annual report  accounts 2002
our year in focus 2 highlights
highlights
100
80
60
40
20
0
operating profit £m
operating profit up
18 to £941m
1998 1999 2000 2001
795
2002
941
677
563
478
earnings per ordinary share p
earnings per share up
34 to 385p
1998 1999 2000 2001
288
2002
385
202
170
148
40
35
30
25
20
15
10
5
0
dividends per share p
dividends per share 
increased to 606p
1998 1999 2000 2001
550
2002
606
495
450
405
6
5
4
3
2
1
0 highlights 2
results in brief 3
chairman’s statement 4
chief executive’s review 8
finance director’s review 22
five year summary 27
directors 28
directors’ report 30
corporate governance statement 33
remuneration report 35
auditors’ report 40
consolidated profit and loss account 41
balance sheets 42
consolidated cash flow statement 43
accounting policies 44
notes to the financial statements 45
notice of annual general meeting 56
corporate information 58
3 results in brief
restated
2002 2001
financial summary £m £m increase
turnover 5733  4212 36
operating profit 941  795 18
profit before taxation 851  721 18
net assets 2386  1871 28
pence pence
earnings per share 385 288 34
dividends per share 606  550 10
results in brief
contents
front cover ‘51˚02’ bristol city centre i am pleased to report a highly successful year for redrow
when the share buyback took place in october 2000 the
board highlighted its focus on delivering increased shareholder
value i am therefore delighted to report further strong 
growth in earnings per share of 34 part of this increase
reflects the capital restructuring but the greater part is the 
consequence of the strong financial and operational 
performance of the business
redrow’s financial strength is demonstrated by two key 
measures its margins and its return on capital employed both
are at the top of our industry’s range this year the operating
margin within the homes division was 176 a considerable
achievement and one which the board regards as sustainable in
the current markets equally the return on capital employed at
30 continues to reflect the emphasis we place on the efficient
use of capital the increased volume of the business generated
both within the existing redrow companies and from the 
acquisition of tay homes has enabled us to grow operating
profits before integration costs relating to the acquisition by
24 from £795m to £984m i am therefore glad to report that
once again the board is able to recommend increasing the 
dividend by 10 maintaining the progressive dividend policy
since flotation 
sustaining profitable growth is one of the key objectives of the
board and we have therefore taken a number of important steps
aimed at underpinning the continuation of our successful 
performance firstly tay homes was acquired in january this
year which established critical mass in two operating areas
yorkshire and scotland enabling us to bring them closer to
maturity faster than would otherwise have been possible the
acquisition also brought useful new opportunities in the
midlands the purchase was almost entirely funded out of cash
generated by selling a number of successful developments by
redrow’s commercial arm which generated turnover of £302m
and an operating profit of £31m this year as a result i can not
only report that gearing of the company as a whole fell from
60 at the start of the year to 42 at the halfyear end but that
there has been a further fall to 39 at the end of the second
half the company remains strongly cash generative while
gearing reflects a prudent balance between leveraging our 
shareholders’ funds and maintaining an appropriately cautious
approach to debt
4 chairman’s statement
chairman’s statement
robert jones chairman 
i am pleased to report a highly successful 
year for redrow secondly building techniques throughout the industry
have failed to change sufficiently to reflect the problems
the country faces as a result of shortages of certain skilled
trade workers after careful consideration of alternative 
solutions and pilot schemes using timberframe and light 
steelframe methods as well as modular construction redrow
has decided that the benefits from the use of light steelframe 
warrant the establishment of a joint venture for their 
manufacture this joint venture with corus brings together 
our expertise in residential development with their skills in steel
manufacture and application both companies are investing into
a standalone joint venture company the equivalent of up
to £30m we anticipate that the utilisation of light steel 
frames will benefit the company in terms of build times and
quality resulting in improved customer satisfaction
5 chairman’s statement
above
masterton park dunfermline scotland
centre
odyssey london docklands
right
optima the 27000 sqft office development
stdavid’s park flintshire two other areas are critical to the sustainability of the business
land and people redrow has consistently anticipated changes 
in the planning system by placing emphasis on the
government’s aims of sustainability and increased densities our
land acquisition programme has brought substantial financial
benefits i am therefore pleased to report a further increase in
our current land bank from 14300 plots to 15600 plots this
means that the vast majority of land we will develop in the next
three years is already owned or controlled by the company
much of this is brownfield land which currently represents 69
of our land bank beyond that there are approximately 25000
plots within our forward land bank which have a realistic
prospect of securing planning permission in the future
our workforce at every level is highly skilled and dedicated to
the success of the company however such skills require 
continuous honing and updating and we continue to dedicate
considerable resources to training redrow aims to build its
strength in people not only through internal promotions but
also from external sources and i am particularly pleased to 
welcome those members of tay’s staff who have joined redrow
and whose contribution is proving highly beneficial  two new
members of the main board have joined us this year  
john tutte joined the company as a regional chairman in the
south in january and brings with him a wealth of experience of
our industry in july he was appointed to the board reflecting 
his significant contribution during his short tenure with the
company brian duckworth joins us as a nonexecutive director
and will bring his significant experience of business in general to
the board
it is always gratifying that so many people comment favourably
on the quality and range of our developments varying as they
do from stylish inner city apartments to refurbished buildings
and from traditional family properties to attractive new design
schemes there is indeed a home for every type of customer
within our range as in recent years redrow has secured a 
significant number of awards but what is particularly pleasing is
that in addition to this public recognition of the quality of our
homes many of our customers recommend us to their friends
and relatives or move from one redrow home to another
6 chairman’s statement
above
lansdowne gardens leckwith cardiff 7 chairman’s statement
for the future our industry is not being permitted 
to build more than threequarters of the minimum 
number of homes estimated to be necessary as a result 
of demographic change and the deterioration of older 
housing stock inevitably therefore whilst there is 
houseprice inflation affordability remains good as a 
result of low interest rates on the basis of our belief that 
the housing market remains sound we can be confident that
redrow has an excellent future since our high quality products
low cost current land bank and focused management team are
the very essence of sustainability in our industry
robert jones chairman
above
fedden village portishead bristol
centre
guinea hall farm southport lancashire
right
the maltings braintree essex our corporate philosophy is to deliver long term sustainable
growth and by so doing deliver value to our shareholders the
results for the last twelve months represent our continuing 
commitment to that philosophy earnings per share have
increased to 385p representing compound growth over the last
five years of 30 pa this has been achieved through a 
combination of growth in operating profits which over that
period have increased from £354m to £941m and the 
successful share buyback effected in october 2000
our focus on high quality financial returns is equally reflected
within these results return on capital employed having 
averaged 28 for the last five years has increased in the current
year to 30 whilst operating margins within the homes
division preintegration costs are at 176 the combination 
of these financial returns represents one of the 
strongest performances within our sector
although the trading fundamentals for the uk housing market
remain sound the number of new homes constructed by our
industry is at its lowest level since 1924 this is principally 
due to restrictive planning policies which have constrained the
new homes industry for a number of years the recent
announcements by the government to tackle the growing 
housing shortage are to be welcomed however these
‘announcements’ must be turned into ‘actions’ for the new
homes industry to respond and at the same time address the
issues arising from skilled labour trade shortages it is important
to embrace ‘new’ construction practices to facilitate increased
output whilst improving build quality and speed after 
undertaking extensive research and trials we announced in 
july 2002 the formation with corus plc of a joint venture 
company framing solutions plc  
8 chief executive’s review
chief executive’s review
paul l pedley chief executive 
redrow’s financial returns represent one of the
strongest within our sector 9 chief executive’s review
framing solutions has been funded by an equity 
investment from both parties of up to £30m each and 
will harness corus’ manufacturing skills with redrow’s
development expertise to provide light steel frames a viable
and sustainable solution primarily targeted at the uk 
residential market  initially light steel frames will be introduced
on selected harwood and ‘design scheme’ developments across
the country
the last twelve months have been a period of significant
achievement with redrow continuing to recognise its
responsibilities to its shareholders its customers and the 
broader community
above
the beaufort housetype from the heritage range
centre
chapel green great notley essex
right
homes at parc victoria ebbw vale constructed 
with the new steelframe system
left
holland park waltonledale lancashire 10 chief executive’s review
redrow homes
above
ellerslie rusholme manchester
redrow homes has again reported record
results with operating profit increasing by 
20 to £895m
right
the orchids great notley essex
far right 
meadow walk tattenhall cheshire
over the last 20 years redrow homes has been firmly 
established as a major developer of new homes our growth and
success have been founded on three core strengths namely
• an excellent management team with a style and culture 
unique to redrow
•a long term land policy which has delivered a substantial 
low cost land bank 
• an outstanding product portfolio combined with a clear 
focus on customer care
these strengths have historically served the division well and
will continue to form the basis for continued organic growth
to expand our opportunities for growth the decision was taken
during the year to divide the existing operation in the south
east into two separate trading companies redrow homes
eastern and redrow homes south east the former will
trade from the existing office at waltham cross and focus on
the area north of the thames whilst the latter has been 
established at a new office at maidstone with a focus south of
the thames
the acquisition of tay homes in january 2002 provided an
opportunity to enhance our organic growth through the 
acquisition our land bank was increased by approximately 1400
plots thereby facilitating an expansion of the group’s operations
in both yorkshire and scotland whilst providing additional
trading outlets within the midlands the rebranding of 
developments together with the replanning of sites where 
appropriate has been smoothly achieved whilst the retained 
tay homes staff have been welcomed into their respective
redrow teams
redrow homes has again reported record results with turnover
increasing by 218 to £5069m and operating profit by 20 
to £895m these results were secured from 3573 legal 
completions with an average selling price of £141900 an
181 increase on last year reflecting in part the increased 
contribution from the southern and western regions and from
in the city schemes 
the legal completion profile of the heritage harwood and 
in the city brands was broadly in balance between the first and
second halves with 1728 and 1845 legal completions 
respectively in addition the tay homes’ developments 
delivered a further 335 legal completions in the second half
with an average selling price of £108100 11 chief executive’s review 12 chief executive’s review
above 
apartments from the harwood range at
litherland liverpool
below
a computer generated image of jupiter
the mixed use ‘in the city’ scheme
birmingham
during the year redrow homes has continued to expand its
market share sales reservations have increased by 91 in 
volume and by 220 in value as a result having allowed for
the forward sales within tay homes at the time of acquisition
the division ended the year with a record forward sales position
of 1526 units having a sales value of £2180m 239 ahead of
the record levels of last year
cost pressures within the industry have increased over the last
twelve months whilst material price increases have been 
controlled in line with inflation ongoing trade shortages have
resulted in more significant cost increases of between 5 and
10 for some labour trades in addition the everincreasing 
burden of building regulations and the various tax increases
imposed by central government have together increased the
cost base within our industry
operating margins within redrow homes were 177 as 
compared with 179 last year this reduction was due to the
reduced contribution from the heritage brand which derives 
the greatest benefit from the enhanced margins emanating from
land acquired through the forward land bank
tay homes delivered an operating margin of 160 largely
reflecting the profitability of the developments at the time of
acquisition  subsequently the adoption of the redrow product
portfolio combined with identified cost savings will bring the
operating margin more in line with redrow homes
i referred last year to ‘the redrow philosophy of “inhouse expertise”
with the formation of a centralised health and safety function’
the development of this corporate responsibility has been and
will continue to be an integral part of our management culture
with all health and safety issues considered and controlled on a
more cohesive basis during the year this philosophy has been
extended to the creation of a centralised research and
development team this team is charged with identifying 
and evaluating new construction techniques and products  
it has also been instrumental in the coordination and 
reassessment of previously undertaken research and the 
management of further tests which resulted in the decision 
to form the joint venture company framing solutions 13 chief executive’s review
regional 
performance 
the northern region delivered 1621 legal completions as
compared with 1695 in the previous year representing 454 of
the redrow homes completions the average selling price
increased by 149 to £122900 to yield an overall increase in
turnover of 98 in addition 267 legal completions were
secured from the tay homes’ developments at an average selling
price of £94100
the southern region achieved 1050 legal completions an
increase on the previous year of 74 and representing 294 of
the total completions of redrow homes  the average selling
price increased by 197 to £171300 to give an overall increase
in turnover of 285 a further 68 legal completions were
secured from the tay homes’ developments at an average selling
price of £163000  
the western region continued to make significant progress
with legal completions increasing by 142 to 902 units and the
average selling price by 178 to £141500 as a result 
turnover increased by 345 to £1276m
right
the maltings braintree essex
far right
brindley point birmingham city centre the last twelve months have witnessed the continuing 
development of the redrow portfolio the decision to allow
each subsidiary company full access to the heritage harwood
renaissance and in the city brands has been a major factor in the
continuing development of the homes division and has greatly
extended the product offering within each subsidiary company
our ability to offer our customers a variety of choice both in
terms of product and lifestyle has been and will continue to be
a major factor in their decision to acquire a new redrow home
and is the cornerstone of our recently launched advertising 
campaign on digital tv
our recognition of increasing customer expectations and 
changing lifestyles resulted in the introduction of the new
sapphire and emerald specifications for the heritage range
which last year represented 67 of our legal completions and
had an average selling price of £152400 the importance of
individual customer lifestyles is further recognised through our
highly successful ‘design schemes’ which create community
environments whilst embracing current planning criteria
over the last two years the harwood brand has been extended
from its origins in the north west and the west midlands to
represent an increasingly significant element of the division’s
portfolio in scotland yorkshire south west and south wales
these stylish and contemporary homes which had an average 
selling price in the year of £81800 now account for 20 of
legal completions  further as the majority of the tay homes’
developments in yorkshire and scotland were more suited to the
harwood range it is anticipated that its contribution will
increase significantly in the new financial year
within heritage and harwood renaissance represents a further
opportunity for customer choice through the careful restoration
of historic buildings in addition many refurbishment schemes
provide major opportunities for new build development 
a prime example is the former victorian hospital at penyfal
abergavenny this historic building has been refurbished to 
provide 63 luxury apartments complemented by a heritage
development of 110 apartments and houses within the grounds
in the city developments contributed 13 of legal 
completions with an average selling price in the year of
£181100 the schemes at ‘51˚02’ in bristol rigarossa in
cardiff brindley point in birmingham and park wharf in
nottingham are now complete odyssey in london and
whitworthwest in manchester continue to progress successfully
and in the new financial year will be complemented by 
additional developments jupiter in birmingham and velocity 
in leeds
14 chief executive’s review
the redrow brands
above 
parc penyfal abergavenney 
south wales
the last twelve months have witnessed the 
continuing development of the redrow portfolio   15 chief executive’s review
above 
kitchen from the sapphire specification
centre
dicken’s heath solihull
right
bathroom from the emerald specification 16 chief executive’s review
one of the fundamental strengths of redrow remains its long
term land policy which has delivered a substantial low cost 
land bank
over the last twelve months the current land bank has
increased substantially from 14300 plots to 15600 plots 
representing on an historic basis a four year land supply  
as a result of significant planning successes during the year
13400 of these plots have the benefit of a planning consent an
increase on the previous year of 2100 plots the balance are
held under contract awaiting in the vast majority of cases the
grant of a satisfactory planning consent
during the year the homes division acquired 6000 plots for a
total consideration of £1363m representing an average plot
cost of £22700 this included the 1400 plots secured on the
acquisition of tay homes  at the financial year end the 
average plot cost has increased marginally from £20900 to
£21200 but expressed as a percentage of annual historic sales
price continues to reflect its downward trend reducing from
185 in 1998 to 153 for the current year the quality of the
current land bank provides inherent support to the homes
division in delivering future sustainable profitability
above
schooners creek colchester
developing a sustainable
17500
15000
12500
10000
7500
5000
2500
0
land under contract
land with planning consent
over the last twelve months the current 
land bank has increased substantially to
15600 plots 
current land bank
1998
11700
9200
1999
3300
12300
9000
2001
3000
14300
11300
2002
2200
15600
13400
2000
3300
10200
13500
2500 despite the uncertainty within the planning 
process following the publication of the planning 
green papers in november 2001 and more recently
through the ministerial reshuffle forward land has 
contributed 1150 plots to the current land bank during 
the year at the year end the forward land bank stood at 
approximately 25000 plots but 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 in excess of 30 of the forward land bank
these allocations include 750 plots at bracknell where we have
recently secured planning consent subject to the completion of  
a planning gain agreement this major development in a 
strategically important location will provide a backbone for 
redrow homes southern for a considerable number of years
future
17 chief executive’s review
above
dicken’s heath solihull
centre
aerial view of the 400 acre mixed use brownfield site at
buckshaw village near chorley
right
the willowhornbeam housetype combination from the
harwood range the results for redrow commercial reflect a turnover of £302m
and an operating profit of £31m these results were secured
from the investment sale of the 138500 sq ft office 
development at windsor office park fully let to centrica plc
the investment sale of the 26000 sq ft office and 6000 sq ft
trade warehouse at altrincham manchester fully let to ici plc
and the freehold sale of the 8000 sq ft office development at
wakefield to icm computer group plc these sales secured the
appropriate level of profitability within redrow commercial 
and provided the finance to enable the group to acquire 
tay homes without any significant increase in gearing
in last year’s review i detailed the changes within the 
management team enabling the structure within redrow
commercial to mirror that of the homes division these
changes have given the group the ability to focus successfully
on mixed use developments in addition the extensive project
management skills within redrow commercial have been 
harnessed to provide the appropriate controls on all in the city
schemes undertaken throughout the group  
buckshaw village in chorley lancashire exemplifies the 
success of the group’s mixed use philosophy  during the year
the extensive remediation works to the initial phase have been
completed and detailed planning consent secured for the major
infrastructure works together with the first phase of the 
commercial development in march 2002 development of this
400 acre mixed use scheme commenced on site and has already
generated significant commercial interest
our mixed use philosophy has also proved successful at
whitworthwest in manchester the ground floor retail space
within this highly successful 224 residential apartment scheme
has been prelet to sainsbury’s supermarkets ltd and subject to
market conditions at the time the resulting investment will be
marketed for sale during the new financial year
18 chief executive’s review
redrow commercial
above
aerial view of western approach
severnside bristol
the new structure within redrow commercial 
provides the group with the ability to focus  
successfully on mixed use developments i reported last year the land sale at western approach
severnside to next plc for a 100000 sq ft distribution 
facility  this facility is now construction complete and the
activity on site has resulted in an increase in enquiries and 
in particular a prelet to macfarlane group uk ltd for a
51000 sq ft distribution warehouse in addition a funding
agreement has been completed for the sale of this investment
upon practical completion to complement this development 
a further 51000 sq ft distribution warehouse will be 
constructed on a speculative basis
at st david’s park the 27000 sq ft speculative office 
development ‘optima’ is nearing completion and enquiry 
levels are encouraging 
19 chief executive’s review
above
aerial view of st david’s park flintshire showing the 
new 27000 sq ft development ‘optima’
centre
whitworthwest apartments and retail scheme 
manchester city centre
right
26000 sq ft office development altrincham
left
138500 sq ft windsor office development 20 chief executive’s review
one of the core strengths of the group remains the ‘redrow
team’ the importance of that team can never be overstated
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 
attract the highest calibre of employee whether they be craft 
apprentices and graduates commencing their careers within our
industry or more experienced staff
to achieve that objective we must work to enhance the image
of our industry within the community in addition to providing
the appropriate support and training for our staff  last year we
announced the launch of the ‘curriculum resource pack’ this
is now freely available to all primary schools in the uk and
seeks to promote a better understanding of the development
process building upon the national curriculum recently we
have launched a new initiative with the national trust to bring
together children from contrasting backgrounds at selected
national trust properties to enhance their experiences and to
promote a better understanding of the role of their communities
within the group the focus remains on providing 
comprehensive training initiatives programmes have been
specifically designed for craft apprentices and graduates and to
assist our staff at all levels in gaining professional qualifications
and enhancing their management skills
redrow remains a committed member of business in the
community an organisation which seeks to link the corporate
sector with the community through this organisation redrow
employees continue to participate in a number of important 
initiatives so promoting a better understanding of our industry
above
our team of newly recruited 
graduates pictured with redrow
directors and previous graduate
trainees
the redrow team   the community   
redrow remains a committed member of business
in the community an organisation which seeks
to link the corporate sector with the community redrow has entered the new financial year in 
excellent health  the homes division enjoys 
record forward sales and an inherently profitable 
land bank together with a product portfolio that 
recognises the needs and aspirations of our customers  
redrow commercial has established a development 
programme harnessing the combined residential and 
commercial skills within the group to maximise the value 
from mixed use schemes further the utilisation of the 
project management expertise on all residential city centre 
developments provides the group with an enhanced level 
of control
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 chief executive’s review
and the future
above
redrow apprentices
centre
carol bosley sales manager redrow midlands with 
school children at a national trust property
left
redrow staff present cheque to claire house children’s hospice accounting policies and standards
the financial statements for the year ended june 2002 and the
figures for the previous year have been prepared in accordance
with applicable accounting standards
the accounts continue to reflect the adoption of the 
transitional rules of financial reporting standard frs 17
in respect of retirement benefits as well as for the first time
frs 19 “accounting for deferred taxation”
frs 17 has no effect on the results for the year and the 
disclosures required by frs 17 are included under note 7 to the
accounts the implementation of frs 19 has resulted in the
restatement of the prior year profit and loss account through an
increase in the tax charge of £26m the five year summary on
page 27 has been restated to reflect frs 19 and the effect 
of frs 19 on the current year is to increase the tax charge 
by £03m
acquisition of tay homes plc
the acquisition of tay homes plc tay homes was completed
on 9 january 2002 for a total consideration of £306m  
the tay homes net assets acquired have been reviewed and fair
value adjustments have been made that are set out in note 9 to
the accounts overall the book value of the net assets acquired
totalling £331m was reduced by £25m to the fair value of
£306m equalling the total consideration consequently there
was no goodwill arising on the acquisition of tay homes
the results for the year include post acquisition trading of tay
homes for six months during that period 335 homes were
legally completed at an average selling price of £108100 
generating turnover of £362m and operating profits of £58m  
nonrecurring costs of £43m associated with the integration of
tay homes have been charged these include redundancy 
costs and costs associated with the disposal of certain surplus
leasehold properties following rationalisation of offices synergy
benefits arising from the rationalisation of the regional office
structure and closure of the tay head office result in savings of
£50m per annum
22 finance director’s review
finance director’s review
neil fitzsimmons finance director  trading
this was another year of growth with turnover increasing by
361 to £5733m homes division turnover was £5431m
including £362m relating to the trading of tay homes the
increase in turnover excluding the contribution of tay homes
was 275 equating to £1159m of which £907m related to the
homes division an increase of 218 the commercial
division increased its turnover by £259m to £302m primarily
reflecting the disposal of developments at windsor and
altrincham during the first half of the financial year
the homes division legally completed 3908 units in the year
including the 335 in respect of tay homes an increase of
129  redrow homes legally completed 3573 units an
improvement of 32 on last year the average selling price for
the homes division increased by 156 to £139000 within
redrow homes the average selling price was up 181 to
£141900 with the tay homes average selling price at £108100
the higher average selling price in redrow homes partly
reflects the higher proportion of units in the southern and
western regions as well as the increase in number of in the city
units these increased from 168 to 464 representing 13 of
legal completions 2001 5 with the average selling price
increasing from £111700 to £181100 and turnover increasing
to £840m the selling price increase reflected the legal 
completion in the previous year of social housing units at the
odyssey development in london docklands as the number
of properties from in the city schemes increased the number 
of legal completions from the heritage brand reduced to 
2386 2001 2600 representing 67 of the redrow homes
total the average selling price for heritage increased by 
137 to £152400 2001 £134000 so that turnover from the 
heritage brand was up by 4 to £3636m the number of 
legal completions for the harwood brand increased by 4 to 
723 representing 20 of legal completions in redrow homes
the average selling price for the brand increased by 159 to
£81800 2001 £70600 so that turnover from the harwood
brand was up by 20 to £591m
operating profits increased by 184 to £941m 2001 £795m
the operating profits before the nonrecurring integration costs
of £43m increased by £189m equivalent to 238 redrow
homes significantly improved operating profits by 200 to
£895m with tay homes contributing £58m prior to integration
costs the commercial division also increased operating profits
from £18m to £31m the prior year operating profits included
£17m from the finalisation of the park heights development in
jersey as well as a profit of £14m on the sale of listed investments
the operating margin for the homes operations prior to the
exceptional costs were 176 the redrow operations achieved
an operating margin for the year of 177 as compared with
179 in the previous year   
capital employed
return on capital employed remains a key performance 
indicator in the management of the group capital employed
increased by £324m to £3317m as at june 2002 of which
£3178m related to the homes division 2001 £2686m and
£139m related to the commercial division 2001 £307m  in
the year to june 2002 the average capital employed being the
average of the opening and closing shareholders’ funds adjusting
for net cash and borrowings was £3155m the inherent 
profitability of the group’s operations has resulted in the return
on capital employed increasing to 30 and averaging 28 over
the last four years
in the homes division the increase of £492m in capital
employed primarily reflected the higher investment in both land
held for development and workinprogress of £516m and
£469m respectively these were offset by increases in land 
creditors of £312m and other capital employed of £181m  
23 finance director’s review 24 finance director’s review
the higher investment in land reflected the land bank with
planning in the homes division increasing from 11300 to
13400 plots the average plot cost remained virtually
unchanged at £21200 2001 £20900 whilst there are also
extensive forward land interests over some 25000 plots the
group considers it prudent to write off all costs incurred in 
connection with this forward land with costs only being written
back when planning is secured and the land is acquired  
the investment in workinprogress on the in the city schemes
remained at similar levels to the end of last year the increase in
workinprogress includes the impact relating to the tay homes’
sites part exchange stocks at the year end had a book value of
£20m 2001 £30m representing only 14 properties as the
group continues to use this sales incentive on a selective basis
the increase in land held for development and workinprogress
has been partly funded by an increase in land creditors these
increased from £357m up to £669m with the amount payable
after more than one year increasing from £111m to £259m
the land creditors are either secured by way of legal charge 
over the land to which they relate or supported by financial
guarantees provided by the group’s sureties
the reduction of capital employed of £168m during the year for
the commercial division reflected the disposal of completed
developments at windsor altrincham and wakefield
investment in the division is now primarily focused on 
mixed use schemes with ongoing projects at buckshaw village
st david’s park and western approach as well as a further
phase at altrincham
cash flow and interest charges
during the year net borrowing reduced from £1122m to
£931m  cash flow generated from operations was £1046m
the reduction in net borrowing of £191m was achieved after
paying £306m relating to the acquisition of tay homes and
assuming debt on the acquisition of £129m the net borrowings
represented 39 of shareholders’ funds as at 30 june 2002 a
significant reduction from the 60 as at june 2001 the net
borrowing at 30 june 2002 is more than twice covered by 
the value of the group’s forward sales in the homes division 
of £218m
interest is written off as incurred finance costs in the year were
£90m 2001 £74m and the charge was 105 times covered by
operating profits
profit before tax earnings per share and dividends
the group increased its profit before tax by 180 to £851m
having charged £43m relating to the integration of tay homes
the group’s effective tax rate after taking into account the
effects of frs 19 is 285 as compared with 300 restated for
last year  it is anticipated that the effective rate will 
approximate to a standard rate in the new financial year
basic earnings per share increased by 337 to 385p per share
2001 restated 288p the increase reflected not only the
204 increase in earnings but also the change in the capital
structure of the company resulting from the share buyback of
30 of the issued share capital in october 2000 which resulted
in the weighted number of shares in issue reducing to 1581m
2001 1755m the increase in earnings per share pre the tay
homes integration costs was 403
subject to approval at the annual general meeting on
4 november 2002 a final dividend of 404p per share
2001 367p will be paid on 22 november 2002 the full year 
dividend will be 606p 2001 550p which is 64 times covered
by the basic earnings 2001 52 times this dividend will 
represent an increase of 102 and maintains our progressive
dividend policy that has seen the dividend increase by a 
compound rate of 10 per annum since flotation in 1994     25 finance director’s review
treasury
redrow plc arranges all banking and surety facilities on behalf of
the group  each operating company in the group has a bank
account managed within an overall offset arrangement
arrangements are made by redrow plc to borrow or invest the
net funds at competitive rates  close relationships are 
maintained with the group’s bankers and sureties with regular
updates provided to both groups in respect of current trading
and the financial position of the group
following the share buyback in october 2000 the group
entered into a three year syndicated loan to provide a
longterm facility for core borrowing with additional bilateral
facilities being separately negotiated  as at june 2002 the
group had total borrowing facilities of £200m as compared with
net borrowing at £931m  these facilities included £110m
under the syndicated loan that was due to expire in september
2003  the group also had bilateral facilities of £90m
on 9 august 2002 redrow plc entered into a supplemental
agreement under which the syndicated loan was increased to
£180m and the period of the loan was extended until 9 august
2007  this provides redrow plc with a fiveyear committed
facility for core borrowing requirements  on completion of the
supplemental agreement the bilateral facilities reduced to
£70m to give total facilities of £250m that are all unsecured
interest rates on borrowings are linked either to libor in
respect of money market borrowings or base rate in respect of
overdrafts  
the main board agrees the strategy with regard to interest rate
and foreign currency rate derivatives the group also monitors
its interest rate exposure in relation to current and forecast 
conditions  in september 2000 the group put in place an
interest rate cap at 75 on £100m of debt for a period of three
years so as to limit exposure to any significant increase in 
interest rates  it also entered into other interest rate swaps in
respect of £75m of debt to manage the interest cost the group
operates entirely within the uk and has no material exposure
to movements in foreign currency rates
in addition the group has £670m of bonding and financial
guarantee facilities provided by its sureties of which £387m
were utilised as at june 2002  the group also has bonding 
facilities made available through the national house building
council
pensions
the group believes that the provision of pension benefits is an
important benefit for all employees  following a review of the
costs associated with the provision of defined benefits on an 
ongoing basis in the light of changes in taxation of pension
schemes investment performance and changes in mortality
rates the group decided to close this section of the pension
scheme as from 1 october 2001 to new members except existing
employees below the age of 21 and any new employees as 
determined by the company  at the same time a new 
defined contribution section of the scheme was set up for 
new employees
with effect from 1 july 2001 the company increased its 
contribution rate in respect of the defined benefits section of
the scheme by 2 to 12 with members increasing their 
contributions by 1 to 6 of pensionable salary as from 
1 july 2002  under the defined contribution section of the
scheme monthly paid members contribute 5 with the
company contributing between 5 and 125 of pensionable
salary depending on the age of the employee  weekly paid
members contribute 3 with the company contributing 3 the disclosures required under the transitional provisions of
frs 17 are set out in note 7 to the accounts however in 
summary as at june 2002 the market value of the scheme’s
assets were £266m as compared with the present value of 
liabilities of £289m resulting in a net pension deficit in the
scheme as calculated in accordance with frs 17 after taking
into account the related deferred tax asset of £16m  it should
be recognised that the method for calculating the net pension
deficit under frs 17 may lead to volatility in the calculation
and therefore the amount that would be included in the balance
sheet this volatility relates both to the market value of 
longterm aa bond yields used in calculating pension liabilities
under frs 17 and market movements in the value of equities
which represent the principal constituent of the scheme’s assets   
information technology
redrow has continued to progress the inhouse development of
information technology systems with improvements made to the
direct cost control system electronic communication of orders
and invoicing with key suppliers has been further developed and
redrow continues to play a leading role in ebuildxml a 
project to establish the industry standards for electronic trading
during the year the new sales and build management system
commenced development and is now on test on three sites 
within the group the new system encompasses it at point 
of sale a new legal conveyancing package and improved 
information on both sales and construction to enhance the 
buying experience for customers
the group continues to update and enhance the capabilities of
its web site wwwredrowcouk which provides an important
source of customer enquiries with on average over 12000 
visitors per week as well as providing details of development
sites the web site incorporates information on redrow
commercial land acquisition employment opportunities and
corporate information
outlook
the focus in redrow remains to deliver consistently high return
on capital employed sector leading operating margins and 
sustainable and profitable growth and by so doing to deliver
value to our shareholders with a record forward sales position
and effective low cost land bank in the homes division and an
established development programme in the commercial
division together with a strong balance sheet redrow continues
to be well placed to meet its objective  
neil fitzsimmons finance director
26 finance director’s review 27 five year summary
continuing operations 2002 2001 2000 1999 1998
£m £m £m £m £m
restated restated restated restated
turnover 5733 4212 4057 3416 3072
operating profit 941 795 677 563 478
operating profit as a percentage of turnover 164 189 167 165 156
profit before taxation 851 721 672 556 482
profit before taxation as a percentage of turnover 148 171 166 163 157
net assets 2386 1871 2618 2269 1989
net debtcash surplus 931 1122 116 75 27
gearing – net debt as a 
percentage of capital and reserves 390 600 44 na 14
return on capital employed – operating profit as a percentage
of average net assets adjusted for net debtcash surplus 30 28 27 27 26
number of legal completions 3908 3464 3338 3135 3010
earnings per ordinary share 385p 288p 202p 170p 148p
dividends per ordinary share 606p 550p 495p 450p 405p
net assets per ordinary share 1507p 1184p 1162p 1011p 887p
comparatives restated for 1998 to 2001 for the impact of frs 19 “accounting for deferred taxation”
five year summary directors
robert jones 51
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 robert is chairman of 
our environmental committee
paul pedley 48
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 the group and 
now has overall responsibility for 
the group
neil fitzsimmons 43
finance director
neil fitzsimmons joined redrow in
1997 having previously been group
finance director of raine plc from
1995 to 1997 he qualified as a
chartered accountant with kpmg
london in 1983 and has worked
within the construction sector since
leaving the profession in 1986 neil
joined the board in june 1998 with
effect from july 2002 neil is also
chairman of redrow commercial
developments
barry harvey 57
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 house building
industries barry joined the board 
in june 1998  
colin lewis 45
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
28 directors greg locke 46
chairman – southern region
greg locke joined redrow in 1991
to set up a new region in south
wales he was managing director of
redrow homes south wales until
1993 when he took responsibility for
the newly acquired redrow homes
south east he was promoted 
to southern regional chairman 
in 1995 and joined the board in 
march 1996
john tutte 46
chairman – southern region
john tutte joined redrow at the
start of 2002 having previously been
group chief executive at wilson
connolly plc he qualified in civil
engineering and has accumulated 20
years experience in the house 
building industry john joined the
board in july 2002
jim martin 59
nonexecutive
jim martin joined the redrow board 
in september 1997 he has been the
chief executive of n brown group
plc since 1984 having held other
senior positions within the company
from 1973 he previously worked 
for unilever and dunlop he was 
reappointed senior nonexecutive
director in february 2002
bob williams 52
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 53
nonexecutive
brian duckworth joined the redrow
board in june this year 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 and
remains a member of water uk’s 
steering committee
29 directors the directors have pleasure in presenting to the members 
their report and the financial statements for the year ended 
30 june 2002
principal activities and business review
the principal activities of the group are house building and 
commercial development
turnover and profit on ordinary activities before taxation are
stated at £5733m and £851m respectively after providing for
taxation of £243m and paying an interim dividend of £32m the
directors recommend a final dividend of £64m and the transfer
of the balance of £512m 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 finance director’s 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 shareholding
s p morgan has a 96 beneficial interest in the 
issued ordinary share capital
p e morgan has a 48 beneficial interest in the 
issued ordinary share capital
fidelity international limited its direct and indirect subsidiaries
and mr edward c johnson 3d principal shareholder of fidelity
international ltd hold a 79 interest in the issued ordinary
share capital
standard life investments hold a 39 interest in the issued
ordinary share capital 
on 1 july 2002 the company received notification that egerton
european dollar fund ltd hold a 30 interest in the issued
ordinary share capital
the company has not received notification that any other 
person had either at 30 june 2002 or 31 august 2002 more
than a 30 material interest in the issued ordinary share capital
30 directors’ report
directors’ report directors
the directors are listed together with their biographical details
on pages 28 and 29
j f tutte was appointed as a director on 10 july 2002 
b duckworth was appointed as a director on 13 june 2002
in accordance with article 79 of the articles of association 
j f tutte and b duckworth will retire at the annual general
meeting and being eligible offer themselves for reelection
in accordance with article 84 of the articles of association 
p l pedley n fitzsimmons 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 six 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 the notes to the accounts 
the directors’ interests in the ordinary shares of the company
are given in the remuneration report on pages 35 to 39
charitable and political donations
the group made no political donations but made charitable
donations of £41000 during the year in addition the group and
its employees are actively involved in fundraising activities for
specific charities
employees
training and career development is available equally and 
without discrimination to all levels and categories of staff
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 the save as you earn
scheme is administered via a qualifying employee share
ownership trust quest
creditor payment policy
the group values its relationship 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 2002 the group had 38 days’ purchases outstanding 
in respect of payments to suppliers and subcontractors 
2001 49 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 groups objectives
in recognition of the importance of environmental issues
redrow has an environmental committee under the
chairmanship of robert jones to oversee this aspect of the
groups activities 
redrow has documented its environmental strategy within
‘developing a better future’ which is published on the group’s
website the principal elements of the strategy are as follows 
the group is committed to meeting the challenges set by the
government on the use of brownfield land and the regeneration
of derelict sites approximately 69 of the land bank at june
2002 was brownfield land redrow works with the appropriate
regulatory organisations to ensure all contaminated land is 
carefully researched and remediation undertaken in accordance
with regulatory requirements
redrow seeks to preserve and create features to maintain natural
habitats for wildlife this has been recognised by the group 
31 directors’ report winning 30 daily mail “green leaf” awards specifically for 
environmental quality in the last three years
redrow pursues imaginative waste management schemes it is
committed to reusing surplus materials on site to reduce 
transportation whilst eliminating the environmental impact of
disposal of these materials
energy efficiency is important in our homes and often industry
standards are exceeded where possible products and materials
are specified which generate the least environmental impact
this includes the use of timber from managed plantations and
the use of nontoxic paints redrow seeks to partner with 
suppliers and subcontractors who have their own environmental
codes of practice 
recognising the groups commitment to sustainability changing
lifestyles and researching environmentally friendly new 
technologies redrow made a significant investment in the
“house for the future” project with the national museum and 
galleries of wales
notice of annual general meeting
auditors
a resolution to reappoint the auditors pricewaterhousecoopers
will be proposed at the annual general meeting
remuneration committee report
in line with best practice a resolution to receive and adopt the
remuneration committee report will be proposed at the annual
general meeting
share capital
resolutions 10 11 and 12 set out in the notice of annual 
general meeting on pages 56 and 57 concern the company’s
share capital
resolution 10 – 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 10 renews the
directors’ existing authority by authorising the directors to allot
shares up to an aggregate nominal amount of £5582312 which
such authority shall expire on the date of the next annual
general meeting of the company  this represents 55823120
ordinary shares of 10p each and is equivalent to approximately
35 of the company’s current issued ordinary share capital
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 11 – 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 £791855  this sum represents 7918550
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 2004
resolution 12 – purchase of the company’s own shares
this resolution seeks authority from shareholders for the
company to purchase up to 15837103 ordinary shares an
aggregate nominal amount of £1583710 which is equivalent to
approximately 10 of the company’s issued ordinary share 
capital at 30 june 2002  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 2004 
by order of the board
r e walker secretary 
9 september 2002
32 directors’ report corporate governance statement
33 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 2002
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 page 35
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 34 within this corporate
governance statement
board and committees
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
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
strategy on interest rate and currency exposures is also reserved
for the board
r b jones is the nonexecutive chairman and p l pedley is the
chief executive the senior nonexecutive director is j martin
who was reappointed as the senior nonexecutive director on 
26 february 2002
the directors have access to the advice and services of the
company secretary and the board acknowledges that in 
certain circumstances individual directors may wish to take
independent professional advice in connection with their duties
the company will meet the reasonable expenses incurred in 
this regard
the board has delegated specific responsibilities to committees
the members of which are as follows and each comprises entirely
of nonexecutive directors
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 with the external auditors four times a
year 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 were appointed auditors in 1987 and
the current audit partner was appointed in 1999 
the fees relating to nonaudit services provided by
pricewaterhousecoopers 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 future appointments in respect
of nonaudit work will be approved by the audit committee
remuneration committee
j martin chairman
r b jones
r g williams
b duckworth
the responsibilities of the remuneration committee include the
agreement of terms of employment 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 as well as
the appointment or removal of any company nominated trustee
of any pension or retirement benefit scheme of the company
and its subsidiaries the committee meets as required but at
least twice a year
under resolution 2 the remuneration committee report will
be put before shareholders for adoption at the annual general
meeting on 4 november 2002
nomination committee
r b jones chairman
r g williams
j martin 
b duckworth
p l pedley resigned as a member of the nomination committee
on 26 february 2002
the responsibilities of the nomination committee include the
identification and recommendation to the board of suitable
executive and nonexecutive directors
environmental committee
r b jones chairman
r g williams
j martin 
b duckworth 34 corporate governance statement
the environmental committee oversees not only environmental
issues relating to redrow plc but also community and ethical
issues during the year the committee reviewed and approved
the “corporate social responsibility charter” adopted in march
2002 which is summarised below and “developing a better
future” which documents redrow’s environmental strategy 
community involvement and role in education 
copies of this document are available on the company’s website
at wwwredrowcouk
corporate responsibility and business ethics
in march 2002 the board adopted a ‘corporate social
responsibility charter’  the charter provides guidelines 
regarding the group’s relationships with employees 
customers suppliers and shareholders as well as its involvement
in community and environmental issues  the main features of
the charter are as follows
employees
• clear and fair terms of employment through a letter of 
appointment and staff handbook with maximum 
standard hours of work and fixed holiday entitlements  
all employees over the age of 18 are entitled to join the
pension scheme and private medical insurance is 
available to all monthly paid staff
•a commitment to equal opportunities for and 
prevention of harassment of all staff with a clearly 
defined grievance procedure  
•all staff are appraised annually which includes the 
setting of future performance goals opportunities are 
provided through inhouse training and external 
courses for employees to develop their skills 
•a health  safety policy relating to operations on 
development sites and within offices communicated to 
all employees endorsed by the executive directors and 
supported by a dedicated inhouse health  safety 
department that reports monthly directly to the board
customers
•a reservation process that sets out the relationship with 
the customer and the requirements placed on the 
customer during the transaction
• provision of a comprehensive customer care service post 
completion in addition to the nhbc or similarly 
recognised 10year warranty
• post completion surveys of customers to identify issues 
and opinions in relation to the buying experience and 
product
suppliers
• clearly defined orders setting out the terms and 
conditions of business with payments made in 
accordance with those terms and conditions
• buying procedures including requirements regarding 
ethical relationships with suppliers
• regular surveys of key suppliers regarding the 
relationship with each relevant business unit within the 
group
community and environment
•a policy of involvement in communities in areas of 
operation with a focus on promotion to children of 
safety awareness
• adoption of an environmental strategy that is a core 
part of group objectives with a focus on use of 
brownfield land waste management and energy 
efficiency
• support for the link between the corporate sector and 
the community via membership of “business in the 
community”
shareholders
•a policy of meetings with major shareholders and an 
opportunity for all shareholders to put questions to the 
directors at the annual general meeting
• clearly set out internal control procedures summarised 
in the annual report to provide reasonable assurance 
against misstatement or loss
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
the board has reviewed its operations and has identified risk
areas which have been assessed for their potential impact and
internal controls in relation to those risks have been identified
the executive directors through quarterly meetings review the 
areas of risk on an ongoing basis and consider 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 formalised reporting structure which includes the 
setting of annual budgets with updated forecasts during 
the year which are considered at both regional and 
group board level in addition each trading entity has a
monthly board meeting at which all key aspects of the 
business are discussed including comparison of actual 
performance with budgets 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 each trading entity is required to 
prepare a strategic plan which covers key aspects of the 
operation 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 each meeting all reports are
distributed to the group board as well as to the external
auditors 35 remuneration report
remuneration report
remuneration committee and policy
the responsibilities and composition of the committee are set out
in the corporate governance statement on page 33
the committee considers that in framing its remuneration policy
it has given full consideration to the provisions of section 1 of the
combined code
the group provides competitive remuneration packages at all 
levels in order to attract retain and motivate staff who are 
expected to meet high levels of performance   
salaries are reviewed each june and senior employees receive 
further benefits commensurate with their position and the 
employment market  these include fully expensed cars or cash 
equivalent private health care permanent health insurance 
and pension provisions as well as cash and share based incentives
further details on remuneration are provided in note 7 to the
financial statements
under the redrow long term share incentive plan ltsip in
operation from 1 july 1996 to 30 june 2000 it is acknowledged
that deferred elements vest in the participants in under three
years the remuneration committee considered this to be 
acceptable in the context of the total remuneration package
at the annual general meeting on 13 october 2000 the ltsip
was amended such that options over shares granted to the
executive directors and senior executives under the ltsip in
respect of future years do not vest in the participants in under
three years  
for the year ended 30 june 2002 the basis for issuing options
under the ltsip for senior managers with shares vesting in 
participants after one year was retained as the scheme was in effect
their annual bonus with effect from 1 july 2002 the bonus
scheme for senior managers will be entirely cash based
in accordance with best practice the remuneration report will be
put before shareholders for adoption at the annual general
meeting on 4 november 2002
service agreements
the executive directors and senior executives have service 
agreements which may be terminated by either party giving 
formal notice of six months and three months respectively 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
executive incentive schemes
on 17 november 1995 the annual general meeting approved
the ltsip which was in operation for the years ended june 1996
to june 2000
under this ltsip  executive directors senior executives and 
senior managers earned performance related bonuses in redrow
shares the initial share bonuses awarded in the form of options
have a value of up to 25 of salary subject to seniority and 
performance 
for years ended 30 june 1997 onwards the shares are held in trust
for a minimum period of one year and thereafter can vest in the 
participants  however they may decide to leave the shares in the
trust which will earn additional incentive shares  the value of the
incentive shares will depend on the value of the initial share
bonus seniority and the period of time held in trust  as a result
the value of the initial share bonus could be increased between
25 and 100 after a further three years service  for executive
directors the value of the initial share bonuses could increase by
166 over a five year period 
a revision to the ltsip was approved at the annual general
meeting on 13 october 2000
under the current bonus arrangements the executive directors
and senior executives in the group are able to earn a bonus of up
to 70 of salary based on performance during the year
performance is measured against predetermined targets based on
either group performance or the performance of specific business
units as appropriate and the targets relate to profitability return on
capital land procurement and sales performance as well as other
specific targets as determined by the nonexecutive directors in
relation to business objectives a cash element is payable of up to
40 of salary dependent upon seniority and performance and is
payable in september following each financial year end the 
balance of the bonus will be awarded as options over shares which
will be held in trust for a period of three years  
these shares will only vest in the participant if they are still
employed by the group at that date subject to certain specified
circumstances
in addition executive directors and certain senior executives are
entitled to receive additional incentive shares depending on the
financial performance of the group over a three year period  if
the average annual compound growth rate in earnings per share
over the three year period exceeds 10 the number of initial
shares awarded will be increased by one third  if the growth rate is
more than 15 the number of initial shares will be increased by
two thirds  if the growth rate is more than 20 the number of
initial shares will be doubled
the remuneration committee sets annual objectives for the
executive team and individual executive directors these 
objectives are considered as part of the executive’s annual 
appraisal either with the chief executive or the chairman as
appropriate
further details on share options are provided in note 7 to the
financial statements 
an additional incentive scheme for key executives was approved
at the annual general meeting on 5 november 2001 
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 in three equal instalments over three years
the exercise price in respect of each instalment will be the market
value of the shares at the first exercise the option will only be
exerciseable if the compound growth rate in earnings per share of
the company has increased by 45 over rpi since the date of
grant the option may be exercised on a change of control of the
company provided compound growth rate of 45 over rpi has
been achieved since the date of grant  
save as you earn
all employees are eligible to participate in the redrow sharesave
scheme under which employees are periodically invited to enter
into a savings contract which on completion after three five or
seven years can be used to exercise share options granted at the
start of the contract 36 remuneration report
directors’ interests in share options
options options options options
held at granted exercised held at exercise expiry
director scheme 1 july 2001 in year in year 30 june 2002 price date
p l pedley saye 2000 12593 – – 12593 13400p 2 july 2006
ltsip 1996 30416 4279 34695 – – 15 sep 2003
ltsip 1998 49514 7496 57010 – – 29 june 2005
ltsip 1999 43481 8867 – 52348 – 29 june 2009
ltsip 2000 36009 9490 – 45499 – 29 june 2010
ltsip 2001 – 52760 – 52760 – 27 sep 2011
private 250000 – – 250000 17000p 24 june 2005
422013 82892  91705 413200
n fitzsimmons saye 1999 1218 – – 1218 15900p 31 may 2003
saye 2000 5783 – – 5783 13400p 2 july 2004
ltsip 1998 10763 1630 – 12393 – 29 june 2005
ltsip 1999 21740 4434 – 26174 – 29 june 2009
ltsip 2000 18005 4745 – 22750 – 29 june 2010
ltsip 2001 – 24440 – 24440 – 27 sep 2011
private 50000 – – 50000 17000p 24 june 2005
107509 35249 –142758
g h locke esos1992 10000 – – 10000 10200p 30 nov 2004
esos1992 15000 – – 15000 12600p 21 nov 2005
saye 2000 12593 – – 12593 13400p 2 july 2006
ltsip 1996 14081 1981 – 16062 – 15 sep 2003
ltsip 1997 37619 4985 – 42604 – 14 sep 2004
ltsip 1998 34191 5176 – 39367 – 29 june 2005
ltsip 1999 22492 4587 – 27079 – 29 june 2009
ltsip 2000 24897 6562 – 31459 – 29 june 2010
ltsip 2001 – 26069 – 26069 – 27 sep 2011
private 75000 – – 75000 17000p 24 june 2005
245873 49360 – 295233 37 remuneration report
directors’ interests in share options continued
options options options options
held at granted exercised held at exercise expiry
director scheme 1 july 2001 in year in year 30 june 2002 price date
b k harvey saye 2000 5783 – 5783 13400p 2 july 2004
ltsip 1997 21704 2875 24579 – – 14 sep 2004
ltsip 1998 6649 1007 7656 – – 29 june 2005
ltsip 1999 15864 3235 – 19099 – 29 june 2009
ltsip 2000 13531 3566 – 17097 – 29 june 2010
ltsip 2001 – 23082 – 23082 – 27 sep 2011
private 50000 – – 50000 17000p 24 june 2005
113531 33765 32235 115061
c e lewis saye 1999 2122 – – 2122 15900p 31 may 2005
saye 2000 7555 – – 7555 13400p 2 july 2006
saye 2001 – 2006 – 2006 16500p 2 july 2007
ltsip 1996 3544 498 4042 – – 15 sep 2003
ltsip 2000 12993 3451 – 16444 – 29 june 2010
ltsip 2001 – 19397 – 19397 – 27 sep 2011
private 30000 – – 30000 17000p 24 june 2005
56214 25352 4042 77524
all options are in respect of shares in redrow plc
all options are currently exercisable apart from
•saye 1999 held by n fitzsimmons and c e lewis
•saye 2000 held by p l pedley n fitzsimmons g h locke b k harvey and c e lewis
•saye 2001 held by c e lewis
•ltsip 2001 held by p l pedley n fitzsimmons g h locke b k harvey and c e lewis
• private options held by p l pedley n fitzsimmons g h locke b k harvey and c e lewis
the private options represent options granted by s p morgan the ex chairman over shares 
controlled by him and they do not involve the group in any expense or the issuing of additional
shares  the options are exercisable at a price of 1700p between 25 june 2004 and 24 june 2005
the options stated as expiring on 30 november 2004 and 21 november 2005 are exercisable subject to
earnings per share performance of the group exceeding the change in rpi by 2 per annum
on 2 july 2001 p l pedley exercised options over 91705 shares issued under the 1996 and 1998
ltsip   the midmarket price on the date of exercise was 2195p these shares were subsequently sold
on 2 july 2001 b k harvey exercised options over 32235 shares issued under the 1997 and 1998
ltsip   the midmarket price on the date of exercise was 2195p these shares were subsequently sold
on 1 july 2002 options were issued relating to deferred elements of the ltsip for prior years  
p l pedley was granted options over 14980 shares n fitzsimmons was granted options over 8820
shares g h locke was granted options over 17389 shares b k harvey was granted options over 5550
shares and c e lewis was granted options over 2816 shares
the midmarket price of the shares at 30 june 2002 was 2560p and the range during the year was
1805p to 3235p 38 remuneration report
directors’ emoluments
basic salary pension cap t otal salary bonus bonus 2002 2001
and fees allowance and fees benefits 2002 deferred t otal t otal
£000 £000 £000 £000 £000 £000 £000 £000
executive directors
p l pedley 350 – 350 1 140 40 531 520
n fitzsimmons 190 17 207 15 72 23 317 261
g h locke 225 20 245 12 72 46 375 321
b k harvey 190 17 207 12 72 15 306 254
c e lewis 167 10 177 11 59 8 255 –
nonexecutive directors
r b jones 97 – 97 – – – 97 79
j martin 22 – 22 – – – 22 20
r g williams 79 – 79 – – – 79 64
b duckworth 1 – 1 – – – 1 –
1321 64 1385 51 415 132 1983 1519
beneficial at 30 june 2002 at 30 june 2001
p l pedley 750000 750000
g h locke 19308 39308
n fitzsimmons 15160 15064
b k harvey 1000 1000
c e lewis 4042 13062
r g williams 5629 1000
r b jones 10064 10000
j martin 10000 10000
b duckworth 5000 –
directors’ interests in shares
the directors’ interests in the ordinary shares of the company were
the pension cap allowance represents the annual adjustment to basic salary to mitigate pension
benefits being based only on the level of the earnings cap
j f tutte was appointed to the board on 10 july 2002
b duckworth was appointed to the board on 13 june 2002
the 2002 bonus represents the cash bonus earned by each director participating in the redrow
ltsip for the year ended 30 june 2002
the deferred bonus represents the value of further incentive shares awarded in respect of the
redrow ltsip for prior years
share options granted in 2002 and earlier years not yet exercised in respect of the ltsip schemes
are included in the directors’ interests in share options on pages 36 and 37 additional share
options under the ltsip schemes are contingent on the directors completing additional years’
service and are set out in the directors’ contingent interests in share options
shares held at date of appointment
on 12 july 2002 r b jones purchased a beneficial interest in 5000 ordinary shares this increased
his beneficial holding in the company to 15064 shares
there has been no other movement in the directors’ interests between 30 june 2002 and 
31 august 2002
in addition in respect of the 2002 and 2001 ltsip  the directors may be entitled to further 
incentive shares which are dependant upon the level of the average annual compound growth rate
in earnings per share as explained on page 35 of this remuneration report
directors’ contingent interests in share options
as referred to in note 24 to the financial statements further incentive shares may be made 
available to directors and senior executives achieving further service with redrow 
the value of these further incentive shares in respect of the directors is
ltsip 98 ltsip 99 ltsip 2000 ltsip 2001 ltsip 2002 total
£000 £000 £000 £000 £000 £000
p l pedley – 39 62 102 105 308
n fitzsimmons 4 19 31 47 54 155
g h locke 11 20 43 50 54 178
b k harvey – 14 23 45 54 136
c e lewis – – 22 37 44 103 39 remuneration report
phantom share option scheme
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
pension scheme
the group believes that the provision of pension benefits is an important benefit for all employees
and membership of the redrow staff pension scheme is available to all staff over the age of 18
following a review of the costs associated with the provision of defined benefits on an ongoing
basis in the light of changes in the taxation of pension schemes investment performance and
changes in mortality rates the group decided to close this section of the scheme as from 
1 october 2001 to new members except existing employees below the age of 21 and any new
employees as determined by the company  at the same time a new defined contribution section 
of the scheme was set up for new employees
with effect from 1 july 2001 the group increased its contribution rate in respect of the defined
benefits section of the scheme by 2 to 12 with employees increasing their contributions by 1
to 6 of pensionable salary as from 1 july 2002  the scheme can enable members to achieve the
maximum pension of two thirds of their calculated final pensionable salary after 40 years’ service
benefits only accrue on salary up to the level of the earnings cap
under the new defined contribution section of the scheme monthly paid employees contribute
5 with the group contributing between 5 and 125 of pensionable salary depending on the
age of the employee  weekly paid employees contribute 3 with the group also paying 3
both sections of the scheme provide lump sum benefits and the defined benefit section also 
provides dependents’ pension in the event of death in service annual bonuses and benefits in kind
are not part of pensionable salary
all the executive directors of the company are members of the defined benefits section of the
scheme on the same terms as other members  as from 11 june 2001 n fitzsimmons g h locke
b k harvey and c e lewis agreed to accrue future pension benefits from the company based only
on the level of the earnings cap in return for an adjustment in their salary as from 1 july 2001 to
mitigate this change in pension benefit this amount is disclosed separately within the directors
emoluments on page 38 of this report
details of the executive director’s pension entitlements are as follows
the accrued pension shown above is the amount of the 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
9 september 2002
increase in
accrued   accrued
pension pension transfer 
at 30 june during value 
2002 the year of increase
director £ £ £
p l pedley 88343 12739 63955
n fitzsimmons 12852 1671 7430
g h locke 37368 1785 8702
b k harvey 18090 1562 14639
c e lewis 21141 1870 15852 40 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 the
related notes and details of directors remuneration reported
within the remuneration report
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
our responsibility is to audit the financial statements in 
accordance with relevant legal and regulatory requirements
united kingdom auditing standards issued by the auditing
practices board and the listing rules of the financial 
services authority
we report to you our opinion as to whether the financial 
statements give a true and fair view and are 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 or the listing rules 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 chairmans statement the 
chief executives review the finance director’s review the
report of the remuneration committee and the corporate
governance statement
we review whether the corporate governance statement
reflects the companys compliance with the seven provisions of
the combined code specified for our review by the listing
rules and we report if it does not we are not required to 
consider whether the boards statements on internal control
cover all risks and controls or to form an opinion on the 
effectiveness of the groups 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 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 companys 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 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 2002 and of the profit and cash flows of the group 
for the year then ended and have been properly prepared in
accordance with the companies act 1985
pricewaterhousecoopers
chartered accountants and registered auditors 
manchester
9 september 2002
auditors’ report continuing operations 
existing acquisition total restated
operations
2002 2002 2002 2001
12 months ended 30 june 2002 note £m £m £m £m
turnover 1 5371 362 5733 4212
cost of sales 4131 299 4430 3149
gross profit 1240 63 1303 1063
net operating expenses before integration costs 1 314 05 319 268
integration costs     – 43 43 –
net operating expenses including integration costs 1 314 48 362 268
operating profit 1 926 15 941 795
interest payable 13 90 74
profit on ordinary activities before taxation 12 851 721
tax on profit on ordinary activities 4 243 216
profit on ordinary activities after taxation 608 505
dividends 5 96 87
retained profit 1819 512 418
earnings per ordinary share  basic 6 385p 288p
 diluted 6 383p 287p
 adjusted 6 404p 288p
dividends per ordinary share 5 606p 550p
there are no 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
41 consolidated profit and loss account 42 balance sheets
the financial statements were approved by the
board of directors on 9 september 2002
directors
p l pedley
n fitzsimmons
balance sheets
the group the company
2002 2001 2002 2001
as at 30 june 2002 note £m £m £m £m
fixed assets 8
tangible assets 158 138 – –
investments 01 01 1602 802
159 139 1602 802
current assets
assets held for resale 10 08 07 – –
stocks and work in progress 11 4968 4171 – –
debtors 12 88 62 2259 2650
bank and cash deposits 10 80 05 80
5074 4320 2264 2730
creditors due within one year 13 2148   1363 1080 571
net current assets 2926 2957 1184 2159
total assets less current liabilities 3085 3096 2786 2961
creditors due after more than one year 14 663  1209 400 1090
provisions for liabilities and charges 15 36  16 – –
net assets 1 2386 1871 2386 1871
capital and reserves 1718
called up share capital 158 158 158 158
share premium account 519 513 518 512
revaluation reserve 03 03 – –
revaluation of shares in subsidiary companies – – 1295 801
capital redemption reserve 70 70 70 70
consolidation reserve 09 09 – –
profit and loss account 1627 1118 345 330
equity shareholders’ funds 19 2386 1871 2386 1871 43 consolidated cash flow statement
consolidated cash flow statement
2002 2001
12 months ended 30 june 2002 note £m £m
cash inflow from operating activities 20 1046 456
returns on investments and servicing of finance
interest received 10 07
interest paid 94   68
issue costs of bank borrowings –  11
net cash outflow from returns on investments and servicing of finance 84 72
taxation
corporation tax paid 242 174
capital expenditure and financial investment
purchase of tangible fixed assets 31 29
sale of tangible fixed assets and investments 34 06
sale of current asset investments – 66
net cash inflow from capital expenditure and financial investment 03 43
acquisition
purchase of tay homes plc 306 –
net overdrafts acquired 129 –
net cash outflow from acquisition 435 –
dividends paid 90 103
cash inflow before financing 198 150
financing and liquid resources
capital redemption costs – 1169
issue of ordinary share capital 03 03
cash deposits – restricted use – 20
issue of bank borrowings – 1500
repayment of bank borrowings 700 400
net cash outflow from financing 697 46
decreaseincrease in cash in period 499 104
reconciliation of net cash flow to movement in net debtcash
decreaseincrease in cash in period 499 104
cash deposits – restricted use – 20
movement in bank borrowings 700 1100
issue costs of bank borrowings – 13
other noncash movements 10 03
change in net debt 191 1006
net debt at 1 july 1122 116
net debt at 30 june 21 931   1122 44 accounting policies
the financial statements have been prepared in accordance
with applicable accounting standards in the united kingdom  
a summary of the more important accounting policies is set
out below
changes in accounting policies
the group has adopted frs19 “accounting for deferred
taxation” in the financial statements the adoption of this 
new standard represents a change in accounting policy and the
comparative figures have been restated accordingly  the effect
of this change in accounting policy was to increase tax on profit
on ordinary activities by £03m 2001£26m and to decrease
profit for the financial year by £03m 2001£26m
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 for 
the year ended 30 june 2002
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
all 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 sectionthe 
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 45 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 existing acquisition total
operations
2002 2002 2002 2001
£m £m £m £m
turnover
homes 5069 362 5431 4169
commercial 302 – 302 43
5371 362 5733 4212
profit on ordinary activities before taxation
homes 895 58 953 763
commercial 31 – 31 18
listed investments – – – 14
926 58 984 795
integration costs – 43 43 –
926 15 941 795
interest 90 74
851 721
net assets
homes 3178 2686
commercial 139 307
3317 2993
net debt 931 1122
2386 1871
note 2  profit on ordinary activities 2002 2001
profit on ordinary activities before taxation is stated £m £m
after crediting
rental income 04 04
profit on disposal of fixed assets – 01
profit on disposal of current asset investments – 14
after charging
depreciation 13 10
plant hire 47 34
operating leases  plant and machinery 16 18
 other 01 01
research and development expenditure 03 –
auditors’ remuneration  audit of company and its subsidiaries 01 01
 nonaudit services  pension advice 01 01
auditors’ remuneration included £7000 2001 £7000 in respect of the audit of the company
restated
2002 2001
£m £m
holding company 58 56
subsidiary companies 666 561
608 505
net operating expenses comprise £319m administrative expenses and £43m integration costs the
£43m integration costs are attributable within the results of the homes division £33m of the 
integration costs relate to the acquisition of tay homes plc see note 9 and the reorganisation
and restructuring costs arising from this the remaining £10m relates to duplicate overheads 
arising from the running of the tay office facilities prior to their closure following the 
implementation of the reorganisation plan
in 2001 net operating expenses of £268m comprised administrative expenses of £282m and other
operating income of £14m in respect of listed investments a charitable donation of £10m was
included within the £268m administrative expenses and in the results of the homes division 46 notes to the financial statements
note 5  dividends 2002 2001
£m £m
interim of 202p 2001 183p per share 32 29
final proposed of 404p 2001 367p per share 64 58
96 87
the interim dividend of £32m was paid on 10 may 2002 and the final dividend of £64m
will be paid on 22 november 2002 subject to approval at the annual general meeting on 
4 november 2002
note 6  earnings per ordinary share
the calculation of basic earnings per ordinary share of 385p 2001 restated 288p is based on
group profit on ordinary activities after taxation of £608m 2001 restated £505m and on the
weighted average number of 10p ordinary shares of 158097193 2001 175528157
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
158763954 2001 176526272
adjusted earnings per share before integration costs net of tax of 404p is calculated based on
earnings of £638m and on the weighted average number of shares in issue disclosed above 
the directors have 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 2002 2001
£m £m
payable on overdrafts 20 22
payable on other loans 80 58
100 80
receivable 10 06
90 74
2002 restated 2001 restated
earnings noof shares per share earnings noof shares per share
£m millions pence £m millions pence
basic earnings 608 1581 385 505 1755 288
per share
effect of share – 07 02 – 10           01
options and saye
diluted earnings 608 1588 383 505 1765 287
per share
interest payable on other loans includes £10m in respect of the amortisation of the issue costs of
bank borrowings 2001 £03m
note 4  tax on profit on ordinary activities restated
2002 2001
£m £m
current year
uk corporation tax at 30 2001 30 253 190
over provision in respect of prior year 13 –
240 190
deferred tax
origination and reversal of timing differences see note 16 03 26
243 216
reconciliation of current taxation charge
tax on total profits at 30 200130 255 216
over provision in respect of prior year 13 –
origination and reversal of timing differences 03 26
net expenses not deductible for tax purposes 01 –
current tax charge 240 190
it is anticipated that the effective rate will approximate to a standard corporation tax rate in the
new financial year 47 notes to the financial statements
note 7  employees 2002 2001
£m £m
a cost including directors
salaries and wages 323 262
social security 29 22
pensions 21 20
373 304
b number 2002 2001
number number
the average number of persons employed by the group was
directors and administrative staff 506 485
other personnel 754 609
1260 1094
c directors
details of directors’ emoluments and interests in shares are included in the remuneration report
on pages 35 to 39
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
as from 1 october 2001 the group closed the defined benefits section of the scheme to new
members except existing employees below the age of 21 and any new members as determined by
the group at the same time the defined contribution section of the scheme was set up for new
employees and also weekly paid staff as part of the groups implementation of the new stakeholder
pension requirements
the pension charge for the year was £21m 2001 £20m
during 2002 redundancy costs of £10m were incurred following the acquisition of tay homes plc
see note 9 these are included in the £43m integration costs see note 1
a full independent actuarial valuation was last undertaken as at 1 january 2000 the method used
was the projected unit method
the main assumptions were an investment return of 69 per annum compound salary increase of
63 per annum compound and mortality in accordance with similar schemes in the opinion of
the actuary the schemes assets covered the benefit liabilities in accordance with the schemes
rules and with a funding level of 150
the valuation of the defined benefit section of the scheme was updated to june 2002 for frs 17
purposes by a qualified independent actuary
the main assumptions used by the actuary in measuring the present value of the scheme 
liabilities were
30 june 2002 30 june 2001
discount rate 575 619
rate of increase in salaries 570 560
rate of increase in pensions in payment 270 260
inflation assumption 270 260
the assets in the scheme and the expected rate of return were
long term rate long term rate
of return expected value of return expected value
at 30 june 2002 at 30 june 2002 at 30 june 2001 at 30 june 2001
£m £m
equities 700 241 720 264
cash on deposit 370 23 ––
other cash 350 02 – 06
266 270 48 notes to the financial statements
the following amounts were measured in accordance with the requirements of frs 17
30 june 2002 30 june 2001
£m £m
total market value of assets 266 270
present value of scheme liabilities 289 232
deficitsurplus in scheme 23 38
related deferred tax assetliability 07 11
net pension liabilityasset 16 27
if the amounts had been recognised in the financial statements the groups net assets and profit
and loss reserve would be as follows
2002 2001
£m £m
net assets excluding pension liabilityasset 2386 1871
pension liabilityasset 16 27
net assets including pension liabilityasset 2370 1898
profit and loss reserve excluding pension liabilityasset 1627 1118
pension reserve 16 27
profit and loss reserve including pension liabilityasset 1611 1145
at the year end £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 the year end they would have reduced the deficit above by £04m
the following amounts would have been recognised in the performance statements in the year to
30 june 2002 under the requirements of frs 17
2002
£m
operating profit
current service cost 26
past service cost –
total operating charge 26
other finance income
expected return on pension scheme assets 19
interest on pension scheme liabilities 14
other finance income 05
statement of total recognised gains and losses strgl
actual return less expected return on pension scheme assets 42
experience gains and losses arising on the scheme liabilities 08
changes in assumptions underlying the present value of the scheme liabilities 30
actuarial loss recognised in strgl 64
movement in deficitsurplus during the year
surplus in scheme as at 1 july 2001 38
current service cost 26
contributions 24
other finance income 05
actuarial loss 64
deficit in scheme at 30 june 2002 23
details of experience gains and losses for the year to 30 june 2002
 of scheme assets £m
difference between the expected and 
actual return on scheme assets 16 42
experience gains and losses on scheme liabilities 3 08
total amount recognised in strgl 24 64 49 notes to the financial statements
e share options
the following share options were outstanding as at 30 june 2002
the total share options outstanding at 30 june 2002 under the executive share option scheme
the long term share incentive plan and the save as you earn schemes represent 19 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 2001 130 17 38 185
additions 17 06 08 31
acquisitions – 04 03 07
disposals – 07 04 11
at 30 june 2002 147 20 45 212
depreciation
at 1 july 2001 09 10 28 47
charge 02 03 08 13
disposals – 03 03 06    
at 30 june 2002 11 10 33 54
net book value
at 30 june 2002 136 10 12 158
at 30 june 2001 121 07 10 138
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 2002 of £147m comprised £07m stated at valuation and 
£140m stated at cost the aggregate historic cost was £143m and the aggregate historic 
cost depreciation was £11m there was £03m of capital expenditure contracted at 
30 june 2002 2001 £06m
type of scheme date of grant number of shares exercise price
executive share option 1 december 1994 27500 10200p
executive share option 22 november 1995 68000 12600p
long term share incentive 16 september 1996 23575 –
long term share incentive 15 september 1997 41121 –
long term share incentive 30 june 1998 47981 –
long term share incentive 15 september 1998 42341 –
long term share incentive 30 june 1999 136098 –
long term share incentive 17 september 1999 78027 –
long term share incentive 30 june 2000 384827 –
long term share incentive 18 september 2000 92442 –
long term share incentive 30 june 2001 181747 –
long term share incentive 28 september 2001 559511 –
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 70897 13000p
save as you earn 1 december 1999 255185 15900p
save as you earn 1 january 2001 600597 13400p
save as you earn 2 january 2002 383036 16500p
private option 25 june 2001 1150000 17000p 50 notes to the financial statements
d 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 58  all are incorporated in
great britain except redrow homes jersey limited which is incorporated in jersey a full list of 
subsidiary undertakings as at 30 june 2002 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
e other investments at 30 june 2002 comprised capitalised ground rents
note  9  acquisitions 
on 9 january 2002 the group acquired the entire issued share capital of t ay homes plc now renamed
redrow corporate services ltd for a total consideration of £306m this acquisition has been accounted
for using the acquisition method of accounting the consolidated profit and loss account of t ay homes
plc from 1 july 2001 the beginning of its financial year to the date of acquisition showed a profit after
taxation of £20m the consolidated profit after taxation on ordinary activities for the year ended 
30 june 2001 was £32m
the analysis of net assets acquired and the fair value to the group is as follows
the book value of the assets and liabilities shown above has been taken from the consolidated
management accounts of tay homes plc at the date of acquisition
the other adjustments represent 
the restatement of land to its estimated market value
the write down of work in progress to an assessment of its net realisable value
the assessment of further costs in relation to completed sites
the accounting policy alignment relates to a provision against option and predevelopment costs
which were included within work in progress by tay homes plc and which is not in accordance
with the accounting policies of the group
the taxation adjustment relates to the recognition of a deferred tax asset in respect of the fair 
value adjustments and losses in the acquired group in accordance with frs 19
cash consideration of £306m includes £07m of fees and incidental costs relating to the 
acquisition including stamp duty
b investments the group the company
2002 2001 2002 2001
£m £m £m £m
subsidiary companies – – 1602 802
other investments 01 01 – –
01 01 1602 802
c investments  movements the group the company
£m £m
1 subsidiary companies
at 1 july 2001 – 802
acquisitions – 306
increase in net asset value before dividends – 663
dividends – 169
at 30 june 2002 – 1602
2 other investments
at 1 july 2001 01 –
disposals –       –
at 30 june 2002 01 –
accounting
policy fair value
book value other alignment taxation to group
£m £m £m £m £m
tangible fixed assets 07 – – – 07
investments 29 – – – 29
stocks and work in progress 571 41 05 – 525
debtors 23 – – 31 54
bank borrowings 129 – – – 129
creditors amounts falling 
due within one year 152 10   – – 162
creditors amounts falling 
due after more than one year 13     – – – 13
provisions for liabilities 
and charges 05 – – – 05
net assets 331 51 05 31 306
consideration
cash 306
goodwill arising – 51 notes to the financial statements
note 13  creditors due within one year
provisions relate to maintenance within the homes division which it is assessed will be utilised
within three 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
£m
at 1 july 2001 16
profit and loss account charge 27
utilised in year 07
at 30 june 2002 36
note 12  debtors
other debtors include an amount of £05m 2001 £05m due in more than one year
the group the company
2002 2001 2002 2001
£m £m £m £m
trade debtors 20 19 – –
amounts owed by subsidiary companies – – 2259 2650
other debtors 32 33 – –
deferred taxation 28 – – –
prepayments 08 10 – –
88 62 2259 2650
note 14  creditors due after more than one year
the group the company
2002 2001 2002 2001
£m £m £m £m
bank loans 400 1090 400 1090
amounts due in respect of development land 259 111 – –
accruals and deferred income 04 08 – –
663 1209 400 1090
note 11  stocks and work in progress
work in progress includes £20m 2001 £30m in respect of part exchange properties
land held for development in the sum of £297m is subject to a charge in respect of deferred
consideration 2001 £164m 
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 the net book value of the property at june 2001
was £07m
the group the company
2002 2001 2002 2001
£m £m £m £m
land for development 2945 2520 – –
work in progress 2033 1627 – –
stock of showhomes 103 95 – –
5081 4242 – –
cash on account 113 71 – –
4968 4171 – –
the group the company
2002 2001 2002 2001
£m £m £m £0m
bank overdrafts 541 112 853 360
trade creditors 825 668 – –
amounts due in respect of development land 410 246 – –
amounts owed to subsidiary companies – – 129 133
other creditors 05 04 – –
current corporation tax 174 176 19 –
other taxation and social security 13 09 – –
accruals and deferred income 116 90 15 20
proposed final dividend 64 58 64 58 
2148 1363 1080 571 52 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
2002 2001
£m £m
authorised
330000000 ordinary shares of 10p each 2001 330000000 330 330
allotted called up and fully paid 158 158
number of
ordinary shares
of 10p each
movement in the year was as follows
at 1 july 2001 157985074
share options exercised 385955
at 30 june 2002 158371029
share capital profit 
premium revaluation redemption consolidation and loss
account reserve reserve reserve account
a group £m £m £m £m £m
at 1 july 2001 513 03 70 09 1118
premium on shares issued 06 – – – –
profit retained – – – – 512
contribution to quest – – – – 03
at 30 june 2002 519 03 70 09 1627
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 2001 512 801 70 330
premium on shares issued 06 – – –
profit retained – – – 15
revaluation – 494 – –
at 30 june 2002 518 1295 70 345
prior to the introduction of frs 10 goodwill amounting to £04m was transferred to reserves
deferred tax – movements group
2002
£m
at 1 july 2001 –
asset arising on acquisition 31
deferred tax charge in profit and loss account for year see note 4 03
at 30 june 2002 28
the deferred tax asset of £28m is included in debtors see note 12
note 16  deferred tax
the group has adopted frs 19 accounting for deferred taxation this year
as a result of this change in accounting policy profit after tax has decreased by £03m in the year
ended 30 june 2002 2001 a decrease of £26m 53 notes to the financial statements
note 19 reconciliation of movement in shareholders’ funds restated
2002 2001
£m £m
profit for the year as originally stated 608 531
prior year adjustments – 26
profit for the financial year 608 505
dividends 96 87
profit retained 512 418
shares issued 06 05
contribution to quest 03 01
capital redemption – 1169
movement in the year 515 747
shareholders’ funds at 1 july 1871 2618
shareholders’ funds at 30 june 2386 1871
note 20 analysis of cash inflow from operating activities 2002 2001
£m £m
operating profit 941 795
depreciation including profits and losses on disposals of fixed assets 13 09
profit on disposal of current asset investments – 14
increase in stocks and work in progress and assets held for resale 273 555
decrease in debtors 25 23
increase in creditors and provisions 340 198
1046 456
note 21 analysis of net debtcash
note 22 operating lease annual commitments
at other at
1 july cash noncash 30 june
2001 flow acquisition movements 2002
£m £m £m £m £m
bank and cash deposits 80 70 –              – 10
bank overdrafts 112 300 129               – 541
32 370 129 – 531
bank loans 1100 700 – – 400
issue costs 10 – – 10 –
1122 330 129 10 931
other noncash movements comprise amortisation of issue costs relating to debt issues and an
interest rate cap 
2002 2001
£m £m
expiring in under one year  other 03 02
expiring in second to fifth year  other 03 06
expiring after five years  land and buildings 05 – 54 notes to the financial statements
note 23  financial instruments
the section headed treasury within the finance directors review on page 25 summarises the
groups 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 2002 the group had total bank borrowing facilities of £2000m representing £1300m
committed facilities and £700m uncommitted facilities
after taking account of interest rate swaps as at 30 june 2002 £750m of debt was at a fixed rate of
53 the swaps expire between december 2003 and march 2004 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
in order to manage its interest rate risk the group enters 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
not interest bearing
the group
2002 2001
book value book value
£m £m
financial assets
cash at bank and in hand 10 80
fixed asset investments 01 01
other amounts receivable after more than one year 05 05
16 86
the group
2002 2001
book value book value
£m £m
financial liabilities
bank overdraft 541 112
bank loans 400 1100
amounts due in respect of development land 669 357
accruals and deferred income 04 08
vacant property provision 21 –
1635 1577
b fair values of financial assets and liabilities
all the groups financial assets and liabilities are in sterling as follows
as at 30 june 2002 there was no material difference between book value and fair value of the
groups financial assets and financial liabilities disclosed above the fair value of these has been
calculated by discounting expected future cashflows to present value
the fair value of the group’s interest rate hedging arrangements based on the market value of 
comparable instruments at 30 june 2002 was a loss of £09m 2001 £nil 55 notes to the financial statements
c maturity of financial assets and liabilities
the maturity profile of the groups bank loans and overdrafts is set out below
the group
2002 2002 2001 2001
bank overdraft bank loans bank overdraft bank loans
£m £m £m £m
due within one year 541 – 112 –
due between one and two years – 400 ––
due between two and five years –– – 1100
541 400 112 1100
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
2002 2001
£m £m
due within one year 175 388
due between one and two years 700 200
875 588
since the end of the year the group has extended and increased  the £110m syndicated facility
that was due to expire in september 2003 to £180m which matures in september 2007
amounts provided in respect of vacant properties are noninterest bearing and are expected to be
utilised within three years
amounts due in respect of development land and deferred income are noninterest bearing and the
maturity profile is set out below
the group
2002 2002 2001 2001
deferred development deferred development
income land income land
£m £m £m £m
due within one year – 410 – 246
due between one and two years 02 156 02 76
due between two and five years 02 103 06 35
04 669 08 357
the following table sets out the movement in the groups unrecognised gains and losses for the
year on its interest rate hedging arrangements
gains losses total
£m £m £m
unrecognised at 30 june 2000 – – –
recognised in year – – –
arising in the year but not recognised – – –
unrecognised at 30 june 2001 – – –
recognised in year – – –
arising in the year but not recognised – 09 09
unrecognised at 30 june 2002 – 09 09
expected to be recognised in the year
ended 30 june 2003 – 05 05
expected to be recognised thereafter – 04 04
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
under the terms of the redrow long term share incentive plan further incentive shares up
to a value of £39m may be made available to directors and senior executives achieving 
further years service with the group
note 25  related party transactions
at the annual general meeting on 5 november 2001 shareholder approval was obtained for 
n fitzsimmons to acquire a property from redrow homes north west limited for total
consideration of £304500 being the property’s market value as confirmed by an independent
valuer less a discount calculated on terms consistent with those available to all other employees
the purchase of the property was completed on 23 may 2002 on the terms approved by the
shareholders in addition n fitzsimmons paid for customer extras relating to the property in the
sum of £56000 
there were no other material related party transactions requiring disclosure under frs 8 56 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 
4 november 2002 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 2002 
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 2002
4 to reelect mr j f tutte as director
5 to reelect mr b duckworth as director
6 to reelect mr p l pedley as director
7 to reelect mr n fitzsimmons as director
8 to reelect mr b k harvey as director
9 to reappoint pricewaterhousecoopers as auditors and 
authorise the directors to fix their remuneration
special business
to consider and if thought fit pass the following resolutions of
which resolution 10 will be proposed as an ordinary resolution
and resolutions 11 and 12 will be proposed as special
resolutions
10 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 £5582312 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
11 special resolution
that subject to the passing of resolution 10 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 10 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
notice of annual general meeting 57 notice of annual general meeting
ii any other allotments for cash of equity securities up to 
a maximum nominal amount of £791855
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 2004 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
12 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 15837103
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 2004 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
by order of the board
r e walker secretary
9 september 2002
notes
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 4 november 2002 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 1 november 
2002 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 58 corporate information
redrow plc
redrow plc
redrow house
st davids park
flintshire
ch5 3rx
telephone 01244 520044
facsimile 01244 520580
marketingredrowcouk
redrow commercial developments
limited
television house
mount street
manchester
m2 5nt
telephone 0161 830 7400
facsimile 0161 830 7401
rcdlredrowcouk
redrow group services limited
redrow corporate services limited
pôche interior design
redrow house
st davids 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
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the avenue
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nn1 5bt
telephone 01604 601115
facsimile 01604 603113
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hp10 9qt
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en8 7dd
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2020 industrial estate
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me16 olf
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cf23 8rh
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59 corporate information
secretary
rhiannon walker bahons
registered office
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st david’s park
flintshire ch5 3rx
registered no 2877315
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Summary:
 i am pleased to report a highly successful year for redrow
when the share buyback took place in october 2000 the
board highlighted its focus on delivering increased shareholder
value i am therefore delighted to report further strong 
growth in earnings per share of 34 part of this increase
reflects the capital restructuring but the greater part is the 
consequence of the strong financial and operational 
performance of the business
redrow’s financial strength is demonstrated by two key 
measures its margins and its return on capital employed both
are at the top of our industry’s range this year the operating
margin within the homes division was 176 a considerable
achievement and one which the board regards as sustainable in
the current markets equally the return on capital employed at
30 continues to reflect the emphasis we place on the efficient
use of capital the increased volume of the business generated
both within the existing redrow companies and from the 
acquisition of tay homes has enabled us to grow operating
profits before integration costs relating to the acquisition by
24 from £795m to £984m i am therefore glad to report that
once again the board is able to recommend increasing the 
dividend by 10 maintaining the progressive dividend policy
since flotation 
sustaining profitable growth is one of the key objectives of the
board and we have therefore taken a number of important steps
aimed at underpinning the continuation of our successful 
performance firstly tay homes was acquired in january this
year which established critical mass in two operating areas
yorkshire and scotland enabling us to bring them closer to
maturity faster than would otherwise have been possible the
acquisition also brought useful new opportunities in the
midlands the purchase was almost entirely funded out of cash
generated by selling a number of successful developments by
redrow’s commercial arm which generated turnover of £302m
and an operating profit of £31m this year as a result i can not
only report that gearing of the company as a whole fell from
60 at the start of the year to 42 at the halfyear end but that
there has been a further fall to 39 at the end of the second
half the company remains strongly cash generative while
gearing reflects a prudent balance between leveraging our 
shareholders’ funds and maintaining an appropriately cautious
approach to debt
4 chairman’s statement
chairman’s statement
robert jones chairman 
i am pleased to report a highly successful 
year for redrow secondly building techniques throughout the industry
have failed to change sufficiently to reflect the problems
the country faces as a result of shortages of certain skilled
trade workers after careful consideration of alternative 
solutions and pilot schemes using timberframe and light 
steelframe methods as well as modular construction redrow
has decided that the benefits from the use of light steelframe 
warrant the establishment of a joint venture for their 
manufacture this joint venture with corus brings together 
our expertise in residential development with their skills in steel
manufacture and application both companies are investing into
a standalone joint venture company the equivalent of up
to £30m we anticipate that the utilisation of light steel 
frames will benefit the company in terms of build times and
quality resulting in improved customer satisfaction
5 chairman’s statement
above
masterton park dunfermline scotland
centre
odyssey london docklands
right
optima the 27000 sqft office development
stdavid’s park flintshire two other areas are critical to the sustainability of the business
land and people redrow has consistently anticipated changes 
in the planning system by placing emphasis on the
government’s aims of sustainability and increased densities our
land acquisition programme has brought substantial financial
benefits i am therefore pleased to report a further increase in
our current land bank from 14300 plots to 15600 plots this
means that the vast majority of land we will develop in the next
three years is already owned or controlled by the company
much of this is brownfield land which currently represents 69
of our land bank beyond that there are approximately 25000
plots within our forward land bank which have a realistic
prospect of securing planning permission in the future
our workforce at every level is highly skilled and dedicated to
the success of the company however such skills require 
continuous honing and updating and we continue to dedicate
considerable resources to training redrow aims to build its
strength in people not only through internal promotions but
also from external sources and i am particularly pleased to 
welcome those members of tay’s staff who have joined redrow
and whose contribution is proving highly beneficial  two new
members of the main board have joined us this year  
john tutte joined the company as a regional chairman in the
south in january and brings with him a wealth of experience of
our industry in july he was appointed to the board reflecting 
his significant contribution during his short tenure with the
company brian duckworth joins us as a nonexecutive director
and will bring his significant experience of business in general to
the board
it is always gratifying that so many people comment favourably
on the quality and range of our developments varying as they
do from stylish inner city apartments to refurbished buildings
and from traditional family properties to attractive new design
schemes there is indeed a home for every type of customer
within our range as in recent years redrow has secured a 
significant number of awards but what is particularly pleasing is
that in addition to this public recognition of the quality of our
homes many of our customers recommend us to their friends
and relatives or move from one redrow home to another
6 chairman’s statement
above
lansdowne gardens leckwith cardiff 7 chairman’s statement
for the future our industry is not being permitted 
to build more than threequarters of the minimum 
number of homes estimated to be necessary as a result 
of demographic change and the deterioration of older 
housing stock inevitably therefore whilst there is 
houseprice inflation affordability remains good as a 
result of low interest rates on the basis of our belief that 
the housing market remains sound we can be confident that
redrow has an excellent future since our high quality products
low cost current land bank and focused management team are
the very essence of sustainability in our industry
robert jones chairman
above
fedden village portishead bristol
centre
guinea hall farm southport lancashire
right
the maltings braintree essex