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Redrow shakes up leadership as profits surge

Redrow managing director John Tutte will become its chief executive on 30 June, under three internal promotions which include two new regional chief executive roles.

Redrow Eastern division managing director Keith Parrett has been promoted to regional chief executive, overseeing its Southern and South-east businesses.

Redrow Midlands division managing director Matthew Pratt has been promoted to regional chief executive, overseeing the group’s Northern and Midlands businesses.

Asked whether this signalled a further commitment to its expansion in the North, announced by the company last year, group chariman Steve Morgan said the group would be expanding across the whole of the UK, particularly in the Southern regions.

Mr Morgan added that the group was opening an office in the South-west later this year and planned to open another in the Thames Valley in 2015.

On future senior hires, Mr Morgan said Redrow would create a senior position for its South-west and Wales division, which is currently under Mr Tutte’s management.

He said that this would likely be an internal hire and was unable to give an exact date on when they would be making the hire.

Redrow has a policy that 15 per cent of its labour workforce is made up of trainees and apprentices.

Mr Morgan said this was a high priority for the group and urged other housebuilders to make the same commitment.

Redrow posted a 107 per cent leap in pre-tax profits for the six months to 31 December 2013, as it expands its business across the UK.

Profits before tax rose to £47.5m in the six months to 31 December 2013 (H1 2014) compared with £23m in H1 2013, with underlying profit jumping 97 per cent to £49m in H1 2014 from 26.2m in H1 2013.

Mr Morgan told Construction News the biggest expansion to date had been in the South, with Redrow’s London division accounting for £41.4m of its turnover and 133 housing completions in H1 2014.

Redrow posted a 41 per cent rise in revenue to £363m for H1 2014 compared with £257m in H1 2013, which Mr Morgan said had been supported by increased completions and average selling prices.

Its overall number of completed homes increased by 30 per cent to 1,565 for H1 2014 compared with 1,202 in the previous year.

The group reported a 9 per cent increase in average selling price to £232,000 in H1 2014 compared with £212,000 for H1 2013.

It has also decided to pay its first interim dividend for six years of 1p per share, totalling £3.7m for H1 2014.

However, Mr Morgan said Redrow had no plans to accelerate shareholder returns.

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