Redrow plc

Redrow plc was a British residential property developer and one of the country’s larger housebuilders. Founded in North Wales in 1974 by Steve Morgan, the business initially concentrated on civil engineering and construction work before entering housebuilding in 1982. Its expansion was driven by a combination of organic growth, regional operating divisions and acquisitions, allowing it to establish a presence across much of England and Wales. By the late 1980s, Redrow was selling more than 1,000 homes each year, and the acquisition of Costain Homes in 1993 increased annual housing sales to approximately 2,000 units. The company sold its construction operations and became focused on property development before floating on the London Stock Exchange in 1994. Morgan initially retained a substantial shareholding, but gradually reduced his ownership and left the company in 2000. Paul Pedley, who had joined as finance director, subsequently became managing director. Redrow continued to grow during the 1990s and reached annual sales of roughly 3,000 homes by the end of the decade. The 2000s were more difficult. Redrow reported a record pre-tax profit of £141 million in 2005, but the global financial crisis sharply reduced housing demand. Sales fell by about half during the latter part of the decade, and the company recorded a significant loss in 2009. Steve Morgan returned as executive chairman that year after rebuilding a stake of nearly 30 percent. His later attempt to take Redrow private in 2012 did not result in a completed offer. The company recovered during the mid-2010s, supported by stronger regional demand and the launch of product families including Heritage, Regent and Abode. Redrow expanded through acquisitions such as Radleigh Homes in the East Midlands and continued to develop large, mixed-use communities. Its projects included Woodford Garden Village in Greater Manchester, Ebbsfleet Green in Kent, Plasdwr in Cardiff, Colindale Gardens in London, Ledsham Garden Village in the Wirral and Amington Garden Village in Tamworth. The company presented these projects as long-term community-building schemes combining homes with schools, parks, employment, transport and other facilities. It reported its 100,000th customer in October 2018. Leadership changed again in 2019, when Morgan retired for a second time, followed by the retirement of executive chairman John Tutte later that year. Matthew Pratt became group chief executive. During the COVID-19 pandemic, Redrow temporarily closed most construction sites and sales declined substantially. It subsequently reduced its emphasis on London, concentrating on regional operations and the Heritage product range. It also introduced a Southern division covering Surrey and Sussex. Redrow increased its public focus on environmental and customer standards in the 2020s. It joined the UN-backed Race to Zero and the Science Based Targets initiative, entered the FTSE4Good Index, adopted the New Homes Quality Board code and announced that future developments would use air-source heat pumps, with underfloor heating standard in detached homes. In December 2023 it launched a home-finding mobile application. On 7 February 2024, Barratt Developments announced an agreed offer for Redrow valued at approximately £2.5 billion. Shareholders approved the transaction in May, while the Competition and Markets Authority investigated possible competition effects. Barratt acquired Redrow’s shares on 22 August 2024, although the businesses operated independently pending regulatory clearance. Following the closure of the CMA investigation on 7 October 2024, Redrow became part of the combined Barratt Redrow plc and ceased to operate as an independent listed company.

Redrow was founded in 1974 in North Wales by Steve Morgan, who borrowed £5,000 from his father to complete a civil-engineering contract after his employer decided to close that operation. The young company expanded through small engineering projects and construction acquisitions, moving from its Welsh base into Cheshire, Manchester and the Wirral. Morgan later formed a separate building company with Simon Macbryde; the businesses were ultimately combined, with Macbryde retaining a minority interest. Redrow entered housebuilding in 1982. The housing activity became sufficiently substantial to be separated from the construction business by 1985. Regional expansion followed: a Kent acquisition supported a South East operation, a Midlands subsidiary was established in 1986, and Whelmar Lancashire was acquired from Christian Salvesen in 1987. By the end of the decade Redrow was selling more than 1,000 homes annually. It expanded into the South West, South Wales and Yorkshire, while withdrawing from the South East before the property collapse of 1989. It returned to that market in 1993 through the acquisition of Costain Homes, lifting annual housing sales to around 2,000. The construction business was subsequently sold, leaving Redrow as a focused residential development company. It floated on the London Stock Exchange in 1994. Morgan reduced his holding from an initial 59%, receiving £95 million in exchange for part of his stake in 1997, and left the company in 2000 while retaining a minority interest. Paul Pedley, who had joined as finance director in 1995, became managing director. Redrow continued growing and reached roughly 3,000 annual sales by the end of the 1990s. Trading conditions changed sharply after the financial crisis. Although Redrow recorded a record £141 million pre-tax profit in 2005 and reached its 50,000th customer in 2006, housing sales later fell by about half. In 2009 revenue declined by 53% and the company recorded a £140.8 million pre-tax loss. Morgan returned as executive chairman after rebuilding a stake of nearly 30%. His 2012 effort to acquire the company outright did not produce a completed offer. Recovery during the following decade was supported by regional housing operations and new collections including Heritage, Regent and Abode. John Tutte became chief executive in 2014. Redrow acquired Radleigh Homes in 2017 and rebranded it as Redrow Homes (East Midlands). Morgan moved toward a non-executive role in 2017, retired in 2019, and was followed by Tutte’s retirement later that year. Matthew Pratt became group chief executive. The company’s development portfolio increasingly featured large planned communities, including Woodford Garden Village, Ebbsfleet Green, Plasdwr, Colindale Gardens, Ledsham Garden Village and Amington Garden Village. During the COVID-19 crisis, Redrow closed most sites temporarily and completions fell from 6,443 in 2019 to 4,032 in the year to June 2020. It reduced its London focus, created a Southern division for Surrey and Sussex, and concentrated on regional businesses and its Heritage range. It also promoted sustainability initiatives, joined Race to Zero and SBTi, adopted the New Homes Quality Board code, and announced air-source heat pumps for future developments. In 2024 Barratt Developments agreed to acquire Redrow. The transaction involved shareholder approval, CMA scrutiny and the transfer of Redrow shares to Barratt in August. The CMA identified competition concerns around developments in North Shropshire but closed its investigation in October. Redrow consequently became part of Barratt Redrow plc and ceased to exist as an independent listed housebuilder.

• 2024

  Acquisition by Barratt Developments completed

  [1]Redrow plcen.wikipedia.org

  Regulatory clearance allows Redrow to become part of Barratt Redrow plc.

• 2021

  Climate commitments

  [1]Redrow plcen.wikipedia.org

  Redrow joins Race to Zero and the Science Based Targets initiative.

• 2018

  100,000th customer

  [1]Redrow plcen.wikipedia.org

  Redrow announces that it has served its 100,000th customer.

• 2009

  Founder returns during downturn

  [1]Redrow plcen.wikipedia.org

  Steve Morgan returns as executive chairman after the financial crisis damages trading.

• 1994

  London Stock Exchange flotation

  [1]Redrow plcen.wikipedia.org

  Redrow becomes a publicly listed company.

• 1993

  Acquisition of Costain Homes

  [1]Redrow plcen.wikipedia.org

  The acquisition expands Redrow’s geographic reach and increases annual housing sales.

• 1985

  Housing division separated

  [1]Redrow plcen.wikipedia.org

  Housebuilding becomes a distinct activity as its scale grows.

• 1982

  Entry into housebuilding

  [1]Redrow plcen.wikipedia.org

  Redrow begins constructing homes, creating the foundation for its later identity as a housebuilder.

• 1974

  Redrow is founded

  [1]Redrow plcen.wikipedia.org

  Steve Morgan establishes Redrow as a civil-engineering business in North Wales.

Regional UK housebuilder with an emphasis on design-led family housing, larger master-planned communities and garden-village development. Redrow increasingly positioned its homes around placemaking, energy efficiency, community infrastructure and higher-quality customer protection.

• House collection · 2010

  Heritage Collection

  A traditional design-led range introduced as part of Redrow’s 2010 product strategy. The collection emphasized family-oriented layouts, conventional external detailing and a village-inspired visual character. It became one of the company’s principal regional products and was retained as a focus after Redrow reduced its London activities.

• House collection · 2010

  Regent Collection

  A residential product range launched after the Heritage Collection. It formed part of Redrow’s effort to offer differentiated house designs across its regional divisions, alongside more traditional and contemporary alternatives.

• House collection · 2010

  Abode Collection

  A more contemporary-oriented Redrow housing range introduced during the 2010s. It complemented the company’s traditional Heritage offer and was intended to provide modern layouts and styling within its broader new-build portfolio.

• Energy-efficient housing specification · 2023

  Air-source heat-pump homes

  In 2023 Redrow announced that air-source heat pumps would be used in all upcoming developments, supporting a move away from gas boilers and toward all-electric homes. Underfloor heating was announced as standard in detached homes.

• 2024

  Competition-law investigation into housebuilders

  The Competition and Markets Authority investigated Redrow and other UK housebuilders over suspected sharing of commercially sensitive information, including information potentially affecting site build-out and new-home pricing. The investigation formed part of wider scrutiny of competition in the housebuilding sector.

  Source

Read more

• 2022New Homes Quality Board code adoption

  United Kingdom

  Redrow adopted the New Homes Quality Board’s code of practice to improve customer protection, transparency and post-sale standards.

  Outcome. Redrow became one of the first housebuilders to implement the new code.

  Source
• 2021Race to Zero and Science Based Targets commitment

  United Kingdom

  Redrow joined the UNFCCC Race to Zero and the Science Based Targets initiative, presenting emissions reduction and climate alignment as part of its corporate sustainability programme.

  Outcome. The company was subsequently recognized in climate and ESG indexes, including the FTSE4Good Index.

  Source

• 2024

  Accept Barratt Developments acquisitionM&A

  Background

  Barratt proposed an agreed transaction to combine two major UK housebuilders, subject to shareholder and competition approval.

  Action taken

  Redrow shareholders approved the transaction, Barratt acquired the shares in August, and the merger completed after CMA clearance in October.

  Aftermath

  Redrow ceased to be an independent listed company and became part of Barratt Redrow plc.

  Agreed acquisition value. Approximately £2.5 billion (Announced 7 February 2024)

  Source

• 2023

  Introduce air-source heat pumps across future developmentsProduct launch

  Background

  Redrow sought to improve home energy efficiency and progress toward its long-term net-zero ambition.

  Action taken

  The company announced air-source heat pumps for all upcoming developments and underfloor heating as standard in detached homes.

  Aftermath

  The decision represented a shift away from traditional gas-boiler specifications.

  Source

• 2020

  Scale back London operationsStrategy

  Background

  The pandemic and a review of divisional performance led Redrow to reassess its exposure to London and prioritize higher-return regional businesses.

  Action taken

  The company concentrated its London activity on Colindale Gardens and directed future emphasis toward regional operations and the Heritage product.

  Aftermath

  Redrow’s operating strategy became more regionally focused.

  Source

1. 1Redrow plcen.wikipedia.org