Good morning, everyone, and welcome to Redrow's full year results presentation. I hope you are all safe and well. Once again, we are remotely presenting our results in this pre-recorded audio. Later today, we will publish on the Redrow plc website, the recording of a Q&A session with analysts. I will present an overview before Barbara gets into the detail of the numbers within the financial review. I will return to cover the operating review and outlook. Starting with the overview, the group delivered a strong performance during the year. Total legal completions increased by 39% to 5,620, from 4,032 in the previous year, with revenues increasing by 45% to GBP 1.94 billion. Our earnings per share was GBP 0.737, compared with GBP 0.329 in 2020, and we generated net cash of GBP 286 million. Our proposed final dividend, subject to shareholders' approval of GBP 0.185, made GBP 0.245 for the full year. No dividend was paid in 2020. As announced in June 2020, we made the strategic decision to exit the London market on all the sites where we hadn't commenced. Our scaled down London operation is now concentrating on our large redevelopment site at Colindale. During the year, we successfully received planning for a further 1,100 homes at Colindale, ensuring that we will be developing this successful site for some considerable time. We have completed the exit of the six London sites we decided not to build out. Our owned interest in three of these were sold, albeit one was at the start of the current financial year and the other three were not acquired. The proceeds of the London site disposals are being reinvested in our strong divisional network across England and Wales, including the new southern division, which will be based in Crawley, and is expected to make a contribution to revenue in the 2023 financial year. I'll now hand over to Barbara for the financial review. Thanks, Matthew. I'll begin with the headline financials. We generated homes revenue of GBP 1.9 billion for the year, up from GBP 1.3 billion in 2020, and well on our way back to the GBP 2.1 billion level achieved in 2019. We had a gross margin of 21.4% and achieved an operating margin of 16.6% due to the higher completion volumes and net house price inflation. We ended the year with net cash of GBP 160 million, with a strong cash conversion of 110% from both the improved profitability and reduction in work in progress. Now, let's focus on the income statement. In addition to the 43% increase in homes revenue, we also generated GBP 37 million of other revenue. This was mainly from the sale of the sites in London as part of the scale down of that division we announced last year. Gross profit was GBP 414 million, giving a gross margin of 21.4%. This was above our initial guidance of 20.5% due to net house price inflation and additional volumes, and it compares to a gross margin of 23.9% in 2019, a level we expect to return to shortly. Operating expenses were GBP 1 million below last year and in line with 2019 at GBP 93 million, which amounted to 4.8% of revenue. We generated an operating profit of GBP 321 million and an operating margin of 16.6%. With GBP 1 million lower interest expense, our profit before tax was GBP 314 million, compared to GBP 140 million in 2020 and GBP 406 million in 2019. Now turning to the average plot costing cost of sales. It was actually unchanged year- on- year at GBP 83,000. This represents 21% of the average selling price in both years. Moving on to the geographical analysis of revenue. As you would expect, all regions achieved a substantial increase year- on- year. The south continues to grow as a percentage of the ongoing business, rising from 40% in 2020 to 44% in 2021. This trend is expected to continue with the opening of the southern division next year. Revenue from the London build out sites was GBP 181 million, with a significant number of private rented sector and affordable units completing in the year. Colindale revenue was significantly higher than in 2020 and also included a proportion of private rented sector revenue. Let's move on to the analysis of homes revenue. Private revenues were up 41% and affordable 55%. Legal completions were up 39% at 5,620 homes. The blended average selling price increased by 2.5%, with the private average selling price up just over 1% and the affordable up 11%, in both cases, due to a combination of product and geographical mix and some house price inflation. Apartments represented 19% of private revenue, up from 13%, mostly in London. Private rented sector apartments accounted for 8% of private revenue, all in London. In total, affordable revenue accounted for 11.3% of homes revenue. This is expected to reduce to around 9.5% in 2022. Private revenue, that amounted to GBP 1.7 billion. Because of the high volume of apartment completions in the year, the Heritage Collection reduced to 79% of private revenue from 84% in 2020. I expect this to reverse in 2022. We had 1,888 Help to Buy legal completions. This will reduce significantly in 2022 with the change in eligibility criteria for the scheme in March 2021. As many of you will be aware, Help to Buy reduced to be only 13% of our private reservations in the second half of the 2021 financial year. For the first 11 weeks of the current financial year, it accounts for only 9% of reservation volume, and that is mainly in London. To move on to cash flow. Our EBITDA was GBP 328 million due to the higher profitability. Our net investment in land was neutral as a number of deals were exchanged that complete in the 2022 financial year. Work in progress reduced by GBP 60 million as a result of the recovery from the first lockdown. Other working capital movements were GBP 30 million negative due to an increase in trade receivables as a result of the timing of PRS receipts. Our cash conversion was a + 110% compared to a - 51% in 2020. I expect the cash conversion to be around 55% in 2022. We paid GBP 54 million in corporation tax and a GBP 21 million interim dividend. The other cash movement is positive as we sold the remainder of our joint venture investment in Croydon as part of the scale down of the London operations. This gave a net cash inflow of GBP 286 million and closing net cash of GBP 160 million. As you can see from the slide, our average monthly net cash balance was GBP 142 million compared to GBP 2 million in the previous year. Looking forward, in the six months to December 2021, due to the high level of land payments and payment of the full year final dividend, I expect our cash balance to reduce to around GBP 130 million. In the year to June 2022, however, I continue to expect our cash balance to increase to around GBP 220 million. Now, the balance sheet. The owned land is in line with June 2020 as our land creditors. GBP 144 million, or 49% of the land creditors, are payable within one year. Work in progress is GBP 60 million lower as we converted part of the high opening balance into cash. At GBP 987 million, it amounts to 51% of 2021 revenue. We expect to reduce the level of work in progress to between 40% and 50% of revenue in the next couple of years. Other working capital reduced from a net creditor of GBP 571 million to one of GBP 519 million due to the increase in receivables. This gives capital employed of GBP 1.7 billion and net assets of GBP 1.9 billion. Now moving to plot cost on the balance sheet for future development. Our own plot cost has reduced by GBP 2,000 a plot to GBP 76,000, representing 90% of private average selling price. This is in part due to obtaining planning permission for a further 1,100 plots on our existing Colindale site in London. The owned and contracted plot cost was unchanged. Finally, now that we're operating in a normal market, we're able to resume giving medium term guidance, which is summarized on this slide. With revenue expected to exceed GBP 2.2 billion, we will be above the level achieved in 2019 by the time we get to 2024. While it's difficult at this early stage to be precise about the level of revenue, we expect it to be between GBP 2.2 billion and GBP 2.3 billion. The operating margin is expected to be in line with 2019 at 19.5%. This will produce an earnings per share of at least GBP 0.90, assuming a corporation tax rate of 25%, and will ensure a dividend of at least GBP 0.30 a share. Our average outlets are targeted to increase by 17% to 137. We are also aiming to achieve a return on capital employed approaching our long-term target of 25%. That's despite continuing to invest in land and work in progress to grow the business. As far as the current financial year is concerned, we expect turnover to exceed GBP 2 billion, probably around GBP 2.05 billion. With the benefit of house price inflation being in excess of build cost inflation in recent months, together with improved mix and normal bill rates, our gross margin is likely to be approaching 24%. That will result in an operating margin of around 19%. With that, I'll now hand back to Matthew. Thank you, Barbara. Firstly, the sales market highlights. Long-term social trends continue to underpin demand for our premium homes and places. Redrow's high level of differentiation was key as we successfully navigated the end of the original Help to Buy scheme and the government's temporary stamp duty changes. The number of homes sold with Help to Buy reduced considerably. Following the introduction of the new regional price caps, the scheme represented just 13% of private reservations in the second half, and 28% across the full financial year. As the scheme draws to a close and the market continues to adapt, we expect a negligible impact on reservations. Customers attach additional value to our larger, mainly detached family homes, designed to offer flexible and modern living. COVID-19 also highlighted the growing desire of homeowners to live within our prime location, created with our own market leading placemaking principles. We ended the financial year with another record forward order book of GBP 1.43 billion, of which 73% was exchanged. This provides the business with an excellent foundation for the future, with over GBP 1.3 billion of our revenue secured for 2022. Now to the sales market trading. As we continue to build in prime locations, our products and places are within reach of many families aspiring to own a larger home. Our average reservation rate for the year was 0.7, and more importantly, the reservation value per outlet increased to GBP 288,000 per week, excluding private rented sector, as we delivered an industry-leading reservation rate on a revenue basis. We saw a high cancellation rate as the market returned to normality. The first 11 weeks of the new financial year, we have seen this return to our traditionally lower levels of circa 15%. The sales rates of 0.84 in the first 11 weeks of 2020 financial year reflected unprecedented levels of demand as the country emerged from lockdown, supplemented with the launch of the government's temporary Stamp Duty holiday in July 2020. Our sales rates in the first 11 weeks of the new financial year was 0.66. This was below the levels in 2020 and 2021 due to the limited availability of homes for sale that can be delivered within the next six months. The value of the private reservation was, however, GBP 4 million above the level of the first 11 weeks of the normal market in 2020. This combined with our strong order book, however, provides certainty going forward as our teams continue to increase production levels and bring more sites on stream. Our high-quality homes, incorporating flexible, open plan living, have a broad range of appeal, contributing to this ongoing high demand for our Heritage range. As previously mentioned, we ended the financial year with another record forward order book of GBP 1.43 billion, of which 73% was exchanged. Simultaneously within the year and despite our strong increase in completions, we continued to further grow our forward order. This provides the business with an excellent foundation for the future with over GBP 1.3 billion of our revenue secured for 2022. Next is average outlets. As I stated in my 2020 chief executive review, at the onset of COVID-19, we temporarily postponed the purchase of new land as part of measures to protect cash flow and also renegotiate favorable deferred terms on our existing obligation. Post the initial lockdown, we returned to the market, taking a sensible and balanced view with regards to land acquisition. This resulted in some constraints on our active outlet numbers, and together with the strength of the market, has accelerated the closure of some outlets over the last 12 months. In addition, the outlet numbers reflect our strategic decision to withdraw from London, and with the sale of five sites, that would have been live active outlets. We closed the year working from 120 outlets and expect to remain at a reduced level for the forthcoming year until new land acquisitions come on stream. As a result of our recent land purchasing activity, we are targeting an average of 137 outlets by 2024. On to land highlights. Redrow capitalized on some excellent land opportunities in the financial period under review. Achieving above average hurdle rates, we added circa 8,300 plots across 36 sites in the year with a GDV of over GBP 3 billion. We continue to be active in both the current and the forward land market and continue to see good opportunities to continue to grow the business and capitalize on customers' strong desire to buy our well-designed, spacious, aspirational homes. Our award-winning Heritage Collection accounted for 79% of our private homes revenue, which enabled us to satisfy demand at scale and deliver efficiencies. The desirability of our products, combined with our aesthetically pleasing designs, means planners across England and Wales are happy to see our homes incorporated within their communities. Our people and partners remain key to our ongoing success. On that note, I am very pleased that 93% of colleagues said they felt proud to work for Redrow in our colleague insight survey. During the year, we also took the positive step becoming a Real Living Wage employer, extending this benefit to our subcontractor partners. Since my appointment as chief executive, I have set a clear direction of evolving rather than revolutionizing our successful strategy. Along this approach, I have launched an ambitious vision which is focused on accelerating innovation across the business. For example, we have introduced flexible working and many colleagues have been working from home during the pandemic. This has proved to be very effective, and going forward, colleagues will be able to work from wherever they are most efficient, whether that be at home, site, or within individual offices. Moving from our people to build and sales. With the exception of London, we saw considerable house price inflation across England and Wales. In the regional businesses, due to a combination of house price inflation and geographical mix, reservation prices increased on average by circa 5% across the financial year, particularly in the final quarter, which was more than enough to offset build cost inflation of circa 5%. We've continued to work largely uninterrupted across all our sites during the year. However, there have been some supply interruptions and specific shortages in steel, timber, and cement-based products. Working with our supply partners, we have mitigated the impact of these interruptions, and we are confident that our close working relationship will allow us to continue to build unhindered. We expect that supply pressures will ease as more manufacturing production is brought on stream to deal with the high demand. Innovation is about constantly raising standards. We continue to make progress across all aspects relating to customers and quality. Handing over zero defect homes is an important aspiration. Results from September 2020 to the end of the financial year show that 95% of our homes were handed over with zero defects after a comprehensive home preview prior to the move-in date. Our Red SMi, Site Management Inspection App has also become a fully integrated part of our site managers' on-site quality inspection. At the end of the financial year, over 37,000 individual inspections had been carried out and logged. As a result of these steps, we are delighted that 24 of our site managers received a Pride in the Job award, quality award this year. The accolade, established by the National House Building Council, celebrates the exceptional contribution we as site managers make in creating homes of outstanding quality. We have once again secured our HBF, Home Builders Federation five-star award following thousands of positive customer reviews. Redrow is also the only volume house builder to be rated as excellent on Trustpilot. Any feedback is carefully analyzed and fed into our root cause process, which aims to iron out any recurring issues. This culture of constantly innovating extends across all our day-to-day business operations. During the financial year, we reviewed and refreshed the Redrow brand in tandem with our sales center visitor experience. New sales outlets have been renamed as customer experience suites, reflecting their new role supporting customers throughout their whole journey, whether they are visiting showrooms or meeting with customer service and site colleagues to undertake hard hat and home preview visits. We are the first major house builder in the market to remove paper from our sales outlets. We've been able to take this important step by connecting great people with integrated digital technology. Key features of the new suites include digital screens throughout, all of which can be updated remotely to ensure a consistent message across all our outlets. There are also interactive site plans and iPads where customers can view choices, upgrades, and complete their reservation online. In the period under review, we launched our home owner support portal, part of My Redrow. It contains over 50 self-help videos along with the ability for customers to submit their warranty issues online. Our core systems have been created in-house, enabling warranty items to be seamlessly integrated into our back-end systems. This creates efficiency for customers and business as we reduce the administrative burden, freeing up more time to proactively develop customer relationships. This technology will play an important role as we prepare for the seamless transition into the New Homes Ombudsman Service. At Redrow, we see the New Homes Ombudsman introduction as an opportunity. It will provide another way of demonstrating our differentiation and set us apart from the competitors. Redrow's approach to products and place making is an important part of our customer-focused design. In March this year, we instructed a YouGov survey of 2,000 customer members of the public and 521 local councils to understand what communities are looking for in their new homes, their streets, and their neighborhoods following the experience of the pandemic and lockdowns. The results highlighted the majority of consumers, 77%, aspired to live in a two-story detached home, with just 3% or 4% of Britons stating a preference for a terraced home or townhouse. The feedback was very much aligned with our Heritage range and open green places. The interior design team has worked closely with a group of technical colleagues to install fitted home offices into show homes, which are available on My Redrow as an optional extra, as well as restyling spaces to show the flexibility of our Heritage range. As we prepare for the Future Homes Standard, we are testing a number of new technologies, including infrared heating and air source heat pumps. We are reviewing not only based on installation and running costs, but also comfort factors regarding how customers will live in a home in the future. In the spring, we undertook a comprehensive review of our environmental, social and governance performance. We have prioritized those issues that are most material to our business, and we have, for the first time, published our comprehensive ESG scorecard to reflect this review. Looking forward, we have committed to sign up to the Science Based Targets initiative and partners ambition for the 1.5 degrees Celsius campaign. In preparation of the forthcoming requirements to achieve a biodiversity net gain, we undertook eight pilot projects to understand what changes we needed to make to our design approach. The results were positive, with onsite net gains achieved on 63% of the test projects. Overall, we are making important strides forwards in ESG, and I'm looking forward to seeing that progress continue. In summary, the fundamentals of the market remain strong with record low interest rates, good mortgage availability and healthy employment data. In addition, government recognizes that house building creates a positive multiplier effect across the domestic economy and has a role to play in its leveling up agenda. It has an ambition to target achieve a much needed 300,000 new homes per year by the mid 2020s. We are proud to play our part in addressing this chronic shortage of quality family homes across England and Wales. Our strong order book provides certainty going forward as our teams continue to increase production levels and look to bring more sites on stream to satisfy ongoing high demand. Overall, we have an excellent platform to continue delivering and evolving Redrow's successful strategy in the future. Our high levels of product differentiation is compounded by social trends towards customers desiring larger quality family homes in great places. I'd like to thank Redrow colleagues and partners for their continued hard work and commitment. Our great people will continue to play a key role as we meet long-term demands for our products and places across England and Wales. That concludes our final year presentation. Thank you
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