Redrow reports worst ever results
NORTH WEST housebuilder Redrow has reported its worst ever set of results, with an annual loss to £44m, and been forced to again write down the value of its land bank.
The company, which is based on the outskirts of Chester, made a loss of £44.2m before tax and exceptional items for the year to the end of June 2009, compared with the £65.5m profit a year earlier.
Revenue fell 53.6% to £301.8m, from £650.1m and the company was forced to write-down land and work in progress by £96.6m.
Net debt reduced by £8.7m to £214.6m.
Founder Steve Morgan who returned to the group in March after building up a 29.9% stake said it was “intensely disappointing” to have to report the worst set of trading results in the company’s history but added that he does not expect the company to make any further write-downs.
He said: “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.”
He added that the new financial year had started positively with sales comfortably ahead of the same period last year.
Redrow completed 2,113 homes in 2009, close to half the 3,925 it built last year and the average selling price of those homes fell 12% to £137,400 from £156,900.
It was reported last month that Redrow will ask shareholders to back a £100m right issue, which the firm will use to further reduce debt, buy cheap land and compete better with rivals.
