Redrow’s Morgan to ‘ease back’ from duties
Steve Morgan, chairman of housebuilder Redrow, has announced plans to ease back from the day-to-day running of the company.
The news comes on the back of the group’s latest results for the year to 30 June 2017. Pretax profits rose 26% to £315m in the year while group turnover jumped 20% to £1.66bn.
Morgan said he was stepping back from everyday work within the company, but would still be involved in overall aspects.
He said: “Eight years after returning to Redrow, I have decided to ease back from a full-time executive role towards a non-executive role – the transition is to take place during the current financial year.
“It is my intention to continue to focus with the board on the strategic development of the business and I will retain my keen involvement with the product and key important projects.”
The housebuilder completed 5,416 new homes in the financial year, up 15%, while the average selling price of a Redrow house rose by 7% to £309,800.
According to the company, the results came despite overall housing transactions in the UK taking a dip, due in part to ‘political uncertainty and increasing cost of moving home, particularly Stamp Duty’.
Operating expenses also increased by £10m to £83m as Redrow continues to invest in the expansion of the business. It is also the first set of results to include operating expenses from the new East Midlands division, which kicked in during February.
Morgan said: “Based on the strength of our current performance and the robust demand that we are seeing, we are today updating our medium term guidance.
“We now expect turnover in 2020 of £2.2bn and pretax profit of £430m.”
He added: “Our strategy of continued growth for the business is on track. I am confident this will be another year of significant progress for Redrow.”