Dividend delight but Redrow boss Steve Morgan still pans the system
Wednesday 18 September 2013
Redrow boss Steve Morgan today added another £1.5 million to his £500 million fortune as the housebuilder reinstated the final dividend in the wake of soaring annual profits.
Morgan, the 40% shareholder and founder who failed in a bid to take the company private last year, steered it to a 63% rise in pre-tax profits to £70 million in the year to June 30.
But the Wolverhampton Wanderers owner could not resist another swipe at a planning system hampering efforts to build more homes to meet demand inspired by the Government’s Help to Buy scheme: “At a strategic level, planning has got better with the presumption in favour of sustainable development but at the front end, it is like running through treacle.”
Redrow spends 25% more on planning than bricks but has nearly 17,000 plots on 99 sites currently locked in the planning system. Only a minority of these will be ready to build on in the next year. The firm is selling from 93 sites compared with 84 last year but Morgan adds: “This is about outlets. If you don’t speed up planning, then you work through available outlets more quickly. If you are going to speed up the level of build in this country you need to speed up the process.”
The chairman warned: “The message from me is the last thing we want is big price increases. If prices kept up with inflation, we would be extremely happy. But if we don’t increase supply demand will drive up the price.”
Redrow’s revenues rose 26% to £604.8 million last year but is gearing up for a “significant increase” in output this year — including in the capital — as it takes on more debt to buy up land.
- 1 Jeremy Clarkson 'does not see a problem' with his racist language on Top Gear, says BBC
- 2 Richard Dawkins on babies with Down Syndrome: 'Abort it and try again – it would be immoral to bring it into the world'
- 3 ALS ice bucket challenge co-founder Corey Griffin drowns, aged 27
- 4 A third of employers never check job applicants' qualifications, survey finds
- 5 James Foley beheading: Fox news presenter Megyn Kelly annoyed by Ferguson update during broadcast about murdered journalist
Richard Dawkins on babies with Down Syndrome: 'Abort it and try again – it would be immoral to bring it into the world'
Scottish independence: English people overwhelmingly want Scotland to stay in the UK
Isis threat: Cameron wants an alliance with Iran
Michael Brown shooting: Chaos erupts on the streets of Ferguson after autopsy shows teenager was shot six times – twice in the head
Bin bag full of cats' heads discovered near Manchester's Curry Mile
Disgusting, frustrating, but intriguing: how the country really feels about its politicians
iJobs Money & Business
£25000 - £35000 per annum: Harrington Starr: Junior Quant Analyst - C++, Boost...
£25000 - £35000 per annum: Harrington Starr: Service Desk Analyst- (Desktop Su...
£30000 - £50000 per annum: Harrington Starr: Junior Quant Analyst (Machine Lea...
£45000 - £55000 per annum: Harrington Starr: UNIX Application Support Analyst-...