Housebuilder reveals £194m pre-tax loss but three-year refinancing deal struck with lenders
Redrow has been forced to make a writedown of more than £250m, but announced it had struck a deal with its banking partners until 2011.
The ailing housebuilder recorded a pre-tax loss of £193.9m for the year to 30 June 2008, due mainly to a writedown of £259.4m on the group's land holdings and work in progress.
But there was a ray of light for the group's shareholders, as Redrow announced it had refinanced its banking arrangements, allowing it a £450m debt facility to cover the next three years.
Turnover fell 22% to £650.1m, down from £834.3m in 2007. The company completed almost 900 fewer units than it did in 2007, down from 4,823 to 3,925 at an average selling price of £156,900 (down from £159,900 in 2007). Redrow confirmed that it had made more than 500 redundancies, reducing its headcount by approximately 40%.
Alan Bowkett, chairman of Redrow, has called on the government to intervene in the rapidly deteriorating mortgage market.
He said: “It is important that the government review their proposals for the value of land to pay for a wide range of initiatives relating to sustainability, infrastructure and social policies.
“Without this review the short-term adverse consequences for the economy and the longer-term impact on housing supply could be very significant.”