Redrow unveils worst ever annual results
Housebuilder Redrow today released its 'worst ever' annual results, after revenues more than halved to £301.8m.
Redrow made a £140.8m pre-tax loss in the year to 30 June, as demand faltered and prices plummeted. Average selling prices fell 12% to £137,400 while legal completions dived 46% to 2,113.
The poor figures will strengthen speculation that Redrow may be forced to tap investors for up to £100m to bolster its finances and expand land purchases.
Executive chairman and Wolverhampton Wanderers owner Steve Morgan, who rejoined Redrow in March, said the immediate task was to secure a return to profitability.
Under its recovery plan, Redrow has switched away from apartments and starter homes and is now focusing on family housing, slashing its number of housing types from 80 to 32.
It is also launching a Heritage Collection in January, offering high-spec properties with an historical architectural theme.
Mr Morgan said: 'While I am delighted to be back at the helm of Redrow it is intensely disappointing to me to have to report the worst set of trading results in the company's history.
'I am determined to ensure that this will not be repeated and, along with the rest of the management team, am clearly focused on steering the business back to delivering the sort of robust performance that it has delivered in the past.'
The company's pre-tax loss was less than the £193.9m deficit a year earlier. It included a £96.6m one-off cost linked to write-downs on its property portfolio and restructuring costs.
Stripping out the write-downs, the firm recorded an underlying pre-tax loss of £44.2m, from a £65.5m profit a year earlier.
Mr Morgan, who set up Redrow in 1974, admitted mistakes had been made by previous management over the firm's land-buying tactics. However, in a further sign of improvement in the sector, he said further write-downs were unlikely.
Flintshire-based Redrow, which almost halved its workforce to 652 between June 2008 and April this year, announced in March it was restarting work on some mothballed schemes as the market recovers.
It added today its new financial year has started well with total sales 'comfortably' ahead of last year. The firm's net debt fell to £215m from £223m and Redrow said it was well within its banking facilities.
Mark Hughes, analyst at Panmure Gordon, said he continued to believe a fundraising would be needed and maintained a sell recommendation on its shares. It came as rival housebuilder Galliford Try today announced a £125.6m rights issue to fund a land-buying spree.
Most watched Money videos
- How to invest for income and growth: SAINTS' James Dow
- Mini Cooper SE: The British icon gets an all-electric makeover
- Land Rover unveil newest all-electric Range Rover SUV
- 2025 Aston Martin DBX707: More luxury but comes with a higher price
- BMW meets Swarovski and releases BMW i7 Crystal Headlights Iconic Glow
- 'Now even better': Nissan Qashqai gets a facelift for 2024 version
- Skoda reveals Skoda Epiq as part of an all-electric car portfolio
- Mercedes has finally unveiled its new electric G-Class
- Mini celebrates the release of brand new all-electric car Mini Aceman
- Mail Online takes a tour of Gatwick's modern EV charging station
- Blue Whale fund manager on the best of the Magnificent 7
- Tesla unveils new Model 3 Performance - it's the fastest ever!
- Millions kept in the dark over City watchdog's mystery...
- Ford boss says it may restrict petrol models in the UK to...
- Spring property bounce is a damp squib - Rics estate...
- ITV hit by Hollywood strikes as it pins hopes on Euros...
- Hedge fund tycoon's £34m silver salvage claim sunk at the...
- Watches of Switzerland buys Italy's Roberto Coin for £104m
- Oil industry engineer Wood Group rejects £1.4bn Dubai...
- MARKET REPORT: IAG leads Footsie higher as airline shares...
- BAE Systems tools-up for growth as Britain plots defence...
- TSB to close one in six branches: More than 6,000 shut by...
- Snoop Dogg cannabis firm to ditch London after losing 97%...
- Avon Protection handed £38m gas mask contract by MoD
- Bank of England holds rates at 5.25% AGAIN - what it...
- Investors pull cash out of UK equity funds for the 35th...
- Controversial Brewdog founder James Watt steps downs
- We do need to resolve inequality admits £8m-a-year...
- Drivers abandon Direct Line after insurance premium hikes
- Don't ditch name and shame plan - it has the City running...