 30 June
		2018	2017	2018
		£m	£m	£m
Short-term employee benefits		3	3	5
Share-based payment charges		1	1	3
		4	4	8

Related party transactions were carried out with Steve Morgan during the period for a total consideration of £0.2m (2018: £0.2m) primarily relating to donations to The Steve Morgan Foundation.

The Group did not undertake any material transactions with Menta Redrow Limited or Menta Redrow (II) Limited.  The Group's loans to its joint ventures are summarised below:

		Unaudited		Audited
		As at 31 December		As at 30 June
		2018	2017	2018
		£m	£m	£m
Loans to joint ventures		4	14	4

13.     General information

Redrow plc is a public limited company incorporated and domiciled in the UK and has its primary listing on the London Stock Exchange.

The registered office address is Redrow House, St David's Park, Flintshire, CH5 3RX.

Financial Calendar

Interim dividend record date                                                                                                 8 March 2019

Interim dividend payment date                                                                                                9 April 2019

Announcement of results for the year to 30 June 2019                                                     5 September 2019

Final dividend record date                                                                                            20 September 2019

Circulation of Annual Report                                                                                        23 September 2019

Annual General Meeting                                                                                                6 November 2019

Final dividend payment date                                                                                          13 November 2019         

14.     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

Shareholder helpline: 0370 707 1257

Independent Review Report to Redrow plc

Report on the half-yearly report

Our conclusion

We have reviewed Redrow plc's half-yearly report (the "interim financial statements") in the half-yearly report of Redrow plc for the 6 month period ended 31 December 2018. Based on our review, nothing has come to our attention that causes us to believe that the interim financial statements are not prepared, in all material respects, in accordance with International Accounting Standard 34, 'Interim Financial Reporting', as adopted by the European Union and the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority.

What we have reviewed

The interim financial statements comprise:

·     the consolidated balance sheet as at 31 December 2018;

·     the consolidated income statement and consolidated statement of comprehensive income for the period then ended;

·     the consolidated statement of cash flows for the period then ended;

·     the consolidated statement of changes in equity for the period then ended; and

·     the explanatory notes to the interim financial statements.

The interim financial statements included in the half-yearly report have been prepared in accordance with International Accounting Standard 34, 'Interim Financial Reporting', as adopted by the European Union and the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority.

As disclosed in note 1 to the interim financial statements, the financial reporting framework that has been applied in the preparation of the full annual financial statements of the Group is applicable law and International Financial Reporting Standards (IFRSs) as adopted by the European Union.

Responsibilities for the interim financial statements and the review

Our responsibilities and those of the directors

The half-yearly report, including the interim financial statements, is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the half-yearly report in accordance with the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority.

Our responsibility is to express a conclusion on the interim financial statements in the half-yearly report based on our review. This report, including the conclusion, has been prepared for and only for the company for the purpose of complying with the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority and for no other purpose. We do not, in giving this conclusion, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

What a review of interim financial statements involves

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures.

A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK) and, consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

We have read the other information contained in the half-yearly report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the interim financial statements.

PricewaterhouseCoopers LLP

Chartered Accountants

Manchester

5 February 2019

LEI Number:
2138008WJZBBA7EYEL28

Announcement Classification:
1.2: Half yearly financial report and audit reports/limited reviews

 

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