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Redrow plc

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Redrow plc
Company typePublic
IndustryHousebuilding
Founded1974
HeadquartersSt David's Park, Ewloe, Flintshire, Wales
Key people
Richard Akers, (Chairman)[1]
Matthew Pratt, (Group Chief Executive)
RevenueDecrease £2,127 million (2023)[2]
Decrease £399 million (2023)[2]
Decrease £298 million (2023)[2]
Number of employees
2,270 (2023)[2]
Websitewww.redrow.co.uk

Redrow plc is one of the largest British housebuilders with a network of 12 operational divisions across the UK.[3] It is based in Flintshire, Wales and employs 2,300 people. It is listed on the London Stock Exchange and is currently a constituent of the FTSE 250 Index.

History

[edit]

Steve Morgan had been working as a site agent for Wellington Civil Engineering when, in 1974, the parent company decided it was to be closed. Morgan offered to take over the contract, borrowed £5,000 from his father, and completed the contract at a profit. Further work was carried out for Wellington and, still aged only 21, Morgan registered his new company – Redrow.[4] Redrow gradually expanded through small civil engineering work and, with Simon Macbryde, formed a separate building company; these were later merged to leave Macbryde with 17 percent of the enlarged company. Geographically, Redrow moved from its north Wales base into Cheshire and in the early 1980s made significant construction acquisitions in Manchester and the Wirral.[4]

Redrow's entry into housebuilding came in 1982 and by 1985 it had grown sufficiently to separate it out from the construction business. A small acquisition in Kent provided the base for a south-east housing operation; a midlands housing subsidiary was formed in 1986 and in 1987 Redrow bought Whelmar Lancashire, one of the five housing subsidiaries then being sold by Christian Salvesen. By now, Redrow was selling over 1,000 houses a year.[5] Further expansion took Redrow into the south-west, south Wales and Yorkshire but Redrow had pulled out of the vulnerable south-east market just ahead of the 1989 property collapse. Redrow returned to the south-east in 1993 as the housing recession neared its end, buying Costain Homes from the troubled Costain Group; this took Redrow's housing sales up to 2,000 a year.[4]

The construction business was sold and with Redrow now purely a development business the company was floated on the London Stock Exchange in 1994.[6] Redrow grew steadily through the rest of the decade reaching sales of 3,000 a year. In 2000 Steve Morgan announced his intention to leave the company, retaining only a 14 percent stake in the company. Paul Pedley, who had joined Redrow as finance director in 1995, took over as managing director.[5] In 2006 Redrow saw its 50,000th customer.[7] In 2009, Steve Morgan returned to Redrow as executive chairman, having increased his shareholding to just under 30 percent.[8]

A Redrow development in Horsforth, West Yorkshire

In 2010, Redrow launched its Heritage Collection[9] followed by the Regent Collection[10] and more modern Abode Collection.[11]

In February 2017, Redrow acquired Radleigh Homes in Derby, an established company which delivered 200 new homes in 2016. It was later re-branded as Redrow Homes (East Midlands).[12] Then, in September 2017, it was announced that Morgan would "ease back" to a non-executive chairman role with Redrow.[13]

On 18 October 2018, Redrow announced its 100,000th customer and released statistics on the number of direct jobs it had created (36,000), including 2,000 trainees, and a further 200,000 indirect employees.[14] On 7 November 2018, it was announced that Steve Morgan would retire from the company in March 2019 with John Tutte taking over as executive chairman and Matthew Pratt as chief operating officer.[15] Tutte himself announced his retirement in 2020 with Matthew Pratt taking over as group chief executive.[16]

Like most housebuilders, Redrow temporarily closed most of its sites during the COVID-19 pandemic in the United Kingdom during early 2020. The site closures pushed house sales down by a third. In a trading update, Redrow said it had completed 4,032 homes up to 28 June 2020, compared to 6,443 in 2019. Turnover was expected to be £1.34bn against £2.11bn in 2019.[17]

In June 2020, following a review of its divisional businesses, Redrow decided to scale-back its operations in London to focus on its Colindale Gardens development and announced it would continue to target the group's future growth on the higher returning regional businesses and the Heritage product.[18][19] In the same year Redrow partnered with Liverpool John Moores University to offer a degree in Construction Management, receiving over 800 applications. Previously the degree had only been open to Redrow employees but the company opened it up to outside applicants.[20]

In June 2021, the company announced the appointment of Richard Akers as its new non‐executive chairman effective from September 2021.[21] The company also announced a new Southern division to expand the company's reach to Surrey and Sussex in June 2021[22] which was opened in May 2022.[23] In November 2021, the company joined the UNFCCC Race to Zero and signed up to the Science Based Targets initiative (SBTi), supporting efforts to limit global warming to 1.5°C.[24]

In 2022, Redrow was included in the FT-Statista annual climate leaders list of companies achieving the greatest reductions in their Scope 1 and 2 greenhouse gas emissions intensity over a five-year period (2015-20).[25] The company was also admitted to the FTSE4Good Index, for demonstrating strong Environmental, Social and Governance (ESG) practices.[26]

In October 2022, Redrow became one of the first house builders to implement the New Homes Quality Board's new code of practice, an independent not-for-profit organisation that has been set up to offer better protection and increased transparency for customers.[27]

In January 2023, Redrow became the first large housebuilder to introduce air source heat pumps in all its upcoming developments as the company moves away from traditional gas boilers. Underfloor heating would be provided as standard in its detached homes. The move to air source heat pumps will have the biggest impact to date on the efficiency of Redrow homes as it moves towards all-electric power systems in line with its commitment to achieving net zero carbon by 2050.[28]

In December 2023, Redrow developed and launched a new mobile app, helping homeowners find their new home; the app is the first and only one of its type on iOS and Android.[29]

On 7 February 2024, Barratt Developments made an agreed offer to acquire the company for £2.5 billion;[30] on the same date, both firms had confirmed reduced revenue and profit.[31] The merged businesses would create a house builder turning over £7.45bn and delivering over 22,600 homes a year.[32] Subject to regulatory and shareholder approval, the deal was expected to be completed in the second quarter of 2024.[32] The deal would see around 800 jobs lost (a 10% reduction in total employees) and nine offices close.[33] In March 2024, the Competition and Markets Authority (CMA) opened an investigation into the proposed acquisition, assessing if it might "result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services."[34] In May 2024, the proposed merger was approved by shareholders, but the deal remained subject to CMA clearance.[35]

In February 2024, Barratt and Redrow were among eight UK house-builders targeted by the CMA in an investigation into suspected breaches of competition law. The CMA said it had evidence that firms shared commercially sensitive information with competitors, influencing the build-out of sites and the prices of new homes.[36]

Flagship developments

[edit]

The company's flagship developments include:

  • Woodford Garden Village: the first garden village for over 100 years in North West England being built on over 500 acres of brownfield land, previously used for aircraft manufacturing.[37]
  • Ebbsfleet Green, Kent: 950 new homes, along with a village centre, park, sports pitches, a hotel and a pub, and a primary school.[38] This development forms part of plans for a garden city at Ebbsfleet, with up to 15,000 new homes, based predominately on brownfield land, or former quarries.[39] This development, is also part of the NHS Healthy New Towns network.[40]
  • Plasdwr: Redrow is developing around 2,000 homes in Plasdwr, north west Cardiff. The £2 billion Cardiff 'garden village' will comprise four different zones, each with a central square and a primary school.[41]
  • Colindale Gardens: a £1 billion mixed use development in north west London, which will have more than 2,900 homes. At 47 acres in total, the regeneration utilised a tower block and adjacent land from the Peel Centre, formerly part of the Hendon Police College.[42]
  • Ledsham Garden Village: A 105-hectare site in South Wirral will become a sustainable new community of up to 2,000 homes. It will create employment, education and leisure opportunities and green open spaces.[43]
  • Amington Garden Village, Tamworth: This 60-hectare former golf course site will feature up to 1,100 new homes and a package of community investment worth £14 million, including funding towards the cost of building a new primary school, a new community woodland and extending the Hodge Lane Local Nature Reserve.[44]

The company has commissioned research by two academics, Stefan Kruczkowski and Laura B. Alvarez, in order to develop eight principles of creating better places.[45]

References

[edit]
  1. ^ "Redrow announces £254m profit, more than double last year". Place North West. 15 September 2021. Retrieved 15 September 2021.
  2. ^ a b c d "Annual Report for the 52 weeks to 2 July 2023" (PDF). Redrow plc. Retrieved 13 February 2024.
  3. ^ "Divisional Offices". Redrow. Retrieved 2 December 2020.
  4. ^ a b c Burland and Whitehouse, The Redrow Way (1999)
  5. ^ a b Wellings, Fred: Dictionary of British Housebuilders (2006) Troubador. ISBN 978-0-9552965-0-5
  6. ^ Company Prospectus
  7. ^ "Win Cements a year of Fortune". Daily Post. 4 September 2007. Retrieved 20 April 2013.
  8. ^ Steve Morgan regains control of Redrow in swift coup The Times, 21 March 2009
  9. ^ "Redrow launches new heritage collection". Easier.com. 11 February 2010. Retrieved 26 September 2018.
  10. ^ "Redrow to unveil regent collection show homes in Chester". Building Construction Design. 13 May 2016. Retrieved 26 September 2018.
  11. ^ "Homes to fit the future in Lancaster". whathouse.com. 25 August 2016. Retrieved 26 September 2018.
  12. ^ "Radleigh Homes bought by Redrow". Insidermedia. Retrieved 12 October 2018.
  13. ^ "Place North West | Morgan to step back as Redrow reports another record year". Place North West. 5 September 2017. Retrieved 27 October 2018.
  14. ^ Hughes, Owen (23 October 2018). "School expulsion to millionaire developer for Steve Morgan - who says parts of Wales now a no go area for house building". northwales. Retrieved 25 October 2018.
  15. ^ "Morgan announces his departure from Redrow". Construction Index. Retrieved 7 November 2018.
  16. ^ "Redrow delays power transfer". Construction Index. Retrieved 20 April 2020.
  17. ^ "Lockdown cuts Redrow annual sales by a third". The Construction Index. 30 June 2020. Retrieved 30 June 2020.
  18. ^ Bayley, Sian (18 September 2020). "Wandsworth Alton Estate regeneration to go ahead despite withdrawal of developer". MyLondon.
  19. ^ Jolly, Jasper (30 June 2020). "Redrow shifts its housebuilding focus away from London". MyLondon.
  20. ^ Priory, Grant (10 November 2020). "Redrow receives 800 applications for construction degree". Construction Enquirer.
  21. ^ "Redrow names new chairman". Construction News. 12 May 2021. Retrieved 14 June 2021.
  22. ^ "Redrow launches Southern division". Housebuilder. 2 June 2021. Retrieved 2 June 2021.
  23. ^ "Redrow Southern debuts a better way to work with first look at new divisional office". Redrow. 24 May 2022. Retrieved 24 May 2022.
  24. ^ MacFarlane, Isla (31 October 2021). "Redrow sets Net Zero target for business and supply chain by 2050". Showhouse. Retrieved 31 October 2021.
  25. ^ Hawcock, Neville (12 April 2022). "Europe's Climate Leaders 2022: interactive listing". Financial Times. Retrieved 12 April 2022.
  26. ^ "FTSE4Good Index Series". FTSE Russell. 3 November 2022. Retrieved 3 November 2022.
  27. ^ "New homes ombudsman service opens for business". Housing Today. 4 October 2022. Retrieved 4 October 2022.
  28. ^ "New houses will have heat pumps as standard, says Redrow". Telegraph. 24 January 2023. Retrieved 1 February 2023.
  29. ^ "Redrow launches new mobile app to help buyers find their dream home in a few taps". Building, Design and Construction Technology. 7 December 2023. Retrieved 7 December 2023.
  30. ^ "UK's biggest housebuilder Barratt to buy rival Redrow for £2.5bn". The Guardian. 7 February 2024. Retrieved 7 February 2024.
  31. ^ Gayne, Daniel (7 February 2024). "Barratt and Redrow profits down on day merger between pair announced". Building. Retrieved 8 February 2024.
  32. ^ a b Morby, Aaron (7 February 2024). "Barratt strikes deal to buy Redrow for £2.5bn". Construction Enquirer. Retrieved 8 February 2024.
  33. ^ Prior, Grant (8 February 2024). "Barratt Redrow deal could see 800 jobs lost". Construction Enquirer. Retrieved 8 February 2024.
  34. ^ Prior, Grant (15 March 2024). "Competition watchdog probes Barratt Redrow merger". Construction Enquirer. Retrieved 15 March 2024.
  35. ^ Morby, Aaron (16 May 2024). "Shareholders approve £2.5bn Barratt and Redrow merger". Construction Enquirer. Retrieved 16 May 2024.
  36. ^ Morby, Aaron (26 February 2024). "Competition probe launched into 8 major house builders". Construction Enquirer. Retrieved 26 February 2024.
  37. ^ "Redrow makes start on Woodford Aerodrome homes". 25 May 2016. Retrieved 25 May 2016.
  38. ^ "Approval given for 233 new homes in Ebbsfleet garden city". Retrieved 17 October 2017.
  39. ^ "Major projects and developments". Retrieved 14 July 2017.
  40. ^ England, NHS. "NHS England » Ebbsfleet". www.england.nhs.uk. Retrieved 23 November 2018.
  41. ^ "This is what Cardiff's new 7,000 home £2bn 'Garden City' suburb will look like". Retrieved 16 March 2017.
  42. ^ "Former Peel Centre, Peel Drive, Colindale, London, Application summary". Retrieved 29 August 2016.
  43. ^ "Ledsham Garden Village, Wirral | TEP – The Environment Partnership". www.tep.uk.com. Retrieved 23 November 2018.
  44. ^ Jones, Tamlyn (5 February 2016). "Redrow to build 1,100 new houses on former golf course". birminghampost. Retrieved 23 November 2018.
  45. ^ "Wales' Five Star Builder is Creating Better Places to Live". Business News Wales. 30 December 2020. Retrieved 30 December 2020.
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