We continue to grow our business both organically and from acquisitions such as Radleigh Homes.
In order to meet this growth, it is essential we work closely with our suppliers and subcontractors and continue to develop our supply chain and our systems.
Revenue has increased by 174% since 2013 to £1.66bn (2016: £1.38bn). We have the divisional capacity to deliver £2.2bn of revenue per annum in 2020.
The sale of homes accounted for £1.65bn of revenue with the balance of £12m attributable to land sales – 50% of revenue in the year came from the South of England, including London.
We delivered a record 5,416 legal completions (including JV) in 2017, a 15% increase on 2016 (2016: 4,716).
Social housing accounted for 19% of legal completions volumes compared to 17.7% last year. Apartments represented 16% of private legal completions and 19% of private sales revenue compared to 12% and 15% respectively last year. This reflected the increased contribution from Greater London and the South East where apartments are more prevalent.
Active outlets increased by four in the year to 132 outlets (2016: 128): the Group opened 56 new outlets in the year and closed 52. The closures were slightly higher than forecast due to a stronger than expected sales performance.
Bringing new outlets on-stream remains a challenge for the industry. Planning remains tortuous and many planning departments lack the resources to process applications and deal with the plethora of pre-start conditions they continue to attach to planning consents.
GROWING OUR BUSINESS RESPONSIBLY
It is important that as we grow, the Group maintains its high environmental and placemaking standards and delivers on its commitment to create socially and economically sustainable communities.
During the year we were pleased to achieve the British Standards Institute ISO14001 environmental standards accreditation. This ensures we apply a systematic approach to environmental management right across the business, helping us to identify and manage our key risks and opportunities.
In addition, we have developed and deployed a sustainability reporting platform throughout the company which is helping us to better collect and evaluate data, both ensuring compliance and driving performance improvements across all aspects of sustainability.
OUR SUPPLY CHAIN
We work closely with key suppliers and subcontractors in our supply chain to improve quality and efficiency and to help develop the homebuilders of the future.
We have secured the coveted ‘Three Trees’ status from the World Wildlife Fund (WWF) for the second assessment period in a row. We were the first UK homebuilder to achieve the status in 2015, which was awarded for our ongoing work to promote responsible forest management and the eradication of illegal wood products from our supply chain. At present our responsibly sourced and credibly certified timber stands at 99.94%. The accolade places Redrow among the top 40 companies in the country using Forest Stewardship Council (FSC) certified and other responsibly sourced timber and paper products.
During the year we became partners in the Supply Chain Sustainability School (SCSS), which is an award-winning initiative providing free learning and development support to help our supply chain partners to address sustainability issues. We have evaluated the sustainability risks of our different suppliers and are collaborating with the SCSS to prioritise a learning and development programme. We have also encouraged our suppliers to attend a number of events organised by the School across the UK.
We sit on the Homes Leadership and Wales Leadership groups supporting the development of the School. Moving forward our intention is to strengthen our commercial and procurement teams’ direct links with the School and encourage more of our supply chain partners to improve their knowledge and understanding to make them more sustainable.
IMPROVING OUR SYSTEMS
We are continually looking to improve our systems and processes to better support our business as it grows, evolves and responds to changes in technology.
We have a dedicated team of IT specialists including systems analysts, software developers, a digital team and help desk experts at our Head Office, led by our Group IT Director. During the year we developed and introduced a new in-house manual payments system and made improvements to our land appraisal system and management reports.
During the year we also implemented a new application to manage all the meetings that form part of our Customer First 'Made for You' process. It uses handheld electronic tablets to display the specification the customer has chosen and to record photographically any issues that need attention. These, together with any issues reported by customers after they have moved in, are tracked by the application to help our customer service teams deal with issues promptly and to the customer’s satisfaction. It includes full email and telephone integration for both our customers and subcontractors, for example by recognising incoming calls and popping-up appropriate prompts on screen to improve our service to our customers. We are now working on a portal for use by our subcontractors to further improve how they manage the calls and appointments involved in resolving issues.
We will be introducing an online version of our 2017 Annual Report. This aims to make it easier for Shareholders and other stakeholders to access key information and information on areas of their particular interest and will be available on our website by early October.
We have also introduced a new third party integrated HR and Payroll system with self-service features to replace out-dated paper systems, streamline processes and support future growth.
Not only do our apprentices get first class training, both on site and at local colleges, Redrow also partners with key suppliers to ensure they get a comprehensive understanding of the wider aspects of their chosen field.
For example, MA Broughton Electrical Contractors worked with Redrow to devise a week-long training programme at their Nottingham premises. The company has trained electrical apprentices for over 30 years, and currently mentors Redrow apprentices on site.
Their new in-house training programme gives our apprentices a unique insight into the day to day workings of a busy electrical contracting company, including stores, warehouse and technical departments. It covers aspects of the industry that our site-based programme simply cannot provide, as Redrow apprentice, Shane Bagby, explained:
“The MA Broughton electricians have been teaching me how to wire a house at the Pennine Grange development in Tamworth. Spending time at their business helped me understand some of the other skills and work involved in being an electrician.”
As part of the partnership, MA Broughton are given access to Redrow’s training facilities to teach their own apprentices, raising standards across the industry.
"We’re very proud of our apprenticeship programme and are constantly looking for ways to improve and develop the training we offer."
New Entrant Programmes Manager