Trading Statement

Redrow PLC
04 July 2003


REDROW PLC

PRE-CLOSE TRADING UPDATE

As part of its normal investor relations activity, Redrow plc is issuing this
pre-close trading update in advance of the preliminary results announcement on
16 September 2003 for the twelve months ended 30 June 2003.

ANALYST PRESENTATION

Redrow plc hosted a presentation for analysts after close of trading on the
London Stock Exchange on Thursday 3 July 2003.  The presentation included
information on the new Redrow housing range and the Group's approach towards
land and planning in addition to a pre-close trading update.

NEW HOUSING RANGE

Redrow is launching a new housing range in response to changes in customer
expectations and the Group's objective of increased standardisation within the
build process.  The new range, comprising three distinctive specifications, will
be phased in on new developments in 2004 and will be consistently marketed under
the Redrow brand to replace the previously successful Heritage and Harwood
products.

The range has been developed after detailed evaluation of the existing
portfolio, with a focus upon improving ease of build and reducing maintenance,
whilst at the same time enhancing internal specification and the aesthetics
created by the built environment.  The new range incorporates greater internal
standardisation through the use of common floor plans and has been designed to
be constructed using both steel frame and more traditional methods.  It also
embraces increased off-site manufactured elements.

The three specifications in the new housing range retain the distinctiveness and
quality that has been synonymous with Redrow and will maintain the broad product
offering and differentiation previously provided by the Heritage and Harwood
products.

LEGAL COMPLETIONS IN YEAR TO JUNE 2003

Redrow achieved approximately 4,025 legal completions in the year ended June
2003 which compares with 3,908 legal completions in the previous twelve months.
The previous financial year included six months' trading from the acquisition of
Tay Homes, and the volumes delivered to the end of June this year reflect the
scaling back of output from the Tay land bank to achieve the sustainable
position envisaged at the time of the acquisition.

AVERAGE SELLING PRICES AND PRODUCT MIX

The average sales value of legal completions for the last six months was
approximately £149,000 (H2 2002: £141,500) and for the year as a whole,
approximately £147,500 (2002: £139,000).  The average selling price in the
second half was only marginally ahead of the £146,500 achieved in the first six
months because of the second half product mix, which had fewer completions from
the higher value In the City schemes.

SALES PERFORMANCE

The increase in sales outlets projected at the time of our interim results in
March duly came on stream.  Unit reservations for the last six months totalled
some 2,680 (H2 2002: 2,464), approximately 9% ahead of the same period last
year, which was itself an exceptionally strong market.  Approximately half of
this increase can be attributed to the very successful launch of Altolusso,
Redrow's In the City scheme in Cardiff, with the remainder attributable to the
Group's planned strategy of new sites being brought on stream in the first part
of the calendar year.  For the year as a whole, the Group recorded reservations
of approximately 4,560 (2002: 4,168), again some 9% ahead of the previous twelve
months.  Forward sales of some 2,060 units (2002:1,526) were 35% ahead of the
position as at June 2002 with a value of over £303m (2002: £218m), an increase
of 39%.  Forward sales include approximately 350 units on In the City schemes,
which will deliver legal completions in the financial year ended June 2005.

SALES APPROACH

As highlighted in the interim results, the Group recognised in the autumn of
2002 the importance of adopting a strategy to counter the possible impact of a
slowing market.  The principal element of this strategy was to ensure that new
sites were launched during the spring and early summer, when the market was
anticipated to be at its most receptive.  Redrow's sales performance in these
more normal market conditions is attributed to the timing of these sales
launches and to the broad range of homes offered to its customers, with a focus
on a price bracket consistent with the average selling price for a new home in
the UK.  As a result of delaying some sales launches from the latter part of
2002 into early 2003, the Group's legal completion profile for the financial
year ended June 2004 may be slightly more weighted towards the second half than
has historically been the case.

FINANCIAL PERFORMANCE

The Group continues to remain very focused upon delivering a combination of
margins and return on capital employed at the top end of sector performance.
Operating margins within Redrow Homes for the full year are expected to be
marginally ahead of the 18.4% delivered in the first six months.  As stated at
the time of the interim results, it is anticipated that the operating margins
will gradually return to levels previously identified as sustainable if house
price inflation returns to its historical relationship with increases in average
earnings.  Such margins are supported by the quality of the Group's land bank.

Gearing at the year-end was approximately 32% (June 2002: 39%) and the Group is
expected to deliver a return on capital employed for the year to June 2003 of
over 30% (2002: 30%).

LAND

Over the last twelve months the Group has continued to grow its current land
bank, which has risen from 15,600 plots at June 2002 to 16,000 plots at the end
of June 2003.  Land with planning increased from 13,400 plots to 14,000 plots.
The Group is in a very strong position as regards the effectiveness of its land
holdings and owns with planning all the land it requires for its anticipated
legal completions in the year to June 2004.  Furthermore, 85% of land is owned
with planning to meet anticipated volumes for the following year and indeed all
is either owned or controlled.  Redrow is in a strong position to continue to
build on its land bank to deliver continued growth over the medium term.

COSTS

The Group has witnessed no significant change to the prices of materials, with
increases overall in line with inflation.  However, the shortage of skilled
trades remains a serious issue for the industry and there are no obvious signs
of easing in the annual rate of increases of between 8% and 10%.

FRAMING SOLUTIONS

Framing Solutions was launched towards the end of 2002 to manufacture light
steel frames for use in house building.  The business continues to trade as
anticipated with the new roll forming machine currently being commissioned.
This new machine will enable increased production levels of steel frames and
improve efficiency.   Redrow has now used light steel frames on four sites and
it is anticipated that a further five sites will be in production by December
2003.

REDROW COMMERCIAL

The pre-sold, pre-let 51,000 sq ft distribution warehouse at Western Approach
Bristol completed, as expected, in April 2003.  In addition, disposals were
completed of approximately five acres of land and of a warehouse unit of some
20,000 sq ft at Buckshaw Village in Lancashire.  These transactions mean that
Redrow Commercial's operating profits will be slightly ahead of the £2.3m
anticipated at the time of the interim results.

Contracts have also been exchanged for the sale of Evolution, nursery office
units of some 13,000 sq ft constructed at St David's Park, near Chester, and,
subject to planning, for the sale of 31 acres of land at Buckshaw Village to
Aldi for a major new 650,000 sq ft distribution centre.  These transactions
represent a solid start to generating the appropriate level of profitability in
the new financial year for the Group's commercial activities.

PEOPLE

Redrow places significant importance on developing its staff.  The Group has
long recognised the need for training, for example, through its Henley
Management Programme and Graduate scheme and now Redrow has committed to invest
£500,000 into a new training facility, which is currently being constructed next
to the offices of Redrow Homes Midlands at Tamworth.  From the autumn, these
facilities will be used to deliver focused inductions to all management and site
staff within Redrow and to ensure the effective training across all disciplines,
most particularly to site managers, sales and surveying staff.  The annual costs
of this facility will be approximately £400,000 with the centre capable of
providing some 400 courses annually to its employees.  The Group considers this
to be an initiative of key importance in the years ahead in promoting Redrow as
an employer of choice within the industry.

CURRENT MARKET AND PROSPECTS

The housing market of Spring 2002 was extremely strong and was not sustainable.
As indicated in both the preliminary results last September and the interim
results this March, Redrow positioned itself for more normal market conditions
and indeed this has been the Group's experience to date in 2003.  As regards
selling prices, increases have continued but to a lesser degree than last year,
which bodes well for a sustainable housing market for the future.

Paul Pedley, Chief Executive, said

'The Group has a broad product range, a wide geographic spread and a strong land
bank, and these factors, together with a record forward sales position, leave
Redrow well placed to deliver a further year of growth.'


                                     -ends-


Enquiries
Redrow plc                                             On the day: 020 7404 5959
                                                       Thereafter: 01244 520 044
Paul Pedley, Chief Executive
Neil Fitzsimmons, Finance Director

Brunswick                                              020 7404 5959
Patrick Handley
Nina Richmond


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