Firm’s founder, who turns 66 this month, to leave housebuilder next March
Redrow founder Steve Morgan is retiring from the business for a second time, stepping down next March.
Morgan set up the company back in 1974 before stepping down for the first time in November 2000.
He rejoined the housebuilder in March 2009 after the firm suffered following the financial crash the year before.
Morgan will be replaced as executive chairman by Redrow’s current chief executive John Tutte.
The regional boss of the firm’s Southern business, Matthew Pratt, is stepping up to become its chief operating officer and will join the board at the end of next March.
Morgan (pictured), who turns 66 later this month, said: “As a major shareholder I will look forward to watching the continued progress of the business under John’s leadership.”
Tutte called Morgan’s leadership “inspired” while Cenkos analyst Kevin Cammack said: “He truly is an extraordinary man and Redrow shareholders should lament his departing whilst lauding his immense contribution to the company’s successes.”
And he added: “Operationally I expect nothing to visibly change and, for now, strategically either. However, it is hard to imagine a fantastically successful Redrow without Steve just as it is Berkeley without [founder] Tony Pidgley.”
In a trading update issued earlier, the firm said trading was in line with expectations with its order book up 11% on a year ago to £1.2bn.
It said it “welcomed” the extension of the government’s Help to Buy initiative until 2023, announced in last month’s Budget, but warned the government needed to rethink its caps on regional property prices which will see loans offered up to the value of those caps. It said they “markedly disadvantage the North and Midlands in favour of the South of England”.
And it said the London market was still “subdued” and continues to be affected by “excessively high” stamp duty and Brexit uncertainty.