FOR IMMEDIATE RELEASE

Wednesday 10 February 2021

Redrow plc

         Interim results for the six months to 27 December 2020

STRONG FIRST HALF PERFORMANCE AND

DIVIDENDS REINSTATED

Financial Results

Operational Summary

·      Record first half revenue and legal completions which were both up 20% due to strong opening order book and resilient demand

·      Reservations for the ongoing business* up 6% at £819m (2020: £772m)

·      Over 95% forward sold for the current financial year

·      Once again, we retain our Five star customer service rating, which is now further enhanced by the launch of our new Homeowner Support portal.

Financial Summary

·      Group revenue of £1,041m (2020: £870m) up 20%

·      First half pre-tax profit up 11% at £174m (2020: £157m)

·      Earnings per share (EPS) up 10% to 41.0p (2020: 37.2p)

·      Dividends reinstated with interim dividend of 6.0p per share (2020: Nil)

·      Net cash of £238m (Dec 2019: £14m)

* Ongoing business is the regional business plus Colindale

Matthew Pratt, Group Chief Executive of Redrow, said

"The Group delivered a strong first-half performance whilst continuing to operate under strict COVID-secure procedures.  During a period of intensive activity to rebuild output, it is pleasing to report we have maintained high levels of customer satisfaction and I am grateful to our teams for their ongoing hard work and commitment during these challenging times.

We have seen a strong sales market during the first half driven by a combination of pent-up demand from the first national lockdown, the introduction of the Stamp Duty holiday and the impending end of the Help to Buy scheme for existing home owners.

At the end of December 2020, the Group had net cash of £238m compared to net debt of £126m at the end of June 2020 as we converted our high level of brought forward work in progress into completions.  Given the Group's cash position and order book, the Board has resumed dividend payments with an interim dividend of 6p (2020: 0p).

The changing trends in home ownership, accelerated by COVID-19, align with Redrow's Heritage product and 'Better Way to Live' philosophy. Our differentiated strategy taps into customers' changed priorities that balance work, home and the local community into a more sustainable lifestyle.

Despite a 20% increase in revenue in the first half, we have continued to maintain a very strong order book. At the end of the first half, we had a record December total order book of £1.3bn (2020: £1.2bn) of which 72% is contracted. We are now over 95% forward sold for the current financial year.

The acceleration of changing buyer trends, which are completely aligned to Redrow's strategy, point to a positive outlook for the business. Our private forward sold position of £750m beyond the end of both the original Help to Buy scheme and the Stamp Duty holiday, demonstrates the resilience of our target market and the desirability of our product and the places we create. These fundamentals mean we can look confidently to the future and fulfilling our ambitions to rebuild and grow the business."

Enquiries:

A webcast and slide presentation of our results will be available at 7.00 am on http://investors.redrowplc.co.uk/.

Participants can also dial in to hear the presentation at 7.00 am on +44 (0)20 3936 2999 or

UK Toll Free on 0800 640 6441 participant access code 684012.

Playback will be available by phone from 8.00am for the next 7 days +44 (0)20 3936 3001 followed by

Access Code 413463.

There will also be an analyst Q&A conference call with management at 9.00 am and an audiocast of this call will be available on http://investors.redrowplc.co.uk/reports-and-presentations this afternoon.

LEI Number:

2138008WJZBBA7EYEL28

Announcement Classification:

1.2: Half yearly financial report and audit reports/limited reviews

Group Chief Executive's Statement

Overview

The Group delivered a strong first-half performance whilst continuing to operate under strict COVID-secure procedures.  Completions were 20% ahead at 3,065 homes (2020: 2,554). During a period of intensive activity to rebuild output, it is pleasing to report we have maintained high levels of customer satisfaction and I am grateful to our teams for their ongoing hard work and commitment during these challenging times.

As a result of the high number of completions and resultant reduction in work in progress, the Group reversed an opening net debt position of £126m to end the first half with net cash of £238m. The Group has previously signalled its intention to resume dividends in 2021 and the Board has declared an interim dividend of 6p.

We have seen a strong sales market during the first half driven by a combination of pent-up demand from the first national lockdown, the introduction of the Stamp Duty holiday and the impending end of the Help to Buy scheme for existing home owners.  Demand in the regions for our Heritage homes has been particularly high as more buyers reflect on their lockdown experiences and prioritise space in their homes and access to green areas. The private revenue per outlet per week on a like-for-like basis in the first half (excluding PRS) was 13% ahead at £274,000 (2020:£243,000). As a consequence, we entered the second half with a total order book of £1.3bn (2020: £1.2bn).

Last year we announced our intention to scale down our London business to focus solely on our flagship Colindale development. We have to date exited four of the six sites not in build and expect to exit the remaining two before the end of the financial year.

Our financial performance

Group revenue was £1,041m in the first half compared to £870m last year due to legal completions increasing from 2,554 to 3,065.

The growth in completions benefited from very high levels of work in progress carried into the new financial year and a record opening forward order book following the first national lockdown.

Private completions of 2,430 were ahead by 365 and affordable completions at 635 were 146 higher than the same period last year. Affordable homes comprised 21% (2020: 19%) of total completions. The private average selling price was unchanged at £387,000 (2020: £387,000).

The gross margin at 21.3% (2020: 23.9%) was below the level in the same period last year mainly due to higher build cost as a result of COVID measures. However, it was ahead of our guidance for the 2021 full year gross margin of 20.5% due primarily to tenure mix. The full year guidance remains unchanged, as the second half margin will be impacted by completion of two PRS apartment contracts from the lower margin London build out developments and a higher proportion of affordable housing. 

Administrative expenses reduced from £49m to £44m as a result of a number of cost saving measures undertaken in the final quarter of the last financial year due to COVID-19. Administrative expenses in the second half are expected to increase reflecting the Group's investment to rebuild and grow the business. As a result, we are expecting the full year operating margin to be approximately 15.5%.

Operating profit increased from £159m to £178m, as a direct result of the increased turnover, and pre-tax profit was £174m (2020: £157m). Earnings per share were up 10% at 41.0p (2020: 37.2p).

At the end of December 2020, the Group had net cash of £238m compared to net debt of £126m at the end of June 2020 as we converted our high level of brought forward work in progress into completions. Whilst we have significant deferred land payments in the second half together with investing in new sites to grow the business, we still expect to end the year with net cash of over £100m.

Given the Group's cash position and order book, the Board has resumed dividend payments with an interim dividend of 6p (2020: 0p). The interim dividend will be paid on 9th April 2021 to holders of ordinary shares on the register at close of business on 26th February 2021.

Strategy underpinning demand and customer satisfaction

The changing trends in home ownership, accelerated by COVID-19, align with Redrow's Heritage product and 'Better Way to Live' philosophy. Our differentiated strategy taps into customers' changed priorities that balance work, home and the local community into a more sustainable lifestyle.

As a result, Redrow's larger, quality family homes - located in great places with plenty of open space - are proving more desirable than ever before.

The alignment of these trends with our unique product and places generated strong pent-up demand across our divisional network as we emerged from the first lockdown. Demand has remained resilient with strong forward sales secured beyond the cut-off dates of the existing Help to Buy scheme and the Government's Stamp Duty holiday.

Whilst reservations for the Group as a whole were unchanged year on year, those for the ongoing business, comprising the regions outside London plus Colindale (excluding PRS), was up 6% at £819m (2020: £772m) and the sales rate was up 11% at 0.69 (2020: 0.62). We will continue to target growth in the regions to offset the scaling down of the London business.

The successful Help to Buy scheme, in its current form since 2013, has helped thousands of people take a step onto the housing ladder and move-up into homes that better match their needs. It has now closed to applications and a new scheme has been launched restricting participation to first time buyers and capping prices on a regional basis.

The price caps favour buyers in the south of the country where they are considerably higher. Notwithstanding this, it is pleasing to note that as we progressed through the first half, reservations were not materially affected by these changes as our homes are targeted more at second time movers who often have larger deposits and an element of equity. Help to Buy was utilised on 44% of our private reservations in the first half (2020: 42%) (excluding PRS).

The market remained strong and we are seeing house price inflation across all of our operating areas except London.

We welcomed the Chancellor's introduction of the Stamp Duty holiday, which is expected to end on 31^st March 2021. It is an important initiative, which has led to a positive economic ripple effect beyond the new homes market. The success of the holiday illustrates that high levels of Stamp Duty deter buyers and we continue to urge Government to undertake a reform of the tax to make homes more affordable in the longer term.

In its current form, Stamp Duty is an arbitrary tax, which inhibits mobility and reduces the liquidity of the housing market. Ultimately, it penalises those looking to relocate for work or wanting to downsize as part of retirement plans. Stamp Duty needs to be reformed to help the housing market work more effectively and to stimulate more transactions, which will in itself drive tax generation throughout the home buying supply chain of estate agents, solicitors, removals, furnishings etc. 

Despite a 20% increase in turnover in the first half, we have continued to maintain a very strong order book. At the end of the first half, we had a record December total order book of £1.3bn (2020: £1.2bn) of which 72% is contracted.

Outlets averaged 116 (2020: 129) and the value of private reservations per outlet per week (excluding PRS) was 13% ahead at £274k (2020: £243k). Combining our higher than industry average selling price together with our strong sales rate continues to deliver industry leading reservation values per outlet.

Brexit and COVID-19

Following the UK's exit from the European Union, we have not experienced any disruption to our supply chain and we anticipate cost inflation to remain at around 2% to 3%, which we expect to be offset by house price inflation. Our long-standing supplier and sub-contractor relationships and tight cost controls both help to mitigate cost pressures.

Operating within a further national lockdown continues to present challenges. Our sales centres are open on an appointment-only basis, with comprehensive COVID-19 measures in place. Most of our office-based colleagues are working from home and, if required, can self-isolate at home whilst continuing to work. There has been some impact on build as an increasing number of subcontractor colleagues are unable to work whilst self isolating. We expect to see this situation improve as the country's overall COVID-19 infection rate decreases.

Over the last decade, we have been implementing an IT strategy with fully integrated and bespoke online services, including online reservations, tablet-based quality management systems and online customer extras. This investment has proven to be invaluable during COVID-19 helping customers and colleagues alike to connect with Redrow online. This has helped to maintain high levels of customer service and endorsed the Group's COVID-secure procedures.

We are pleased to have launched our Homeowner Support portal where customers can review helpful videos, see warranty information and log and upload photos of any issues for review and action.

The new system provides clear and accurate information for our customer service teams. Once the system is fully utilised we will be able to analyse data highlighting common faults, frequency and location so we can work with our teams to eradicate recurring issues.

Once again, we will retain our Five Star customer service rating. Our customer recommendation score is trending well above the previous closed survey year (2020: 91.9%). We have now held this award for eight out of the last eleven years and for the last three years consecutively. We continue to perform well on Trustpilot with an 'Excellent' rating with 4.6 stars from over 2,000 reviews.

Launch of Redrow 2025

During the period under review, I launched 'Redrow 2025.' Every Redrow colleague is being tasked to reimagine how the business should, and will, look in five years' time with a focus on innovation and embracing new ways of working.

These ideas will be captured underneath our three strategic pillars: Valuing People, Building Responsibly and Thriving Communities. These themes are embedded within our business and all colleagues have a clear understanding of how they contribute to them - ensuring that sustainability is woven into our business strategy and culture.

Again looking to the future, and in these difficult times when young people have been particularly hard hit, I am very proud of the fact we have recruited an additional 32 graduates, and a new intake of 19 sponsored degree students and maintained our apprentice numbers at around 210. In total, we now have 330 trainees within the business.

We are currently trialling new technology as we prepare for 2025 and the introduction of the Future Home Standards, which will see the removal of fossil fuels used within a new home. At the same time, our 'Reduce the Rubble' project is investigating how we can reduce waste during the homebuilding process.

Land and Planning

Our positive outlook for the future gives us the confidence to invest in land to rebuild and grow the business, including the replacement of the outlets from our previous London holdings.

The Group added 2,284 plots with planning and the owned and contracted land holdings with planning closed at 26,130 plots (June 2020: 27,000 plots). The Group is processing a sizeable pipeline of sites with terms agreed and we therefore expect acquisitions to accelerate in the second half.

Due to the nature of our product, we continue to invest in primary locations across the country. In the period, we have increased our strategic land holding which now contains a number of large key sites, which will support the company's growth targets. These larger holdings are expected to transfer in whole or part to our current land holdings over the next 12 months.

Board Changes

In advance of John Tutte's retirement ahead of the forthcoming AGM, the process of recruiting a new Chairman is progressing well.

Current Trading and Outlook

In the six weeks to 5^th February, private reservations in terms of value have averaged £265,000 per outlet per week (2020: £298,000). This is below a very strong comparable last year and is also being affected by reduced availability of product created by the strong forward sales position. The private sales rate of 0.67 per outlet per week (2020: 0.78) is however in line with our long term expectation of trading within a more normal market.

The acceleration of changing buyer trends, which are completely aligned to Redrow's strategy, point to a positive outlook for the business. Our private forward sold position of £750m beyond the end of both the original Help to Buy scheme and the Stamp Duty holiday, demonstrates the resilience of our target market and the desirability of our product and the places we create.

Our people, sub-contractors and partners have embraced our comprehensive COVID-19 measures, which have been embedded into every aspect of Redrow's operations. I would like to thank them, once again, for their hard work, understanding and continued passion to deliver our high quality products and places.

These fundamentals, alongside the encouraging progress being made to tackle the pandemic, mean we can look confidently to the future and fulfil our ambitions to rebuild and grow the business.

Matthew Pratt
Group Chief Executive

Consolidated Income Statement

Consolidated Statement of Comprehensive Income

Consolidated Balance Sheet

Consolidated Statement of Changes in Equity

* Restated - see note 1

NOTES (Unaudited)

1.    Accounting policies

Basis of preparation

The condensed consolidated half-yearly financial information for the 26 weeks ended 27 December 2020 has been prepared on a going concern basis in accordance with the Disclosure and Transparency Rules of the Financial Conduct Authority and with IAS 34 interim Financial Reporting adopted pursuant to Regulation (EC) No 1606/2002 as it applies in the European Union. The Directors consider this to be appropriate for the reasons outlined below.

The annual financial statements of the group for the 52 weeks to 27 June 2021 will be prepared in accordance with International Financial Reporting Standards (IFRSs) adopted pursuant to Regulation (EC) No 1606/2002 as it applies in the European Union and in accordance with international accounting standards in conformity with the requirements of the Companies Act 2006. As required by the Disclosure Guidance and Transparency Rules of the Financial Conduct Authority, the condensed set of financial statements has been prepared applying the accounting policies and presentation that were applied in the preparation of the company's published consolidated financial statements for the year ended 28 June 2020 which were prepared in accordance with IFRSs as adopted by the EU.

Going concern

As a precaution against an extended lockdown, the Group increased its available banking facilities by £100m in April 2020. As a result, the Group has a £350m Revolving Credit Facility (RCF) provided by an established syndicate of six banks being Barclays Bank PLC, Lloyds Bank Plc, The Royal Bank of Scotland Plc, Santander UK PLC, HSBC UK Bank PLC and Svenska Handelsbanken AB (PUBL). This expires in December 2022 and is a committed unsecured facility. No change to the RCF covenants was made as a result of the increase to £350m. As at 10 February 2021, £350m of this facility was undrawn. It is likely that the RCF will be renewed prior to its expiry in December 2022.

In addition the Group has a further £13m of committed, unsecured facilities also expiring in December 2022 and £3m of unsecured, uncommitted facilities.

The Group also gained eligibility as an issuer for the Government's COVID Corporate Funding Facility (CCFF) with an issuer limit of £300m. Given the timely return to work and the effectiveness of measures to protect its cash flow, the Group has not used the CCFF and our forecasts do not assume the utilisation of this facility.

The Directors have prepared forecasts including cashflow forecasts for a period of 22 months from the date of approval of these financial statements to 30 December 2022. These forecasts indicate that the Group will have sufficient funds to meet its liabilities as they fall due, taking into account the following severe but plausible downside assumptions:

A 20% price reduction on all unexchanged private legal completions for FY21 and a 10% price reduction on all unexchanged social legal completions for FY21;

A 10% price reduction on all unexchanged private legal completions for FY22 and a 5% price reduction on all unexchanged social legal completions for FY22;

FY23 legal completions at September 2020 forecast prices; and

A reduction in sales rate to 0.4 per budgeted active outlet per week from January 2021 to Sept 2021.

These downside assumptions reflect the further potential impact of COVID 19 being increased economic uncertainty, further Government lockdown restrictions and increasing rates of unemployment and consumer confidence levels.

Allowing for the above downside scenario, the model shows the Group has adequate levels of liquidity from its committed facilities and complies with all its banking covenants throughout the forecast period. The Directors therefore consider that the Group will have sufficient funds to continue to meet its liabilities as they fall due for the forecast period and have therefore adopted the going concern basis of accounting in preparing these financial statements.

Redrow plc is a public listed company, listed on the London Stock Exchange and domiciled in the UK.

The half-yearly condensed consolidated report should be read in conjunction with the annual consolidated financial statements for the 52 weeks ended 28 June 2020, which have been prepared in accordance with IFRSs as adopted by the European Union.

This half-yearly financial information does not comprise statutory accounts within the meaning of section 435 of the Companies Act 2006. This condensed half-yearly financial information has been reviewed, not audited. The comparative figures for the financial period ended 28 June 2020 are not the Group's statutory accounts for that financial year. Audited statutory accounts for the 52 weeks ended 28 June 2020 were approved by the Board of Directors on 15 September 2020 and delivered to the Registrar of Companies. The report of the auditors on those accounts was unqualified, did not contain an emphasis of matter paragraph and did not contain any statement under section 498 (2) or (3) of the Companies Act 2006.

The principal accounting policies adopted in the preparation of this condensed half-yearly financial information are included in the annual consolidated financial statements for the 52 weeks ended 28 June 2020. The accounting policies are consistent with those followed in the preparation of the financial statements to the 52 weeks ended 28 June 2020 where there was a change in accounting in respect of Inventories. Inventories were previously stated net of cash on account (payments on account from social and private rented sector customers). These payments are now disclosed in Trade and Other payables and the 2019 comparatives have been restated.

The preparation of condensed half-yearly financial information requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may subsequently differ from these estimates. In preparing this condensed half-yearly financial information, the significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the annual consolidated financial statements for the 52 weeks ended 28 June 2020.

The main operation of the Group is focused on housebuilding. As it operates entirely within the United Kingdom, the Group has only one reportable business and geographic segment. After considering the requirements of IFRS 15 to present disaggregated revenue, the Group does not believe there is any disaggregation criteria applicable to its one reportable business and geographic segment. There is no material difference between any assets or liabilities held at cost and their fair value.

Principal risks and uncertainties

As with any business, Redrow plc faces a number of risks and uncertainties in the course of its day to day operations.

The principal risks and uncertainties facing the Group are outlined within our half-yearly report 2020 (note 16). We have reviewed the risks pertinent to our business in the 26 weeks to 27 December 2020 and which we believe to be relevant for the remaining 26 weeks to 27 June 2021. The only material change from those outlined in our Annual Report 2020 is the considerable unknowns still remaining now the UK has left the EU. We have however not experienced any significant direct impact to date.

2.       Income Tax expense

Income tax charge is recognised based on management's best estimate of the weighted average annual income tax rate expected for the full financial year (19% (2020: 18.5%)). Deferred taxation balances have been valued at 19% being the corporation tax rate from 1 April 2020 substantively enacted on 22 July 2020.

3.       Dividends

A dividend of £nil was paid in the 26 weeks to 27 December 2020 (26 weeks to 29 December 2019: £72m).

4.       Earnings per share

The basic earnings per share calculation for the 26 weeks ended 27 December 2020 is based on the weighted number of shares in issue during the period of 344m (26 weeks ended 29 December 2019: 344m) excluding those held in trust under the Redrow Long Term Incentive Plan, which are treated as cancelled.

Diluted earnings per share has been calculated after adjusting the weighted average number of shares in issue for all potentially dilutive shares held under unexercised options.

26 weeks ended 27 December 2020 (Unaudited)

26 weeks ended 29 December 2019 (Unaudited)

52 weeks ended 28 June 2020 (Audited)

5.       Pensions

The amounts recognised in respect of the defined benefit section of the Group's Pension Scheme are as follows:

6.       Inventories

*Restated - see note 1.

7.       Land Creditors

          (included in trade and other payables)

*Restated - see note 1.

8.       Analysis of Net Cash/(Debt)

Net cash excludes land creditors and lease liabilities arising under IFRS 16.

9.       Bank facilities

At 27 December 2020, the Group had total unsecured bank borrowing facilities of £366m (29 December 2019: £253m), representing £363m committed facilities and £3m uncommitted facilities.

The Group's syndicated loan facility matures in December 2022.

10.        Issued Share capital

Allotted, called up and fully paid.

11.     Contingent Liabilities

The Company has guaranteed the bank borrowings of its subsidiaries. Performance bonds and other building or performance guarantees have been entered into in the normal course of business. Management consider the possibility of a cash outflow in settlement to be remote.

12.     Related parties

Key management personnel, as defined under IAS 24 'Related Party Disclosures', are identified as the Executive Management Team and the Non-Executive Directors. Summary key management remuneration is as follows:

13.     Alternative performance measures

Redrow uses return on capital employed (ROCE) as one of its financial measures. The Directors consider this to be an important indicator of whether the Group is achieving appropriate returns on its invested capital. As this is not defined or specified by IFRSs, a definition and calculation is provided below:

Capital employed is defined as total equity plus net debt or minus net cash.

ROCE - at half year end, this is calculated as operating profit for the 52 weeks to December before exceptional items as a percentage of the average of current year December and prior year December capital employed.

14.     General information

Redrow plc is a public limited company incorporated and domiciled in the UK and has its primary listing on the London Stock Exchange.

The registered office address is Redrow House, St David's Park, Flintshire, CH5 3RX.

Financial Calendar

Interim dividend record date                                                                                      26 February 2021

Interim dividend payment date                                                                                          9 April 2021

Announcement of results for the 52 weeks to 27 June 2021                                   15 September 2021

Final dividend record date                                                                                       24 September 2021

Circulation of Annual Report                                                                                        4 October 2021

Annual General Meeting                                                                                          12 November 2021

Final dividend payment date                                                                                   17 November 2021         

15.     Shareholder enquiries

The Registrar is Computershare Investor Services PLC. Shareholder enquiries should be

addressed to the Registrar at the following address:

Registrars Department

The Pavilions

Bridgwater Road

Bristol

BS99 6ZZ

Shareholder helpline: 0370 707 1257

16.     Risks and Risk Management

Responsibility Statement

We confirm that to the best of our knowledge:

·   the condensed set of financial statements has been prepared in accordance with IAS 34 interim Financial Reporting adopted pursuant to Regulation (EC) No 1606/2002 as it applies in the European Union;

·   the interim management report includes a fair review of the information required by:

a)   DTR 4.2.7R of the Disclosure Guidance and Transparency Rules, being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements; and a description of the principal risks and uncertainties for the remaining six months of the year; and

b)   DTR 4.2.8R of the Disclosure Guidance and Transparency Rules, being related party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial position or performance of the entity during that period; and any changes in the related party transactions described in the last annual report that could do so.

The Directors of Redrow plc as at the date of this statement are:

John Tutte

Matthew Pratt
Barbara Richmond
Nicholas Hewson
Sir Michael Lyons
Nicky Dulieu

By order of the Board

Graham Cope

Company Secretary

10 February 2021

Redrow plc

Redrow House

St David's Park

Flintshire
CH5 3RX

INDEPENDENT REVIEW REPORT TO REDROW PLC 

Conclusion 

We have been engaged by the company to review the condensed set of financial statements in the half-yearly financial report for the period ended 27 December 2020 which comprises the Consolidated Income Statement, Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Consolidated Statement of Changes in Equity, Consolidated Statement of Cash Flows and the related explanatory notes up to note 15.

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the period ended 27 December 2020 is not prepared, in all material respects, in accordance with IAS 34 Interim Financial Reporting adopted pursuant to Regulation (EC) No 1606/2002 as it applies in the European Union and the Disclosure Guidance and Transparency Rules ("the DTR") of the UK's Financial Conduct Authority ("the UK FCA").

Scope of review 

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity issued by the Auditing Practices Board for use in the UK.  A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures.  We read the other information contained in the half-yearly financial report and consider whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements. 

A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit.  Accordingly, we do not express an audit opinion.  

Directors' responsibilities 

The half-yearly financial report is the responsibility of, and has been approved by, the directors.  The directors are responsible for preparing the half-yearly financial report in accordance with the DTR of the UK FCA. 

The latest annual financial statements of the group were prepared in accordance with International Financial Reporting Standards as adopted by the EU and the next annual financial statements will be prepared in accordance with International Financial Reporting Standards adopted pursuant to Regulation (EC) No 1606/2002 as it applies in the European Union and in accordance with international accounting standards in conformity with the requirements of the Companies Act 2006.  The directors are responsible for preparing the condensed set of financial statements included in the half-yearly financial report in accordance with IAS 34 adopted pursuant to Regulation (EC) No 1606/2002 as it applies in the European Union.

Our responsibility 

Our responsibility is to express to the company a conclusion on the condensed set of financial statements in the half-yearly financial report based on our review. 

The purpose of our review work and to whom we owe our responsibilities

This report is made solely to the company in accordance with the terms of our engagement to assist the company in meeting the requirements of the DTR of the UK FCA.  Our review has been undertaken so that we might state to the company those matters we are required to state to it in this report and for no other purpose.  To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company for our review work, for this report, or for the conclusions we have reached. 

Nick Plumb

for and on behalf of KPMG LLP 

Chartered Accountants 

8 Princes Parade

Liverpool

L3 1 QH

10 February 2021