Preliminary Results...
Transcript of Preliminary Results...
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Preliminary Results Presentation
Year to 30 June 2015
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Agenda
• Chairman’s Overview Steve Morgan
• Financial Results Barbara Richmond
• Review of Operations John Tutte
• Summary and Outlook Steve Morgan
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Overview – Record results
• Record pre-tax profits of £204m up 53%
• Record turnover of £1.15bn up 33%
• ROCE up from 18.0% to 22.8%
• Private ASP up 10% to
£297,300
• 5,900 plots added to current
landbank
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Financial Results
Barbara Richmond – Group Finance Director
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Financial Highlights
• Private homes revenue
up 29% to over £1bn
• Operating margin 18.5%
(2014: 15.9%)
• EPS increased 56% to
44.5p
• Final dividend proposed
of 4p (2014: 2p)
• Gearing 18%
(June 2014: 25%)
• ROE 26% (2014: 20%)
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Income Statement
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Analysis of private plots in Cost of Sales
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Operating Margin Bridge
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Homes Turnover Analysis
• Record Homes revenue of just under £1.1bn, up 26%
• Apartments now represent 20% of private sales turnover (2014: 18%)
• Private ASP up 10% to £297,300
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Private Turnover Analysis
• Heritage Collection 76% of private turnover (2014: 77%)
• Regent Collection 4% of private turnover (2014: 1.6%)
• Help to Buy legal completions of 1,374 (2014: 1,023)
• ASP higher due to product mix, geographical mix and HPI
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Turnover by Geography
• Strong growth in all regions
• London and the South now represents 47% of Homes Turnover
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Cash Flow
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Net Assets
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Plot Cost Carried Forward
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0%
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30%
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2012 2013 2014 2015
£k
Owned
Owned & Contracted
Owned and contracted plotcost as % of ASP in year
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Review of Operations
John Tutte – Group Chief Executive
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Land and PlanningMovement in Current Land Holdings
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Land and PlanningMovement in Forward Land Holdings
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Land and PlanningLand Holdings by Geography
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Outlets
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Strategy
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Product at the Centre of Divisional Growth
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Product – Heritage Collection
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Product – Regent Collection
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Product – Abode
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Product – Bespoke
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Delivering Growth
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500
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2012 2013 2014 2015
Completions Revenue £bn
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Delivering Growth
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Active Outlets End June
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92
103
117
128
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140
2012 2013 2014 2015 2016
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2018 Targets
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Divisional Expansion
North
Yorkshire
Lancashire
NW
Central
Midlands
South Midlands
South Wales
South
Eastern
South East (2015)
Southern Counties (2013)
South West
West Country (2014)
Greater London
Harrow Estates
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Greater London Developments
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Colindale Gardens
• Resolution to grant planning
July 2015
• 2,900 residential units
• Detailed consent on Phase 1
(888 units)
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• 10,000m2 of Commercial space
• s106 being finalised
• Autumn 2015 site start
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Greater London
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Central London
• Blake Tower EC2
• Connaught Place W2
• Holland Park Ave W11
• One Commercial Street E1
• Westbourne Place W9
Outer London
• Chiswick High Road W4
• Colindale Gardens NW9
• Lyon Square, Harrow
• Northway House N20
• Ratio, Bexley
• Royal Waterside NW10
• Morrello, Croydon (JV)
Original London Division
Eastern Division
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Greater London Organisation
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Regional Chief Executive
Operations
MD (GLA)
Construction
Sales
Technical
Commercial
MD (Colindale)
Construction
Sales
Technical
Commercial
Land and Planning
East Team
West Team
FinanceSales and Marketing
Customer Service
Health & Safety
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Harrow Estates
• Maidenhead, Berkshire
– Brownfield site within the Green belt
– Detailed planning consent achieved for 271
apartments and townhouses
– Easy access to town centre and Crossrail
station
– Scheme to be developed by Redrow
Southern Counties
• Hockley, Essex
– Conditional contracts exchanged on former
HM Prison site
– Brownfield site within the Green belt
– Planning application for 60 dwellings
submitted
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Operational Highlights
• People
• 1,651 directly employed:
over 300 new jobs
• 130 Apprentices
• 15% trainees
• Build Costs
• Materials
• Labour
• Customer Service
• 5 Star Award HBF 2015
Survey
• My Redrow sales £10m
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Sales Market
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Summary and Outlook
• Market stable – return to normal seasonality
• Help to Buy continues to deliver economic growth and jobs
• Planning policy more favourable
• Outlook
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