Redrow founder to step down next year

Yorkshire Post - Business - - BUSINESS / NEWS - Grace Ham­mond NEWS RE­PORTER @york­shire­post

Redrow chair­man and founder Steve Mor­gan is to step down from the house­builder as it warned over a slow­down in the Lon­don prop­erty mar­ket.

Mr Mor­gan will re­tire at the end of March 2019 and chief ex­ec­u­tive John Tutte will be­come ex­ec­u­tive chair­man fol­low­ing his de­par­ture.

He has been chair­man of Redrow for two stints – the first from 1974 to 2000, and then since 2009.

“The board is very grate­ful to Steve for his in­spired lead­er­ship of Redrow since he founded the group in 1974, a pe­riod in which the group has changed much and grown sub­stan­tially,” said Mr Tutte.

“Steve has made a huge con­tri­bu­tion to the in­dus­try over many years and his lead­er­ship since he re­turned to Redrow in 2009 has been im­mense. We wish him ev­ery hap­pi­ness for the fu­ture.”

His de­par­ture comes at a dif­fi­cult time for the sec­tor and Redrow said in a brief trad­ing up­date that the Lon­don sales mar­ket re­mains “sub­dued” as “ex­ces­sively high” stamp duty charges and Brexit un­cer­tainty hit ac­tiv­ity.

Redrow saw the value of net pri­vate reser­va­tions in the 18 weeks to Novem­ber 3 in line with last year at £588m, but the sales rate per out­let per week over the pe­riod was 0.64 com­pared with 0.67, the re­duc­tion “en­tirely due to the Lon­don mar­ket”.

On the whole, the FTSE 250-firm said trad­ing is in line with ex­pec­ta­tions, with bet­ter de­mand in re­gional busi­nesses.

Shares were down nearly 2 per cent in morn­ing trade at 554.5p.

The av­er­age sell­ing price of pri­vate reser­va­tions was £388,000.

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