Trading Statement

Redrow PLC
11 January 2007

11 January 2007



REDROW PLC - TRADING UPDATE


Redrow plc today issues its pre close trading update ahead of the publication on
Tuesday 6 March 2007 of its interim results for the six months ended 31 December
2006.


Redrow delivered 2,214 legal completions in the first half of the financial
year, an increase of 7% on the same period last year (H1 2005/06: 2,077).  Legal
completions of Signature and In the City homes, the Group's core product, were
in line with the previous year at 1,979 (H1 2005/06: 1,972), with 235 Debut
homes legally completed in the period (H1 2005/06: 105).  The average selling
price was virtually unchanged at approximately £162,000 (H1 2005/06: £163,100).
As with the last financial year, operating margins for Homes in the first half
will be influenced by recovery of overhead costs.  At this stage of the
financial year our expectations for the operating margin for the full year
remain unchanged.


In the first half our mixed-use activities performed ahead of expectation to
more than offset our continuing investment in developing Redrow Regeneration.
As anticipated, net debt, supported by a strong balance sheet, increased during
the six months to December 2006 to approximately £190m (June 2006: £130m).


The Group's overall forward sales position of 1,871 homes at the end of December
2006 was at a similar level to twelve months previous (Dec 2005: 1,816).  During
the last six months we sold 1,878 homes of our core product, 3% ahead of the
corresponding period last year, and as at 31 December had forward sales of 1,436
homes (Dec 2005: 1,740), representing approaching four months sales.  We are
well placed to deliver our target of 500 Debut completions in 2006/07, with
forward sales of 189 homes at the end of December.  In addition, Redrow
Regeneration has sold the entirety of the first phase of its development in
Barking, representing 246 homes, with the first legal completions due in the
summer of 2007.


We achieved significant growth in our current land bank during the last
financial year with a 21% increase to 21,000 plots.  In the last six months, we
have maintained our current land bank and we are making good progress with a
number of significant sites controlled under contract.  In addition, there are
key sites within our forward land bank which are continuing to progress through
planning, with a resolution to grant now secured for approximately 450 plots at
Cranbrook Village, near Exeter.


However, the increasingly complex planning system continues to inhibit the
industry's ability to open new outlets and this has influenced our sales
performance in the last six months.  We support the Government's objective to
deliver a more efficient planning system but, at the present time, sites with a
planning consent command a significant premium in the land market; further
delays in the delivery of planning consents will only serve to exacerbate this
situation.


The housing market has been relatively stable during 2006, recovering from the
more challenging markets of 2005.  It remains competitive across many of our
markets with the stronger conditions being reported in certain areas, notably
central London, not necessarily being representative of the wider housing
market.  Whilst underlying demographics continue to support strong demand for
new homes, we anticipate the strength of the spring market in 2007 will be
influenced by any further speculation regarding interest rate increases.


In these markets we are focusing on optimising returns from the existing land
bank through our sales strategy whilst maintaining our long term approach to
land acquisition and exercising close control over our cost base.  We remain of
the view that 2006/07 will be a year of further progress for Redrow.


Enquiries:


                                                  Redrow plc
Neil Fitzsimmons, Chief Executive                 020 7404 5959 (11 January)
David Arnold, Group Finance Director              01244 520044 (thereafter)

                                                  Brunswick
Patrick Handley/Nina Coad                         020 7404 5959




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