Morgan lands pounds 100m from Redrow sale

Steve Morgan, one of Britain's richest individuals, is set to raise almost pounds 100m through the sale of a 25 per cent stake in Redrow, the housebuilder he founded in 1974 with a pounds 5,000 loan from his father.

Mr Morgan said the main purpose of the sale was for family investment reasons. He denied it was linked to his move last year to Jersey for personal tax reasons even though he will avoid a capital gains bill of up to pounds 40m on the deal because of the Channel Island's generous tax regime.

"There is no tax gain to be made by selling now," he insisted. "The business has come on greatly in the last 12 months and I feel it is not really appropriate for one shareholder to own more than 50 per cent of a public company."

The sale will see Mr Morgan's stake in Redrow, held via his Bridgemere Holdings company, cut from just under 60 per cent to about 35 per cent. Some 54 million shares will be placed by stockbrokers BZW and Cazenove with institutional investors.

Shares in Redrow fell 5.5p to 169.5p on the news, valuing Mr Morgan's total investment at pounds 220m.

Mr Morgan, who floated Clwyd-based Redrow on the stock market in 1994, stressed that neither the share sale nor his move to Jersey reduced his commitment to Redrow, of which he remains chairman.

"I wanted to sell more at the time of the float in May 1994, but conditions in the housebuilding industry then did not really allow it," he added.

Day-to-day running of Redrow is in the hands of Paul Pedley, managing director, who is also selling a small parcel of 475,000 shares, worth pounds 805,000 at last night's close

News of Mr Morgan's share sale came as Redrow released interim figures for the six months to December showing a 36 per cent rise in pre-tax profits to pounds 16.4m on sales 29 per cent ahead at pounds 123m. Earnings per share rose from 3.9p to 5.2p while the interim dividend was raised from 1.1 to 1.2p. Housing completions totalled 1,317 units in the half, up from 1,082, with the average selling price rising more than 5 per cent to pounds 93,200, mainly reflecting an increase in the average size of house sold.

Mr Morgan noted that although house price inflation had been strongest in the South-east, a ripple effect was now being seen across the country. "As a result there is every reason to believe the current market is sustainable," he said.

Mr Morgan is credited as one of the few housebuilders who called the top of the market in 1988 and 1989, selling the company's entire landbank before the recession and the housing crash hit the whole sector in the early 1990s.

Four years ago he returned to the market with the purchase of Costain Homes for pounds 70m, which expanded Redrow from its base in the North-west of England into the South-east.

Mr Morgan denied his well-publicised move to Jersey, where he reportedly paid pounds 6.5m to buy the Trinity Manor estate, was linked to fears that an incoming Labour government would increase the top rate of income tax. "I'm not a political animal," he maintained.

Start your day with The Independent, sign up for daily news emails
News
US comedian Bill Mahr
people
Voices
Winston Churchill, then prime minister, outside No 10 in June 1943
voicesA C Benson called him 'a horrid little fellow', George Orwell would have shot him, but what a giant he seems now, says DJ Taylor
Sport
football
News
Rob Lowe
peopleRob Lowe hits out at Obama's snub of Benjamin Netanyahu
PROMOTED VIDEO
News
Davies (let) says: 'Everybody thought we were having an affair. It was never true!'
people'Our friendship flourished online. You can share some very revelatory moments at four in the morning…'
Arts and Entertainment
Over their 20 years, the band has built a community of dedicated followers the world over
music
News
Staff assemble outside the old City Road offices in London
mediaThe stories, the writers and the changes over the last quarter of a century at Britain's youngest paper
Life and Style
The Oliver twins, Philip and Andrew, at work creating the 'Dizzy' arcade-adventure games in 1988
techDocumentary looks back at origins of the computer-games industry
Arts and Entertainment
Krall says: 'My hero player-singer is Elton John I used to listen to him as a child, every single record
music
News
Friends for life … some professionals think loneliness is more worrying than obesity
scienceSocial contact is good for our sense of wellbeing - but it's a myth that loneliness kills, say researchers
ebooks
ebooksA year of political gossip, levity and intrigue from the sharpest pen in Westminster
Arts and Entertainment
The Wu-Tang Clan will sell only one copy of their album Once Upon A Time In Shaolin
musicWu-Tang Clan and The Sexual Objects offer fans a chance to own only copies of their latest albums
News
i100
Environment
Number so freshwater mussels in Cumbria have plummeted from up to three million in the 20th century to 500,000
environment
Life and Style
Models – and musicians – on the catwalk in Dior Homme for the men’s 2015/16 fashion show in Paris
fashionAt this season's Paris shows, various labels played with the city boys' favourite
News
i100
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Tax Assistant

Negotiable: Recruitment Genius: A Tax Assistant is required to join a leading ...

Recruitment Genius: Outbound Sales Executive - OTE £25,000

£16000 - £25000 per annum: Recruitment Genius: This is an exciting opportunity...

Ashdown Group: Java Developer / J2EE Developer - Watford - £45,000 - £47,000

£45000 - £47000 per annum + bonus + benefits: Ashdown Group: Java Developer / ...

Ashdown Group: Marketing Product Manager - (Financial Services) - SW London

£35000 - £38000 per annum + Benefits: Ashdown Group: Marketing Manager - Marke...

Day In a Page

Iraq invasion 2003: The bloody warnings six wise men gave to Tony Blair as he prepared to launch poorly planned campaign

What the six wise men told Tony Blair

Months before the invasion of Iraq in 2003, experts sought to warn the PM about his plans. Here, four of them recall that day
25 years of The Independent on Sunday: The stories, the writers and the changes over the last quarter of a century

25 years of The Independent on Sunday

The stories, the writers and the changes over the last quarter of a century
Homeless Veterans appeal: 'Really caring is a dangerous emotion in this kind of work'

Homeless Veterans appeal

As head of The Soldiers' Charity, Martin Rutledge has to temper compassion with realism. He tells Chris Green how his Army career prepared him
Wu-Tang Clan and The Sexual Objects offer fans a chance to own the only copies of their latest albums

Smash hit go under the hammer

It's nice to pick up a new record once in a while, but the purchasers of two latest releases can go a step further - by buying the only copy
Geeks who rocked the world: Documentary looks back at origins of the computer-games industry

The geeks who rocked the world

A new documentary looks back at origins of the computer-games industry
Belle & Sebastian interview: Stuart Murdoch reveals how the band is taking a new direction

Belle & Sebastian is taking a new direction

Twenty years ago, Belle & Sebastian was a fey indie band from Glasgow. It still is – except today, as prime mover Stuart Murdoch admits, it has a global cult following, from Hollywood to South Korea
America: Land of the free, home of the political dynasty

America: Land of the free, home of the political dynasty

These days in the US things are pretty much stuck where they are, both in politics and society at large, says Rupert Cornwell
A graphic history of US civil rights – in comic book form

A graphic history of US civil rights – in comic book form

A veteran of the Fifties campaigns is inspiring a new generation of activists
Winston Churchill: the enigma of a British hero

Winston Churchill: the enigma of a British hero

A C Benson called him 'a horrid little fellow', George Orwell would have shot him, but what a giant he seems now, says DJ Taylor
Growing mussels: Precious freshwater shellfish are thriving in a unique green project

Growing mussels

Precious freshwater shellfish are thriving in a unique green project
Diana Krall: The jazz singer on being friends with Elton John, outer space and skiing in Dubai

Diana Krall interview

The jazz singer on being friends with Elton John, outer space and skiing in Dubai
Pinstriped for action: A glimpse of what the very rich man will be wearing this winter

Pinstriped for action

A glimpse of what the very rich man will be wearing this winter
Russell T Davies & Ben Cook: 'Our friendship flourished online. You can share some very revelatory moments at four in the morning…'

Russell T Davies & Ben Cook: How we met

'Our friendship flourished online. You can share some very revelatory moments at four in the morning…'
Bill Granger recipes: Our chef serves up his favourite Japanese dishes

Bill Granger's Japanese recipes

Stock up on mirin, soy and miso and you have the makings of everyday Japanese cuisine
Michael Calvin: How we need more Eric Cantonas to knock some sense into us

Michael Calvin's Last Word

How we need more Eric Cantonas to knock some sense into us