Final Results

Redrow PLC
13 September 2005

Tuesday 13 September 2005


Redrow plc today announces its Preliminary results for the 12 months to 30 June
2005:


                                   Highlights:

                                           June 2005           June 2004

Turnover                                     £781.0m             £670.3m         +17%
Operating profit                             £151.0m             £132.7m         +14%
Profit before tax                            £141.1m             £124.1m         +14%
Legal completions                             4,372               4,284          +2%
Earnings per share - basic (pence)            62.1                54.8           +13%
Dividend per share (pence)                    10.8                 9.0           +20%

•    Record profits achieved in more challenging trading conditions

•    Second half profit before tax up by 7% to £72.0m (H2 2004: £67.4m)

•    Continued focus on operating margins and return on capital employed:

     -    Homes operating margin 19.6% (2004: 19.8%)

     -    Group ROCE 28.2% (2004: 29.4%)

•    Current land bank maintained at 17,300 plots (2004: 17,400) with strong
     pull through from forward land

•    Proposed full year dividend per share increased by 20%.  Intention to
     increase by the same percentage for 2006 reaffirmed

•    Robust forward sales position with over 2,100 sales in hand as at June 2005

•    Sales in first 10 weeks of the new financial year up 10% from just over 10%
     more outlets

•    Successful launch of new Debut product providing affordable homes for
     customers at Rugby, Chorley and Castle Vale

Commenting on the results, Robert Jones, Chairman of Redrow plc said:

'Redrow has delivered another year of progress in a more challenging trading
environment reflecting our strategy of building a strong forward sales position
and increasing our outlets.

Consumer confidence will be a key factor in determining the strength of the
housing market in the short term.  However, the fundamentals for our industry
are sound and we have a high quality land bank, effective product range and
strong management team which in the medium term provide a platform for growth
and the capability to deliver shareholder value.'

Enquiries:
                                                    Redrow plc
Neil Fitzsimmons, Chief Executive                   0207 404 5959 (13 September)
David Arnold, Group Finance Director                01244 520044 (thereafter)


Patrick Handley / Nina Coad                         Brunswick
                                                    0207 404 5959

There will be an analyst and investor meeting at 0845 (BST).  A live audio cast
and slide presentation of this event will be available at 0845 (BST) on
www.redrow.co.uk or live by phone on the following dial in number: +44 (0) 207
365 8426.

Playback available online through www.redrow.co.uk from 1200 (BST) or by phone
until 27 September 2005, on the following dial in number: [phone];
password: 69490341.

CHAIRMAN'S STATEMENT

I am pleased to report another year of progress for Redrow, delivering for our
Shareholders a 13% increase in earnings per share to 62.1p. Accordingly, the
Board reaffirms its previously stated dividend policy and it remains our
intention to increase the dividend by 20% to 10.8p per share for the year ended
30 June 2005 (2004: 9.0p) and by a further 20% for the year ending 30 June 2006.

Turnover increased by 17% to £781.0m (2004: £670.3m) and profit before tax
increased by 14% from £124.1m to £141.1m, reflecting the Board's strategy over
the last few years of building a strong forward sales position and increasing
the number of outlets for our homes as we broaden our geographic coverage.  This
performance was achieved against a background of more challenging trading
conditions that began to take effect in the middle of 2004 and prevailed
throughout the financial year and it is therefore of particular note that profit
before tax increased by 7% in the second half of the financial year compared to
the equivalent period last year.

Redrow's focus remains the combined delivery of a high return on capital
employed and operating margins which we believe will generate value for our
Shareholders. During the last financial year return on capital employed was
28.2% (2004: 29.4%) with an operating margin within Redrow Homes of 19.6% (2004:
19.8%), demonstrating our ability to deliver against those benchmarks.  The
Group's balance sheet strengthened further with net assets increasing by 22% to
£459.0m (2004: £376.6m) and gearing falling to 22% (2004: 35%).  Interest cover
remained very robust at 15.3 times (2004: 15.4 times).

The key to the delivery of shareholder value in our sector rests primarily in
the quality of our land bank and the ability to maintain that quality into the
future. During the year we have increased the number of owned plots with
planning permission from 15,000 to 15,800. Whilst the sources of this land
remain very varied, we continue our commitment to brownfield development, with
over 70% of our owned plots on such sites.  Redrow's long term approach to
securing opportunities through forward land has contributed substantially to our
success providing a pipeline of developments at enhanced margins when compared
with the open market.  This past year, 43% of our land acquired has come from
this source and it has the potential to make a further strong contribution over
the next few years.

In a highly competitive market, it is important to have a broad range of product
appealing to a wide cross section of home buyers.  Redrow's attractive core
product, the Signature range, together with its successful In the City
developments, have now been joined by the Debut range.  Debut delivers
affordable homes for customers to buy whose aspirations have been largely
unaddressed by the new homes industry.  I have been delighted at the innovation
and imagination shown by the Redrow team in taking this initiative from concept
to completed and occupied homes within 12 months. We are extremely pleased on
our three current Debut sites with the supportive attitude of the planning
authorities for their vision in embracing the Debut concept.  We continue to
discuss opportunities to promote Debut with a significant number of Local
Authorities, landowners and other stakeholders and I am encouraged by the
potential for incremental growth that Debut offers Redrow.

Such initiatives depend very much on the skills and commitment of all members of
the Redrow team.  I would like to thank each and every one for their part in
delivering not only these results but for the dedicated way in which they work
for the benefit of customers and company alike. The success of our product has
been enhanced by the efforts of our Product Development Team where, in addition
to their contribution to Debut, they have played a prominent role in our success
in reaching the final stages of the Office of the Deputy Prime Minister and
English Partnership's Design for Manufacture Competition.  Our in-house Health
and Safety department has also demonstrated its effectiveness by achieving for
Redrow the coveted ROSPA Silver Award following on from our Bronze Award last
year.

Succession planning is hugely important to any business and the Redrow Board
gives a high priority to this matter. I am delighted to report that as announced
on 30 June 2005, Neil Fitzsimmons, our Group Managing Director, succeeded Paul
Pedley as Chief Executive on 1 August 2005.  Neil joined Redrow in August 1997
following many years involvement in residential development and became Group
Finance Director in June 1998 before being appointed Group Managing Director in
September 2003.  Paul has spent twenty years with Redrow in a series of key
roles, and on behalf of the Company and Shareholders, I would like to thank him
for his commitment thus far to Redrow and for the key part he has played in
transforming Redrow from a small regional builder to a major force within the
industry.  In his new role, as Executive Deputy Chairman, Paul's primary
responsibilities will be to pilot through significant land acquisitions and the
ongoing development of the product range with a particular focus on Debut.

Despite the recommendations in the Barker Review published in March 2004
regarding the need to increase the output of the new homes industry, we have yet
to experience a discernible improvement in the efficiency of the planning
system.  We welcome and remain supportive of Government policy to increase the
supply of new homes which is important for the economic wellbeing of the UK
economy.  Redrow looks forward to working with the Government to help shape
effective strategies to improve the efficiency of the planning system so as to
enable the building of a sufficient quantity of new homes to meet the broad
spectrum of needs and aspirations of home buyers in general.

We continue to experience a challenging and competitive environment as the
sector goes through a period of adjustment during the transition to more normal
markets.  In the medium term, there remains an inequality between demand for,
and supply of, housing in the UK that, together with a favourable underlying
macro-economic position of high levels of employment and historically low
interest rates, should be supportive for our industry. The quality of our land
bank together with our attractive product range provides a sound base to
capitalise on these fundamentals.  Since June 2000, the Group has delivered a
25% annual compound growth rate in earnings per share and a 17% annual growth
rate in dividends.  Over the same period, Total Shareholder Return has been 22%
per annum.  We remain firmly committed to delivering shareholder value, and look
forward to the challenges of the coming years, confident of our ability to
deliver further success for our Shareholders, for whose continued support we
remain extremely grateful.

Robert Jones
Chairman


CHIEF EXECUTIVE'S OPERATIONAL REVIEW

In the year ended 30 June 2005, Redrow delivered a 14% increase in profit before
tax to £141.1m (2004: £124.1m) and a 13% increase in earnings per share to 62.1p
(2004: 54.8p), whilst continuing its unique track record amongst major
homebuilders of increasing legal completions in every year since 1990 as legal
completions reached 4,372 (2004: 4,284).

These results were achieved against a backdrop of a changing trading environment
as the housing market began to adjust from the very strong conditions of the
last few years towards a more normal market.  This change in market conditions
resulted from successive increases in interest rates and increasing concerns
expressed by the Governor of the Bank of England regarding the level of consumer
debt.  As a result, the consumer exercised greater caution, reflected in reduced
levels of activity in the housing market which began to take effect in the
middle of 2004 and has continued through 2005.

Strategy

Redrow had recognised that the strength displayed in the housing market in the
period up to the middle of 2004 was not sustainable and it was inevitable that
there would be a period of adjustment as the market returned to more normal
levels of activity. The Group was positioned to meet the short term challenges
of this adjustment and adopted a strategy that would provide the capability to
deliver shareholder value in more normal markets.

The first element in the strategy was focused upon sales.  By establishing a
strong forward sales position and increasing the number of sales outlets to
provide some protection against a period of relative weakness in demand, we
achieved an increase in forward sales from an historic norm of approximately 15
weeks to 28 weeks at June 2004.  In addition, having delivered an uplift in the
number of sales outlets during 2004, we further increased our outlets in the
financial year to June 2005 and reached 112 as we entered the new financial
year.

The strength of our forward sales position and the increased number of outlets
have been fundamental to delivering growth in profit before tax not only for the
year to June 2005 but in particular during the second half of the year when the
Group increased its profit before tax by 7% to £72.0m (2004: £67.4m) despite the
more challenging markets.

As anticipated, the market slowed during the financial year, and we adjusted our
sales strategy accordingly.  With the support of the Group's strong forward
sales position established in previous years, during the last twelve months we
focused on the maximisation of sales values and the protection of margins in the
face of the softer sales environment.  As a consequence of this deliberate
differing approach, sales were 9% below the extraordinary level of the previous
year.  At June 2005, the Group was well placed with forward sales of 2,129
(2004: 2,344), comfortably in excess of our historic norm.  This provides some
continued protection over the next 12 months, as we anticipate the market will
continue to operate below normal levels of activity.  In addition, we expect to
increase our outlets by 10% over the period up to Spring 2006 to further support
our sales performance.

The second element in our strategy has been to position Redrow to have the
capability to deliver enhanced volume growth.  Over the last few years, we have
focused upon the fundamental drivers of land, product and people.  These aspects
will become increasingly important as house price inflation relates more closely
to growth in earnings and margins return to more sustainable levels.  In these
circumstances, delivery of value for shareholders will depend more upon the
ability to drive volume for top line growth and the management of the cost base
to support margins. The strength of the Redrow land bank, the effectiveness of
the product range and the contribution and commitment of the Redrow team
underpins our ability to achieve these objectives.

Land

The success of a developer is dependent on the quality of its land bank.  Redrow
continues to take a long term approach to land acquisition as this approach
provides the capability to deliver sustainable margins in normal markets and the
platform for volume growth.

The current land bank provides for our short term needs.  Whilst the Government
has indicated a desire to improve the supply of land for new homes, it is still
important within the current land bank to hold land owned with planning,
representing approximately three years supply.  This provides some insulation
from the delays experienced from the planning system that currently do not
appear to be reducing.

During the financial year, Redrow increased land owned with planning by over 5%
to 15,800 plots (2004: 15,000 plots).  The quality of the land bank with
planning is reflected in the year end plot cost of £29,300 (2004: £27,300).
This represents approximately 17% of the current estimated average selling price
of the land bank and maintains it as one of the most cost effective land banks
in the industry.  In addition, it also provides the strength to allow the Group
some flexibility within the land market.  During the financial year, we
exercised some caution in terms of new commitments to land acquisition and this
is reflected in the reduction of land controlled under contract to 1,500 plots
(2004: 2,400 plots). However, the Redrow land bank as at June 2005 had the
capability to provide 100% of projected needs from land owned with planning for
the new financial year and 85% of the projected requirements for 2006/07 from
the current land bank.  Our land bank provides both visibility in terms of
growth of outlets for 2005/06 and also the potential for further outlet growth
in the medium term.

Forward land plays a key part in our long term approach to land acquisition,
providing land at enhanced margins and reducing the need to buy land in the
current market.  The quality of Redrow's forward land bank is demonstrated by
its contribution to the current land bank and its ability to continue to make
that contribution into the future.  In 2004/05, 13 forward land sites were
transferred into the current land bank contributing some 2,200 plots
representing 43% of land purchased.  This includes Peacock Farm, Bracknell which
will provide a significant core development for Redrow Homes (Southern) during
the next 10 years. Over the last 3 years, forward land has contributed one third
of the land acquired.

In the future, the forward land bank has the potential to continue this
contribution.  It comprises 22,100 plots (2004: 22,500) of which over one third
either has planning or is allocated for residential development in local plans.
The forward land bank has a broad geographic spread with 67 different locations
across the three Regions.  The terms of these options generally allow land to be
purchased at a discount to open market value. There are some 750 plots on 4
sites where the land already has a planning consent with a further 7,500 plots
on 16 sites allocated in local plans.  Finally there are a further 47 locations
amounting to 13,850 plots that have a realistic prospect of securing a
residential planning consent.

Product

Whilst land provides the key to sustainable margins and the ability to deliver
volume growth, our product provides the catalyst to convert that land into
profit and cash.  The Redrow product portfolio enables us to optimise the
margins and return on capital employed inherent in our land bank as it provides
a range of product designed to appeal to a broad customer base and the tools to
deliver improved control of the cost base.

Redrow has rationalised the product portfolio into three distinct offerings,
each appealing to different homebuyers.  The Signature Range represents our core
product.  This is complemented by In the City, Redrow's major apartment schemes,
and Debut, the Group's new affordable product.  During the year, the first Debut
units were legally completed on our development at Rugby

Signature is now the Group's core housing range, combining the former
Contemporary, Sapphire and Emerald specifications.  These had an average selling
price in the last financial year of £166,200 (2004: £155,400) maintaining the
average sales price broadly in line with that of new homes in the UK.  This
range can be adapted in terms of internal specification and external elevations
to make it appropriate to the target market and local environment. The range
includes 'tool kit' types such as flats over garages, corner turn and bridge
units that allow enhanced street scenes and optimisation of coverage.  There is
also a selection of apartment floor plates that are designed to be efficient in
terms of construction and can be configured in blocks to suit each site.  The
increased use of these house types will provide both improved certainty of cost
and delivery of build.

Redrow continues to undertake In the City schemes whilst carefully managing its
commitment to this sector of the market. During the year, the Group legally
completed 667 In the City units (2004: 460) at an average selling price of
£207,400 (2004: £148,700).  Legal completions were secured at Altolusso in
Cardiff, Jupiter in Birmingham and at Neptune Marina in Ipswich as well as at
our higher value development at Odyssey in London Docklands, the impact of which
is reflected in the average selling price during the year.  The Group is
currently progressing Vie in Manchester, Celestia in Cardiff Bay and The
Boardwalk at Sovereign Harbour as well as the next phase of Jupiter in
Birmingham. Because of the timing of construction, In the City developments are
likely to represent a lower proportion of completions in 2006 than in 2005 and
will be weighted towards the second half.  We continue to procure the
construction of these schemes through our central project management team that
has developed a skill base to optimise design and specification to deliver
building efficiency and control of cost.

Debut by Redrow

It is widely recognised that there is a fundamental inequality between the
demand and supply of homes in the market.  The Barker Report clearly highlighted
the under provision of new homes and the Government has shown an increasing
focus on delivering affordable homes for people to buy.  Redrow introduced the
Debut range to address this key sector of demand in the market largely ignored
by the new homes industry. It delivers on aspects of Government policy relating
to affordability, use of Modern Methods of Construction and improved
sustainability.

Debut homes range from 275 sq. ft. to 700 sq. ft. and on the first development
at Rugby, sold for an initial cash consideration ranging from £49,995 up to
£109,995.  Debut will create communities with a sense of place and neighbourly
spirit and delivers quality homes which are contemporary in design to suit the
target market.  Quality of construction and the environment is a key component
within the Debut concept and the use of Modern Methods of Construction, in
particular lightweight steel frames produced by Framing Solutions, improves both
efficiency and quality.  To deliver more sustainable communities, Debut schemes
target Eco-Excellent ratings under the BRE classification and the first scheme
at Rugby is one of the few developments in the UK to have achieved this
demanding target.  Debut is targeted at customers who wish to buy and live in
their own home and the legal framework prevents purchase by investors.  Redrow
intends to operate the management of the developments into the future to ensure
that the initial quality is maintained.

Importantly, Debut delivers margins broadly in line with the Signature range,
thereby delivering appropriate returns for Shareholders.  Increased coverage and
speed of build mitigate the increased cost associated with the quality of build
and the enhanced sustainability.  However, Debut will benefit the Group's return
on capital employed as it enables us to bring forward the development of some of
our land bank as well as securing a faster rate of sales and build to return
cash for re-investment more quickly.

The Debut concept commenced development in the middle of 2004 and within 12
months has delivered its first legal completions.  It demonstrates Redrow's
ability to be imaginative and innovative and to adapt its business to the
market.  We now have planning permission for nearly 300 Debut units and have
submitted planning applications for a further 400 units on five sites.  We have
been particularly encouraged by the response of the Local Authorities in respect
of our first three Debut schemes, each of which secured planning consent
unanimously and within the Government's thirteen week target.  This new product
offers a significant opportunity for incremental volume growth for Redrow and we
have set our objective of delivering 2,000 Debut homes per annum within five
years.

Homes Operations

Overall, the Homes operations increased legal completions by 2% to 4,372 (2004:
4,284).  The average selling price was £172,400 as compared with £154,700 last
year.  This increase of 11% primarily reflected the product mix with an
increased proportion of In the City legal completions, particularly on the
higher value Odyssey scheme in London Docklands.  Turnover increased by 14% to
£753.8m (2004: £662.7m).  Operating margins for the year were broadly maintained
at 19.6% as compared with 19.8% last year.  As we have previously indicated, we
anticipate an easing in margins in the current year as the inflationary element
within our land bank continues to unwind.

During the last twelve months, we have seen greater pressure on material prices
than in recent years, particularly where materials have a high energy or steel
content.  Our policy of central purchasing and historic partnering arrangements
have contained overall increases to a minimum level, with some 90% of materials
on the Signature Range being sourced through Group deals.  Encouragingly, we
have experienced an easing of pressures on labour costs with the changing
housing market but inevitably there are 'hot spots' in terms of labour rates
where there are high levels of construction activity.

The Northern Region is our most mature area of operation and legally completed
1,832 units (2004: 2,108) in the year to June 2005. Whilst there remain
opportunities to increase volumes in this Region, our key areas for volume
growth are in the Western and Southern Regions.  In the Western Region
significant growth has been delivered over the last few years and 1,290 homes
(2004: 1,134) were legally completed during the financial year.  Redrow Homes
(West Country) will make its maiden contribution in the year to June 2006 as it
launches its first sites in the second half of this calendar year to increase
the capacity for volume growth in this Region.  In the Southern Region we
delivered 1,250 legal completions (2004: 1,042).  We have geographically
positioned our operations to be able to take advantage of the growth areas
identified by Government and have in addition established Redrow Homes (East
Midlands) in Newark to provide a further opportunity for growth.  It will launch
its first sites in the second half of this calendar year and will also make its
first contribution to volumes in the year to June 2006.

We have developed our organisational structure to provide us with the capacity
to grow our business organically.  We have the potential to drive top line
growth and deliver 7,000 legal completions per annum in the medium term from our
Signature and In the City products plus the opportunity for additional
incremental growth from Debut, without significant further investment in our
fixed cost base.

Mixed Use and Regeneration

The mixed use capability within the Group continues to assist in unlocking
residential development opportunities.  We have continued to progress our mixed
use scheme at Buckshaw Village, Chorley where, in addition to the legal
completion of 102 residential units during the financial year and securing our
second Debut development for 71 units, we made significant progress with Matrix
Park, the commercial scheme.  During the year, we have disposed of two
industrial units totalling 45,500 sq. ft., developed and sold four office units
comprising 15,000 sq. ft. and completed the pre-sold investment of the 100,000
sq. ft. facility for Vernon Carus Limited.  We have now commenced a further
phase of offices on the development.  In addition, at Western Approach, Bristol
we completed the disposal of the 51,000 sq. ft. warehouse unit as well as the
remaining land holdings on the distribution park.

As regards the future, amongst other opportunities, we continue to progress the
major mixed use scheme at Bishopton near Glasgow through a development agreement
with BAE SYSTEMS plc that has the potential to provide 1,500 residential plots
and 100 acres of commercial development.  During the last year, the Scottish
Executive approved in principle a new motorway access to facilitate the
development representing a major milestone in the progress towards securing a
planning consent.

In addition, as part of the Group's long term strategy to land acquisition and
to provide further opportunities for growth in London and the South East, Redrow
Regeneration was established during the first half of the financial year to
focus on large scale regeneration opportunities in this area.  It has entered
into a 50:50 joint venture for the redevelopment of Watford Junction railway
station.  This is a major transport hub and the scheme has the potential to
deliver 2,200 residential units and 150,000 sq. ft. of commercial property as
well as significant infrastructure and community benefits.

The strong trading performance from our mixed use developments means that even
after taking into account the significant pre-development and option costs on
the Watford Regeneration joint venture, the mixed use and regeneration
activities have generated £4.5m of operating profits (2004: £2.7m).  The related
turnover of £26.6m (2004: £7.2m) benefited the Group's year end cash position.
Looking forward to the new financial year, we would expect that further
pre-development expenditure within Redrow Regeneration is likely to offset
profits from the mixed use elements of our developments.

Framing Solutions

Framing Solutions, our joint venture company that supplies lightweight steel
frames to the housebuilding industry, performed in line with our expectations
during the last financial year.  In terms of financial results, its performance
is not significant in a Group context and we expect to see a marginally reduced
loss in the new financial year.  There is an increasing focus on Modern Methods
of Construction that were a feature of the Barker Report and which are an
important element in current Government thinking. Lightweight steel frame
construction plays an increasingly important role within Redrow, providing a
system that offers benefits as regards build speed and quality. This system is
now an integral part of the Group's new Debut product and in our success in
reaching the final stages of the ODPM and English Partnership Design for
Manufacture competition.

Employees and Skills

Redrow remains committed to developing the skills of its employees.  During 2004
/05 the in-house training@redrow team delivered some 40 different courses and
approximately 4,000 equivalent days of training to our employees including
formal induction for all new employees. All new Directors promoted from within
and recruited externally attend an induction course.  We continue to invest in
the future by taking on young people as apprentices in a variety of trades and
by continuing to develop the skills of our graduate trainees, more of whom have
now reached manager level.  In 2005 we are introducing a new Assistant Site
Manager Development Programme aimed at those with the potential to progress
their careers.

The Barker Report challenged the sector as a whole to develop skills within our
industry. As part of the Major Home Builder Group, we are taking part in the
skills initiative with CITB-ConstructionSkills to pilot an alternative
apprenticeship aimed at providing a new route for young people to learn a trade,
to develop a new qualification for our site managers and to aim for all persons
working on our sites to have CSCS cards by December 2007, leading to a qualified
workforce by December 2010.

We also remain committed to providing safe environments on our sites and Redrow
is playing an active role in developing the Home Builders Federation Health &
Safety Charter. All our operating companies once again received British Safety
Council awards and a Silver Award was secured from the Royal Society for the
Prevention of Accidents to complement the Bronze Award of last year. Further
reductions in our Accident Incidence Rate and the number of injuries reported
under the Reporting of Injuries, Diseases and Dangerous Occurrences Regulations
were achieved.  In terms of Health and Safety Executive action, as in the
previous year, there was only one prohibition notice issued and no prosecutions
were made or improvement notices issued.

Outlook

In the short term we are focused on the maximisation of sales values and
protecting our margins, increasing our outlets, maintaining the quality of our
land bank, enhancing the effectiveness of our product and controlling cost.
Reservations in the first 10 weeks of the new financial year are 10% ahead of
the corresponding period last year from just over 10% more outlets, albeit the
market has remained competitive and deal led in the seasonally weaker months of
July and August.  Whilst we anticipate a normal seasonal upturn in activity
levels during the Autumn, it is too early to conclude whether the current levels
of incentives will continue through the balance of the calendar year.  The
degree of competitiveness or otherwise within the market will have a significant
impact on the outturn for the first half.  Looking ahead, consumer confidence
will be a key factor in determining the strength of the housing market in 2006.

Redrow has been positioned to manage the period of adjustment to a normal
housing market.  In the medium term it has opportunities to deliver organic
growth through its regional structure, mixed use and regeneration capability,
the incremental benefits of Debut and by continuing to build relationships with
other stakeholders.  These opportunities, together with a high quality land
bank, effective product range and strong management team, position Redrow to be
capable of delivering shareholder value into the future.

Neil Fitzsimmons
Chief Executive


                      CONSOLIDATED PROFIT AND LOSS ACCOUNT
                          12 MONTHS ENDED 30 JUNE 2005

                                                                  Continuing Operations
                                                                        2005               2004
                                                      Note                £m                 £m

Turnover - total                                        2              781.0              670.3
         - share of joint venture                                       (0.6)              (0.4)
Group turnover                                                         780.4              669.9
Cost of sales                                                         (584.0)            (497.0)
Gross Profit                                                           196.4              172.9

Net operating expenses                                  2              (42.1)             (39.0)
Operating profit                                        2              154.3              133.9
Share of operating loss of joint ventures                               (3.3)              (1.2)
Operating profit including share of loss of joint                      151.0              132.7
ventures                                                   
Interest payable                                        2               (9.9)              (8.6)
Profit on ordinary activities before taxation           2              141.1              124.1
Tax on profit on ordinary activities                    3              (42.4)             (37.2)
Profit on ordinary activities after taxation                            98.7               86.9
Dividends                                               4              (17.2)             (14.3)
Retained profit                                                         81.5               72.6

Earnings per ordinary share
-  basic                                                5               62.1p              54.8p
-  diluted                                              5               61.9p              54.6p

Dividend per ordinary share                             4               10.8p               9.0p


The Group has no material recognised gains or losses other than as shown above.

There is no material difference between the profit on ordinary activities before
taxation and the retained profit for the period stated above and their historic 
cost equivalents.


                           CONSOLIDATED BALANCE SHEET
                               AS AT 30 JUNE 2005

                                                                    As at               As at
                                                             30 June 2005        30 June 2004
                                                      Note             £m                  £m

Fixed assets
                                       
Tangible assets                                                      24.3                22.5
Investments in joint ventures                                         2.6                 1.8
                                                                     26.9                24.3


Current assets

Stocks and work in progress                            7            783.5               713.4
Debtors                                                              12.9                11.6
Bank and cash deposits                                 8             23.7                 1.2
                                                                    820.1               726.2
Creditors

Creditors due within one year                          9           (227.9)             (235.6)
Creditors due after more than one year                 9           (156.2)             (134.4)
Provisions for liabilities and charges                               (3.9)               (3.9)
                                                                   (388.0)             (373.9)


Net assets                                                          459.0               376.6

Capital and Reserves
Called up share capital                                              15.9                15.9
Share premium account                                                54.2                53.2
Revaluation reserve                                                     -                 0.3
Capital redemption reserve                                            7.0                 7.0
Consolidation reserve                                                 0.9                 0.9
Profit and loss account                                             381.0               299.3

Equity shareholders' funds                             6            459.0               376.6




                        CONSOLIDATED CASH FLOW STATEMENT
                          12 MONTHS ENDED 30 JUNE 2005

                                                                    2005          2004
                                                     Note             £m            £m

Cash inflow from operating activities                 10            99.5          24.5
Returns on investments and servicing of
finance
Net interest paid                                                   (9.8)         (8.0)
Issue costs of new bank borrowings                                  (0.8)            -
Net cash (outflow) from returns on                                 (10.6)         (8.0)
investments and servicing of finance             
Corporation tax paid                                               (39.8)        (34.1)

Capital expenditure and financial investment
Net purchases of tangible fixed assets                              (4.0)         (7.1)
Payments to joint ventures                                          (3.1)         (0.5)
Dividends paid                                                     (15.2)        (12.7)
Net cash inflow/(outflow) before financing                          26.8         (37.9)
Financing and liquid resources
Issue of ordinary share capital                                      1.0           0.5
Cash deposits - restricted use                                      (2.1)         (0.6)
Purchase of own shares                                              (0.7)            -
Net movement in bank borrowings                                     (0.5)         10.0
Net cash (outflow)/inflow from financing                            (2.3)          9.9
Increase/(decrease) in cash in period                               24.5         (28.0)
Cash deposits - restricted use                                       2.1           0.6
Net movement in bank borrowings                                      0.5         (10.0)
Net movement in issue costs of bank borrowings                       0.4          (0.1)
Change in net (debt)                                                27.5         (37.5)
Net (debt) at start of period                                     (130.7)        (93.2)
Net (debt) at end of period                                       (103.2)       (130.7)


NOTES

1.   Basis of preparation

The above results and the accompanying notes do not constitute statutory
accounts within the meaning of Section 240 of the Companies Act 1985.  They are
taken from the full accounts which have received an unqualified report by the
auditors and will be filed with the Registrar of Companies.

2.   Segmental information
                                                                     2005              2004
                                                                       £m                £m

Turnover
            Homes                                                   753.8             662.7
            Mixed Use & Regeneration                                 26.6               7.2
                                                                    780.4             669.9
            Share of Framing Solutions JV                             0.6               0.4
                                                                    781.0             670.3

Profit on ordinary activities before taxation
            Homes                                                   147.7             131.2
            Mixed Use & Regeneration                                  4.5               2.7
                                                                    152.2             133.9
            Share of Framing Solutions JV                            (1.2)             (1.2)
                                                                    151.0             132.7
            Interest                                                 (9.9)             (8.6)
                                                                    141.1             124.1


Net assets
            Homes                                                   538.1             487.1
            Mixed Use & Regeneration                                 22.5              18.4
            Share of Framing Solutions JV                             1.6               1.8
                                                                    562.2             507.3
Net (debt)                                                         (103.2)           (130.7)
                                                                    459.0             376.6


Mixed Use & Regeneration includes a loss of £2.1m in respect of The Waterford
Park Company Limited, a joint venture company.

In 2005, net operating expenses were comprised of £42.1m administrative expenses
(2004: £39.7m) and other operating income of £nil in respect of office disposals
(2004: £0.7m).

3.   Tax on Profit on Ordinary Activities

                                                                    2005               2004
                                                                      £m                 £m
Current year                                         
UK corporation tax at 30% (2004:30%)                                43.5               36.8
(Over)/under provision in respect of prior year                     (0.2)               0.4
Share of joint ventures' tax losses                                 (1.0)              (0.4)
                                                                    42.3               36.8
Deferred tax
Origination and reversal of timing differences                       0.1                0.4
                                                                    42.4               37.2

Reconciliation of current taxation charge
Tax on total profits @ 30% (2004:30%)                               42.3               37.2
(Over)/under provision in respect of prior year                     (0.2)               0.4
Origination and reversal of timing differences                      (0.1)              (0.4)
Expenses not deductible for tax purposes                             0.3               (0.4)
net of rolled over capital gains
Current tax charge                                                  42.3               36.8

4.   Dividends

The final dividend of 7.2p will be recommended to shareholders for approval at
the Annual General Meeting on 9 November 2005.  This dividend will be paid on 18
 November 2005 to shareholders whose names are on the Register of Members at
close of business on 23 September 2005.  The shares will become ex-dividend on
21 September 2005.  This dividend, when added to the interim, makes a total
dividend for the year of 10.8p (2004: 9.0p).

5.   Earnings per share

The calculation of the basic earnings per share of 62.1p (2004: 54.8p) is based
on Group profit on ordinary activities after taxation of £98.7m (2004: £86.9m)
and on the weighted average number of 10p ordinary shares in issue of 159.0m
(2004:158.6m). The average reflects an adjustment in respect of surplus shares
held in trust under the Redrow Long Term Share Incentive Plan.

Diluted earnings per share has been calculated in accordance with FRS 14 based
on the weighted average number of 10p ordinary shares in issue of 159.5m (2004:
159.2m).

6.   Reconciliation of movement in equity shareholders' funds

                                                       2005                 2004
                                                         £m                   £m
Opening shareholders' funds                           376.6                302.0
Retained profit for the period                         81.5                 72.6
Shares issued                                           1.0                  0.9
Credit in respect of LTSIP                              0.4                  1.6
Contribution to QUEST                                  (0.5)                (0.5)
Closing shareholders' funds                           459.0                376.6


7.   Stocks and work in progress
                                             2005                           2004
                                               £m                             £m
Land held for development                   472.2                          419.0
Work in progress                            314.6                          316.4
Stock of showhomes                           11.0                            7.0
                                            797.8                          742.4
Cash on account                             (14.3)                         (29.0)
                                            783.5                          713.4


8.   Bank and cash deposits

Bank and cash deposits at 30 June 2005 of £23.7m (2004: £1.2m) represent
balances on deposit and money market accounts.

9.   Amounts due in respect of development land
                                             2005                           2004
                                               £m                             £m

Due within one year                          31.9                           56.1
Due after more than one year                 52.4                           29.7
                                             84.3                           85.8



10.  Analysis of cash flow from operating activities
                                                                        2005                 2004
                                                                          £m                   £m
Total operating profit                                                 151.0                132.7
Add back share of joint ventures' operating losses                       3.3                  1.2
Group operating profit                                                 154.3                133.9
Depreciation, including profits and losses on
disposal of fixed assets                                                 2.2                  1.1
Increase in stock and work in progress                                 (70.1)              (134.4)
Movement in other current assets, creditors
and provisions                                                          13.1                 23.9
Cash inflow from operating activities                                   99.5                 24.5


11.  Annual General Meeting

The Annual General Meeting of Redrow plc will be held at St. David's Park Hotel,
St. David's Park, Flintshire on 9 November 2005, 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