Pre relimi limina nary y Resul ults s Pre resenta sentation - PowerPoint PPT Presentation

Pre relimi limina nary y Resul ults s Pre resenta sentation tion Year to 30 June e 2015 1

Age genda da • C hairman’ s Overview Steve Morgan • Financial Results Barbara Richmond • Review of Operations John Tutte • Summary and Outlook Steve Morgan 2

Over ervi view ew – Rec ecord ord res esults lts • 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 3

Fi Fina nanc ncia ial Res esul ults ts Barbara Richmond – Group Finance Director 4

Financia Fi ial Hig ighlig ights hts 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%) • 5

Income ome Statem emen ent 6

Anal alys ysis s of f privat ivate plots ts in Cost st of f Sales es 7

Ope peratin ing g Margi gin Brid idge ge 8

Home mes Turnove ver r Analysis sis • 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 9

Priv ivate te Turnov over er Analysis sis • 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 10

Turnove ver r by Geo eogr graph phy • Strong growth in all regions • London and the South now represents 47% of Homes Turnover 11

Cash Fl Flow 12

Net et Asset ets 13

Plot t Cost Carrie ied d Fo Forward rd 80 30% 70 25% 60 20% Owned 50 40 15% Owned & Contracted £k 30 Owned and contracted plot 10% cost as % of ASP in year 20 5% 10 0 0% 2012 2013 2014 2015 14

Rev evie iew of Ope perat ation ions John Tutte – Group Chief Executive 15

Land a d and P d Plannin ing Movement ment in Curren rrent t Land Holdin ldings gs 16

Land a d and P d Plannin ing Movement ment in Forward ward Land d Hold ldings ings 17

Land a d and P d Plannin ing Land Holdings ldings by Geograph graphy y 18

Outle lets ts 19

Strate tegy gy Product at the Centre of Divisional Growth 20

Product duct – Her erit itage ge Collecti ection on 21

Product duct – Reg egen ent Colle lecti ction on 22

Product duct – Abode ode 23

Pr Product duct – Bes espo poke ke 24

Del eliv iver erin ing g Growth wth Completions Revenue £bn 4500 1.2 4000 1.0 3500 3000 0.8 2500 0.6 2000 1500 0.4 1000 0.2 500 0 0.0 2012 2013 2014 2015 25

Del eliv iver erin ing g Growth wth Active Outlets End June 140 128 130 117 120 110 103 100 92 90 82 80 70 60 2012 2013 2014 2015 2016 26

201 018 8 Targe gets 27

Div ivis isio ional l Expa pansio ion 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 28

Grea eater er Londo don Dev evel elopm opments ents 29

Colin inda dale e Garde dens 10,000m 2 of Commercial space • Resolution to grant planning • July 2015 • s106 being finalised • 2,900 residential units • Autumn 2015 site start • Detailed consent on Phase 1 (888 units) 30

Grea eater er Londo don Centra tral London on Blake Tower EC2 • • Connaught Place W2 • Holland Park Ave W11 • One Commercial Street E1 • Westbourne Place W9 Outer er 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 31

Grea eater er Londo don Orga ganis isati tion on Regional Chief Executive Land and Sales and Customer Health & Operations Finance Planning Marketing Service Safety MD MD East Team (GLA) (Colindale) Construction Construction West Team Sales Sales Technical Technical Commercial Commercial 32

Harrow ow Estates es • 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 33

Ope peration ional l Hig ighlig ights hts • People e • 1,651 directly employed: over 300 new jobs • 130 Apprentices • 15% trainees • Build d Costs ts • Materials • Labour • Customer stomer Service ice • 5 Star Award HBF 2015 Survey • My Redrow sales £10m 34

Sales es Market et 35

Summary mary and O d Outlook look • Market stable – return to normal seasonality • Help to Buy continues to deliver economic growth and jobs • Planning policy more favourable • Outlook 36