gamesinvestor
04 Jul 2016
Re: NEW ARTICLE: Business booming at Redrow " but Redrow (RDW) has rebounded sharply from Friday's five-year low."There must be a mistake here.The 5 year low for Redrow is about 105.9 --- today it's still 312.2Some way to go to get close to a 5 year low, although it may never do so of course.Redrow is undoubtedly a well run company, but if the market gets taken away from you, no amount of excellent management can compensate fully.If fear grips the housing market could all but stall. In 2012 Redrow had a revenue of about £480M and a pre-tax profit of £43M. Today it's £1.3Bn and £238M so it's a much bigger company. However, even a fall in revenue of 30% would probably have a disproportionately larger % fall in profits -- so who knows where the stock price and the dividend would end up.Cyclical industry, cyclical stock price and dividend payments is the reality.Games -- watching for a while
Simbrad
29 Jun 2016
Beaufort note out this morning: Redrow expects to deliver a strong performance in FY 2016 on account of favourable housing market conditions. Its sales remain solid, supported by an increase in completions and a rise in the average selling price of a private home. The value of private reservations remained strong, largely due to strong regional growth. Redrow has made good progress on the operational front, given it completed developments at Commercial Street and Amberley Waterfront. Its London developments, including the Croydon joint venture, have either sold in line with or beat management expectations. Redrow’s debt declined owing to higher turnover and better payment terms on land purchases. The initial impact of Brexit on the company has been minimal, with underlying demand for its homes appearing at this time capable of delivering long-term growth. Taken from research Tree
II Editor
28 Jun 2016
NEW ARTICLE: Business booming at Redrow "Housebuilders have been demolished since the Brexit vote, but Harriet Mann finds Redrow in great health. Is the sell-off overdone?The UK's Brexit vote has swung a wrecking ball across the housebuilders as investors fearing a housing crash pulled ..."[link]
II Editor
28 Jun 2016
NEW ARTICLE: Business booming at Redrow "Housebuilders have been demolished since the Brexit vote, but Harriet Mann finds Redrow in great health. Is the sell-off overdone?The UK's Brexit vote has swung a wrecking ball across the housebuilders as investors fearing a housing crash pulled ..."[link]
malj1
28 Jun 2016
Re: Interims Interesting comment. The ECB are being very coy who got what in the latest bank funding round. If their pan European funding was allocated on a per capita pro rata basis then the UK banks would have received ca £40bn (& our population is similar to Italy). This is cash for 4 years @ 0% interest max (& indeed possibly a negative interest rate - ie you're being paid to take it). In the UK sooner or later this will find its way into the mortgage market, producing rock bottom rates. The cash is actually available to the banks tomorrow.
Hydrogen Economy
28 Jun 2016
Re: Interims "but when one reads results (including an outlook statement) like these you think - Crisis? What Crisis?"Indeed, very positive- even for the days post result, but of course the IMS is largely backward looking and markets try to be very forward looking, attempting to value NPV of 10 or 15 years earnings. That calculation probably does look rather different today than last Wednesday and of course no one of knows by how much. We know that several Italian Banks have come for $40bn additional funding, unclear if that is a one off or start of something nasty which will hit credit etc. The Government looks to be in poor state to manage the situation and the opposition looks to be in no state for anything. On balance I think that the house builders are in pretty good shape to ride this out, but not without risks. H2 watching with interest
Hardboy
09 Feb 2016
Interims World markets seem to think we are heading for financial Armageddon, but when one reads results (including an outlook statement) like these you think - Crisis? What Crisis?
Stabilo1
13 Oct 2015
Is it time to buy in again? I am Trying to understand why there are jitters in the property sector.'Someone is selling again today. Redrow is now on a future PE of 9 and 8 for the next year. With the report from Bellway this seems a wee bit low. However, when you look at the overall sector all builder shares seem to be down 10/15% from their highs.It is almost as if the market has de-rated the house builders sector and looking at the NAV of each company and pushing the SP figures to reflect historical valves of 1.5-2 x book valve and forgetting about the PE's'[link]
janebolacha
15 Feb 2015
Earnings call transcript, from "seeking alpha" [link]
kieran142
13 Feb 2015
Still topping up
II Editor
11 Feb 2015
NEW ARTICLE: Record-breaking Redrow doubles dividend "Having warned that this financial year would not be as dazzling as the last, the market clearly wasn't expecting much from LSE:RDW:Redrow's half-year results. They were wrong. Profit almost doubled to a new record and the confident housebuilder ..."[link]
Hydrogen Economy
11 Feb 2015
Results - a surprise for some Excellent results, which market reaction indicates exceed expectations, RDW on a 2015 FY forward PE of less than 8.5. No sign of the promised collapse of the housing market. Interim results for the six months to 31 December 2014Financial Results H1 2015 H1 2014 % ChangeRevenue £560.6m £363.0m +54%Operating Profit £95.4m £49.0m +95%Profit Before Tax £91.2m £47.5m +92%EPS 19.9p 10.3p +93%ROCE 21% 14% +50%Dividend per share 2p 1p +100% Financial highlightsGroup revenue rose 54% to a half year record of £560.6m driven by an 18% increase in legal completions and a 14% increase in private average selling price to £300,000 (2014: £262,000)· Gross margin rose to 22.4% (2014: 20.3%)· Record half year pre-tax profit of £91.2m, up 92%· Earnings per share up 93% to 19.9p · Return on capital employed improved to 21% (2014: 14%)· Net debt reduced to £140m (June 2014: £173m) giving gearing of 18%(June 2014: 25%) · Interim dividend of 2p per share, double that of last year Operational highlights · Legal completions rose 18% to 1,850 (2014: 1,565)· Average number of outlets increased to 101 (2014: 93)· Record number of employees at 1,550, up 900 from 2009 levels· London Division contributed £145m of turnover, both residential and commercial (2014: £41m)· Current land bank 16,950 plots (Dec 2013: 16,250)· Regional private order book up 30% at £334m (Dec 2013: £256m)
janebolacha
09 Feb 2015
Encouraging comment from "Wales Online" [link]
