REDROW plc
FINAL RESULTS FOR THE 53 WEEKS TO
3 JULY 2022
A RETURN TO THE RECORD UNDERLYING PROFITS ACHIEVED PRE COVID
Financial Results
|
|
2022 |
2021 |
Var |
Var % |
|
Legal Completions |
5,715 |
5,620 |
95 |
2 |
|
Revenue |
£2.14bn |
£1.94bn |
£0.2bn |
10 |
|
Underlying profit before tax1 |
£410m |
£314m |
£96m |
31 |
|
Statutory profit before tax |
£246m |
£314m |
£(68m) |
(22) |
|
Underlying EPS1 |
96.0p |
73.7p |
22.3p |
30 |
|
Statutory EPS |
57.7p |
73.7p |
(16.0p) |
(22) |
|
Final dividend per share (DPS) |
22.0p |
18.5p |
3.5p |
19 |
|
Underlying ROCE1 |
24.54% |
18.53% |
6.01ppts |
32 |
|
Total order book1 |
£1.44bn |
£1.43bn |
£0.01bn |
1 |
Highlights
· Revenue increased by 10% to £2.14bn, back to 2019 pre Covid record level (2019: £2.11bn)
· Underlying profit before tax up 31% to £410m, also back to pre Covid record level (2019: £406m)
· Statutory profit before tax of £246m (2021: £314m) after exceptional fire safety costs of £164m (2021: nil)
· Strong cash generation with net cash at 3 July 2022 of £288m (June 2021: £160m)
· Underlying Return on Capital Employed of 24.54% up from 18.53%
· Final dividend increased by 19% to 22.0p making 32.0p for the year (2021: 24.5p)
· Further progress in the land market with c6,000 plots added to current land and c5,000 to forward land
· Launch of share buyback in July 2022 for up to £100m
· 94.5% customer recommendation score and 5 star status in HBF survey
· 83% overall employee engagement score (2021: 82%)
· Revenue based carbon reduction targets have been set for Scope 1, 2 & 3 in line with the goals of the Paris agreement
2024 Guidance update
The company is updating its 2024 guidance, primarily due to the benefit of the share buyback on EPS and DPS:
|
|
Sept 2022 |
Feb 2022 |
|
Revenue (£bn) |
2.3 – 2.4 |
2.3 – 2.4 |
|
EPS (p) |
> 96 |
≥ 92 |
|
DPS (p) |
> 32p |
≥ 31 |
|
ROCE (%) |
> 23 |
22 – 25 |
This guidance is based on current housing market conditions and subject to any further changes in them going forward.