annual report  accounts 2003
in focus 2 highlights
highlights
120
100
80
60
40
20
0
operating profit £m
operating profit up
21 to £1137m
1999 2000 2001
795
2002 2003
941
1137
677
563
earnings per ordinary share p
earnings per share up
22 to 469p
1999 2000 2001
288
2002
385
2003
469
202
170
50
45
40
35
30
25
20
15
10
5
0
dividends per share p
dividends per share 
increased by 24 to 75p
1999 2000 2001
55
2002
606
2003
75
495
45
8
7
6
5
4
3
2
1
0 highlights 2
results in brief 3
chairman’s statement 4
chief executive’s review 8
corporate social responsibility review 22
financial review 26
five year summary 31
directors 32
directors’ report 34
corporate governance statement 37
remuneration report 39
auditors’ report 48
consolidated profit and loss account 49
balance sheets 50
consolidated cash flow statement 51
accounting policies 52
notes to the financial statements 53
notice of annual general meeting 64
corporate information 68
3 results in brief
2003 2002
financial summary £m £m increase
group turnover 6079 5733 6
operating profit 1137 941 21
profit before taxation 1061 851 25
net assets 3013 2386 26
pence pence
earnings per share 469 385 22
dividends per share 75 606 24
results in brief
contents
front cover gras lawn exeter 4 chairman’s statement
chairman’s statement
robert b jones chairman 
redrow has had a record
year with profit before tax
exceeding the significant
milepost of £100m
redrow has had a record year with profit before tax
exceeding the significant milepost of £100m our 
confidence in the full year’s profitability at the time of our
interim results has been confirmed with profit before tax 
of £1061m and as a consequence it is proposed that the
238 increase in the interim dividend will be matched by 
a corresponding increase in the final dividend without
the support skills and commitment of our employees 
subcontractors and suppliers this would not have been 
possible and we are grateful to them for their contribution
in achieving these results
the board remains firmly of the view that delivering
increasing shareholder value should be the business’s core
strategy and once again i can report strong progress in this
regard in addition to the increased dividend earnings per
share have increased this year by 218
the key drivers in generating such returns continue to be
our determination to generate margins and return on 
capital employed at the upper end of our industry’s 
performance operating margins within redrow homes
have increased during the year reaching 190 in the 
second half to yield an annual margin of 187 compared
with 176 last year our return on capital employed has
also risen to 31 for the year this efficient and prudent
management of our capital has enabled us to invest further
in our owned land bank and in increasingly complex city
centre and mixed use schemes without any significant
change in our level of borrowings indeed the group’s 
gearing has fallen further from 390 to 309
building high quality homes for a broad range of 
customers continues to be the central focus of the 
business the homes division’s record year has taken  completions to 4031 at an average selling price of
£147900 generating a turnover approaching £600m 
the location pricing and styling of these homes continue
to be balanced across the group to avoid excessive 
exposure to particular markets since 2000 we have 
implemented a number of measures aimed at developing
the synergies between the various ranges of our products
culminating in the recent announcement of a new 
housing range our markets are the theatres of substantial
change economically socially and in terms of planning
policy it is therefore appropriate that we should be 
committed to a process of continuous refinement in what 
we have to offer harnessing together the individuality of
development tailored to its location and seeking the benefits
of consistent elements within those developments to generate
further improvements in build quality and efficiency
such an approach depends both on people and build processes
and in both regards there have been significant initiatives aimed
at underpinning the quality and reputation of the company 
5
left 
bewick court compton wolverhampton
centre 
51000 sq ft distribution warehouse at western approach severnside bristol
right 
northcroft lodge cheltenham
chairman’s statement 6 chairman’s statement
our joint venture with corus framing solutions is aimed
at securing the efficiency and quality of system building
without losing the traditional feel of our developments 
i am pleased to report that the joint venture is performing
in line with expectations and early developments within
the group justify the confidence we have in its part of our
future equally competent welltrained and effective 
people lie at the heart of our achievements significantly
we have now invested in a new training centre at tamworth
which will enable a wide range of courses to be provided
ensuring that our employees are equipped to continue to
play their part in driving the business forward
in recognition of the contribution of all employees to the 
performance of redrow we have widened our bonus
scheme arrangements to now embrace all employees in
addition we have further strengthened the executive team
with the appointment of neil fitzsimmons to the position
of group managing director with david arnold becoming
our new group finance director rhiannon walker
stepped down from the role of company secretary after 
sixteen years and has been succeeded by graham cope
bob williams will also be standing down as a 
nonexecutive director at the forthcoming annual
general meeting on 5 november may i take this 
opportunity to thank both rhiannon and bob for their
important contribution to redrow over the years
land continues to be what we regard as our ‘crown jewels’
within an increasingly complex planning system 
bedevilled by delays at every stage there is undoubtedly
a premium for those most able to work within it redrow
prides itself on anticipating rather than following 
developments in planning policy we were pioneers in
mixed use developments the more efficient use of land
through higher density schemes and were significant
brownfield developers long before such approaches became
fashionable we have also benefited immensely from 
our attention to forward land as a result our first class
land and planning teams continue to deliver excellent
opportunities our current land bank with planning has
now risen to 14000 plots with a further 2000 plots under
contract at various stages in the planning system and over
8000 plots allocated in draft or adopted local plans
of importance in the continued growth of redrow is our
commercial operation which in addition to contributing
£30m of operating profit this year ensures that we have
the necessary expertise to project manage the complex
in the city schemes and identify mixed use and change of
use land opportunities looking forward redrow is in an excellent position
forward sales have increased to £304m a rise of 394
redrow owns or controls all the land required for 
development in the next two years and a very substantial
proportion of that required for three years time our
products continue to be valued by our very varied base 
of customers and we have implemented changes in staff
training and in building methods which will underpin
both our quality and our control of developments against
a background of a stable housing market a continuing 
undersupply of new homes and pentup aspiration to home
ownership i remain confident that redrow will go from
strength to strength
robert b jones chairman
7
far left abbots wynd falkirk
centre stonemead stalybridge
left odyssey london docklands
right the courtyard widnes
chairman’s statement 8 chief executive’s review       
chief executive’s review 
paul l pedley chief executive 
this has been another year
of record achievement for
redrow
the year ended 30 june 2003 has been another period of
record achievement for redrow operating profits have
increased from £941m to £1137m delivering earnings per
share of 469p an increase of 218 our balance sheet
continues to strengthen with shareholders’ funds now
exceeding £300m and gearing at 309 a further 
reduction on last year the efficient utilisation of capital
has always represented one of the main financial objectives
within the group and this is reflected in our return on 
capital employed which has increased to 31 
during the last twelve months the group has been 
carefully positioned in anticipation of a more sustainable
housing market the strength of our land bank enabled
redrow homes to increase the number of active outlets as
we entered the new calendar year so as to capture the
benefit of the important spring market this resulted in 
record forward sales as at 30 june 2003 of £304m in 
addition redrow commercial has commenced the new
financial year with forward transactions exchanged at both 
st david’s park and buckshaw village
the increasing recognition by the government of the
problems created by the continuing shortage of new homes
is to be welcomed the three major government sponsored
studies covering the barriers to increased housing supply
the development of a market for long term fixed rate  
mortgages and the improvement of the efficiency of the
industry all represent key opportunities to influence the
housing industry of the future the supply constraints
resulting from a restrictive and underresourced planning
regime are well documented however it is important that
our industry is capable of responding if government
initiatives do result in an increase in the supply of land  with planning for this to be achieved
improved construction techniques are
required to counter the impact of
skilled labour shortages during the last
twelve months we have undertaken a
careful review of both the design of our
housing portfolio and our build practices 
this has resulted in the creation of a new 
housing range which will be launched during 2004 
the new range combines the kerb appeal and the 
quality of design with which the group has become 
synonymous with improved construction methods in 
particular increased offsite prefabrication in addition the
new range has been designed to deliver the added benefits of
light steelframe construction which will flow as production is
increased at our joint venture company framing solutions
9
far left
st katherine’s park ham green bristol
left
schooners creek colchester
above
parc penyfal abergavenny
right
bramley green angmering
chief executive’s review  10 chief executive’s review       
redrow homes
redrow homes has again reported record results with
turnover increasing by 97 to £5960m and operating
profit by 170 to £1115m these results were secured
from 4031 2002 3908 legal completions with an 
average selling price of £147900 2002 £139000 the
legal completion profile was broadly in balance between
the first and second halves with 1970 489 and 2061
511 legal completions respectively
during the last twelve months there have been significant
variations in our various regional markets within the
southern region the market has generally undergone a
period of stabilisation whilst in both the western and
northern regions the positive ripple emanating from an
historically strong southern market has been experienced
the conflict in iraq resulted in a temporary period of
uncertainty whilst late spring and early summer witnessed
an overall return to a more sustainable housing market
throughout the country
in recognition of the potential uncertainty and changing
conditions within the market a significant number of new
development launches were scheduled for early 2003 to
capture the benefit of the important spring market
one of the most successful launches was at altolusso
the division’s in the city development in cardiff where
over the initial launch period 155 reservations were
secured with a sales value of £25m as a result of this
overall strategy reservations in the six months to 
30 june 2003 were 91 ahead of the very strong 
corresponding period in 2002 for the financial year as a
whole reservations were 4567 as compared with 4168 in
the previous year an increase of 96 this improvement
enabled the division to end the year with a record forward
sales position of 2062 units with a sales value of £304m
representing increases of 351 and 394 respectively on
last year
cost pressures within the industry have continued during
the financial year whilst the group’s proactive policy of
establishing key relationships with suppliers has resulted in
material price increases being controlled generally in line
with inflation the continuing shortage of skilled labour has
resulted in labour cost increases of up to 10 in the long
term these cost pressures can only be alleviated by both
increasing the overall attractiveness of our industry to new
entrants so increasing the total work force and by
embracing new construction techniques
operating margins within redrow homes have continued
to increase recording levels of 184 and 190 in the
first and second halves respectively the overall annual
operating margin of 187 compares with 176 last year
this improvement is in part due to the strength  of the sales market during calendar
year 2002 but equally reflects the
quality of the division’s land bank and
the active management of our cost base
the identification by the government of
key growth areas at milton keynes stansted
the east thames corridor and ashford to satisfy
the increased demand for new homes in the south
east is of strategic importance to enable the division 
to maximise the potential from these growth areas a new
company redrow homes south midlands has been
formed to focus on the area 
11 chief executive’s review 
far left
crown gardens glasgow
left
priory green little dunmow essex
above
st edward’s park leek staffordshire
right
a computer generated image of altolusso cardiff 12
known as the ‘milton keynes triangle’ as a result the 
geographical coverage of redrow homes southern
redrow homes eastern and redrow homes south east
has been reviewed to enhance the efficiency and 
effectiveness of these companies the decision has been
taken to relocate the first to basingstoke in hampshire and
to merge the other two with the relocation of the merged
business to laindon near basildon in essex
framing solutions our light steelframe joint venture 
company with corus plc continues to progress the 
commissioning of the new rollforming machinery together
with the related design and control programmes has been
successfully completed this is a major achievement
greatly increasing the efficiency of the design and
production process representing a significant step towards
enhancing the production capability over the next few
years to approximately 4000 units per annum to date
light steelframes have been incorporated successfully into
four redrow developments with further sites scheduled to
come on stream prior to the end of the calendar year
chief executive’s review        the northern region delivered 1982 legal completions as 
compared with 1888 in the previous year an increase of 50
representing 492 of the division’s completions  these results
reflect the acquisition of tay homes in january 2002 with the
resultant expansion of our activities in both scotland and
yorkshire  the average selling price increased by 82 to
£128500 to yield an overall increase in turnover of 136
the southern region achieved 1091 legal completions broadly
in line with the previous year representing 271 of the total
completions of redrow homes  the average selling price
increased by 91 to £186400 to give an overall increase in
turnover of 65  
the expansion of the western region continues with legal
completions increasing by 62 to 958 units  the average 
selling price was marginally higher at £144000 with turnover
increasing by 81 to £1380m
13
regional 
performance
chief executive’s review 
far left brockham park surrey
centre erection of a steelframe system at parc victoria ebbw vale
left homes at parc victoria ebbw vale constructed with the new steelframe system
right the boulevards harrogate
far right rumford grange falkirk 14 chief executive’s review       
the redrow portfolio
over the last ten years the development of the heritage
harwood and in the city brands has been of major 
importance in the expansion of redrow homes during
that period the number of legal completions has almost
doubled from 2038 in 1994 to 4031 in 2003
the heritage range which in the financial year had
an average selling price of £166100 still represents the
cornerstone of the portfolio accounting for 632 of legal
completions as anticipated last year the last twelve
months have witnessed a significant expansion in the
utilisation of the harwood range this is primarily due to
the fact that on the acquisition of tay homes in january
2002 the majority of that company’s developments in
yorkshire and scotland were more suited to the harwood
specification in addition increased usage has been made
of the harwood range in both south west and south
wales as a result harwood represented 290 of the
division’s legal completions in the current financial year
and had an average selling price marginally in excess of
£100000 
to complement heritage and harwood several in the
city developments have been and are being undertaken
the number of such schemes is carefully controlled due to
the significant management time involved in each scheme
and from a financial viewpoint their capital intensive
nature during the year in the city schemes contributed
78 to the division’s legal completions with an average
selling price of £174900 of particular significance was the
highly successful scheme at whitworthwest in manchester
which secured the award for “best city centre residential
development” from the association of town centre
management in conjunction with the nhbc
ongoing in the city schemes include odyssey in london
altolusso in cardiff jupiter in birmingham velocity in
leeds and neptune marina in ipswich to balance the
higher capital investment associated with in the city
schemes it is important to maintain a strong forward sales
position it is therefore pleasing to report that by the
financial year end the above developments have already
secured 348 forward sales for legal completion in the year
ending 30 june 2005
whilst the heritage and harwood ranges have been 
highly successful the changing requirements of planning
policy guidance in particular ppg3 have resulted in
an increasing percentage of bespoke concept schemes
marketed under the heritage and harwood banners
the increase in such schemes has resulted in a greater 
absorption of management time in their design and a 
dilution of the benefits that flow from the construction
of a more standardised housing range
in response to these changes a new highly flexible range
of generic house styles has been designed this new range
combines the quality of design that has characterised the
heritage and harwood ranges with the reintroduction
of greater standardisation within the construction process
whilst maintaining the flexibility in elevational treatments
to match the local vernacular with three different specification levels in the new housing
range the benefits derived from a
diverse product portfolio will be 
maintained but complemented by the
efficiencies of greater standardisation
both from a build and financial viewpoint
this new range has equally been designed to
respect the requirements of ppg3 and to enhance
the utilisation of offsite prefabrication furthermore
whilst designed initially to be predominantly built
traditionally the requirements of light steelframe 
construction have been fully recognised so as to provide 
further benefits as production from framing solutions 
is increased 
finally from a marketing perspective the new range 
irrespective of specification will be marketed under the single
redrow brand to provide greater synergy with the division’s
national marketing programme and in particular the highly
successful campaign on digital television
15
above
eton court pengam green cardiff
right
saxon place northampton
chief executive’s review  16 chief executive’s review       
developing a sustainable   
during the last twelve months
the current land bank has
increased to 16000 plots
land remains the key to the group’s future profitability
during the last twelve months the current land bank has
increased from 15600 plots to 16000 plots representing
on an historic basis a four year land supply of these plots
14000 are owned with planning an increase on the 
previous year of 600 plots the balance is held under 
contract awaiting in the vast majority of cases the grant
of a satisfactory planning consent
it is however the effectiveness of this land bank that is of
paramount importance the homes division owns with
planning all the land required to deliver the budgeted 
completions for the new financial year further 85 of the
forecast legal completions for the year ending 30 june 2005
are on land owned with planning and indeed all are on
land controlled by the division this places redrow
homes in an extremely strong position for the future
during 2003 redrow homes acquired approximately 4630
plots for a total consideration of £1269m representing an
average plot cost of £27400 at the financial year end the
average plot cost has increased from £21200 to £22900
which when expressed as a percentage of annual historic
sales price represents a marginal increase from 153 last
year to 155 for the current year
17500
15000
12500
10000
7500
5000
2500
0
land under contract
land owned with planning consent
current land bank
1999
3300
12300
9000
2001
3000
14300
11300
2002
2200
15600
13400
2003
2000
16000
14000
2000
3300
10200
13500 with the increasing concentration on
brownfield development the historic
distinction between current and
forward land has been eroded with our
planning teams now equally involved in
securing planning consent on both
categories of land nevertheless forward land
remains a major contributor to the land acquired
each year and during the last twelve months some
30 of the land acquired was secured through this route
further at the financial year end the forward land bank
totalled approximately 23750 plots of particular
significance is the number of plots allocated in either draft
or adopted local plans despite the contribution to the
current land bank during the year these allocations have
been maintained at over 8000 plots representing over
onethird of the forward land bank clearly demonstrating
its planning pedigree
17
  future
far left
whatton grange long whatton leicestershire
above
woodvale place southport
right
the circus gras lawn exeter
chief executive ’s review  18 chief executive ’s review       
redrow commercial
the focus is on the identification
and development of mixed use
schemes so adding value on a
groupwide basis
the recent relocation of redrow commercial to new 
office premises within the group’s mixed use scheme at
whitworthwest manchester represents the culmination of
a very successful year operating profits of £30m were at a
similar level to last year with contributions being secured
from each of the company’s major developments
at st david’s park optima the 27000 sq ft office
development to which i referred last year was sold to 
moneysupermarketcom at buckshaw village the
80000 sq ft of industrial units built speculatively has 
generated significant interest with the sale of a 
20000 sq ft unit prior to the year end and the disposal of
a further 14000 sq ft unit subsequent to the year end in
addition on both developments the sale of undeveloped
parcels of land has been achieved so further improving the
company’s results at western approach bristol the
51000 sq ft distribution warehouse prelet to macfarlane
group uk ltd has been successfully sold and marketing
continues on the second unit also of 51000 sq ft 
constructed in parallel lastly the investment sale of the
ground floor retail space at whitworthwest in manchester
prelet to sainsbury’s supermarkets ltd has been
successfully completed 
the company has commenced the new financial year with
forward transactions secured at both st david’s park and
buckshaw village at the former contracts were
exchanged prior to the year end for the sale of evolution
nursery office units totalling approximately 15000 sq ft
following build completion in mid july the sale has been
successfully completed at buckshaw village contracts have been exchanged 
subject to planning for the sale to aldi stores ltd of a 
31 acre parcel of land for the development of a 
650000 sq ft distribution warehouse this transaction
together with those previously referred to establishes
buckshaw village as a major mixed use development
within the north west
over the last two years the focus within redrow
commercial has been on the identification and
development of mixed use schemes so adding value on a
groupwide basis twelve months ago the structure of the
management team was reviewed and brought in line with
that of the homes division the results for the year together
with the foundations laid for the future are a solid 
endorsement of these policies
last year i referred to the ‘extensive project management skills
within redrow commercial which have been harnessed to
provide the appropriate controls on all in the city schemes
undertaken throughout the group’ to recognise the significant
groupwide contribution made by this project management
team the decision has been taken to relocate the team to
st david’s park so facilitating greater integration in all relevant
aspects of the group’s business
19
far left redrow commercial office whitworthwest manchester city centre
centre ‘optima’ 27000 sq ft office development st david’s park flintshire
left western approach severnside bristol
right whitworthwest apartments and retail scheme manchester city centre
chief executive ’s review  20 chief executive ’s review       
one of the core strengths of the group remains the
‘redrow team’ our continuing growth combined with
the increasing complexity of our industry means that
redrow must be recognised as ‘an employer of choice’
so as to be able to both retain our existing staff and attract
future employees of the highest calibre  it is however
equally important that these new employees receive the 
appropriate induction which not only encompasses our
policies and procedures but also our culture so that all
new staff can feel part of the redrow team and contribute 
fully at the earliest opportunity in addition to recognising
the need for a structured induction process there is an
ongoing requirement for training across many disciplines
throughout the group
during the last financial year a detailed review was
undertaken as to how these objectives could best be
achieved the conclusion of the review was the formation
of ‘the redrow training centre’ this facility is now
housed within a purpose built 4000 sq ft building
constructed next to the offices of redrow homes
midlands at tamworth the centre had a capital cost of
approximately £500000 and is staffed by professional
trainers recruited from both within and outside the group
to provide the appropriate balance of skills furthermore
existing team members may be seconded to provide
specialist courses particularly in more technical disciplines
and in the important area of health and safety the centre
is fully integrated into the groupwide computer systems
to provide a ‘real life’ environment for learning purposes
on an annual basis some 400 courses will be provided at a
cost of approximately £400000
this initiative clearly demonstrates redrow’s commitment
to its employees and its desire to be ‘the employer of
choice’ within our industry
above
the redrow training centre tamworth
centre
interior of the training centre
right
redrow plc headquarters st david’s park flintshire
the redrow team
our training initiative redrow has entered the new financial year having 
delivered record results and secured an excellent platform
for future growth the homes division through careful
planning and the launch of several new developments
has secured a record forward sales position the division’s
land bank has been further strengthened and provides an
effective and solid base for the future the review of the
housing portfolio will ensure that the qualities of the
existing ranges are combined with the requirements for
enhanced construction methods so supporting our future
financial returns
redrow commercial has established a sound development 
programme adding significant value through its focus on
mixed use schemes
accordingly barring the impact of factors totally outside the
control of the group redrow can look forward with confidence
to maintaining its record of delivering long term sustainable
growth and by so doing deliver value to our shareholders
paul l pedley chief executive
21
outlook
chief executive ’s review  22 corporate social responsibility review
redrow is one of the country’s leading developers and as such
recognises that as well as its responsibilities to shareholders it also
has responsibilities to its employees customers suppliers and
subcontractors together with the environment and the wider
community in which it operates
during the year redrow reviewed the role of the environment
committee and has replaced it with the environmental 
corporate responsibility committee under the chairmanship of
brian duckworth a nonexecutive director the main focus of
the committee is on environmental and community issues but
it embraces other aspects of the corporate social responsibility
agenda
employees
redrow has a dedicated human resources director reporting
directly to the chief executive all employees receive a detailed
staff handbook clearly setting out the terms of employment and
outlining the requirements in respect of the conduct of employees
and the company there is a defined procedure for dealing with
staff grievances that is available to all employees there is a
separate specific procedure to deal with instances of harassment
bullying or victimisation the handbook clearly indicates that
redrow is an equal opportunities employer and will not tolerate
discrimination on grounds of gender marital status race colour
nationality ethnic or national origin disability sexual orientation
religious belief trade union membership or any other nonjob
related criteria
training
redrow believes that well trained employees are key to its
success and so provides opportunities for employees to develop
skills through both inhouse training and external courses these
opportunities are wide ranging from apprenticeship schemes for 
training trades skills through to courses provided by external
business schools for directors and senior managers the new
redrow training centre with a dedicated training manager
underlines the commitment by redrow to enhance the skills of its
employees and provide a consistent approach to induction all
staff receive at least an annual appraisal to review performance
set goals for future performance and assess training requirements
health  safety
it is fundamental that the importance of health and safety is
recognised by all employees and becomes part of the culture of
redrow redrow has put in place significant changes to its 
practices and controls in recent years to achieve an increased
focus on this important issue    
redrow recognises that the health and safety of all employees and
those who work within its supply chain is essential to its business
to this end all employees receive a copy of the health safety and
environmental hse policy on their first day of employment and
are required to read it and positively adopt its principles
redrow has a dedicated department to provide a quality health
and safety service to our operations it includes a director
reporting directly to the chief executive and it provides regular
formal written reports to the board as well as to all subsidiary
company and regional board meetings they review activities at
all development sites and offices to monitor compliance with
legislation and best practice in health and safety matters 
corporate social 
responsibility review
neil fitzsimmons group managing director 
right
school site visit
far right
sales consultant assisting a customer 23 corporate social responsibility review
the inhouse health and safety team provides training to all employees
it is redrow’s policy that all employees receive suitable and sufficient
training in this area and to ensure this it operates a safety training
credit scheme stcred requiring all employees to achieve a level of
credits set by the health and safety team with regard to training relevant
to their role or function this is recorded on each employees st–cred
card the team together with other employees also provide training to
subcontractors through onsite toolbox talks
there are specific health and safety standards in place applicable to
all sectors of the business that are contained in a detailed manual
these also deal with the safety of customers visiting the sites and those
living near the developments responsibilities on each development are
included in the site health  safety plan and management procedures
and accountabilities in relation to each site are agreed with individual
team members all persons must be properly inducted before they can go
on to the construction areas on site and are required to wear appropriate
personal protective equipment
customers
redrow has always been committed to providing quality homes and
customer service and this has been recognised in numerous awards 
the relationship between redrow and the customer is established through
the sales process customers receive a homefile at the reservation stage 
to assist them in the buying process the home is demonstrated to the 
customer prior to legal completion and after occupation redrow
maintains contact to ensure the home meets customers’ expectations
a quality control file is maintained in relation to each home and at 
each stage employees and subcontractors are required to confirm 
completion of specific stages in the construction process this process is
independently monitored by the nhbc or an equivalent building
control body and they are required to confirm in writing to a mortgagee
that the home is complete and ready for occupation by the customer
a 10 year warranty is also provided through the nhbc or similarly
recognised insurer
redrow encourages and welcomes the views of its customers and takes
them seriously all customers receive a standard customer survey that
seeks views on a wide range of questions as well as providing an
opportunity to express any other specific comments regarding the home
and the buying process each site and subsidiary company is assessed on a
monthly basis in respect of these returns and performance is reviewed at
board meetings at all levels
suppliers and subcontractors
redrow places orders with suppliers and subcontractors that clearly set
out the terms and conditions of trading it operates a policy of making
payment to suppliers and subcontractors in accordance with terms and
conditions set out in the order in addition the construction act
governs relationships with contractors both as regards payment and
resolution of disputes
a policy is contained within redrow’s buying procedures regarding the
ethical relationship with suppliers and subcontractors that does not 
permit employees to receive payments or favours from suppliers and
subcontractors
redrow has long standing relationships with a number of suppliers and
this enables an understanding to be developed of how each operates to
assist in the development of both businesses to improve products and
the efficiency and effectiveness of operations for example redrow has
worked with british gypsum to reduce waste generated on site from
plasterboard by both having board delivered to site precut to length and 
subsequently recycling surplus board 24 corporate social responsibility review
surveys are undertaken within redrow to assess the performance of
key suppliers and subcontractors and the group also surveys key
suppliers and subcontractors regarding the performance of its 
subsidiary companies the findings of these surveys are discussed 
at meetings with suppliers and subcontractors and at internal
meetings of buying teams
environment
redrow recognises the importance of sustainability in addition to
measures already taken it is initiating further policies in this area 
the company has embraced the government’s objective of using
brownfield land and increased this element of its land bank to over
70 well in excess of the government’s target of 60 for 
example in lancashire redrow has worked with the former 
owners bae systems to remediate the 400 acre royal ordnance
site near chorley one of the largest brownfield sites in the 
north west
this development will provide a new quality mixed use scheme for
130 acres of commercial property development and 2000 new
homes  redrow also recognises the importance of energy efficiency
and water management it has been investigating ways to reduce
energy consumption and a number of the larger sites now 
incorporate sustainable urban drainage systems suds as part 
of the development process all new redrow homes have dual
flush toilets incorporated into the specification to reduce water
consumption 
redrow takes pride in producing quality environments in which
people want to live and work as regards housebuilding this has
been recognised by the award of some 39 daily mail green leaf
awards in the last four years in recognition of the extensive
landscaping and planting on its developments during this period
these awards included the civic trust award for princewood in
birkby near huddersfield for a development that blends into the
landscape and enhances the community and the tree council
award for northop country park in flintshire which cited redrow
as providing the best example of the way new homes and mature
trees can exist together all the subsidiary companies work with 
planners to retain and protect fauna and flora and their habitats
affected by redrow developments nearly 60000 trees have been
planted on redrow developments over a three year period 
the approach to this important issue also embraces commercial
property development and this was recognised when redrow
commercial’s 138500 sqft windsor office park development was
awarded an ‘excellent’ rating in the building establishments
environmental assessment scheme  
over a number of years redrow has been proactive in ensuring the
timber it uses is from managed sources and any hardwoods used are
from certified sources as a consequence it has been invited to
join the wwf95 group and will now be working with them to
improve further redrow’s record in this area in addition redrow
is involved in the wwf ‘one million sustainable homes’ project
focusing on the impact in environmental terms of the housing
industry as regards use of resources in construction and domestic
energy usage
redrow is currently developing an environmental management 
system that will ultimately be applied to each of its development
sites to provide a common operational system with regard to
environmental issues it will provide a framework to manage
environmental concerns one part of which is the introduction of
a standard waste management system across its sites to increase
the amount of material recycled both on and off site and reduce
the level of landfill waste
redrow believes in looking forward and has previously worked
with the national museum and galleries of wales and architects
jestico  whiles on building a ‘house for the future’ that 
recognised the issues of sustainability changing lifestyle patterns
and new ecofriendly technologies 
looking to the future redrow is to construct in excess of 400
homes in south manchester in partnership with the national trust
to develop a site to an enhanced environmental performance 
specification this will include homes with highenergy efficiency
performance standards in excess of current building regulations
that will be monitored by leeds metropolitan university the data
from these homes will be used in determining changes to
regulations water saving appliances will be used including low
flush toilets and pressure reducers on taps with parts of the site
being serviced by a suds system 
materials used on this development will be from sustainable
or renewable resources and designed to have minimal
environmental impact in addition the development has been
designed to optimise solar gain through the orientation of the
properties waste minimisation will be a feature of the
construction process and facilities will be provided to the occupiers
of the homes to make recycling easier  finally the site will
incorporate substantial community woodlands and a brook that
flows through the development will be restored both features will
provide an enhanced ecological habitat
right
the brambles development northwich winner of both greenleaf and best
scheme in the north west awards
far right
jason newton sales director redrow homes north west presenting 
certificates to schoolchildren as part of the redrow schools partnership 25 corporate social responsibility review
community
redrow believes it has a wider role to play in the community and
encourages the involvement of its employees in providing benefits to
those communities redrow is playing an active role in the ‘cares’ 
initiative being developed by business in the community bitc this
aims to find new approaches to volunteering through links between the
private sector community organisations the public and government in
taking effective community action
as part of its involvement with the bitc redrow is now in its fourth
year of participating in learning link a project whereby employees
mentor secondary school children and assist primary school children
with learning it will also be the fourth year in which employees in the
company’s graduate programme have been involved in a challenge 
within the community this year the team worked to create a more
homely atmosphere in a suite used by north wales police for victims 
of sexual abuse they also worked on a project for north wales police 
to suggest ways to improve awareness and funding for their ‘crimebeat’
campaign
in south wales the subsidiary company has supported a local
children’s hospice charity for a number of years and has now raised in 
excess of £60000 through various fund raising activities redrow 
encourages all its subsidiary companies to undertake similar initiatives
within their local communities in scotland the subsidiary company was
involved in a project ‘art for everyday’ featuring furniture and 
accessories made by local designers that are displayed in showhouses
the project was awarded a financial times ‘arts and business award’  
redrow also entered into a three year programme in may 2002 with the
national trust called ‘the redrow schools partnership’ and is providing
sponsorship of £150000 over the period the aim is to build bridges
between communities by offering opportunities for schools of contrasting 
backgrounds to work together on arts based activities at national 
trust properties the programme is to establish 36 partnerships over the
period involving 156 school classes
redrow believes in working with schools to explain the housebuilding
industry it invites schoolchildren to spend a day on site learning about
the industry the materials used and environmental and health and safety
issues members of the construction teams regularly visit schools local to
developments to educate children on the dangers associated with
construction sites as redrow upgrades its it hardware suitable surplus
hardware is often donated to local schools 
in addition in order to assist children improve communication and
learning skills redrow pioneered a curriculum resource pack for upper
key stage 2 children in conjunction with education and learning wales
called ‘plan it build it’ it explains the planning and construction of a
development but also builds on the knowledge acquired through the
national curriculum containing activities in english mathematics
science and design technology
summary
redrow remains committed to not only delivering value to its
shareholders through delivering sustainable and profitable growth
but doing so in a way that recognises its responsibilities to other
stakeholders the environment and the wider community 
neil fitzsimmons group managing director 26 financial review
financial review
david l arnold group finance director 
turnover
group turnover increased from £5733m to £6079m an
increase of 60 with turnover in the homes division up
by 97 to £5960m  turnover in the commercial
division fell by £183m to £119m as the previous year
reflected the disposal of substantial developments in
windsor and altrincham
homes division – legal completions
redrow homes achieved legal completions of 4031 an
increase of 31 on the 3908 completions delivered last
year  the previous financial year included 335 legal 
completions from the acquisition of tay homes in january
2002 and the volume to the end of june this year reflected
the scaling back of output from the tay land bank to
achieve the sustainable position envisaged at the time of
the acquisition
year ended 30 june
2003 2002
units average units average
selling price selling price
heritage 2547 £166100 2497 £152000  
harwood 1169 £100800 887    £84600  
in the city 315 £174900 524   £168700
redrow homes 4031 £147900 3908   £139000  
the number of legal completions from the heritage range
increased slightly this year from 2497 to 2547 with this
product representing 632 of the division’s total 
completions broadly similar to last year  the harwood
range significantly increased its contribution to the group
with legal completions of 1169 being 318 ahead of the
prior year  harwood represented 290 of the completions
achieved by redrow homes compared with 227 in 
the previous financial year this greater contribution 
was primarily attributable to the impact of the tay 
acquisition and the wider utilisation of harwood in the
western region
the number of legal completions from in the city schemes
fell to 315 units and as a result represented 78 of 
overall completions  this reduction was a result of the
timing of build completions for these schemes and in
future it is currently anticipated that in the city schemes
will generally account for between 10 and 15 of the
division’s legal completions
the average selling price in the homes division increased
from £139000 to £147900 an increase of 64 prices
were ahead in each product range but most significantly in
harwood where they rose 191 to £100800 whilst this
increase was partly attributable to general selling price
increases experienced during the year it was also impacted 27 financial review
by the tay acquisition and more widespread geographical
coverage of the product  the average selling price for
heritage was £166100 93 higher than the previous
twelve months whilst the average selling price for in the
city of £174900 was consistent with the continued 
strategy for this product of ensuring it remains price 
competitive in its markets 
operating profit
total operating profit for the group was 208 higher at
£1137m 2002 £941m excluding the impact of the
£43m integration costs incurred last year in connection
with the tay acquisition operating profit was 155 higher
2002 operating profit preintegration costs £984m
operating profits in redrow homes grew by 170 to
£1115m 2002 £953m  operating margins in the
homes division increased to 187 from 176 in the
previous year having attained a level of 190 in the last
six months of the financial year these enhanced margins
reflect in part the impact of the strong sales market 
experienced in the 2002 calendar year and it is anticipated
that operating margins will gradually return to levels 
previously identified as being sustainable if house price
inflation returns to its historical relationship with increases
in average earnings
redrow commercial achieved operating profits of £30m
2002 £31m primarily reflecting the sales at western
approach bristol and the mixed use schemes at buckshaw
village and st davids park 
redrow’s share of the financial results of framing
solutions the group’s 5050 joint venture with corus plc
was an operating loss of £08m in line with expectations
profit before tax earnings per share and dividends
profit before tax increased by 247 to £1061m 
2002 £851m the group’s effective tax rate was 
300 and subject to unforeseen circumstances is likely 
to remain at approximately this level in the next 
financial year
basic earnings per share increased by 218 to 469p per
share 2002 385p when compared against last year’s
adjusted earnings per share of 404p calculated before 
the integration costs incurred in connection with the
acquisition of tay homes the increase was 161
subject to approval at the annual general meeting on
5 november 2003 a final dividend of 50p per share 
2002 404p will be paid on 21 november 2003 this will
bring the full year dividend to 75p 2002 606p 
which is 63 times covered by basic earnings
2002 64 times as highlighted at the time of the
interim results given the level of profitability achieved
by the company in recent years the board considered it
appropriate to increase the level of the full year dividend
by 238 
capital employed
the group achieved a return on capital employed of 31
over the last twelve months this is a record level for the
group since its flotation in 1994 over the last five years
it is pleasing to report that this important financial 
measure has averaged 29  as at 30 june 2003 capital
employed stood at £3945m an increase of £628m over
the last twelve months  capital employed by the homes
division was £3762m 2002 £3178m and in the
commercial division £162m 2002 £139m the
group’s share of the net assets of framing solutions 
represented £21m
in redrow homes the increase of £584m in capital
employed reflected the higher level of investment in
working capital land held for development increased by
£329m to £3197m 2002 £2868m and work in progress
was £443m higher at £2266m 2002 £1823m of this
increase in work in progress £168m was attributable to
in the city schemes these increases in stocks were offset 28 financial review
by land creditors which were £84m higher at the year end
at £753m 2002 £669m and a reduction in other capital
employed of £104m
the net increase of 600 plots in the land bank over the
last twelve months to 14000 plots accounts for the higher
level of investment in land as at the end of june 2003
the average plot cost of the 14000 owned plots with 
planning permission stood at £22900 2002 £21200
the year end plot cost expressed as a percentage of the
average selling price achieved during the year stood at
155 up only marginally on the 153 of june 2002
it should be noted that costs in connection with the 
acquisition and promotion of the group’s 23750 plots 
of forward land are provided for when incurred and the
provision only released once planning is obtained and the
land acquired
it is important for the group to examine all appropriate
land opportunities available and in this regard on 
14 january 2003 redrow purchased four residential sites 
in glasgow greenock and dunfermline through the 
acquisition of park lane city limited a company whose
activities were limited to the development of these land
holdings the consideration of £46m is deferred and is
payable subject to the number of units for which planning
consent is ultimately obtained the purchase of these sites
has made an important contribution to the land holdings
of redrow homes scotland further information on the
transaction is set out in note 9 to the financial statements 
part exchange remains a marketing tool that is used 
relatively infrequently by the group at the end of the
financial year 29 such properties were held pending resale
compared with 14 properties held at the end of june 2002
these properties had a book value of £51m 2002 £20m
when appropriate the group will purchase land on
deferred payment terms  during the course of the year
land creditors increased by £84m to £753m with the
amount due after more than one year increasing from
£259m to £401m the land creditors are either secured by
way of legal charge over the land to which they relate or
are supported by financial guarantees
the increase of £23m in capital employed within redrow
commercial during the year to £162m primarily reflected
the higher level of investment in work in progress at
buckshaw village western approach bristol and a new
office development at altrincham
shareholders’ funds increased from £2386m to £3013m as
a result of retained earnings of £624m and £03m in
respect of shares issued under the group’s saye schemes
framing solutions
the group invested £27m in framing solutions plc on its
formation in september 2002 this company has its own
banking facilities which are unsupported by redrow
cash flow interest and gearing
the group remains in a position of financial strength from
which to continue to grow  after allowing for a net
increase in working capital of £566m the cash inflow
from operations was £596m  as at 30 june 2003 net debt
stood at £932m barely changed from 12 months earlier
gearing calculated as the proportion of net debt to 
shareholders’ funds stood at 31 down from 39 at 
the end of june 2002  net debt at 30 june 2003 was more
than three times covered by the value of forward sales
within the homes division finance costs in the year were
lower at £76m 2002 £90m due both to lower average
interest rates and a lower level of average debt the 
interest charge was 150 times covered by operating profits
2002 105 times 29 financial review
treasury
it is the group’s policy to fund itself through an 
appropriate mix of shareholders’ funds and debt in august
2002 redrow plc entered into a new five year £180m 
syndicated loan facility with its banks to fund its core
medium and longterm debt requirements this loan 
agreement is supplemented by additional bilateral 
facilities which are used to meet shorterterm borrowing
requirements these bilateral facilities total £70m which
together with the syndicated facility provided the group
with total borrowing facilities of £250m at the year end
all these facilities are unsecured it is the group’s policy 
to ensure that adequate committed debt facilities are 
maintained to meet the group’s peak borrowing 
requirements cash flow forecasts and headroom under
bank facilities are both regularly reviewed  
the group’s daytoday cash management is achieved by
each company operating its own bank account with all
bank accounts managed under a set off arrangement
the board has approved an interest rate risk management 
policy which sets out the maximum and minimum 
proportion of the group’s debt that must be protected
against adverse interest rate movements the policy
prohibits any trading in derivative financial instruments
and requires any hedging activity to use simple risk 
management products as at 30 june 2003 the group had
entered into interest rate swaps on a notional amount of
£100m which had a remaining average maturity of 
approximately two years  whilst year end net debt of
£932m was lower than the total level of interest rate 
swaps outstanding this level of cover is appropriate in 
relation to average debt levels during the year  note 23 
to the financial statements sets out the fair value of the
group’s financial instruments
the group has no material exposure to movements in foreign
currency rates since it operates entirely within the uk and
procures virtually all its supplies from uk based companies
redrow’s activities in both the homes and commercial
divisions result in requirements for surety bonds and 
guarantees for example those that are provided to local
authorities in respect of the adoption of highways on a
development as at 30 june 2003 the group had £67m of
facilities to provide such bonds and guarantees of which
£275m was utilised in addition the group has bonding
facilities made available through the national house
building council
as well as meeting institutions and equity analysts the
group maintains close contact with its bankers and surety
companies regularly providing them with information
regarding current trading and financial performance
pensions
the group believes that pension provision is one of the
most important benefits made available to redrow’s
employees and in this regard provides both defined benefit
and defined contribution pensions the defined benefit
scheme was closed to new members generally in
october 2001 at which time a defined contribution
section of the scheme was established for the financial
year ended 30 june 2003 the employer’s contribution rate
in respect of the defined benefits section of the scheme was
12 with employees contributing 6 of pensionable salary
under the defined contribution section of the scheme
monthly paid members contribute 5 with redrow
contributing between 5 and 125 of pensionable salary
depending on the age of the employee weekly paid
members contribute 3 with redrow contributing 3
in 2004 redrow will celebrate 30 years since its 
foundation and its relative youth means it is less burdened 
by many of the issues surrounding pension scheme funding  30 financial review
than other older companies nonetheless the scheme has
not been immune to the poor performance of the equity
markets and hence the formal triennial valuation 
undertaken by the scheme actuary as at 1 january 2003 in
respect of the defined benefit section reported a relatively
small deficit of £22m when comparing scheme assets
against liabilities this deficit compares with the market
value of the scheme’s assets of £240m at that date the 
triennial valuation forms the basis for the decision on
future contribution rates and in this regard the scheme
actuary has indicated that the company and employees
can continue to make contributions at their respective
current contribution rates though the performance of the
scheme’s assets will continue to be closely monitored 
accounting standards
there were no new accounting standards or requirements
introduced during the year which impacted upon the
results frs 17 on retirement benefits has no effect on the
results for the year and the disclosures required under the
transitional arrangements are set out in note 7 to the
financial statements under these disclosure requirements
the present value of the scheme liabilities is calculated
using longterm aa bond yields and compared against 
the market value of its assets at the balance sheet date on
this calculation basis the net deficit as at 30 june 2003 
was £62m after taking into account the related deferred
tax asset
outlook
as redrow approaches its 30th anniversary the group has
established a reputation for consistently delivering high
quality returns both as regards margins and return on
capital employed  the strength of the balance sheet
coupled with the inherent profitability of the land bank
and over £300m of forward sales provides a firm 
foundation to continue to deliver value to its shareholders
david l arnold group finance director 31 five year summary
continuing operations 2003 2002 2001 2000 1999
£m £m £m £m £m
 
group turnover 6079 5733 4212 4057 3416
operating profit 1137 941 795 677 563
operating profit as a percentage of turnover 187 164 189 167 165
profit before taxation 1061 851 721 672 556
profit before taxation as a percentage of turnover 174 148 171 166 163
net assets 3013 2386 1871 2618 2269
net debtcash surplus 932 931 1122 116 75
gearing – net debt as a 
percentage of capital and reserves 309 390 600 44 na
return on capital employed – operating profit as a percentage
of average net assets adjusted for net debtcash 31 30 28 27 27
number of legal completions 4031 3908 3464 3338 3135
earnings per ordinary share 469p 385p 288p 202p 170p
dividends per ordinary share 75p 606p 55p 495p 45p
net assets per ordinary share 1900p 1507p 1184p 1162p 1011p
 restated in 2002 for the impact of frs 19 “accounting for deferred taxation” 
five year summary 32 directors
directors
robert jones 52
nonexecutive chairman
robert jones joined the redrow
board in july 1997 he is a former
minister of state for planning
construction and energy efficiency
and has dealt with planning issues at
all levels of government he was
previously the head of research at
the national house building
council 
paul pedley 49
chief executive
paul pedley joined redrow in 1985 
and was appointed finance director
in 1986 deputy chairman in 1990
and group managing director in
1994 in september 1999 paul was
appointed chief executive he has
played a prominent part in the 
development of redrow and now has
overall responsibility for redrow
neil fitzsimmons 44
group managing director
neil fitzsimmons has worked within
the construction sector since 1986
and joined redrow in 1997
in june 1998 he was appointed to
the board as group finance director
and in september 2003 became
group managing director
david arnold 37
group finance director
david arnold joined redrow as
deputy finance director in july
2002 and was promoted to the board
as group finance director in
september this year prior to joining
the group david was treasurer 
of six continents plc and had 
previously held a number of 
financial positions at tarmac plc
latterly as head of corporate
finance david is a qualified
management accountant and
fellow of the association of
corporate treasurers
barry harvey 58
chairman – northern region
barry harvey rejoined redrow in
1995 as managing director of
redrow homes northern and was
promoted to northern regional
chairman in 1996 he was 
previously managing director of
redrow homes between 1988 and
1990 and has extensive experience
over a period of 40 years of the 
construction and housebuilding
industries barry joined the board 
in june 1998  
directors 33 directors
colin lewis 46
chairman – western region
colin lewis joined redrow in 1991
as company solicitor after 
promotion that year to legal
director he transferred to bristol in
1993 and spent seven years as
managing director of redrow homes
sw with the creation of the
western region in 2000 he was 
promoted to western regional
chairman colin joined the board
in june 2001
john tutte 47
chairman – southern region
john tutte joined redrow at the
start of 2002 having previously held
senior positions in the industry he
qualified in civil engineering and has
accumulated 20 years experience at
all levels in the housebuilding 
industry john joined the board in
july 2002
jim martin 60
nonexecutive
jim martin joined the redrow 
board in september 1997 he is 
a qualified accountant and has been
the chief executive of n brown
group plc since 1984 until his
retirement last year when he became
nonexecutive deputy chairman
he previously worked for unilever
and dunlop he is a nonexecutive 
director of alexon group plc and
chairman or director of a number of
private companies and industry 
associates he was reappointed
senior nonexecutive director in
february 2002
bob williams 53
nonexecutive
bob williams joined the redrow
board in february 1995 he was also
nonexecutive chairman of redrow
commercial developments until
july 2002 he has over thirty years’
experience of the property sector in
1983 he joined grand metropolitan
plc and in 1986 was appointed
chairman and managing director of
grandmet estates he was founder
chairman and chief executive of
mill house inns plc until its sale 
in 2000
brian duckworth 54
nonexecutive
brian duckworth joined the redrow
board in june 2002 he has been
managing director of severn
trent water since april 1995 brian
is also a nonexecutive director of
avon rubber plc he is a past 
chairman of water uk the 
industry’s trade association 34 directors’ report
the directors have pleasure in presenting to the members 
their report and the financial statements for the year ended 
30 june 2003
principal activities and business review
the principal activities of the group are housebuilding and 
commercial property development
turnover and profit on ordinary activities before taxation are
stated at £6083m and £1061m respectively after providing for
taxation of £318m and paying an interim dividend of £40m the
directors recommend a final dividend of £79m and the transfer
of the balance of £624m to reserves
a detailed review of the group’s activities during the year and 
of its prospects is contained within the chairman’s statement
chief executive’s review and financial review
statement of directors’ responsibilities
the directors are required by the companies act 1985 to 
prepare financial statements for each financial year which give a
true and fair view of the state of affairs of the company and the
group as at the end of the financial year and of the profit of the
group for that period in preparing the financial statements the
directors ensure that suitable accounting policies have been used
and applied consistently that reasonable and prudent judgements
and estimates have been made and that applicable accounting
standards have been followed the directors are required to 
prepare the financial statements on the going concern basis
unless it is inappropriate to presume that the company will 
continue in business the directors are responsible for 
maintaining adequate accounting records and are also 
responsible for taking such steps and instituting and maintaining
such systems and controls as are reasonably open to them to 
safeguard the assets of the group and to prevent and detect fraud
and other irregularities  
the maintenance and integrity of the redrow plc website is the
responsibility of the directors the work carried out by the
auditors does not involve consideration of these matters and
accordingly the auditors accept no responsibility for any
changes that may have occurred to the financial statements 
since they were initially presented on the website
legislation in the uk governing the preparation and 
dissemination of financial statements may differ from legislation
in other jurisdictions
going concern
the directors have considered the group’s financial position
and trading prospects and consider they have a reasonable 
expectation for stating that redrow plc has adequate resources to
continue trading for the foreseeable future accordingly they
continue to adopt the going concern basis in preparing the
financial statements
substantial shareholdings
as at 15 september 2003 the company has been notified of the
following interests of 3 or more in its ordinary shares
no of  of issued 
name shares held share capital
stephen peter morgan 15210155 96
fmr corp and its direct and
indirect subsidiaries and
fidelity international limited
fil and its direct and indirect
subsidiaries 7810906 49
pamela elaine morgan bell 7600000 48
legal  general group plc 6719781 42
standard life investments 6245632 39
the egerton european
dollar fund 5972050 38
directors’ report 35 directors’ report
directors
the directors are listed together with their biographical details
on pages 32 and 33
d l arnold was appointed to the board on 15 september 2003
in accordance with article 79 of the articles of association
whereby directors who have been appointed to the board since
the last annual general meeting must be reappointed at the
next following annual general meeting d l arnold will retire 
at the annual general meeting and being eligible offers 
himself for reelection
in accordance with article 84 of the articles of association 
r b jones c e lewis and b k harvey will retire by 
rotation at the annual general meeting and being eligible
offer themselves for reelection
the executive directors have formal service agreements
termination of their employment may be effected by twelve
months’ notice given by either party
the nonexecutive directors have fixed term service 
agreements outlining their duties and responsibilities
directors’ interests
details of transactions with directors which are material are 
disclosed in note 25 within the notes to the financial 
statements
the directors’ interests in the ordinary shares of the company
are given in the remuneration report on pages 44 to 47
charitable and political donations
the group made no political donations but made charitable
donations of £15000 during the year in addition the group and
its employees are actively involved in fundraising activities for
specific charities
employees
redrow places considerable importance on the provision of
training and development
in 2003 work commenced to construct a new group training
centre at tamworth staffordshire the new facility started
delivering courses in september 2003 it is intended that all new
redrow employees will participate in a formal induction course
with technical courses tailored to each discipline being run 
continuously throughout the year
the group supports the employment of disabled persons 
wherever possible through recruitment and by the retention 
and retraining of those who become disabled during their 
employment
the directors recognise the importance of good communications
with employees companies within the group are encouraged to
make their employees aware of the financial and economic 
factors affecting their respective companies and the group this
is assisted through the medium of regular management meetings
and staff publications
employee share ownership is encouraged through savings related
and other employee share schemes in the year ended 30 june
2003 the save as you earn scheme was administered via a
qualifying employee share ownership trust quest
creditor payment policy
the group values its relationships with suppliers and 
subcontractors  it is the policy to agree credit terms prior to
commencement of trading subject to any items of genuine 
dispute it is policy to pay creditors within the terms agreed
at june 2003 the group had 39 days’ purchases outstanding 
in respect of payments to suppliers and subcontractors 
2002 38 days
european monetary union emu
the group has minimal exposure to foreign exchange and 
continues to monitor the implications of emu
research and development
the group has a centralised research and development team
charged with identifying and evaluating new construction 
techniques and products
environment
redrow recognises its responsibilities to the community as a
whole and has adopted an environmental strategy which is a
core part of the group’s objectives further details are provided
in the corporate social responsibility review on pages 22 to 25 36 directors’ report
auditors
following the conversion of pricewaterhousecoopers to a
limited liability partnership llp from 1 january 2003
pricewaterhousecoopers resigned as auditors and the directors
appointed pricewaterhousecoopers llp to fill the casual 
vacancy by resignation
a resolution to reappoint pricewaterhousecoopers llp as
auditors will be proposed at the annual general meeting on 
5 november 2003
purchase of the company’s own shares 
resolution 11 set out in the notice of annual general meeting
seeks authority from shareholders for the company to purchase
up to 15857406 ordinary shares an aggregate nominal amount
of £1585741 which is equivalent to approximately 10 of the
company’s issued ordinary share capital at 30 june 2003  the
authority will expire at the end of next year’s annual general
meeting and the resolution specifies the maximum and 
minimum prices at which the shares may be bought other
investment opportunities appropriate gearing levels and the
overall financial position of the company will be taken into
account before deciding upon this course of action  
notice of annual general meeting
pages 64 to 67 sets out the notice of annual general meeting
and details the resolutions proposed together with explanatory
notes
by order of the board
g a cope group company secretary 
15 september 2003 37 corporate governance statement
corporate governance statement
combined code
the board of redrow plc is committed to high standards of 
corporate governance and has considered the requirements of
the combined code adopted by the stock exchange
the directors confirm that with the exception set out below
the group has complied with section 1 throughout the year
ended 30 june 2003
under provision b16 the deferred element of the redrow long
term share incentive plan ltsip which was in operation
from july 1996 to june 2000 vests in the participants in under
three years this was considered justified having regard to the
total executive remuneration package during that time an
amendment was made to the redrow ltsip following the
annual general meeting on 13 october 2000 such that options
awarded to directors in respect of years after june 2000 do not
vest in the participants for a period of three years  details are
set out in the remuneration report on pages 39 to 41
under provision d21 of the combined code the company is
required to report on internal control the company’s report on
internal control can be found on page 38 within this corporate
governance statement
board and committees
following the promotions of n fitzsimmons to group managing
director and d l arnold to group finance director the 
board of redrow plc comprises of six executive and four 
nonexecutive directors nonexecutive directors comprise 
not less than one third of the board and all nonexecutive
directors are considered to be independent the board is
responsible to shareholders for the management of the company
and for the protection of its assets the board meets regularly on
a formal basis and not less than ten times a year in the financial
year ended 30 june 2003 the board met eleven times
the board recognises that a structured appraisal process and
good training are important requirements across the group
all executive directors have an annual appraisal at which a
review of performance against personal objectives is undertaken
p l pedley undertakes the appraisal of his fellow executive
directors having taken input from the board generally 
r b jones and p l pedley conduct reciprocal annual appraisals
and also review the performance of each nonexecutive director
individually once again having taken feedback from the board
in 2003 a formal 2 day induction programme for all new redrow
directors was introduced in addition the board receives regular
presentations from those responsible for key group disciplines
a formal schedule of matters is reserved for the board including
authorisation of major land acquisitions and contracts approval
of budgets and accounts and monitoring of business performance
the board delegates certain powers to the chief executive and
executive directors
r b jones is the nonexecutive chairman and p l pedley is the
chief executive the senior nonexecutive director is 
j martin 
the directors have access to the advice and services of the
group company secretary and the board acknowledges that in 
certain circumstances board committees and individual directors
may wish to take independent professional advice in connection
with their responsibilities and duties the company will meet
the reasonable expenses incurred in this regard
the board has delegated specific responsibilities to committees
the members of which with the exception of the environmental
corporate responsibility committee are comprised entirely of
nonexecutive directors as follows
audit committee
r g williams chairman
r b jones
j martin
b duckworth
the responsibilities of the audit committee include the
appointment of and liaison with external auditors the review 
of annual and interim financial statements the review of the
statement on internal control and consideration of any major
findings of internal investigations
the committee meets four times a year on each occasion also
meeting the external auditors to discuss the interim accounts
and the annual report and accounts as well as internal control
including the work of internal audit risk assessment and other
issues within the group
pricewaterhousecoopers llp were appointed auditors in 2003
having succeeded pricewaterhousecoopers who were appointed
in 1987 the current audit partner was appointed in 1999 
the fees relating to nonaudit services provided by
pricewaterhousecoopers llp are disclosed in note 2 to the
accounts summarised according to different types of work
undertaken and are less than £01m the main area of nonaudit
work relates to advice provided to the company in connection
with the operation and valuation of the pension scheme the
audit committee has reviewed the level of nonaudit work
undertaken and has concluded this level of fee does not affect
the independence of the audit appointments in respect of 
nonaudit work receive the prior approval of the audit
committee
remuneration committee
j martin chairman
r b jones
r g williams
b duckworth
the responsibilities of the remuneration committee are
outlined in the remuneration report on page 39
under resolution 2 the remuneration committee report will
be put before shareholders for adoption at the annual general
meeting on 5 november 2003 38 corporate governance statement
nomination committee
r b jones chairman
r g williams
j martin 
b duckworth
the responsibilities of the nomination committee include the
identification and recommendation to the board of suitable
executive and nonexecutive directors
environmental corporate responsibility committee
b duckworth chairman
r g williams
j martin 
n fitzsimmons
this was formed in the year and replaced the environmental
committee details are included in the corporate social
responsibility review on pages 22 to 25
internal control
the board of directors recognises its overall responsibility for
the group’s systems of internal control and for monitoring their
effectiveness however in reviewing the effectiveness of internal
control such systems can only provide reasonable but not
absolute assurance against material misstatement or loss
key business activities including land acquisition product
design specification and procurement and information 
technology are controlled by the executive directors all
activity is organised within a defined structure with formal 
lines of responsibility designated authority levels and a 
structured reporting framework
a formalised reporting structure is established within the group
the executive board comprising the executive directors and
the group company secretary meet monthly to discuss the
group’s key issues risks and opportunities similarly each
region holds a regional board meeting chaired by the regional
chairman and attended by the managing directors of the 
relevant companies these managing directors chair a monthly
board meeting of their own subsidiary company
the board has reviewed the group’s operations and processes
and has identified risk areas which have been assessed for their
potential impact and internal controls in relation to those risks
have been assessed the executive board through its regular
meetings reviews the areas of risk on an ongoing basis and 
considers whether the internal controls identified in relation to
those risks are appropriate this procedure also takes place at
regional board meetings on a quarterly basis the audit
committee also reviews its assessment of risk at twice yearly
meetings the key features of the group’s internal controls are 
as follows
• a policy and procedures manual covers all the 
significant aspects of the group’s operations and 
describes the systems and controls that are to be applied 
across the whole group the manual is reviewed and 
updated with amendments being signed off by an 
executive director the board of each trading entity is 
required to formally confirm on an annual basis that 
they have complied in all material respects with these 
procedures
• defined authorisation levels established over key areas 
such as land purchase and the placing of orders and 
contracts
• a monthly reporting pack is circulated in advance
and reviewed at each of the main executive regional 
and subsidiary company board meetings annual budgets
are set and monthly forecasts prepared with actual
performance compared against the annual budget and
updated forecasts
• the group’s systems provide weekly updates on key 
statistics in relation to sales and production in addition
daily statements of a reconciled cash position identifying
significant payments are prepared
• on an annual basis strategic plans are prepared and 
reviewed which cover key aspects of the group’s 
operations and identifies medium term objectives and 
areas of risk to the business
in addition to the above the group has an internal audit 
function which has direct reporting to the audit committee
the annual work programme of internal audit is approved in
advance by the audit committee and commented upon by the
external auditors the internal audit function updates the
audit committee on its work at their meetings all reports are
distributed to the board as well as to the external auditors 39 remuneration report
remuneration report
remuneration report
this report has been prepared in accordance with the
requirements of the directors’ remuneration report
regulations 2002si 20021986 which amended schedule 7a
to the companies act 1985 and the listing rules
remuneration committee
the remuneration committee is comprised solely of
independent nonexecutive directors during the year the
members were
j martin chairman
r b jones
r g williams
b duckworth
the committee has agreed terms of reference detailing its
authority and responsibilities these responsibilities include the
agreement of terms of employment and the granting of bonuses
share options or share incentive plans relating to the directors
of the company as may be appropriate from time to time
the committee meets as required but at least twice a year
the committee met six times during the financial year ended
30 june 2003
the committee formally reviews the structure of remuneration
packages relating to the directors of the company every three
years to ensure that the group provides an appropriate and 
competitive package to motivate and retain its executive
directors in this regard a formal independent review by kpmg
was commissioned by the committee in april 2003 and as a
result of this review changes to the remuneration packages of the
executive directors were implemented with effect from 1 july
2003 these changes are identified within this report and are
designed to strengthen the alignment of shareholders’ and
executive directors’ interests kpmg were appointed by and
reported directly to the remuneration committee and have not
assisted the company itself
during the course of the year advice was also provided to the
remuneration committee by g a cope group company
secretarylegal director
remuneration policy
the committee aims to ensure that the group provides
competitive but cost effective remuneration packages at all
levels in order to attract retain and motivate staff who are
expected to meet high levels of performance
consistent with this policy the benefit packages awarded to the
company’s directors are intended to reward directors based on
their current achievements whilst encouraging a focus on the
medium and long term performance of the business packages are
designed to ensure that the interests of shareholders and executive
directors are aligned as closely as possible and comprise a mix of
performance related and nonperformance related remuneration
a significant proportion of remuneration is expected to be 
performance related based upon fair but challenging targets which
are determined by the remuneration committee
in the financial year to 30 june 2003 the performance related
elements for each executive director with the exception of
p l pedley comprised a cash and deferred bonus maximum
70 of base salary a long term share incentive plan ltsip
maximum 30 of base salary and participation in the 
phantom share option scheme in respect of 200000 shares
p l pedley chief executive does not participate in the
phantom share option scheme
following the independent review from 1 july 2003 the 
performance related elements for each executive director 
comprise an annual cash bonus maximum 60 of base salary
long term share incentive plan maximum 60 of base salary
and with the exception of p l pedley a phantom share option
scheme over 200000 shares  
the performance related elements under both the remuneration
package in the year to 30 june 2003 and that introduced from
1 july 2003 have clearly defined criteria that link rewards to
business performance in the short medium and long term
share ownership is encouraged at all levels further serving to
make employees feel part of the ‘redrow team’ and aligning
interests closely with shareholders the remuneration
committee has established guidelines for share ownership by
the company’s directors
the committee considers that in framing its remuneration
policy it has given full consideration to the provisions of
section 1 and schedule a of the combined code
directors service agreements
during the year the service agreements of the executive
directors were amended to increase the period of time in which
formal notice may be served to terminate the agreement by
either the company or the director from six to twelve months’
notice this amendment was made to provide greater protection
to the company and to bring the notice period into line with
common practice across both the industry and quoted
companies in general
the agreements do not include provision for predetermined
compensation for early termination and mitigation will be
applied to any compensation payments where considered
justified by the committee due to poor performance
no additional compensation or extended notice period is
included within the service agreements in the event of a
change of control
the service agreements of the executive directors are twelve
month rolling contracts which were entered into on the
following dates and had the following unexpired notice periods
as at 30 june 2003
name contract notice
date period
p l pedley 140999 12 months
n fitzsimmons 080698 12 months
b k harvey 020698 12 months
c e lewis 120701 12 months
j f tutte 100702 12 months
g h locke 1 010396 
1 g h locke resigned on 11 november 2002 and
consequently his contract was terminated 40 remuneration report
the nonexecutive directors’ terms of appointment with
maturity dates are detailed in formal letters of appointment
as follows
name letter of appointment
dated matures
r b jones 131000 121003
j martin 070503 121004
r g williams 131001 51103
b duckworth 120602 310505
elements of the remuneration package
the main components of the remuneration package provided to
an executive director are as follows
i basic salary
salaries are reviewed as appropriate and at least once per
annum in june
ii pension and retirement benefits
the executive directors are members of the defined benefit
section of the redrow staff pension scheme
the scheme is contributory and provides a pension lump
sum death in service benefit dependant’s pension and
permanent health insurance  
in the financial year ended 30 june 2003 pension
entitlement for an executive director accrued at the rate
of 160th for each year of service subject to a maximum
twothirds pensionable earnings at a normal retirement age
of 65 pensionable earnings are calculated on base salary
only where applicable members are subject to the inland 
revenue pension cap and in order to mitigate this impact 
an additional allowance is payable to executive directors 
where appropriate  
having considered independent market data provided by 
its advisors the remuneration committee concluded 
that the current pension provision for executive directors 
was uncompetitive it has therefore been agreed that with 
effect from 1 july 2003 the future pension entitlement of 
an executive director shall be accrued at the rate of 
145th for each year of service the normal retirement age 
remains at 65 the employee contribution rate for an 
executive director will increase from 6 to 8 in order to 
maintain the proportion of cost borne by the company and 
the individual at its historic level
iiibenefits in kind
these primarily relate to a fully expensed car or cash
equivalent and private health insurance
ivcash and deferred bonuses
for the financial year ended 30 june 2003 executive
directors are entitled to a bonus payable in cash
equivalent to a maximum of 40 of their salary dependent
on performance this is payable in september following the
financial year end
performance is measured against challenging
predetermined targets set by the remuneration 
committee in 2003 these targets related to earnings per 
share return on capital employed land procurement and 
forward sales performance as well as other specific 
performance measures for each executive director 
determined by the remuneration committee in relation to 
other business objectives
in addition under the group’s approved ltsip
arrangements share options amounting to up to 30 of
salary may be awarded based on identical performance
criteria to the cash bonus element these are granted in
september following the financial year end and they vest
and are exercisable on the third anniversary of the date of
grant provided the holder remains an employee options 
may vest earlier in the event of retirement death or change 
of control of the company
the committee’s advisors concluded that the existing 
package needed a greater emphasis on longterm 
performance as a result the remuneration committee
concluded that it was appropriate to reduce the overall 
proportion of bonus attributable to short term 
performance from its current total maximum level of 
70 of base salary being 40 cash and 30 deferred 
in shares to a maximum of 60 of base salary it was 
agreed by the committee that this cash bonus should be
payable in september following each financial year end
v long term share incentive plan ltsip
on 17 november 1995 the annual general meeting
approved the ltsip which was in operation for the 
years ended 30 june 1996 to 30 june 2000 under this 
scheme it is acknowledged that deferred elements vest 
in the participants in under three years
on 13 october 2000 revisions were approved at the
annual general meeting under which share options
amounting to up to 30 of salary can be awarded
these options are described under the deferred bonus
arrangements above in addition in order to ensure
executive directors are focused upon medium term
financial performance incentive shares can be awarded
depending upon the annual average compound growth 
in earnings per share over a three year period the
compound growth in earnings per share was chosen by 
the remuneration committee as an appropriate 
measure because it is both simple and transparent and it
represents the increase in profits generated for 
shareholders reflecting the company’s prime objective 
of enhancing shareholder value if the growth rate 
exceeds 10 the number of shares awarded under the 
deferred bonus element will be increased by onethird 
if the growth rate is more than 15 the number of 
initial shares will be increased by twothirds if the 
growth rate is more than 20 the number of initial 
shares will be doubled these performance conditions 
are common for each executive director
the options may be exercisable early on retirement 
death and following the review of the package are now
also exercisable on a change of control of the company 41 remuneration report
as a result of the independent review the remuneration 
committee has concluded that the current arrangements 
under the long term share incentive plan should be 
changed to align more closely the interests of shareholders 
and the executive directors in particular the 
remuneration committee agreed that it was appropriate 
that two financial performance measures apply to the 
operation of the scheme over a three year term the 
remuneration committee selected an annual average
compound growth in earnings per share for the reasons 
previously outlined return on capital employed was chosen
as the second performance measure as it focuses the 
executive directors on delivering ongoing profitability 
through the efficient use of capital employed 
under the revised arrangements options will be granted on 
an annual basis over shares equivalent to 60 of base salary
the increase in the maximum potential award under the 
ltsip from 30 to 60 of salary was felt appropriate by 
the committee because of the importance of ensuring 
sufficient future incentives for the executive directors to 
deliver enhanced shareholder value
options granted under the scheme will become exercisable
on the third anniversary of their grant at the earliest they
will be exercisable proportionately to actual achievement
relative to the performance conditions over the three year
period a simple average return on capital employed of less 
than 200 and an annual average compound growth in
earnings per share of less than rpi  45 will result in no 
award the maximum award is achieved if the simple 
average return on capital over a three year period exceeds 
255 and the annual average compound growth in 
earnings per share exceeds rpi  125 the performance 
conditions were set at a level that was felt by the 
remuneration committee to be appropriately challenging 
over the period to which they relate and in the context of 
the historic performance of redrow and its peer group 
these performance conditions are common for each 
executive director
options awarded under the ltsip are provided through an 
employee benefit trust and do not result in the issue of 
new shares
viphantom share option scheme
the remuneration committee considers that a seven year
timeframe is an appropriate period over which to judge long
term financial performance the phantom share option
scheme approved at the annual general meeting on 
5 november 2001 is the vehicle used by the company for
rewarding long term performance
under the scheme participants are granted a phantom
option over a number of shares at the market value at the
date of grant at the end of seven years the participant
will be able to exercise the phantom option such that a cash
sum equivalent to the difference between the market value
of the shares at the date of grant and the market value of
the shares on maturity of the scheme provided this is a
positive figure becomes payable in three equal instalments
over three years
the phantom share option was previously exercisable only
if the compound growth in earnings per share of the
company increased by 45 over rpi during the seven
years since the date of grant or on a change of control of
the company provided a compound growth rate of 45
over rpi had been achieved since the date of grant
the remuneration committee felt that notwithstanding
the challenging target for long term compound growth in
earnings per share in order to ensure compliance with best
practice it was decided that a second financial criteria
should be applied to the operation of the scheme namely 
that the simple average of return on capital employed over
a seven year period should exceed 200 this change
applies to all existing options granted under the scheme
which will henceforth be measured against two performance
criteria for award both performance criteria are consistent 
with the revised arrangements for the ltsip outlined above
and were selected and set at these levels for the same 
reasons
under the phantom share option scheme approved by
shareholders on 5 november 2001 n fitzsimmons 
g h locke b k harvey and c e lewis were each awarded 
a phantom option over 200000 shares on 5 november 2001
at 221p
on 11 july 2002 j f tutte was awarded a phantom option
over 200000 shares at 248p
following his resignation on 11 november 2002 the
phantom share options held by g h locke lapsed
p l pedley chief executive does not participate in the
phantom share option scheme
share ownership guidelines
the importance of encouraging share ownership is recognised
by the group and to further this objective the remuneration
committee has set share ownership guidelines for each
executive director these guidelines recognise individual
circumstances and the length of term served as an executive
director in general it is anticipated in future that all executive
directors would achieve the targets set by the guidelines within
five years 42 remuneration report
total shareholder return graph
the graph shows the total shareholder return on the company’s shares over a five year
period plotted against the total shareholder return of the ftse250 share index of
which the company is a constituent and which the company considers to be a 
representative comparative indicator
over the last five years an investment of £10000 in the shares of redrow plc 
theoretically grew in value to £22810 compared with £10390 from a theoretical
investment of £10000 in the ftse250 share index these calculations are
undertaken on a ‘dividend reinvestment’ basis
redrow total return vs ftse 250 index  30698 to 30603
1998 1999 2000 2001 2002 2003
100
120
140
160
180
200
220
240
260
redrow
ftse 250 index
source datastream 43 remuneration report
basic salary pension cap total salary benefits car bonus deferred compensation 2003 2002
and fees allowance and fees allowance 2003 bonus for loss of total total
£000 £000 £000 £000 £000 £000 £000 office £000 £000
executive directors
p l pedley 383  383 1  153 20  557 531
n fitzsimmons 203 20 223 16  81 23  343 317
b k harvey 210 21 231 18  84 15  348 306
c e lewis 198 15 213 2 14 79 7  315 255
j f tutte 195 7 202 1 14 78   295 
g h locke i 118 10 128 17    658 803 375
nonexecutive directors
r b jones 100  100   100 97
j martin 25  25  25 22
r g williams 51  51   51 79
b duckworth ii 25  25   25 1
1508 73 1581 55 28 475 65 658 2862 1983
the following tables and notes constitute the auditable part of the remuneration report
directors detailed emoluments
directors’ emoluments
i the compensation for loss of office payment to g h locke who resigned on 11 november 2002 includes a sum of £486206 in lieu of the value of options that had been granted under the ltsip and
esos which had vested but had not been exercised these options were subsequently waived all this compensation was discretionary approved by the remuneration committee and paid in respect of
his past services to the company
ii fees in respect of the services of b duckworth were levied by severn trent water ltd 44 remuneration report
director scheme options options options options options options held exercise from to notional
held at granted waived exercised lapsed at 30 june price market value at
1 july 2002 in year in year in year in year 2003 30 june 2003
£
p l pedley saye 2000 12593     12593 13400p 2 jan 2006         2 july 2006 20653
ltsip 1999 52348 7236  59584    current 29 june 2009 
ltsip 2000 45499 7744    53243  current 29 june 2010 158664
ltsip 2001 52760     52760  28 sep 2004 27 sep 2011 157225
ltsip 2002  39351    39351  23 sep 2005 22 sep 2012 117266
private 250000     250000 17000p 25 june 2004 24 june 2005 320000
413200 54331  59584  407947 773808
n fitzsimmons saye 1999 1218   1218   15900p   
saye 2000 5783     5783 13400p 2 jan 2004 2 july 2004 9484
saye 2002  863    863 21900p 1 dec 2005 31 may 2006     682
ltsip 1998 12393 1330    13723  current 29 june 2005 40895
ltsip 1999 26174 3618    29792  current 29 june 2009 88780
ltsip 2000 22750 3872    26622  current 29 june 2010 79334
ltsip 2001 24440     24440  28 sep 2004 27 sep 2011 72831
ltsip 2002  20294    20294  23 sep 2005 22 sep 2012 60476
private 50000     50000 17000p 25 june 2004 24 june 2005 64000
142758 29977  1218  171517 416482
b k harvey saye 2000 5783     5783 13400p 2 jan 2004 2 july 2004 9484
saye 2002  1500    1500 21900p 1 dec 2005 31 may 2006 1185
ltsip 1999 19099 2640    21739  current 29 june 2009 64782
ltsip 2000 17097 2910    20007  current 29 june 2010 59621
ltsip 2001 23082     23082  28 sep 2004 27 sep 2011 68784
ltsip 2002  20294    20294  23 sep 2005 22 sep 2012 60476
private 50000     50000 17000p 25 june 2004 24 june 2005 64000
115061 27344    142405 328332
the notional market value of the share options are based on a share price of 298 pence as at 30 june 2003 and assumes all options were capable of being exercised at that date
interests in share options
directors’ interests in share options
the following table sets out those share options held by directors under saye schemes or which have been awarded in respect of past performance all options are in respect of shares in redrow plc 45 remuneration report
director scheme options options options options options options held exercise from to notional
held at granted waived exercised lapsed at 30 june price market value at
1 july 2002 in year in year in year in year 2003 30 june 2003
£
c e lewis saye 1999 2122     2122 15900p 1 dec 2004 31 may 2005 2950
saye 2000 7555     7555 13400p 2 jan 2006 2 july 2006 12390
saye 2001 2006     2006 16500p 2 jan 2007 2 july 2007 2668
ltsip 2000 16444 2816    19260  current 29 june 2010 57395
ltsip 2001 19397     19397  28 sep 2004 27 sep 2011 57803
ltsip 2002  16696    16696  23 sep 2005 22 sep 2012 49754
private 30000     30000 17000p 24 june 2004 24 june 2005 38400
77524 19512    97036 221360
j f tutte ltsip 2002  8535    8535  23 sep 2005 22 sep 2012 25434
g h locke esos 1992 10000  10000       
esos 1992 15000  15000       
saye 2000 12593  12593       
ltsip 1996 16062  16062       
ltsip 1997 42604 4068 46672       
ltsip 1998 39367 4224 43591       
ltsip 1999 27079 3743 30822       
ltsip 2000 31459 5354 36813       
ltsip 2001 26069    26069     
ltsip 2002  20238   20238     
private 75000    75000     
295233 37627 211553  121307  
the notional market value of the share options are based on a share price of 298 pence as at 30 june 2003 and assumes all options were capable of being exercised at that date 46 remuneration report
as at his date of appointment on 15 september 2003 d l arnold held options over 4315 shares
issued under the 2002 saye these options can be exercised from 1 december 2005 to 
31 may 2006 at a price of 2190p
the private options represent options granted by s p morgan company founder and 
ex chairman over shares controlled by him and do not involve the group in any expense
or the issuing of additional shares
the midmarket price of redrow plc shares at 30 june 2003 was 2980p and the range during the
year was 2105p to 3185p
on 12 september 2002 p l pedley exercised options over 59584 shares issued under the 1999
ltsip the midmarket price on the day of exercise was 2790p
on 20 december 2002 n fitzsimmons exercised options over 1218 shares issued under the 1999
saye the midmarket price on the day of exercise was 2310p
on 1 july 2003 options were issued relating to deferred elements of the ltsip for prior years 
p l pedley was granted options over 6879 shares n fitzsimmons was granted options over 7835
shares b k harvey was granted options over 4930 shares and c e lewis was granted options over
2501 shares
on 8 july 2003 p l pedley exercised options over 60122 shares issued under the 2000 ltsip  
n fitzsimmons exercised options over 77972 shares issued under the 1998 1999 and 2000 ltsip
and c e lewis exercised options over 21761 shares issued under the 2000 ltsip the midmarket
price on the date of exercise was 2855p
gains made by directors on share options
the table below shows gains made by individual directors from the exercise of share options 
during the financial year ended june 2003 the gains are calculated as at the exercise date
although shares may have been retained
on 8 july 2003 p l pedley sold 35122 shares relating to share options exercised after the year
end n fitzsimmons sold 30000 shares relating to share options exercised after the year end and
c e lewis sold 9000 shares relating to share options exercised after the year end
as at his date of appointment on 15 september 2003 d l arnold held a beneficial interest over
2000 shares
directors’ interests in shares
the directors’ interests in the ordinary shares of the company were
beneficial 15 september 30 june 30 june
2003 2003 2002
no no no
p l pedley 625000 600000 750000
n fitzsimmons 64747 16775 15160
b k harvey 4000 4000 1000
c e lewis 16803 4042 4042
j f tutte 2500 2500 2500
r g williams 5629 5629 5629
r b jones 15370 15370 10064
j martin 10000 10000 10000
b duckworth 5045 5045 5000
 shares held at date of appointment
2003 2002
£000 £000
p l pedley 166 20
b k harvey  7
n fitzsimmons 1  47 remuneration report
directors’ contingent interests in share options
as referred to in note 24 to the financial statements and as part of the deferred bonus arrangements
further shares are awarded to directors on completion of a service period of between three and five
years for awards under the ltsip 1999 and ltsip 2000 scheme years the number of shares awarded
is determined by reference to a cash value and the share price prevailing at the date of award the
cash values under these schemes are as follows
ltsip 1999 ltsip 2000 total
£000 £000 £000
p l pedley  41 41
n fitzsimmons 10 21 31
b k harvey 7 15 22
c e lewis  15 15
following the exercise of options on 8 july 2003 by p l pedley under the 2000 ltsip  the £41000
contingent interest under the 2000 ltsip no longer exists
following the exercise of options on 8 july 2003 by n fitzsimmons under the 1999 and 2000 ltsip 
the £31000 contingent interest under these ltsips no longer exists
following the exercise of options on 8 july 2003 by c e lewis under the 2000 ltsip  the £15000
contingent interest under the 2000 ltsip no longer exists
in respect of the 2001 and 2002 ltsip scheme years the directors may be entitled to further 
incentive shares which are dependent upon the level of the average annual compound growth rate in
earnings per share as explained earlier within this remuneration report the maximum number of
shares to which a director may be entitled for the 2001 and 2002 ltsip is set out in the table below
ltsip 2001 ltsip 2002
no no
of shares of shares
p l pedley 52760 39351
n fitzsimmons 24440 20294
b k harvey 23082 20294
c e lewis 19397 16696
j f tutte  8535
pension scheme
details of the executive director’s pension entitlements are as follows
1  g h locke resigned from the company on 11 november 2002
the accrued pension shown above is the amount of pension entitlement that would be paid each
year on retirement at age 65 based on service to the end of the current year the transfer value
shown above has been calculated on the basis of actuarial advice in accordance with actuarial
guidance note gn11 less directors’ contributions
by order of the board
j martin chairman remuneration committee
15 september 2003
disclosures required by schedule 7a to the companies act 1985
additional transfer transfer
accrued accrued value of value of increase in
benefit benefits accrued accrued transfer value
at 30 june earned in benefit at benefit at less directors’
director 2003 the year 30 june 2002 30 june 2003 contributions
££ £ £ £
p l pedley 101528 13185 519108 704232 162324
n fitzsimmons 14740 1888 60183 80967 14925
j f tutte 2338 1663 3655 14705 5191
b k harvey 20075 1985 163578 215668 46231
c e lewis 23183 2042 112898 145289 26532
g h locke 1 37827 432 242540 198473 41151
disclosures required under the listings regulations
transfer value
additional of change    
accrued accrued in accrued
benefit benefit benefit less
at 30 june over year net directors’
director 2003 of inflation contributions
££ £
p l pedley 101528 11683 56043
n fitzsimmons 14740 1670 3116
j f tutte 2338 1651 4179
b k harvey 20075 1677 11994
c e lewis 23183 1682 4424
g h locke 1 37827 432 939 48 auditors ’ report
auditors’ report
independent auditors’ report to the members of 
redrow plc
we have audited the financial statements which comprise the
consolidated profit and loss account the group and company
balance sheets the consolidated cash flow statement and the related
notes which have been prepared under the accounting policies set
out in the statement of accounting policies we have also audited
the disclosures required by part 3 of schedule 7a to the companies
act 1985 contained in the remuneration report “the auditable
part”
respective responsibilities of directors and auditors
the directors’ responsibilities for preparing the annual report and
the financial statements in accordance with applicable united
kingdom law and accounting standards are set out in the statement
of directors’ responsibilities the directors are also responsible for
preparing the remuneration report
our responsibility is to audit the financial statements and
the auditable part of the remuneration report in accordance with
relevant legal and regulatory requirements and united kingdom
auditing standards issued by the auditing practices board this
report including the opinion has been prepared for and only for the
company’s members as a body in accordance with section 235 of
the companies act 1985 and for no other purpose we do not in
giving this opinion accept or assume responsibility for any other
purpose or to any other person other than the company to whom
this report is shown or into whose hands it may come save where
expressly agreed by our prior consent in writing
we report to you our opinion as to whether the financial
statements give a true and fair view and whether the financial
statements and the auditable part of the remuneration report have
been properly prepared in accordance with the companies act
1985 we also report to you if in our opinion the directors’ report 
is not consistent with the financial statements if the company has
not kept proper accounting records if we have not received all the
information and explanations we require for our audit or if 
information specified by law regarding directors’ remuneration and
transactions is not disclosed
we read the other information contained in the annual report and
consider the implications for our report if we become aware of any
apparent misstatements or material inconsistencies with the
financial statements the other information comprises only the
directors’ report the unaudited part of the remuneration report
the chairman’s statement the chief executive’s review the
financial review the corporate social responsibility review and
the corporate governance statement
we review whether the corporate governance statement reflects
the company’s compliance with the seven provisions of the
combined code specified for our review by the listing rules of the
financial services authority and we report if it does not we are
not required to consider whether the board’s statements on internal
control cover all risks and controls or to form an opinion on the
effectiveness of the company’s or group’s corporate governance
procedures or its risk and control procedures 
basis of audit opinion
we conducted our audit in accordance with auditing standards
issued by the auditing practices board an audit includes
examination on a test basis of evidence relevant to the amounts
and disclosures in the financial statements and the auditable part of
the remuneration report it also includes an assessment of the 
significant estimates and judgements made by the directors in 
the preparation of the financial statements and of whether the
accounting policies are appropriate to the company’s circumstances
consistently applied and adequately disclosed
we planned and performed our audit so as to obtain all the
information and explanations which we considered necessary in
order to provide us with sufficient evidence to give reasonable
assurance that the financial statements and the auditable part of the
remuneration report are free from material misstatement whether
caused by fraud or other irregularity or error in forming our opinion
we also evaluated the overall adequacy of the presentation of 
information in the financial statements
opinion
in our opinion
• the financial statements give a true and fair view of the
state of affairs of the company and the group at 30 june
2003 of the profit and cash flows of the group for the year
then ended
• the financial statements have  been properly prepared in
accordance with the companies act 1985 and
• those parts of the remuneration report required by
part 3 of schedule 7a to the companies act 1985 have
been properly prepared in accordance with the companies
act 1985
pricewaterhousecoopers llp
chartered accountants and registered auditors
manchester
15 september 2003 49 consolidated profit and loss account
continuing operations 
2003 2002
12 months ended 30 june 2003 note £m £m
turnover group and share of joint venture 1 6083 5733
less share of joint venture turnover 1 04 
group turnover 6079 5733
cost of sales 4577 4430
gross profit 1502 1303
net operating expenses before integration costs 1 357 319
integration costs  43
net operating expenses after integration costs 1 357 362
group operating profit 1 1145 941
share of operating loss of joint venture 1 08 
operating profit including share of joint venture 1137 941
interest payable 13 76 90
profit on ordinary activities before taxation 12 1061 851
tax on profit on ordinary activities 4 318 243
profit on ordinary activities after taxation 743 608
dividends 5 119 96
retained profit 1819 624 512 
earnings per ordinary share  basic 6 469p 385p
 diluted 6 468p 383p
 adjusted 6 469p 404p
dividends per ordinary share 5 75p 606p
there are no material recognised gains or losses other than as shown above
there is no material difference between the profit on ordinary activities before taxation and
the retained profit for the year stated above and their historic cost equivalents 
consolidated profit and loss account the group the company
2003 2002 2003 2002
as at 30 june 2003 note £m £m £m £m
fixed assets 8
tangible assets 165 158   
investments
investments in joint venture
share of gross assets 26   
share of gross liabilities 05   
21   
other investments 05 01 2176 1602
total investments 26 01 2176 1602
191 159 2176 1602
current assets
assets held for resale 10  08  
stocks and work in progress 11 5790 4968  
debtors 12 110 88 2027 2259
bank and cash deposits 62 10 58 05
5962 5074 2085 2264
creditors due within one year 13 1756 2148 302 1080
net current assets 4206 2926 1783 1184
total assets less current liabilities 4397 3085 3959 2786
creditors due after more than one year 14 1347 663 946 400
provisions for liabilities and charges 15 37 36  
net assets 1 3013 2386 3013 2386
capital and reserves 1718
called up share capital 159 158 159 158
share premium account 523 519 522 518
revaluation reserve 03 03  
revaluation of shares in subsidiary companies   1869 1295
capital redemption reserve 70 70 70 70
consolidation reserve 09 09  
profit and loss account 2249 1627 393 345
equity shareholders’ funds 19 3013 2386 3013 2386
50 balance sheets
the financial statements were approved by the
board of directors on 15 september 2003
directors
p l pedley
d l arnold
balance sheets 51 consolidated cash flow statement
consolidated cash flow statement
2003 2002
12 months ended 30 june 2003 note £m £m
cash inflow from operating activities 20 596 1046
returns on investments and servicing of finance
interest received 05 10
interest paid 78 94
issue costs of bank borrowings 05 
net cash outflow from returns on investments and servicing of finance 78 84
taxation
corporation tax paid 292 242
capital expenditure and financial investment
purchase of tangible fixed assets 24 31
payment to joint venture 27 
sale of tangible fixed assets and investments  34
net cash outflowinflow from capital expenditure and financial investment 51 03
acquisition 9
purchase of subsidiaries  306
net overdrafts acquired 79 129
net cash outflow from acquisition 79 435
dividends paid 104 90
cash outflowinflow before financing 08 198
financing and liquid resources
issue of ordinary share capital 03 03
cash deposits – restricted use 06  
issue of bank borrowings 950 
repayment of bank borrowings 400 700
net cash inflowoutflow from financing 547 697
increasedecrease in cash in period 539 499
reconciliation of net cash flow to movement in net debtcash
increasedecrease in cash in period 539 499
cash deposits – restricted use 06 
movement in bank borrowings 550 700
issue costs of bank borrowings 05 
other noncash movements 01 10
change in net debtcash 01 191
net debt at 1 july 931 1122
net debt at 30 june 21 932 931 52 accounting policies
the financial statements have been prepared in accordance
with applicable accounting standards in the united kingdom
which have been applied consistently a summary of the more
important accounting policies is set out below
a basis of accounting
the financial statements have been prepared under the 
historical cost convention modified to include the
revaluation of the investment in subsidiary companies
in accordance with frs 15 ‘tangible fixed assets’ 
revaluations of freehold properties will not be undertaken 
but as permitted under the transitional rules the group 
will continue to carry certain freehold properties at their
existing revaluations less accumulated depreciation
b basis of preparation and consolidation
the group financial statements incorporate the financial 
statements of redrow plc and all its subsidiaries together
with the group’s share of the results for the year ended
30 june 2003 and share of assets and liabilities of joint
ventures restated to comply with the group’s accounting
policies
the results of subsidiaries acquired or disposed of during the
year are included from or up to the date of acquisition or
disposal on the acquisition of a subsidiary fair values are 
attributed to the net assets acquired prior to the
introduction for the year ended june 1998 onwards of 
frs 10 ‘goodwill and intangible assets’ the difference 
between the consideration paid and these values was 
transferred to reserves since the introduction of frs 10 
the difference is capitalised and amortised
c turnover and profit recognition
turnover represents sales of residential housing and 
commercial developments
profit is recognised on legal completion
d interest on borrowings
interest is written off when incurred
e fixed assets
1 freehold properties are included at cost or valuation 
as permitted under the transitional provisions of 
frs 15 the freehold land element is not depreciated 
whilst the buildings element is depreciated on a straight
line basis at an annual rate of 2
2 all other assets are depreciated on a straight line basis 
over their expected useful lives at the following 
principal annual rates
fixtures and fittings 2035
plant and machinery 20
3 the investment in subsidiary companies represents the 
book value of the underlying net assets the surplus or 
deficit arising on the revaluation being transferred to 
nondistributable reserves this basis of valuation 
has been adopted so as to present more fairly the 
investment by the company in these companies
f stocks and work in progress
stocks and work in progress are stated at the lower of cost 
and net realisable value less cash on account cost includes 
materials labour and subcontract work
g forward land
expenditure relating to forward land including options 
fees etc is provided for when incurred after exercise of an 
option and acquisition of the land following the securing of 
planning permission the provisions relating to that land are 
released
h deferred taxation
deferred tax is provided on timing differences arising 
from the recognition of income and expenditure in different
periods for taxation and accounting purposes where timing 
differences have originated but not reversed by the balance 
sheet date in accordance with frs19 “accounting for 
deferred taxation”
deferred tax is provided at the average tax rates that
are expected to apply in the periods in which the timing 
differences are expected to reverse
deferred tax assets are only recognised to the extent that 
it can be regarded as more likely than not that there will be 
suitable taxable profits from which the future reversal of 
the underlying timing differences can be deducted deferred
tax assets and liabilities recognised have not been 
discounted
i pension scheme
the group operates a contributory pension scheme for all 
its staff the scheme comprises two sections a defined
benefits section and a defined contribution section the 
scheme is externally invested and the funds of the scheme 
are administered by trustees the group’s contributions to 
the defined benefits section which are made in accordance 
with the recommendations of independent actuaries are 
charged against profits in accordance with statement of 
standard accounting practice no 24 contributions to
the defined contribution section are charged in the year
in which the contributions are made further disclosures
including those required under frs 17 transitional rules
are contained within note 7 to the financial statements
j operating leases
costs in respect of operating leases are charged against 
profit on a straight line basis over the lease term
k treasury instruments
hedge accounting principles are applied to these 
instruments and the gains and losses are recognised in 
the profit and loss account within interest cost in the 
period to which they relate
accounting policies 53 notes to the financial statements
notes to the financial statements
as permitted by section 230 of the companies act 1985 the profit and loss account of
redrow plc is not presented as a part of these financial statements the consolidated profit on
ordinary activities after taxation for the financial year excluding intragroup dividends is made
up as follows
note 1  segmental information
2003 2002
£m £m
turnover
homes 5960 5431
commercial 119 302
framing solutions – share of joint venture 04 
6083 5733
profit on ordinary activities before taxation
homes 1115 953
commercial 30 31
framing solutions – share of joint venture operating loss 08  
1137 984
integration costs  43
1137 941
interest 76 90
1061 851
net assets
homes 3762 3178
commercial 162 139
framing solutions 21 
3945 3317
net debt 932 931
3013 2386
2003 2002
profit on ordinary activities before taxation is stated £m £m
after crediting
rental income 01 04
after charging
depreciation 17 13
plant hire 73 47
operating leases  plant and machinery 16 16
 other 01 01
research and development expenditure 02 03
auditors’ remuneration  audit of company and its subsidiaries 01 01
 nonaudit services  pension advice 01 01
auditors’ remuneration included £7000 2002 £7000 in respect of the audit of the company
2003 2002
£m £m
holding company 53 58
subsidiary companies 796 666
743 608
in 2003 net operating expenses were comprised entirely of administrative expenses in 2002 net
operating expenses comprised £319m administrative expenses and £43m integration costs the
£43m integration costs were attributable within the results of the homes division and were in
respect of the acquisition of tay homes plc
note 2  profit on ordinary activities 54 notes to the financial statements
note 5  dividends 2003 2002
£m £m
interim of 25p 2002 202p per share 40 32
final proposed of 50p 2002 404p per share 79 64
119 96
the interim dividend of £40m was paid on 9 may 2003 and the final dividend of £79m
will be paid on 21 november 2003 subject to approval at the annual general meeting on 
5 november 2003
as at 30 june 2003 no shareholder has waived their rights to dividends
note 6  earnings per ordinary share
the calculation of basic earnings per ordinary share of 469p 2002 385p is based on group profit
on ordinary activities after taxation of £743m 2002 £608m and on the weighted average number
of 10p ordinary shares of 158266929 2002 158097193
the weighted average reflects an adjustment in respect of surplus shares held in trust under the
redrow long term share incentive plan  diluted earnings per share has been calculated in 
accordance with frs 14 based on the weighted average number of 10p ordinary shares of
158775225 2002 158763954
in 2002 adjusted earnings per share before integration costs net of tax of 404p was calculated
based on earnings of £638m and on the weighted average number of shares in issue disclosed above
the directors disclosed the adjusted basic earnings per share before integration costs
net of tax to demonstrate the underlying trading performance of the business
note 3  interest 2003 2002
£m £m
payable on overdrafts 12 20
payable on other loans 69 80
81 100
receivable 05 10
76 90
2003 2002
earnings noof shares per share earnings noof shares per share
£m millions pence £m millions pence
basic earnings 743 1583 469 608 1581 385
per share
effect of share  05 01  07 02
options and saye
diluted earnings 743 1588 468 608 1588 383
per share
interest payable on other loans includes £01m in respect of the amortisation of the issue costs of
bank borrowings 2002 £10m
note 4  tax on profit on ordinary activities
2003 2002
£m £m
current year
uk corporation tax at 30 2002 30 301 253
over provision in respect of prior year  13
share of joint venture tax loss 02 
299 240
deferred tax
origination and reversal of timing differences see note 16 19 03
318 243
reconciliation of current taxation charge
tax on total profits at 30 200230 318 255
over provision in respect of prior year  13
origination and reversal of timing differences 19 03
net expenses not deductible for tax purposes  01
current tax charge 299 240
it is anticipated that the effective rate will approximate to a standard uk corporation tax rate in
the new financial year 55 notes to the financial statements
note 7  employees 2003 2002
£m £m
a cost including directors
salaries and wages 360 323
social security 35 29
pensions 27 21
422 373
b number 2003 2002
number number
the average number of persons employed by the group was
directors and administrative staff 482 506
other personnel 820 754
1302 1260
c directors
details of directors’ emoluments and interests in shares are included in the remuneration report
on pages 39 to 47
d pension scheme
the redrow staff pension scheme comprises two sections a funded selfadministered defined
benefits section and a funded defined contribution section both of which are contracted out of
the state earnings related pension scheme
the pension charge for the year was £27m 2002 £21m
triennial valuation
a full independent triennial actuarial valuation of the defined benefit section of the scheme was
undertaken as at 1 january 2003 the method used was the projected unit method the main
assumptions were an investment return of 61 per annum compound salary increase of 54 per
annum compound and mortality in accordance with similar schemes in the opinion of the
actuary there was a deficit of £22m in the defined benefit section of the scheme with the value
of the scheme’s assets representing 92 of the scheme’s liabilities as at 1 january 2003 the value
of the defined benefit section of the scheme’s assets was £240m
frs 17 valuation
the defined benefit section of the scheme was valued at 30 june 2003 by a qualified independent
actuary in accordance with the transitional rules of accounting standards frs 17 “retirement
benefits”
the main assumptions used by the actuary in measuring the present value of the scheme 
liabilities as required by frs 17 were
30 june 2003 30 june 2002 30 june 2001
discount rate 519 575 619
rate of increase in salaries 550 570 560
rate of increase in pensions in payment 250 270 260
inflation assumption 250 270 260
the assets in the scheme and the expected rate of return were
long term long term long term
rate of return market rate of return market rate of return market
expected at value at expected at value at expected at value at
30 june 2003 30 june 2003 30 june 2002 30 june 2002 30 june 2001 30 june 2001
£m £m £m
equities 640 213 700 241 720 264
gilts 440 42   
cash on deposit  370 23  
other cash 200 12 350 02  06
insurance policies 519 08   
275 266 270 56 notes to the financial statements
the following amounts were measured in accordance with the requirements of frs 17
30 june 2003 30 june 2002
£m £m
total market value of assets 275 266
present value of scheme liabilities 363 289
deficit in scheme 88 23
related deferred tax asset 26 07
net pension liability 62 16
if the amounts had been recognised in the financial statements the group’s net assets and profit
and loss reserve would be as follows
2003 2002
£m £m
net assets excluding pension liability 3013 2386
pension liability 62 16
net assets including pension liability 2951 2370
profit and loss reserve excluding pension liability 2249 1627
pension liability 62 16
profit and loss reserve including pension liability 2187 1611
at 30 june 2002 £04m of additional contributions to the scheme beyond those required by the
schedule of contributions were accrued these were paid on 3 july 2002 had they been paid
before 30 june 2002 they would have reduced the deficit as at 30 june 2002 by £04m
the following amounts would have been recognised in the performance statements in the year to
30 june 2003 under the requirements of frs 17
2003 2002
£m £m
operating profit
current service cost 26 26
past service cost      
total operating charge 26 26
other finance income
expected return on pension scheme assets 19 19
interest on pension scheme liabilities 19 14
other finance income  05
statement of total recognised gains and losses strgl
actual return less expected return on pension scheme assets 38 42
experience gains and losses arising on the scheme liabilities 06 08
changes in assumptions underlying the present value of the
scheme liabilities 32 30
actuarial loss recognised in strgl 64 64
movement in deficitsurplus during the year
deficitsurplus in scheme as at 1 july 23 38
current service cost 26 26
contributions 21 24
special contributions 04 
other finance income  05
actuarial loss 64 64
deficit in scheme at 30 june 88 23
details of experience gains and losses for the year to 30 june 2003
2003 2002
£m  of scheme £m  of scheme
assets assets
difference between the expected and 37 13 42 16
actual return on scheme assets
£m  of scheme £m  of scheme
assets assets
experience gains and losses on 06 2 08 3
scheme liabilities
total amount recognised in strgl 64 18 64 22 57 notes to the financial statements
e share options
the following share options were outstanding as at 30 june 2003
the total share options outstanding at 30 june 2003 under the executive share option scheme
the long term share incentive plan and the save as you earn schemes represent 18 of the
issued share capital
except in specified circumstances options granted under the executive schemes are
exercisable between 3 and 10 years after the date of grant  the save as you earn options
are exercisable at the end of a three five or seven year savings contract
the options granted on 1 december 1994 and 22 november 1995 are exercisable subject to 
performance criteria being met
the private options represent options granted by s p morgan over shares controlled by him and
they do not involve the group in any expense or the issuing of additional shares in redrow plc
the options are exercisable at a price of 1700p between 25 june 2004 and 24 june 2005
note 8  fixed assets
a tangible assets  group freehold plant  fixtures 
property machinery fittings total
£m £m £m £m
cost or valuation
at 1 july 2002 147 20 45 212
additions 12 05 07 24
disposals  02 04 06
at 30 june 2003 159 23 48 230
depreciation
at 1 july 2002 11 10 33 54
charge 06 04 07 17
disposals          01 05       06    
at 30 june 2003 17 13 35 65
net book value
at 30 june 2003 142 10 13 165
at 30 june 2002 136 10 12 158
all assets are stated at cost less accumulated depreciation with the exception of certain freehold
properties which as permitted under frs 15 transitional provisions are carried at their revaluation
less accumulated depreciation the revaluations were undertaken at 30 june 1989 on an open 
market basis the directors are not aware of any material change in the valuations of those 
properties in the intervening period 
freehold property at 30 june 2003 of £159m comprised £07m stated at valuation and 
£152m stated at cost the aggregate historic cost was £156m and the aggregate historic 
cost depreciation was £14m there was £14m of capital expenditure contracted at 
30 june 2003 2002 £03m
type of scheme date of grant number of shares number of shares exercise price
at 30 june 2003 at 30 june 2002
executive share option 1 december 1994 12500 27500 10200p
executive share option 22 november 1995 41000 68000 12600p
long term share incentive 16 september 1996  23575 
long term share incentive 15 september 1997 12082 41121 
long term share incentive 30 june 1998 28189 47981 
long term share incentive 15 september 1998 7169 42341 
long term share incentive 30 june 1999 58044 136098 
long term share incentive 17 september 1999 28328 78027 
long term share incentive 30 june 2000 257666 384827 
long term share incentive 18 september 2000 67545 92442 
long term share incentive 30 june 2001 106886 181747 
long term share incentive 28 september 2001 405384 559511 
long term share incentive 30 june 2002 107965 
long term share incentive 23 september 2002 340190 
save as you earn 1 june 1995  4766 9000p
save as you earn 1 december 1997  35123 15400p
save as you earn 1 december 1998 58428 70897 13000p
save as you earn 1 december 1999 75978 255185 15900p
save as you earn 1 january 2001 496427 600597 13400p
save as you earn 2 january 2002 330057 383036 16500p
save as you earn 1 december 2002 367715  21900p
private option 25 june 2001 960000 1150000 17000p 58 notes to the financial statements
d joint ventures
the group has a 50 shareholding in the ordinary share capital of framing solutions plc a 
company incorporated in great britain with a 31 december year end the remaining shares are
held by corus plc framing solutions plc undertakes the production and development of light 
steelframe systems for use within the housebuilding industry as at 30 june 2003 framing
solutions plc was financed by share capital and its own independent banking facilities
e subsidiary undertakings  
during the year the group operated within great britain the directors consider that to give full 
particulars of all subsidiary undertakings would lead to a statement of excessive length the principal 
subsidiary companies are detailed in the corporate information on page 68 all are incorporated in great
britain except redrow homes park heights limited which is incorporated in jersey a full list of 
subsidiary undertakings as at 30 june 2003 will be appended to the company’s next annual return the
capital of all the subsidiary companies consisting of ordinary shares is wholly owned  redrow holdings
ltd redrow corporate services ltd and redrow group services ltd are directly owned by redrow plc
f other investments 
at 30 june 2003 other investments comprised capitalised ground rents
note  9  acquisitions 
on 14 january 2003 the group acquired four residential sites in scotland through the acquisition
of 100 of the share capital of park lane city limited now renamed redrow homes 
city scotland limited a company whose activities were limited to the development of 
these land holdings for a total deferred consideration of £46m
the substance of the transaction was that of a land purchase the net assets acquired were land
balances of £203m at market value bank overdrafts of £79m  amounts due in respect of 
development land of £56m and a deferred taxation liability of £22m
b investments the group the company
2003 2002 2003 2002
£m £m £m £m
joint ventures 21   
subsidiary companies   2176 1602
other investments 01 01  
interest in own shares 04  
26 01 2176 1602
c investments  movements the group the company
£m £m
1 joint ventures
at 1 july 2002  
investment 27 
group share of operating loss 08 
19 
attributable taxation 02 
at 30 june 2003 21 
2 subsidiary undertakings
at 1 july 2002  1602
increase in net asset value before dividends  794
dividends  220
at 30 june 2003  2176
3 other investments
at 1 july 2002 and 30 june 2003 01 
4 interest in own shares
at 1 july 2002  
reclassified in the year 04 
at 30 june 2003 04 
the group has an employee benefit trust ebt in relation to its ltsip scheme the £04m
interest in own shares represents surplus shares held by the ebt at 30 june 2003 over and above
the total level of outstanding options capable of vesting at that date the market value of the
213000 shares as at 30 june 2003 was £06m 59 notes to the financial statements
note 13  creditors due within one year
other provisions relate to maintenance and sundry remedial costs within the homes division
which it is assessed will be utilised within four years and a lease provision for vacant properties
expected to be utilised within three years
note 15  provisions for liabilities and charges
the group total
other provisions £m
at 1 july 2002 36
profit and loss account charge 14
utilised in year 26    
at 30 june 2003 24
deferred taxation 13
at 30 june 2003 37
note 12  debtors
other debtors include an amount of £05m 2002 £05m due in more than one year
the group the company
2003 2002 2003 2002
£m £m £m £m
trade debtors 53 20  
amounts owed by subsidiary companies   2027 2259
other debtors 48 32  
deferred taxation  28  
prepayments 09 08  
110 88 2027 2259
note 14  creditors due after more than one year
the group the company
2003 2002 2003 2002
£m £m £m £m
bank loans 946 400 946 400
amounts due in respect of development land 401 259  
accruals and deferred income  04  
1347 663 946 400
note 11  stocks and work in progress
work in progress includes £51m 2002 £20m in respect of part exchange properties
land held for development in the sum of £429m is subject to a charge in respect of deferred
consideration 2002 £297m 
note 10  assets held for resale
at 30 june 2002 assets held for resale of £08m represented harwood house cheadle a property
previously occupied by harwood homes north west limited which was transferred from freehold
property in fixed assets during the previous year this property was sold during the year
the group the company
2003 2002 2003 2002
£m £m £m £m
land for development 3273 2945  
work in progress 2579 2033  
stock of showhomes 94 103  
5946 5081  
payments on account 156 113  
5790 4968  
the group the company
2003 2002 2003 2002
£m £m £m £0m
bank overdrafts 48 541 87 853
trade creditors 941 825  
amounts due in respect of development land 352 410  
amounts owed to subsidiary companies   101 129
other creditors 03 05  
current corporation tax 183 174 19 19
other taxation and social security 13 13  
accruals and deferred income 137 116 16 15
proposed final dividend 79 64 79 64
1756 2148 302 1080 60 notes to the financial statements
note 18  share premium account and reserves
note 17  share capital
options granted to directors and employees under the executive share option scheme the
long term share incentive plan and the save as you earn schemes are set out in note 7e
2003 2002
£m £m
authorised
330000000 ordinary shares of 10p each 2002 330000000 330 330
allotted called up and fully paid 159 158
number of
ordinary shares
of 10p each
movement in the year was as follows
at 1 july 2002 158371029
share options exercised 203029
at 30 june 2003 158574058
share capital profit 
premium revaluation redemption consolidation and loss
account reserve reserve reserve account
a group £m £m £m £m £m
at 1 july 2002 519 03 70 09 1627
premium on shares issued 04    
profit retained     624
contribution to quest     02
at 30 june 2003 523 03 70 09 2249
b company revaluation 
share of shares in capital profit
premium subsidiary redemption and loss
account companies reserve account
£m £m £m £m
at 1 july 2002 518 1295 70 345
premium on shares issued 04   
profit retained    48
revaluation  574  
at 30 june 2003 522 1869 70 393
prior to the introduction of frs 10 goodwill amounting to £04m was transferred to reserves
deferred tax – movements group
2003
£m
at 1 july 2002 28
liability arising on acquisition 22
deferred tax charge in profit and loss account for year see note 4 19
at 30 june 2003 13
in 2002 the deferred tax asset of £28m was included in debtors see note 12
the deferred tax liability relates to short term timing differences
note 16  deferred tax 61 notes to the financial statements
note 19 reconciliation of movement in shareholders’ funds 2003 2002
£m £m
profit for the financial year 743 608
dividends 119 96
profit retained 624 512
shares issued 05 06
contribution to quest 02 03
movement in the year 627 515
shareholders’ funds at 1 july 2386 1871
shareholders’ funds at 30 june 3013 2386
note 20 analysis of cash inflow from operating activities 2003 2002
£m £m
total operating profit 1137 941
add back share of joint venture operating loss 08 
group operating profit 1145 941
depreciation including profits and losses on disposals of fixed assets 17 13
increase in stocks and work in progress and assets held for resale 611 273
increasedecrease in debtors 52 25
increase in creditors and provisions 97 340
596 1046
note 21 analysis of net debtcash
at other at
1 july cash noncash 30 june
2002 flow acquisition movements 2003
£m £m £m £m £m
bank and cash deposits 10 46  06 62
bank overdrafts 541 572 79  48
531 618 79 06 14
bank loans 400 550   950
issue costs  05  01 04
931 73 79 05 932
other noncash movements comprise amortisation of issue costs relating to debt issues and the
recognition of £06m restricted access deposits held within the redrow employee benefit trust
note 22 operating lease annual commitments 2003 2002
£m £m
expiring in under one year  other  03
expiring in second to fifth year  other 14 03
expiring after five years  land and buildings 01 05 62 notes to the financial statements
note 23  financial instruments
the section headed treasury within the financial review on page 29 summarises the group’s 
financial risk management and treasury policies the group does not trade in financial 
instruments
the numerical disclosures frs 13 requires are set out below
short term debtors together with short term creditors excluding bank overdrafts and amounts due
in respect of development land are excluded from the analysis
a interest rate risk
at 30 june 2003 the group had total bank borrowing facilities of £2500m representing £2000m
committed facilities and £500m uncommitted facilities these are unsecured
after taking account of interest rate swaps as at 30 june 2003 the £998m 2002 £750m of debt
was at a fixed rate of 43 2002 53 interest rate swaps totalled £100m and they expire
between february 2004 and june 2006 all other debt is subject to floating interest rates linked
either to libor or base rate at a range of margins though a £1000m interest rate cap is in place at
a rate of 75 until september 2003 as at 30 june 2003 there was no other such debt 2002
£191m
in order to manage its interest rate risk the group may enter into interest rate swaps options and 
forward rate agreements all interest rate exposures are sterling denominated
cash at bank earns interest at floating rates
the amounts receivable within debtors after more than one year and fixed asset investments are
noninterest bearing
the group
2003 2002
book value book value
£m £m
financial assets
cash at bank and in hand 62 10
fixed asset investments 01 01
other amounts receivable after more than one year 05 05
68 16
the group
2003 2002
book value book value
£m £m
financial liabilities
bank overdraft 48 541
bank loans 950 400
amounts due in respect of development land 753 669
accruals and deferred income  04
vacant property provision 03 21
1754 1635
b fair values of financial assets and liabilities
all the group’s financial assets and liabilities are in sterling as follows
as at 30 june 2003 the only material difference between the book and fair values of the group’s
financial assets and liabilities related to amounts due in respect of development land which had a
book value of £753m and a fair value of £719m the fair value of these were calculated by 
discounting expected future cash flows to present value as at 30 june 2002 the difference 
between book value and fair value was not regarded as material
the fair value of the group’s interest rate hedging arrangements based on the market value of 
comparable instruments at 30 june 2003 was a loss of £07m 2002 £09m loss 63 notes to the financial statements
c maturity of financial assets and liabilities
the maturity profile of the group’s bank loans and overdrafts is set out below
the group
2003 2003 2002 2002
bank overdraft bank loans bank overdraft bank loans
£m £m £m £m
due within one year 48  541 
due between one and two years  – 400
due between two and five years  950 ––
48 950 541 400
the amount receivable after more than one year is secured on freehold property and is repayable in
2008 at the earliest
the maturity profile of the undrawn committed bank facilities is as follows
the group
2003 2002
£m £m
due within one year 200 175
due between one and two years 850 700
1050 875
amounts due in respect of development land and deferred income are noninterest bearing and the
maturity profile is set out below
the group
2003 2003 2002 2002
deferred development deferred development
income land income land
£m £m £m £m
due within one year 04 352 – 410
due between one and two years  285 02 156
due between two and five years  116 02 103
04 753 04 669
the following table sets out the movement in the group’s unrecognised gains and losses for the
year on its interest rate hedging arrangements
gains losses total
£m £m £m
unrecognised at 30 june 2001   
recognised in year   
arising in the year but not recognised  09 09
unrecognised at 30 june 2002  09 09
recognised in year  16 16
arising in the year but not recognised  14 14
unrecognised at 30 june 2003  07 07
expected to be recognised in the year
ended 30 june 2004  05 05
expected to be recognised thereafter  02 02
note 24  contingent liabilities
the company has guaranteed the bank borrowings of its subsidiaries performance bonds and other
building guarantees have been entered into in the normal course of business
as at 30 june 2003 under the terms of the redrow long term share incentive plan further 
incentive shares up to a value of £40m may be made available to directors and senior executives
achieving further years service with the group
note 25  related party transactions
there were no material related party transactions requiring disclosure under frs 8 64 notice of annual general meeting
notice is hereby given
that the annual general meeting of redrow plc will be held 
at st david’s park hotel st david’s park flintshire on 
5 november 2003 commencing at 12 noon to transact the 
following business
ordinary business
1 to receive and adopt the directors’ report and the 
financial statements for the year ended 30 june 2003 
together with the auditors’ report
2 to receive and adopt the remuneration committee 
report
3 to declare a final dividend for the year ended
30 june 2003
4 to reelect mr d l arnold as director
5 to reelect mr r b jones as director
6 to reelect mr b k harvey as director
7 to reelect mr c e lewis as director
8 to reappoint pricewaterhousecoopers llp as auditors of 
the company having previously been appointed by the 
board to fill the casual vacancy arising by reason of the 
resignation of pricewaterhousecoopers to hold office 
until the conclusion of the next general meeting at which 
financial statements are laid before the company and that 
their remuneration is fixed by the directors
special business
to consider and if thought fit pass the following resolutions of
which resolution 9 will be proposed as an ordinary resolution
and resolutions 10 11 12 and 13 will be proposed as special
resolutions
9 ordinary resolution
that the directors in place of any existing authority
conferred upon them for the purpose of section 80 of
the companies act 1985 be generally and unconditionally 
authorised pursuant to section 80 of the companies act 
1985 to exercise all powers of the company to allot and
to make offers or agreements to allot relevant securities 
as defined in section 80 of the said act up to an aggregate
nominal amount of £5565957 provided that this authority
shall unless previously revoked or renewed expire on the 
date of the next annual general meeting of the company 
but so that the company may before such expiry make an 
offer or agreement which would or might require relevant 
securities to be allotted after such expiry and the directors
may allot relevant securities in pursuance of such offer or 
agreement as if the authority had not expired
10 special resolution
that subject to the passing of resolution 9 set out in the 
notice convening the annual general meeting at which 
this resolution is to be considered and in place of any
existing authority given pursuant to section 95 of the 
companies act 1985 the directors be given power
pursuant to section 95 of the companies act 1985 to make 
allotments of equity securities as defined in section 94 of 
the said act pursuant to the authority contained in the 
said resolution 9 as if section 891 of the said act did 
not apply to such allotments provided that this power shall 
be limited to
i allotments of equity securities in connection with a 
rights issue being an offer of equity securities by way of 
rights to ordinary shareholders of the company in
proportion as nearly as may be to their holdings 
subject to such exclusions or other arrangements as the 
directors may deem necessary or expedient in relation 
to fractional entitlements or legal or practical problems 
under the laws of or the requirements of any recognised 
regulatory body or stock exchange in any territory
and
ii any other allotments for cash of equity securities up to 
a maximum nominal amount of £792870
and shall unless previously revoked or renewed expire 
on the date which is the earlier of the next annual 
general meeting of the company or 4 february 2005 
save that the said power shall permit the company to 
make an offer or enter into an agreement before the 
expiry of such power which would or might require 
equity securities to be allotted after such expiry and the 
directors may allot equity securities in pursuance of 
such offer or agreement as if such power conferred had 
not expired
notice of annual general meeting 65 notice of annual general meeting
11 special resolution
that pursuant to article 10 of the company’s articles of 
association the company is generally and unconditionally 
authorised in accordance with section 166 of the
companies act 1985 to make market purchases within 
the meaning of section 1633 of the said act of ordinary 
shares of 10p each in the capital of the company “ordinary
shares” on such terms and in such manner as the directors 
may from time to time determine provided that
a the maximum number of ordinary shares authorised to 
be purchased is 15857406
b the minimum price which may be paid for an ordinary 
share is 10p exclusive of expenses payable by
the company
c the maximum price which may be paid for an ordinary 
share is an amount equal to 105 of the average of the 
middle market quotations for an ordinary share derived 
from the london stock exchange daily official list for
the five business days immediately preceding the day 
on which the ordinary share is purchased exclusive of 
expenses payable by the company and
d the authority conferred shall expire at the conclusion of
the next annual general meeting of the company 
or 4 february 2005 whichever shall be the earlier 
except that the company may before such expiry make 
a contract to purchase its own shares which will or 
may be completed or executed wholly or partly after 
such expiry
12 special resolution
that article 83 of the articles of association of the 
company be deleted and replaced with the following new 
article 83
subject to the provisions of section 293 of the companies 
act 1985 every director shall retire at the first annual 
general meeting which shall occur after the date of his 
seventieth birthday but shall then be eligible for reelection
for the period from that annual general meeting until the 
end of the next following annual general meeting when 
again he shall retire any such director shall be eligible for
reelection for a subsequent term or terms but on each 
occasion only until the end of the next following annual 
general meeting after the date of his reelection a 
director retiring at any annual general meeting in
accordance with the provisions of this article shall not be 
taken into account in determining the number of directors 
to retire by rotation at such meeting in accordance with 
article 84 and article 84 of the articles of association of 
the company be amended by the insertion of the following 
words after “time being” in the first sentence other than 
those retiring in accordance with articles 79 and 83
13 special resolution
that article 163 of the articles of association of the 
company be deleted and be replaced with the following 
new article 163
subject to the acts and without prejudice to any indemnity
to which he may otherwise be entitled every director 
secretary or manager of the company shall be entitled to 
be indemnified by the company against all costs charges 
losses expenses and liabilities incurred by him in the 
execution and discharge of his duties or the exercise of his 
powers authorities and discretions including any liability 
incurred by him in defending any proceedings civil or 
criminal which relate to anything done or omitted or 
alleged to have been done or omitted by him as an officer or 
employee of the company and in which judgement is given 
in his favour or the proceedings are otherwise disposed of 
without any finding or admission of any material breach of 
duty on his part or in which he is acquitted or in 
connection with any application in which relief is granted 
to him by the court from liability in respect of negligence 
default breach of duty or breach of trust in relation to the 
affairs of the company 66 notice of annual general meeting
subject to the acts the board may exercise all the powers 
of the company to purchase and maintain insurance for the
benefit of a person who is an officer or employee or former 
officer or former employee of the company or a subsidiary 
undertaking or in which the company has an interest 
direct or indirect or who is or was a trustee of a retirement 
benefits scheme or another trust in which an officer or 
employee or former officer or former employee is or has 
been interested indemnifying him against any liability for 
negligence default breach of duty of trust or any other 
liability which may lawfully be insured against by the 
company
by order of the board
g a cope group company secretary
15 september 2003
notes to annual general meeting
1 proxies a member entitled to attend and vote may appoint 
a proxy or proxies to attend and on a poll to vote instead 
of him  a proxy need not be a member of the company
a form of proxy is enclosed which if required should be 
completed in accordance with the instructions set out therein
and returned so as to reach the company’s registrars not 
later than 48 hours before the time of the meeting or any 
adjourned meeting  members who complete a form of proxy
will not be precluded from attending the meeting and 
voting in person if they so wish
2 documents available for inspection
the register of directors’ interests will be available for 
inspection at the place of the meeting from 12 noon on 
5 november 2003 until the conclusion of the meeting
3 directors’ service contracts none of the directors has a 
service contract which cannot be terminated within one 
year without payment of compensation
4 the company specifies pursuant to regulation 34 of the 
uncertificated securities regulations 1995 that only those 
shareholders registered in the register of members of the 
company as at 6pm on 3 november 2003 shall be entitled 
to attend or vote at the meeting in respect of the number of
shares registered in their respective names at that time  
changes to entries on the register after that time will be 
disregarded in determining the rights of any person to 
attend or vote at the meeting
explanatory notes to annual general meeting resolutions
auditors
resolution 8 set out in the notice of annual general meeting
concerns the reappointment of pricewaterhousecoopers llp as
auditors
following the conversion of pricewaterhousecoopers to a
limited liability partnership llp from 1 january 2003
pricewaterhousecoopers resigned as auditors and the directors
appointed pricewaterhousecoopers llp to fill the casual vacancy
by resignation
share capital
resolutions 9 10 and 11 set out in the notice of annual 
general meeting on pages 64 and 65 concern the company’s
share capital
resolution 9 – authority to allot shares
under the companies act 1985 the directors of the company
may only allot unissued shares if authorised to do so by the
shareholders in a general meeting  resolution 9 renews the
directors’ existing authority by authorising the directors to allot
shares up to an aggregate nominal amount of £5565957 which
such authority shall expire on the date of the next annual
general meeting of the company  this represents 55659572
ordinary shares of 10p each and is equivalent to approximately
35 of the company’s current issued ordinary share capital   67 notice of annual general meeting
except in relation to the issue of ordinary shares arising from the
exercise of options under the company’s employee share option
schemes the directors have no present intention of issuing any
of the authorised but unissued ordinary shares of the company
resolution 10 – limited authority to allot shares for cash
the directors may only allot shares for cash to persons who are
not already shareholders in the company if authorised to do so
by the shareholders in a general meeting  this resolution
renews authority for the directors to allot shares for cash without
first offering them to existing members up to an aggregate 
nominal amount of £792870  this sum represents 7928703
ordinary shares of 10p each being equivalent to approximately
5 of the company’s current issued ordinary share capital
the resolution also enables the directors to modify the strict
requirements for a rights issue in circumstances where they 
consider it necessary or expedient
the authority will expire on whichever is the earlier of the 
conclusion of the next annual general meeting or  4 february 2005
resolution 11 – purchase of the company’s own shares
this resolution seeks authority from shareholders for the
company to purchase up to 15857406 ordinary shares an
aggregate nominal amount of £1585741 which is equivalent to
approximately 10 of the company’s issued ordinary share 
capital at 30 june 2003  the authority will expire at the end of
next year’s annual general meeting and the resolution specifies
the maximum and minimum prices at which the shares may be
bought  other investment opportunities appropriate gearing
levels and the overall financial position of the company will be
taken into account before deciding upon this course of action 
any shares purchased in this way will be cancelled and the 
number of shares in issue will accordingly be reduced the
directors have no immediate intention of exercising the 
proposed authority when it becomes effective but believe that
the ability of the company to buy its own shares if in the
directors’ opinion market prices do not reflect the company’s
worth will be in the best interests of the company and its 
shareholders the directors intend to exercise this power only 
if they believe the effect of such purchases will increase earnings
per ordinary share the authority will expire on whichever is the
earlier of the conclusion of the next annual general meeting or
4 february 2005 
articles of association
resolutions 12 and 13 set out in the notice of annual general
meeting on pages 65 and 66 concern proposed changes to the
company’s articles of association 
resolution 12 set out in the notice of annual general meeting
on page 65 proposes an amendment to the company’s articles of
association to require that directors aged 70 years or over
require annual reappointment
resolution 13 set out in the notice of annual general meeting
on pages 65 and 66 proposes an amendment to the company’s
articles of association removing the right of the auditors to an
indemnity out of the assets of the company 68
redrow plc
redrow house
st david’s park
flintshire
ch5 3rx
telephone 01244 520044
facsimile 01244 520580
marketingredrowcouk
redrow commercial developments
limited
60 oxford street
manchester
m1 5ee
telephone 0161 234 6800
facsimile 0161 234 6801
rcdlredrowcouk
redrow group services limited
redrow corporate services limited
pôche interior design
redrow house
st david’s park
flintshire
ch5 3rx
telephone 01244 520044
facsimile 01244 520580
redrow homes
northern region
redrow homes north west limited
priory court
wellfield road
preston brook
cheshire
wa7 3fr
telephone 01928 755600
facsimile 01928 755601
northwestsalesredrowcouk
redrow homes lancashire limited
redrow house
holden road
leigh
lancashire
wn7 1hh
telephone 01942 672488
facsimile 01942 609071
lancashiresalesredrowcouk
redrow homes yorkshire limited 
redrow house
brunel road
wakefield 41
wakefield
west yorkshire
wf2 0xg
telephone 01924 822566
facsimile 01924 822599
yorkshiresalesredrowcouk
redrow homes scotland limited
redrow house
3 central park avenue
larbert
falkirk
fk5 4rx
telephone 01324 555536
facsimile 01324 574890
scotlandsalesredrowcouk
southern region
redrow homes midlands limited
redrow house
kinsall green
wilnecote
tamworth
staffordshire
b77 5px
telephone 01827 260600
facsimile 01827 262454
midlandssalesredrowcouk
redrow homes 
south midlands limited
1st floor
woodlands house
the avenue
cliftonville
northampton
nn1 5bt
telephone 01604 601115
facsimile 01604 603113
southmidlandssalesredrowcouk
redrow homes southern limited
redrow house
boundary road
loudwater
high wycombe
buckinghamshire
hp10 9qt
telephone 01628 539700
facsimile 01628 539701
southernsalesredrowcouk
redrow homes eastern limited
redrow house
trust road
waltham cross
hertfordshire
en8 7dd
telephone 01992 655800
facsimile 01992 655801
easternsalesredrowcouk
western region
redrow homes west midlands limited
redrow house
coombswood business park
steelpark road
halesowen
west midlands
b62 8hd
telephone 0121 504 0280
facsimile 0121 504 0281
westmidlandssalesredrowcouk
redrow homes south west limited
redrow house
west point
great park road
bradley stoke
bristol
bs32 4qg
telephone 01454 625000
facsimile 01454 616033
southwestsalesredrowcouk
redrow homes south wales limited
redrow house
copse walk
cardiff gate business park
cardiff
cf23 8rh
telephone 02920 549103
facsimile 02920 541540
southwalessalesredrowcouk
corporate information
corporate information 69 corporate information
redrow homes
scotland
brightons
cambuslang
dunfermline
falkirk
gartcosh
glasgow
greenock
hallside
hamilton
kilmarnock
kilwinning
tranent
redrow homes
lancashire
buckshaw village chorley
bury
gillibrands chorley
grimsargh
pecks hill widnes
penwortham
upton widnes
walmer bridge
waltonledale
redrow homes
yorkshire
apperley bridge
bridlington
elland
flockton
harrogate 
leeds city centre
pool in wharfedale
sheffield
sowerby bridge
redrow homes 
north west
allerton liverpool
altrincham 
blackley
boughton chester
chester
chorley
heswall
irlam
kingsmead northwich
little sutton
moreton
oldham
stalybridge
swinton
upton chester
redrow homes
midlands
birmingham city  centre
bromsgrove
leek
shepshed
solihull
w ollaston
redrow homes
west midlands
baddeley green
etruria
kidsgrove 
tettenhall
wolverhampton city centre
redrow homes
south midlands
harrold
luton
wellingborough
redrow homes
south west
chard 
cheltenham
exeter
frome
gloucester
portishead
swindon 
westonsupermare
redrow homes 
south wales
abergavenny
cardiff city centre
church village pontypridd
leckwith cardiff
llantarnam
marshfield
merthyr tydfil
neath
pencoed
pengam green cardiff
redrow homes 
southern
angmering
bexhillonsea
bletchley
bournemouth
brockham
eastbourne
porchester
thatcham
redrow homes 
eastern
ashingdon
braintree
chatham
chingford
ipswich 
london docklands
singleton ashford
sittingbourne
regional offices national developments
september 2003
redrow homes
regional offices
redrow plc
head office
st davids park
leigh
high
wycombe
halesowen
bristol
falkirk
cardiff
wakefield
warrington
tamworth
waltham
cross
northhampton officers  advisers
group company secretary
graham a cope
registered office
redrow house st david’s park flintshire ch5 3rx
registered no 2877315
registrars
computershare investor services plc
po box 82 the pavilions bridgewater road bristol bs99 7nh
stockbrokers
cazenove  co
12 tokenhouse yard london ec2r 7an
auditors
pricewaterhousecoopers llp
101 barbirolli square lower mosley street manchester m2 3pw
solicitors
nabarro nathanson
lacon house theobald’s road london wc1x 8rw
70 officers  advisers this document has been produced on environmentally friendly paper from sustained forests redrow plc
redrow house st david’s park flintshire ch5 3rx
telephone 01244 520044  facsimile 01244 520720
email marketingredrowcouk
wwwredrowcouk


Summary:
 8 chief executive’s review       
chief executive’s review 
paul l pedley chief executive 
this has been another year
of record achievement for
redrow
the year ended 30 june 2003 has been another period of
record achievement for redrow operating profits have
increased from £941m to £1137m delivering earnings per
share of 469p an increase of 218 our balance sheet
continues to strengthen with shareholders’ funds now
exceeding £300m and gearing at 309 a further 
reduction on last year the efficient utilisation of capital
has always represented one of the main financial objectives
within the group and this is reflected in our return on 
capital employed which has increased to 31 
during the last twelve months the group has been 
carefully positioned in anticipation of a more sustainable
housing market the strength of our land bank enabled
redrow homes to increase the number of active outlets as
we entered the new calendar year so as to capture the
benefit of the important spring market this resulted in 
record forward sales as at 30 june 2003 of £304m in 
addition redrow commercial has commenced the new
financial year with forward transactions exchanged at both 
st david’s park and buckshaw village
the increasing recognition by the government of the
problems created by the continuing shortage of new homes
is to be welcomed the three major government sponsored
studies covering the barriers to increased housing supply
the development of a market for long term fixed rate  
mortgages and the improvement of the efficiency of the
industry all represent key opportunities to influence the
housing industry of the future the supply constraints
resulting from a restrictive and underresourced planning
regime are well documented however it is important that
our industry is capable of responding if government
initiatives do result in an increase in the supply of land  with planning for this to be achieved
improved construction techniques are
required to counter the impact of
skilled labour shortages during the last
twelve months we have undertaken a
careful review of both the design of our
housing portfolio and our build practices 
this has resulted in the creation of a new 
housing range which will be launched during 2004 
the new range combines the kerb appeal and the 
quality of design with which the group has become 
synonymous with improved construction methods in 
particular increased offsite prefabrication in addition the
new range has been designed to deliver the added benefits of
light steelframe construction which will flow as production is
increased at our joint venture company framing solutions
9
far left
st katherine’s park ham green bristol
left
schooners creek colchester
above
parc penyfal abergavenny
right
bramley green angmering
chief executive’s review  10 chief executive’s review       
redrow homes
redrow homes has again reported record results with
turnover increasing by 97 to £5960m and operating
profit by 170 to £1115m these results were secured
from 4031 2002 3908 legal completions with an 
average selling price of £147900 2002 £139000 the
legal completion profile was broadly in balance between
the first and second halves with 1970 489 and 2061
511 legal completions respectively
during the last twelve months there have been significant
variations in our various regional markets within the
southern region the market has generally undergone a
period of stabilisation whilst in both the western and
northern regions the positive ripple emanating from an
historically strong southern market has been experienced
the conflict in iraq resulted in a temporary period of
uncertainty whilst late spring and early summer witnessed
an overall return to a more sustainable housing market
throughout the country
in recognition of the potential uncertainty and changing
conditions within the market a significant number of new
development launches were scheduled for early 2003 to
capture the benefit of the important spring market
one of the most successful launches was at altolusso
the division’s in the city development in cardiff where
over the initial launch period 155 reservations were
secured with a sales value of £25m as a result of this
overall strategy reservations in the six months to 
30 june 2003 were 91 ahead of the very strong 
corresponding period in 2002 for the financial year as a
whole reservations were 4567 as compared with 4168 in
the previous year an increase of 96 this improvement
enabled the division to end the year with a record forward
sales position of 2062 units with a sales value of £304m
representing increases of 351 and 394 respectively on
last year
cost pressures within the industry have continued during
the financial year whilst the group’s proactive policy of
establishing key relationships with suppliers has resulted in
material price increases being controlled generally in line
with inflation the continuing shortage of skilled labour has
resulted in labour cost increases of up to 10 in the long
term these cost pressures can only be alleviated by both
increasing the overall attractiveness of our industry to new
entrants so increasing the total work force and by
embracing new construction techniques
operating margins within redrow homes have continued
to increase recording levels of 184 and 190 in the
first and second halves respectively the overall annual
operating margin of 187 compares with 176 last year
this improvement is in part due to the strength  of the sales market during calendar
year 2002 but equally reflects the
quality of the division’s land bank and
the active management of our cost base
the identification by the government of
key growth areas at milton keynes stansted
the east thames corridor and ashford to satisfy
the increased demand for new homes in the south
east is of strategic importance to enable the division 
to maximise the potential from these growth areas a new
company redrow homes south midlands has been
formed to focus on the area 
11 chief executive’s review 
far left
crown gardens glasgow
left
priory green little dunmow essex
above
st edward’s park leek staffordshire
right
a computer generated image of altolusso cardiff 12
known as the ‘milton keynes triangle’ as a result the 
geographical coverage of redrow homes southern
redrow homes eastern and redrow homes south east
has been reviewed to enhance the efficiency and 
effectiveness of these companies the decision has been
taken to relocate the first to basingstoke in hampshire and
to merge the other two with the relocation of the merged
business to laindon near basildon in essex
framing solutions our light steelframe joint venture 
company with corus plc continues to progress the 
commissioning of the new rollforming machinery together
with the related design and control programmes has been
successfully completed this is a major achievement
greatly increasing the efficiency of the design and
production process representing a significant step towards
enhancing the production capability over the next few
years to approximately 4000 units per annum to date
light steelframes have been incorporated successfully into
four redrow developments with further sites scheduled to
come on stream prior to the end of the calendar year
chief executive’s review        the northern region delivered 1982 legal completions as 
compared with 1888 in the previous year an increase of 50
representing 492 of the division’s completions  these results
reflect the acquisition of tay homes in january 2002 with the
resultant expansion of our activities in both scotland and
yorkshire  the average selling price increased by 82 to
£128500 to yield an overall increase in turnover of 136
the southern region achieved 1091 legal completions broadly
in line with the previous year representing 271 of the total
completions of redrow homes  the average selling price
increased by 91 to £186400 to give an overall increase in
turnover of 65  
the expansion of the western region continues with legal
completions increasing by 62 to 958 units  the average 
selling price was marginally higher at £144000 with turnover
increasing by 81 to £1380m
13
regional 
performance
chief executive’s review 
far left brockham park surrey
centre erection of a steelframe system at parc victoria ebbw vale
left homes at parc victoria ebbw vale constructed with the new steelframe system
right the boulevards harrogate
far right rumford grange falkirk 14 chief executive’s review       
the redrow portfolio
over the last ten years the development of the heritage
harwood and in the city brands has been of major 
importance in the expansion of redrow homes during
that period the number of legal completions has almost
doubled from 2038 in 1994 to 4031 in 2003
the heritage range which in the financial year had
an average selling price of £166100 still represents the
cornerstone of the portfolio accounting for 632 of legal
completions as anticipated last year the last twelve
months have witnessed a significant expansion in the
utilisation of the harwood range this is primarily due to
the fact that on the acquisition of tay homes in january
2002 the majority of that company’s developments in
yorkshire and scotland were more suited to the harwood
specification in addition increased usage has been made
of the harwood range in both south west and south
wales as a result harwood represented 290 of the
division’s legal completions in the current financial year
and had an average selling price marginally in excess of
£100000 
to complement heritage and harwood several in the
city developments have been and are being undertaken
the number of such schemes is carefully controlled due to
the significant management time involved in each scheme
and from a financial viewpoint their capital intensive
nature during the year in the city schemes contributed
78 to the division’s legal completions with an average
selling price of £174900 of particular significance was the
highly successful scheme at whitworthwest in manchester
which secured the award for “best city centre residential
development” from the association of town centre
management in conjunction with the nhbc
ongoing in the city schemes include odyssey in london
altolusso in cardiff jupiter in birmingham velocity in
leeds and neptune marina in ipswich to balance the
higher capital investment associated with in the city
schemes it is important to maintain a strong forward sales
position it is therefore pleasing to report that by the
financial year end the above developments have already
secured 348 forward sales for legal completion in the year
ending 30 june 2005
whilst the heritage and harwood ranges have been 
highly successful the changing requirements of planning
policy guidance in particular ppg3 have resulted in
an increasing percentage of bespoke concept schemes
marketed under the heritage and harwood banners
the increase in such schemes has resulted in a greater 
absorption of management time in their design and a 
dilution of the benefits that flow from the construction
of a more standardised housing range
in response to these changes a new highly flexible range
of generic house styles has been designed this new range
combines the quality of design that has characterised the
heritage and harwood ranges with the reintroduction
of greater standardisation within the construction process
whilst maintaining the flexibility in elevational treatments
to match the local vernacular with three different specification levels in the new housing
range the benefits derived from a
diverse product portfolio will be 
maintained but complemented by the
efficiencies of greater standardisation
both from a build and financial viewpoint
this new range has equally been designed to
respect the requirements of ppg3 and to enhance
the utilisation of offsite prefabrication furthermore
whilst designed initially to be predominantly built
traditionally the requirements of light steelframe 
construction have been fully recognised so as to provide 
further benefits as production from framing solutions 
is increased 
finally from a marketing perspective the new range 
irrespective of specification will be marketed under the single
redrow brand to provide greater synergy with the division’s
national marketing programme and in particular the highly
successful campaign on digital television
15
above
eton court pengam green cardiff
right
saxon place northampton
chief executive’s review  16 chief executive’s review       
developing a sustainable   
during the last twelve months
the current land bank has
increased to 16000 plots
land remains the key to the group’s future profitability
during the last twelve months the current land bank has
increased from 15600 plots to 16000 plots representing
on an historic basis a four year land supply of these plots
14000 are owned with planning an increase on the 
previous year of 600 plots the balance is held under 
contract awaiting in the vast majority of cases the grant
of a satisfactory planning consent
it is however the effectiveness of this land bank that is of
paramount importance the homes division owns with
planning all the land required to deliver the budgeted 
completions for the new financial year further 85 of the
forecast legal completions for the year ending 30 june 2005
are on land owned with planning and indeed all are on
land controlled by the division this places redrow
homes in an extremely strong position for the future
during 2003 redrow homes acquired approximately 4630
plots for a total consideration of £1269m representing an
average plot cost of £27400 at the financial year end the
average plot cost has increased from £21200 to £22900
which when expressed as a percentage of annual historic
sales price represents a marginal increase from 153 last
year to 155 for the current year
17500
15000
12500
10000
7500
5000
2500
0
land under contract
land owned with planning consent
current land bank
1999
3300
12300
9000
2001
3000
14300
11300
2002
2200
15600
13400
2003
2000
16000
14000
2000
3300
10200
13500 with the increasing concentration on
brownfield development the historic
distinction between current and
forward land has been eroded with our
planning teams now equally involved in
securing planning consent on both
categories of land nevertheless forward land
remains a major contributor to the land acquired
each year and during the last twelve months some
30 of the land acquired was secured through this route
further at the financial year end the forward land bank
totalled approximately 23750 plots of particular
significance is the number of plots allocated in either draft
or adopted local plans despite the contribution to the
current land bank during the year these allocations have
been maintained at over 8000 plots representing over
onethird of the forward land bank clearly demonstrating
its planning pedigree
17
  future
far left
whatton grange long whatton leicestershire
above
woodvale place southport
right
the circus gras lawn exeter
chief executive ’s review  18 chief executive ’s review       
redrow commercial
the focus is on the identification
and development of mixed use
schemes so adding value on a
groupwide basis
the recent relocation of redrow commercial to new 
office premises within the group’s mixed use scheme at
whitworthwest manchester represents the culmination of
a very successful year operating profits of £30m were at a
similar level to last year with contributions being secured
from each of the company’s major developments
at st david’s park optima the 27000 sq ft office
development to which i referred last year was sold to 
moneysupermarketcom at buckshaw village the
80000 sq ft of industrial units built speculatively has 
generated significant interest with the sale of a 
20000 sq ft unit prior to the year end and the disposal of
a further 14000 sq ft unit subsequent to the year end in
addition on both developments the sale of undeveloped
parcels of land has been achieved so further improving the
company’s results at western approach bristol the
51000 sq ft distribution warehouse prelet to macfarlane
group uk ltd has been successfully sold and marketing
continues on the second unit also of 51000 sq ft 
constructed in parallel lastly the investment sale of the
ground floor retail space at whitworthwest in manchester
prelet to sainsbury’s supermarkets ltd has been
successfully completed 
the company has commenced the new financial year with
forward transactions secured at both st david’s park and
buckshaw village at the former contracts were
exchanged prior to the year end for the sale of evolution
nursery office units totalling approximately 15000 sq ft
following build completion in mid july the sale has been
successfully completed at buckshaw village contracts have been exchanged 
subject to planning for the sale to aldi stores ltd of a 
31 acre parcel of land for the development of a 
650000 sq ft distribution warehouse this transaction
together with those previously referred to establishes
buckshaw village as a major mixed use development
within the north west
over the last two years the focus within redrow
commercial has been on the identification and
development of mixed use schemes so adding value on a
groupwide basis twelve months ago the structure of the
management team was reviewed and brought in line with
that of the homes division the results for the year together
with the foundations laid for the future are a solid 
endorsement of these policies
last year i referred to the ‘extensive project management skills
within redrow commercial which have been harnessed to
provide the appropriate controls on all in the city schemes
undertaken throughout the group’ to recognise the significant
groupwide contribution made by this project management
team the decision has been taken to relocate the team to
st david’s park so facilitating greater integration in all relevant
aspects of the group’s business
19
far left redrow commercial office whitworthwest manchester city centre
centre ‘optima’ 27000 sq ft office development st david’s park flintshire
left western approach severnside bristol
right whitworthwest apartments and retail scheme manchester city centre
chief executive ’s review  20 chief executive ’s review       
one of the core strengths of the group remains the
‘redrow team’ our continuing growth combined with
the increasing complexity of our industry means that
redrow must be recognised as ‘an employer of choice’
so as to be able to both retain our existing staff and attract
future employees of the highest calibre  it is however
equally important that these new employees receive the 
appropriate induction which not only encompasses our
policies and procedures but also our culture so that all
new staff can feel part of the redrow team and contribute 
fully at the earliest opportunity in addition to recognising
the need for a structured induction process there is an
ongoing requirement for training across many disciplines
throughout the group
during the last financial year a detailed review was
undertaken as to how these objectives could best be
achieved the conclusion of the review was the formation
of ‘the redrow training centre’ this facility is now
housed within a purpose built 4000 sq ft building
constructed next to the offices of redrow homes
midlands at tamworth the centre had a capital cost of
approximately £500000 and is staffed by professional
trainers recruited from both within and outside the group
to provide the appropriate balance of skills furthermore
existing team members may be seconded to provide
specialist courses particularly in more technical disciplines
and in the important area of health and safety the centre
is fully integrated into the groupwide computer systems
to provide a ‘real life’ environment for learning purposes
on an annual basis some 400 courses will be provided at a
cost of approximately £400000
this initiative clearly demonstrates redrow’s commitment
to its employees and its desire to be ‘the employer of
choice’ within our industry
above
the redrow training centre tamworth
centre
interior of the training centre
right
redrow plc headquarters st david’s park flintshire
the redrow team
our training initiative redrow has entered the new financial year having 
delivered record results and secured an excellent platform
for future growth the homes division through careful
planning and the launch of several new developments
has secured a record forward sales position the division’s
land bank has been further strengthened and provides an
effective and solid base for the future the review of the
housing portfolio will ensure that the qualities of the
existing ranges are combined with the requirements for
enhanced construction methods so supporting our future
financial returns
redrow commercial has established a sound development 
programme adding significant value through its focus on
mixed use schemes
accordingly barring the impact of factors totally outside the
control of the group redrow can look forward with confidence
to maintaining its record of delivering long term sustainable
growth and by so doing deliver value to our shareholders
paul l pedley chief executive
21
outlook
chief executive ’s review