Source - RNS
RNS Number : 0088J
Redrow PLC
06 September 2016
 

 

 

Tuesday 6 September 2016

 

 

Redrow plc

 

Final results for the year to 30 June 2016

 

 

REDROW DELIVERS A THIRD CONSECUTIVE YEAR OF RECORD RESULTS

 

 

Financial Results

 

 

2016

2015

% Change

Revenue

£1.38bn

£1.15bn

+20

Operating Profit

£261m

£213m

+23

Profit before tax

£250m

£204m

+23

EPS

55.4p

44.5p

+24

Private Order Book

£807m

£524m

+54

ROCE

24.2%

22.8%

+6

Full Year Dividend

10p

6p

+67

 

      

Financial highlights

 

·         Group revenue up 20% to a record £1.38bn driven by a 17% increase in legal completions and a 7% increase in Average Selling Price to £288,600

·        Operating margin rose to 18.9% (2015: 18.5%)

·        Record pre-tax profit of £250m, up 23% (2015: £204m)

·        Earnings per share up 24% to 55.4p

·        Private Order Book up 54% at £807m

·        Return on Capital Employed up 6% to 24.2% (2015: 22.8%)

·        Net debt reduced to £139m from £154m in 2015

·        Proposed final dividend of 6p per share, making 10p for the full year, up 67%

 

Operational highlights

 

·        Continuing to deliver on growth strategy

·        Legal completions up 17% to 4,716 (2015: 4,022) spurred by Help to Buy

·        Outlets increased 9% to 128 (2015: 117)

·        Number of employees up 19% to 1,962

·        Owned and contracted land bank at the end of June 2016 was up 43% at 26,000 plots (2015: 18,216 plots)

 

Steve Morgan, Chairman of Redrow, said:

 

"I am delighted to report that for the third consecutive year Redrow has delivered a record set of results.  Pre-tax profits were £250m, achieved by completing over 4,700 much needed new homes, a 17% increase over last year.

 

Redrow entered the new financial year with a record private order book of £807m, up 54% year on year.  Sales in the first 10 weeks are very encouraging and up 8% on a strong comparator last year.  Our strategy of continued growth for the business is on track and I am confident this will be another year of significant progress for Redrow."

 

Enquiries:

 

Redrow plc

 

Steve Morgan, Chairman                                                     01244 527411

Barbara Richmond, Group Finance Director                         01244 527411

John Tutte, Group Chief Executive                                       01244 527411

 

Instinctif Partners                                                                 0207 457 2020

Mark Garraway                                                                   07771 860 938

Helen Tarbet                                                                        07825 609 737

James Gray                                                                          07583 936 031

 

There will be an analyst and investor meeting at 9.00 am at The London Stock Exchange, 10 Paternoster Square, London, EC4M 7LS.  Coffee will be served from 8.30 am.

 

A live audio webcast and slide presentation of this event will be available at 9.00 am on www.redrowplc.co.uk.  Participants can also dial in to hear the presentation live at 9.00 am on +44 (0) 20 3003 2666 or UK Toll Free on 0808 109 0700; password is Redrow.

 

Playback will be available by phone for the next 30 days +44 (0) 20 8196 1998 followed by Access Pin 5242464#.

 

CHAIRMAN'S STATEMENT

 

I am delighted to report that for the third consecutive year Redrow has delivered a record set of results.  Pre-tax profits were £250m, achieved as a result of completing over 4,700 much needed new homes, a 17% increase over last year.

 

Financial Results

 

Group turnover rose by 20% to a record £1.38bn (2015: £1.15bn).  Revenue from residential legal completions increased by 26% to £1.36bn (2015: £1.08bn).  This was due to a 17% rise in legal completions to 4,716 (2015: 4,022), combined with a 7% rise in average selling price to £288,600 (2015: £269,800).

 

Gross margin improved by 40 basis points to 24.2% mainly due to 94% of our completions coming from sites purchased post downturn with normal margins.

 

Operating expenses remained stable at 5.3% of turnover, despite the additional overheads of opening two new divisions (Colindale and South East) at the beginning of the financial year.

 

Operating profit was £48m higher at £261m (2015: £213m), with the operating margin equating to 18.9% (2015: 18.5%).

 

Pre-tax profits increased by 23% to a record £250m (2015: £204m) and earnings per share rose 24% to 55.4 pence (2015: 44.5p).

 

This strong trading performance, together with increasing the level of deferred payments on our land purchases, has enabled us to reduce our net debt to £139m at the end of the financial year, giving gearing of 14% (2015: 18%).

 

Two key measures of our performance, Return on Capital Employed and Return on Equity, improved to 24.2% (2015: 22.8%) and 26.8% (2015: 26.4%) respectively.

 

As a result of this excellent performance, and as I reported in my Interim Statement in February, the Board is proposing a final dividend of 6p per share (2015: 4p) making 10p in total for the year, an increase of 67% on 2015.  Subject to shareholder approval at the Annual General Meeting, this will be paid on 11 November 2016 to shareholders on the register at the close of business on 23 September.

 

Last year we updated our medium term guidance, targeting turnover of £1.6bn, earnings per share of 62p and Return on Equity of 25%.  We remain comfortably on schedule to deliver these objectives.

 

Market

 

Demand for new homes was strong throughout the year.  Our growth in output has benefitted from the Government's Help to Buy scheme which has continued to be a major support, not only to Redrow, but to the industry as a whole. 

 

I reported in my Interim Statement in February that the higher end of the market, and in particular Central London, had slowed down, principally as a result of the Stamp Duty changes that came into effect last year and further hikes that came into effect in April this year.  Activity in this section of the market remains sluggish; however, Redrow's exposure is very limited and all other areas in which we operate, including Outer London, have shown strong growth.  We have seen very little impact as a result of the Brexit vote.

 

Land and Planning

 

Redrow has had a very successful year in acquiring land and obtaining planning permission on our forward land holdings, with the owned and contracted land bank increasing to 26,000 plots.  This gives the Group a significant platform for increasing the number of new homes built going forward and to maintain our expansion plans; however obtaining planning through Local Authorities remains tortuous.

 

People

 

As a result of the continuing growth of the business, we have also expanded our workforce in the last 12 months from just over 1,600 people to just under 2,000 adding over 300 direct jobs, an increase of 19%.  We continue our commitment to training and development and at the end of June employed 297 trainees across all disciplines, up 22% on 2015.

 

The record performances we have achieved in recent years have only been made possible by the hard work and commitment of our people and I would like to thank them for all their efforts in support of the business.

 

Current Trading and Outlook

 

Redrow entered the new financial year with a record private forward order book of £807m, up 54% on the previous year; including Social Housing, the total forward order book is £897m, up 51%.  Sales in the first 10 weeks are very encouraging and up 8% on a strong comparator last year. 

 

We have recently launched a number of significant new sites and have a strong pipeline in the planning process.  Our strategy is to continue to grow the business, increasing the number of outlets and hence the number of homes we build.  This process is on track and as such I am confident that this will be another year of significant progress for Redrow.

 

Steve Morgan

Chairman

 

CHIEF EXECUTIVE'S REVIEW

 

Group Performance

 

The Group has once again delivered record results. Turnover increased by 20% to £1.38bn and pre-tax profits were up 23% to £250m. Our growth in recent years has been exceptional. Over the past three years legal completions have grown by 67%, turnover by 128% and profit before tax by 262% and our strategy is to continue to grow, albeit we expect the pace to moderate. Our divisions in the South grew most strongly in the year and it is pleasing to report that the new South East division made a valuable contribution to the Group's results in its first year of trading.

 

Market

 

The market throughout the year was stronger than the previous year which resulted in our average sales per outlet per week increasing by 6% to 0.72 with a seasonally stronger performance in the second-half. The top-end of the market however suffered from the impact of successive SDLT increases and this was particularly notable in London.

 

In response to the weaker top-end of the market we have focused our land buying and development programmes more towards our mid-range homes that have proven to be so popular with buyers - with many also being able to take advantage of Help to Buy. In London we announced some time ago that our strategy was to concentrate on more affordable apartments in the outer boroughs and it is within these areas we have acquired new sites. We have made good progress working through our legacy of prime London apartments, including Connaught Place, and now have very little exposure to this sector of the market.

 

Delivering more Homes

 

To deliver more homes the industry needs more outlets.  Increasing outlets is essential, but is a huge challenge: it requires talented and determined teams to close land deals and progress sites through what is a long-winded, under-resourced planning system. Despite the frustrations of the system we have a good track record of growing outlets year-on-year. Over the past three years we have increased outlets by nearly 40% from 92 to 128 and we expect the number of outlets to rise in 2017.

 

To grow outlets you need land. 2016 was a very successful year for land acquisition across the Group. We took advantage of a benign market and benefitted from an exceptional pull-through from the forward land portfolio that included 2,900 plots at Colindale, North London.

 

Placemaking

 

Our product distinguishes us from our major competitors. Heritage is and will remain our core collection. We make continuous but subtle changes to the range to ensure it maintains its leading and award winning position in the new homes market.

 

But creating great places to live is not just about individual homes; it's about much more. It's about Placemaking: designing developments that are sympathetic to the surroundings where our customers can enhance their wellbeing and feel part of a community. It's about creating a Better Way to Live which we adopted as a new strap-line during the year.

 

We have also worked hard to make our developments more sustainable from an environmental perspective. We are working towards ISO14001 certification for our environmental management systems and became the first major housebuilder to score a maximum rating of 'three trees' in the WWF's Timber Scorecard.

 

Customers

 

We are a customer focused business and we recognised some time ago that our customers' expectations were rising at a faster rate than we could support. We responded by making a significant investment to raise our game in this area: we expanded our customer service teams, introduced new technology and most recently obtained accreditation from the Institute of Customer Service. It is comforting to know that in a fast growing business such as ours, close to 90% of our discerning customers continue to recommend us.

 

People

 

It is pleasing to report that a record 24 of our site managers received NHBC Pride in the Job awards in this year's competition. This is a great achievement at a time when the industry has a shortage of skilled trades, managers and technicians: a shortage that we recognised a number of years ago and have been doing more than our share to address ever since.

 

The wider industry needs to do more to address the skills crisis and I was delighted to accept the opportunity to Chair the Homebuilding Skills Partnership (HSP). The HSP is an HBF initiative and has secured four years of funding from the CITB to help tackle the country's skills shortage. The HSP will be looking to broaden the industry's appeal to attract a more diverse workforce as well as looking at ways to raise standards and productivity.

 

As we grow we have a responsibility for the welfare of an increasing number of people and we have to ensure our sites are safe places to live and work. We have expanded our Health and Safety teams during the year and despite a significant increase in build output, reduced the number of notifiable accidents per site.

 

Looking to the future

 

In summary, 2016 was an excellent year for the Group. We are an innovative organisation and our initiatives are aimed at both improving shareholder value and supporting our brand purpose - to create a better way for people to live. We produced a very strong set of record results but of equal importance made significant progress across those parts of the business that are essential to our strategy for sustainable growth. We have an excellent product with a strong brand, we have an operational structure with capacity to grow and expand and a land bank with which to do so. We have talented, dedicated and loyal teams of people that share the same values. The Group is in good shape and well-positioned for the future. I am confident 2017 will be another excellent year for the business.

 

John Tutte

Group Chief Executive

 

FINANCIAL REVIEW

 

Profitability

 

This was another record breaking financial year for the Group in terms of both revenue and profits.

 

Total Group revenue increased by 20% to £1.38bn. This comprised private homes revenue which increased by 24% to £1,275m (2015: £1,026m) as a result of a 12% increase in private legal completions and a 10% increase in average selling price, social homes revenue of £86m (2015: £59m) and other revenue of £21m (2015: £65m) from land sales.

 

As a consequence of the higher revenue, gross profit increased by £60m in the year to £334m (2015: £274m) giving a gross margin of 24.2% (2015: 23.8%). The improvement in gross margin benefitted from a further decrease, from 12% to 6%, in the proportion of our legal completions from provisioned land acquired before the downturn, offset in part by increased levels of social homes legally completed in the year. As reported previously, we expect to legally complete the remaining provisioned plots by the end of the 2017 financial year leaving us with full margin on all our remaining land bank.

 

Operating profit increased by 23% to £261m (2015: £213m) as a result of the strong revenue growth. This represents an operating margin of 18.9% (2015: 18.5%), just below the 19% target we have set for 2018.

 

Net financing costs at £11m were £2m higher than the prior year reflecting a £1m increase in bank interest and a £1m increase in imputed interest payable on deferred land creditors as we continue to be successful in negotiating deferred terms on our selected land opportunities.

 

The Group's record profit before tax of £250m (2015: £204m) for the year generated a basic earnings per share of 55.4p, up 24% on the prior year (2015: 44.5p).

 

Tax

 

The corporation tax charge for the year was £50m (2015: £42m). The Group's tax rate for 2016 was 20.0% (2015: 20.75%) and we expect our normalised rate of tax for the year ending 30 June 2017 to be 19.75% based on rates which are substantively enacted currently.

 

The Group paid £46m of corporation tax in the year (2015: £22m) in the normal quarterly pattern. Payments will continue in the normal quarterly pattern until the new legislation for corporation tax payments by very large companies takes effect for our financial year ending 30 June 2020, when it will bring our instalment payments forward by four months.

 

Dividends

 

As reported at the time of our half year results, the Board has proposed a 2016 final dividend of 6p per share, a 50% increase on last year, which will be paid on 11 November 2016, subject to Shareholder approval at the 2016 Annual General Meeting.

 

The Group paid dividends totalling £30m (2015: £15m) during the year. This represented a 4.0p per share final dividend for 2015 paid in November 2015 and a 4.0p per share interim dividend for 2016 paid in March 2016.

 

Returns

 

Net assets at 30 June 2016 exceeded £1bn for the first time at £1,017m, a 20% increase on prior year levels (2015: £849m). Capital employed at 30 June 2016 was £1,156m (2015: £1,003m), up 15%. Despite the increase in capital employed, our capital turn rose to 1.3 times (2015: 1.2 times). As a result of our higher profits and capital turn, our return on capital employed increased from 22.8% to 24.2%, although we expect this to moderate going forward towards our 2018 guidance of 21%, due to ongoing investment in land and work in progress.

 

Return on equity increased from 26.4% to 26.8%, well ahead of our 2018 guidance of 25%. Again we expect this to moderate towards the 2018 guidance in 2017.

 

Inventories

 

Our investment in land increased to £1,215m (2015: £1,020m), up 19% year on year. However, our owned plot cost has remained unchanged at £68,000 per plot, reducing to 21% of the average selling price of private legal completions in the year (2015: 23%).

 

Our investment in work in progress increased to £593m (2015: £480m), up 24% year on year. This increase resulted from a combination of a 9% increase in active outlets, a higher number of strategic sites coming into production and an increase in the number of apartment schemes in the South East at later stages of the build process.

 

Our net realisable value provision on land and work in progress reduced by £9m to £19m in the year. Provisioned plots represented less than 1% of our owned land bank at June 2016 (2015: 2%), and will be eliminated by June 2017.

 

Land creditors increased by £112m to £378m at June 2016 representing 31% of land inventory (2015: 26%).  This reflects favourable land market conditions prevailing during the year.

 

Receivables

 

Trade receivables reduced by £6m during the year to £23m (2015: £29m) with the receipt of shared equity scheme monies.

 

Payables

 

Trade payables and accruals increased by £55m to £336m (2015: £281m) due to increased levels of production as a result of our increased outlets.

 

Current income tax liabilities increased by £5m to £24m at June 2016 (2015: £19m) as a result of our higher profitability.

 

Cash Flow and Net Debt

 

Net debt decreased by £15m to £139m at June 2016 (2015: £154m) which is 14% gearing (2015: 18%). This reduction in net debt reflects a cash inflow generated from operations of £130m (2015: £61m) which more than funded the growth in the business, the increased dividend payments and increased corporation tax payments in the year.

 

Financial and Treasury Management

 

Financial management at Redrow is conducted centrally using policies approved by the Board.

 

Redrow is a UK based housebuilder and therefore the main focus of its financial risk management surrounds the management of liquidity and interest rate risk.

 

(i)    Liquidity

 

The Group regularly prepares and reviews its cash flow forecasts which are used to manage liquidity risks in conjunction with the maintenance of appropriate committed banking facilities to ensure adequate headroom.

 

Facilities are kept under regular review and the Group maintains regular contact with its banks and other financial institutions; this ensures Redrow remains attuned to new developments and opportunities and that our facilities remain aligned to our strategic and operational objectives and market conditions.

 

Our current banking syndicate comprises five banks and in addition to our committed facilities, Redrow also has further uncommitted bank facilities which are used to assist day to day cash management.

 

(ii)   Interest rate risk

 

The Group is exposed to interest rate risk as it borrows money at floating rates. Redrow uses simple risk management products, notably sterling denominated interest rate swaps, as appropriate to manage this risk. Such products are not used for speculative or trading purposes.

 

Redrow regularly reviews its hedging requirements. No hedging was undertaken in the year.

 

Pensions

 

As at 30 June 2016, the Group's financial statements showed a £6m surplus (2015: £3m deficit) in respect of the defined benefits section of The Redrow Staff Pension Scheme (which closed to future accrual with effect from 1 March 2012). The £9m improvement is mainly due to improvements in returns on scheme assets which more than offset actuarial losses arising from changes in financial assumptions.


Barbara Richmond

Group Finance Director

 

Consolidated Income Statement

 

12 months ended 30 June

 

2016 

2015 

 

Note

£m 

£m 

Revenue

 

1,382 

1,150 

Cost of sales

 

(1,048)

(876)

Gross profit

 

334 

274 

Administrative expenses

 

(73)

(61)

Operating profit

 

261 

213 

Financial income

 

Financial costs

 

(14)

(12)

Net financing costs

 

(11)

(9)

Share of profit of joint ventures after interest and taxation

 

-  

Profit before tax

 

250 

204 

Income tax expense

2

(50)

(42)

Profit for the year

 

200 

162 

Earnings per share            -     basic

4

55.4p

44.5p

                                       -     diluted

4

55.2p

44.4p

Consolidated Statement of Comprehensive Income

 

 

 

2016 

2015 

12 months ended 30 June

 

£m 

£m 

 

 

 

 

Profit for the year

 

200 

162 

Other comprehensive income

 

 

 

Items that will not be reclassified to profit or loss

 

 

 

Remeasurements of post-employment benefit obligations

 

Deferred tax on actuarial gains taken directly to equity

 

(2)

(2)

Other comprehensive income for the year net of tax

 

Total comprehensive income for the year

 

206 

168 

 

 Balance Sheet

 

 

 

 

As at 30 June

 

 

 

2016

2015

 

 

 

£m

£m

 

 

Note

 

 

Assets

 

 

 

 

Intangible assets

 

 

2

2

Property, plant and equipment

 

 

17

12

Investments

 

 

25

17

Deferred tax assets

 

 

5

5

Retirement benefit surplus

 

 

6

Trade and other receivables

 

 

12

13

Total non-current assets

 

 

67

49

 

 

 

 

 

Inventories

 

5

1,808

1,500

Trade and other receivables

 

 

36

39

Cash and cash equivalents

 

8

135

56

Total current assets

 

 

1,979

1,595

 

 

 

 

 

Total assets

 

 

2,046

1,644

 

 

 

 

 

Equity

 

 

 

 

Share capital

 

9

37

37

Share premium account

 

 

59

59

Other reserves

 

 

8

8

Retained earnings

 

 

913

745

Total equity

 

 

1,017

849

 

 

 

 

 

Liabilities

 

 

 

 

Bank loans

 

8

230

150

Trade and other payables

 

6

156

84

Deferred tax liabilities

 

 

2

1

Retirement benefit obligations

 

 

-

3

Long-term provisions

 

 

7

7

Total non-current liabilities

 

 

395

245

 

 

 

 

 

Bank overdrafts and loans

 

8

44

60

Trade and other payables

 

6

566

471

Current income tax liabilities

 

 

24

19

Total current liabilities

 

 

634

550

 

 

 

 

 

Total liabilities

 

 

1,029

795

 

 

 

 

 

Total equity and liabilities

 

 

2,046

1,644

 

Statement of Changes in Equity

 

 

 

2016

£m

2015

£m

12 months ended 30 June

 

 

 

Profit for the year

 

200 

      162 

Other comprehensive income for the year

 

          6 

Total comprehensive income relating to the year (net)

 

206 

      168 

Dividend paid

 

(30)

       (15)

Movement in LTIP/SAYE

 

(8)

   -  

Net increase in equity

 

168

      153 

 

 

 

 

Opening equity

 

849 

      696 

Closing equity

 

1,017 

      849 

 

The Statement of Cash Flows

 

 

 

       12 months

       ended 30 June

 

 

 

 

 

 

 

 

 

 

2016 

2015 

 

 

 

Note

£m 

£m 

 

Cash flows from operating activities

 

 

 

 

 

Operating profit before financing costs

 

 

            261 

            213 

 

Depreciation and amortisation

 

 

            1 

            1 

 

Adjustment for non-cash items

 

 

            (5)

            (5)

 

Operating profit before changes in working capital and provisions

 

 

            257

            209 

 

 

 

 

 

 

 

Decrease/(increase) in trade and other receivables

 

 

            7 

            (2)

 

Increase in inventories

 

 

            (308)

            (343)

 

Increase in trade and other payables

 

 

            174 

            196 

 

Increase in provisions

 

 

            - 

            1 

 

Cash inflow generated from operations

 

 

            130 

            61 

 

 

 

 

 

 

 

Interest paid

 

 

            (6)

            (6)

 

Tax paid

 

 

            (46)

            (22)

 

 

 

 

 

 

 

Net cash inflow from operating activities

 

 

            78 

            33 

 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

Sale of business

 

 

            - 

            9 

 

Acquisition of software, property, plant and equipment

 

 

            (6)

            (1)

 

Net payments to joint ventures - continuing operations

 

 

            (11)

            (6)

 

Net cash (outflow)/inflow from investing activities

 

 

            (17)

            2 

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

Issue of bank borrowings

 

7

            230 

            150 

 

Repayment of bank borrowings

 

7

            (150)

            (175)

 

Purchase of own shares

 

 

            (16)

            (2)

 

Dividend paid

 

 

            (30)

            (15)

 

Net cash inflow/(outflow) from financing activities

 

 

            34 

            (42)

 

 

 

 

 

 

 

Increase/(decrease) in net cash and cash equivalents

 

            95 

(7)

             (7)

Net cash and cash equivalents at the beginning of the year

 

(4)

3

Net cash and cash equivalents at the end of the year

 

8

91 

(4)

 

 

 NOTES

 

1.         Basis of preparation

 

The above results and the accompanying notes do not constitute statutory accounts within the meaning of Section 435 of the Companies Act 2006.

The Auditors have reported on the Group's statutory accounts for the year ended 30 June 2016 under s495 of the Companies Act 2006, which do not contain a statement under s498 (2) or s498 (3) of the Companies Act 2006 and are unqualified. The statutory accounts for the year ended 30 June 2015 have been delivered to the Registrar of Companies and the statutory accounts for the year ended 30 June 2016 will be filed with the Registrar in due course.

 

The audited consolidated financial statements from which these results are extracted have been prepared under the historical cost convention and in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union, IFRIC interpretations and those parts of the Companies Act 2006 applicable to companies reporting under IFRS.

 

The principal accounting policies have been applied consistently to all the periods presented.

 

2.         Income Tax expense

 

12 months

ended 30 June

 

2016 

2015

 

£m 

£m

Current year

 

 

UK Corporation Tax at 20.00% (2015: 20.75%)

51 

41

 

 

 

Deferred tax

 

 

Origination and reversal of temporary differences

(1)

 1

Impact of change in deferred tax rate

-  

-

Total income tax charge in income statement

50 

42

 

 

 

Reconciliation of tax charge for the year

 

 

Profit before tax

250 

204

 

 

 

Tax on total profit at 20.00% (2015: 20.75%)

50 

42

Impact of change in deferred tax rate

-

Short term temporary differences

-

Tax charge for the year

50 

42

 

3.         Dividends

 

The following dividends were paid by the Group:

 

2016

2015

 

£m

£m

Prior year final dividend per share of 4.0p (2015: 2.0p); current year

 

 

interim dividend per share of 4.0p (2015: 2.0p)

30

15

 

30

15

 

The Board decided to propose a final dividend of 6.0p per share in respect of 2016 (£22m (2015: £15m)).  The dividend has not been provided for and there are no income tax consequences.

 

4.         Earnings per share

 

The basic earnings per share calculation for the year ended 30 June 2016 is based on the weighted number of shares in issue during the period of 361m (2015: 364m) excluding those held in trust under the Redrow Long Term Incentive Plan (9m shares (2015: 6m shares)), 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.

 

12 months ended 30 June 2016

 

Earnings

No. of shares

Per share

 

£m

millions

pence

Basic earnings per share

200

361

55.4 

Effect of share options and SAYE

-

1

(0.2)

Diluted earnings per share

200

362

55.2 

 

12 months ended 30 June 2015

 

Earnings

No. of shares

Per share

 

£m

millions

pence

Basic earnings per share

162

364

44.5 

Effect of share options and SAYE

-

1

(0.1)

Diluted earnings per share

162

365

44.4 

 

5.         Inventories

 

As at 30 June

 

2016

2015

 

£m

£m

Land for development

 

1,215

1,020

Work in progress

 

539

426

Stock of showhomes

 

54

54

 

 

1,808

1,500

 

Inventories of £992m net of £9m net realisable value provision utilisation, were expensed in the year (2015: £826m net of £20m net realisable value provision utilisation).  Work in progress includes £3m (2015: £3m) in respect of part exchange properties.

 

Of the net realisable value provision of £19m (2015: £28m), £9m (2015: £17m) is attributed to land and £10m (2015: £11m) is attributed to work in progress.

 

The net realisable value provision movement is analysed below:

 

Total

 

£m

 

 

As at 1 July 2015

28 

Utilised during the year

(9)

Created during the year

Released during the year

(3)

As at 30 June 2016

19 

 

The net realisable value provisions of £3m and £3m created and released in the year are the result of our review at the balance sheet date in the context of prevailing market conditions and the re-assessment of selling prices and costs. They represent the creation of additional provisions against sites acquired pre June 2009 and the reduction of provisions already in place against such sites as required.

 

6.         Land Creditors

            (included in trade and other payables)

 

As at 30 June

 

2016

2015 

 

£m

£m 

Due within one year

 

            222

            182 

Due in more than one year

 

            156

              84

 

 

            378

            266

 

7.         Borrowings and loans

 

12 months

ended 30 June

 

2016 

2015 

 

 

            £m 

£m 

Opening net book amount

 

150 

175 

Issue of bank borrowings

 

230 

150 

Repayment of bank borrowings

 

(150)

(175)

Closing net book amount

 

230 

150 

 

At 30 June 2016 the Group had total unsecured bank borrowing facilities of £368m, representing £365m committed facilities and £3m uncommitted facilities.

 

8.         Analysis of net debt

 

As at 30 June

 

 

2016 

2015 

 

 

            £m 

            £m 

Cash and cash equivalents

 

135 

56 

Bank overdrafts

 

(44)

(60)

Net cash and cash equivalents

 

91 

(4)

Bank loans

 

(230)

(150)

 

 

(139)

(154)

 

9.         Share capital

 

 

   As at 30 June

 

 

2016

2015

 

 

£m

£m

Authorised

 

 

 

480,000,000 ordinary shares of 10p each

 

48

48

Issued and fully paid

 

37

37

 

 

 

Number of ordinary

 

 

shares of 10p each

 

 

 

 

As at 1 July 2015 and 30 June 2016

 

 

369,799,938

 

10.       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

 

11.       Annual General Meeting

 

The Annual General Meeting of Redrow plc will be held at Village Urban Resort St Davids, St. David's Park, Flintshire on 9 November 2016, commencing at 12.00 noon.  A copy of this statement is available for inspection at the registered office.


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
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