| Redrow plc | |
| Type: | Public |
| Foundation: | 1974 |
| Location: | St David's Park, Ewloe, Flintshire, Wales |
| Key People: | Richard Akers, (Chairman)[1] Matthew Pratt, (Group Chief Executive) |
| Industry: | Housebuilding |
| Revenue: | £2,127 million (2023)[2] |
| Operating Income: | £399 million (2023) |
| Net Income: | £298 million (2023) |
| Num Employees: | 2,270 (2023) |
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.
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]
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 August 2024, the CMA said the proposed deal only raised competition in relation to developments in and around north Shropshire. Barratt and Redrow could make submissions to address the CMA's concerns about that area, to avoid the deal being subject to an in-depth phase two review.[36]
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.[37]
The company's flagship developments include:
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.[42]
The company has commissioned research by two academics, Stefan Kruczkowski and Laura B. Alvarez, in order to develop eight principles of creating better places.[46]