Housebuilder reveals 拢194m pre-tax loss but three-year refinancing deal struck with lenders

Redrow has been forced to make a writedown of more than 拢250m, but announced it had struck a deal with its banking partners until 2011.

The ailing housebuilder recorded a pre-tax loss of 拢193.9m for the year to 30 June 2008, due mainly to a writedown of 拢259.4m on the group's land holdings and work in progress.

But there was a ray of light for the group's shareholders, as Redrow announced it had refinanced its banking arrangements, allowing it a 拢450m debt facility to cover the next three years.

Turnover fell 22% to 拢650.1m, down from 拢834.3m in 2007. The company completed almost 900 fewer units than it did in 2007, down from 4,823 to 3,925 at an average selling price of 拢156,900 (down from 拢159,900 in 2007). Redrow confirmed that it had made more than 500 redundancies, reducing its headcount by approximately 40%.

Alan Bowkett, chairman of Redrow, has called on the government to intervene in the rapidly deteriorating mortgage market.

He said: 鈥淚t is important that the government review their proposals for the value of land to pay for a wide range of initiatives relating to sustainability, infrastructure and social policies.

鈥淲ithout this review the short-term adverse consequences for the economy and the longer-term impact on housing supply could be very significant.鈥�

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