Trading Statement

Redrow PLC
11 July 2002


REDROW PLC

ANALYST PRESENTATION


Redrow plc hosted a presentation for analysts after close of trading on the
London Stock Exchange on Wednesday 10 July 2002.  In addition to providing a
trading update, presentations were also given by the Sales and Marketing
Director relating to product branding, the Research and Development Director on
a new joint venture with Corus Building Systems for the manufacture of steel
frames and the Human Resources Director on initiatives in respect of staff
training within Redrow.  Redrow is also pleased to announce that John Tutte has
been appointed a director of Redrow plc with effect from 10 July 2002.

The following provides information regarding the Board appointment, and the new
joint venture with Corus Building Systems for the manufacture of steel frames as
well as the trading update to June 2002.


Board appointment

John Tutte joined the Group in January of this year as joint Chairman of the
Southern Region to share with Greg Locke the responsibility for the development
of the Southern Region. He has a wealth of experience and knowledge of the
housebuilding industry and has made a significant contribution during his six
months with the Group.


Joint Venture with Corus Building Systems

Redrow has entered into a new 50:50 joint venture with Corus Building Systems
for the manufacture of lightweight steel frames for use both by Redrow and the
housebuilding industry as a whole.  The venture, which is currently subject to
regulatory approval by the European Commission, will combine Redrow's
development skills with the know-how and manufacturing expertise of Corus.

The industry in general has been investigating alternative building methods to
counter the issue of skill shortages in certain labour trades.  Redrow has
successfully trialled the use of the lightweight steel frames produced by Corus
on a site of 52 units at Ebbw Vale in South Wales.

Redrow and Corus have agreed to enter into a joint venture within a stand- alone
company to manufacture the system. The system has full BBA accreditation as well
as being accepted by the NHBC and most mortgage lenders.  A plant with new
modern roll forming equipment and CAD design software will be established at
Swadlincote in Derbyshire.  Each partner has agreed to a capped investment of
approximately £3.0m to be invested during the first year, and the company will
also have its own non-recourse bank facility.  Production using the existing
plant is expected to commence at Swadlincote in September 2002 with the new
machinery being commissioned for use in Spring 2003.

Redrow believes the use of this system provides a long-term sustainable
alternative to traditional construction methods and gives some important
benefits within the construction process.  Build times can be reduced by some
30% and the system removes certain labour trades from the critical path of
production.  In addition, producing a watertight internal environment in a much
shorter period enables internal and external labour work to be carried out
simultaneously on the same property.  The system should improve build quality,
reduce maintenance and provide greater certainty in the timing of delivery of
the home to the customer.

The system is produced from steel using approximately 50% recycled material and
the frame is also 100% recyclable.  Use of the system also reduces the amount of
waste material generated on site.


Trading Update

During the financial year to 30 June 2002, the Homes Division secured
approximately 3,900 legal completions including approximately 335 from the Tay
Homes developments, in total an increase of 12.5% on last year.

Within Redrow Homes, the average sales value of our legal completions has
continued to increase and in the second half averaged approximately £144,000,
giving an overall average sales value for the financial year of £140,000.  The
Tay Homes average sales value was approximately £105,000, in line with the
indication given at the Interim Results presentation in March.

As previously reported, Redrow Commercial legally completed the disposal of the
schemes at Windsor, Altrincham and Wakefield in the first half of the financial
year.  After allowing for second half pre-development costs of progressing
developments through the planning system and for normal company overheads,
Redrow Commercial will deliver an operating profit of approximately £3.0
million.

As regards the sales performance, this continued throughout the six-month period
broadly in line with the level indicated at the Interim Results presentation.
Sales of the Heritage and Harwood ranges in the second half were 10% ahead of
the corresponding period last year whilst sales on the city centre schemes were
maintained at the same rate per development but overall reflected the fact that
only three developments were on sales release during the period as compared to
six last year.  Tay Homes developments added a further 300 reservations over the
six-month period.

Combining these results, total reservations were up 14% on the equivalent period
last year.  This improvement in sales performance translated into an increase in
the number of forward sales of 20% reflecting the decision to take advantage of
the Spring market prior to entering the new financial year.

The current land bank has increased over the last 12 months from 14,300 to
15,600 plots.  The Group has had considerable success in progressing sites
through the planning system and land held with planning has increased from
11,300 to 13,400 plots, an increase of nearly 20%.  Of the 6,000 plots acquired
during the financial year, 1,400 were secured through the acquisition of Tay
Homes with 25% of the balance being converted from forward land.

As regards construction costs, material price increases have continued to be in
line with inflation, but on-going skilled labour shortages have resulted in more
significant cost increases of between 5% and 10% for some trades.  In addition,
the ever increasing burden of new building regulations has also increased the
cost base within our industry as have the various tax increases that central
government has imposed most notably the new Aggregate Tax and higher rates for
Landfill Tax.

The integration of Tay Homes is now fully complete and all developments are
performing in line with expectations.  The re-branding of developments, together
with the re-planning of sites where appropriate has been smoothly achieved,
whilst the retained Tay Homes staff have been integrated into the appropriate
Redrow companies.  Previously it was indicated that the acquisition of Tay Homes
would be earnings neutral in the year to 30 June 2002.  Following the successful
integration of the business, the acquisition will have a slightly earnings
enhancing effect in the year to 30 June 2002.

Redrow has always maintained its focus on delivering quality returns and indeed
in the financial year just ended will at least deliver a return on capital
employed in line with that achieved in the last four years, namely 28%.  The
acquisition of Tay Homes resulted in a short-term increase in gearing.  However
subsequent to the acquisition, borrowings have been reduced and as at the
year-end were below £100 million.

The Group has always placed great emphasis on the quality of its land bank as it
represents the key to future profitability.  Based on the quality of the Group's
land bank at 30 June 2002, operating margins as previously reported continue to
be sustainable.

By focussing on quality returns and through the Group's broad product portfolio
enabling the value from the land bank to be maximised, Redrow will continue to
deliver value in the future and by doing so, continue to deliver value to
Shareholders.


The Market

During the last few weeks there has been an almost unprecedented focus on the
housing market, drawing comments from a very wide audience.  Over the last three
years, values within the housing market have advanced to reflect low general
inflation rates and hence the adoption of a low interest rate regime within the
UK.

In the Spring of 2002, the industry witnessed a strong sales period largely
driven by the imbalances between supply and demand caused by delays emanating
from the planning system and relatively sound levels of affordability due to low
interest rates.

During late May and June, the market has moved back towards the more normal
annual pattern, reflecting the traditional slowing as the Summer period
approaches.

Turning to the future, the fundamentals for the industry remain sound whether
considered on demographic, housing stock, affordability or economic grounds.
Accordingly, barring the impact of events totally outside of Redrow's control,
the Company looks forward with confidence on the basis of the belief that the
housing market remains both sound and sustainable.


Enquiries


Paul Pedley - Chief Executive                        Redrow plc
Neil Fitzsimmons - Finance Director                  0207-404-5959 (11 July)
                                                     01244 520044 (thereafter)

Patrick Handley/Nina Richmond                        Brunswick Public Relations
                                                     0207-404-5959


Further information on Redrow plc can be found at www.redrow.co.uk


                      This information is provided by RNS
            The company news service from the London Stock Exchange