Steve Morgan's regret in posting Redrow's financial results today was palpable. The chairman, who has only been back in the role for six months, said it was "intensely disappointing" to have the post the "worst set of trading results in the company's history".
And they certainly make gloomy reading. A pretax loss of £140m, completions down by almost a half and debt of £214m. With this level of debt rumours of rights issue seem even more credible - Redrow, along with Barratt, are pipped to be preparing cash calls of £600m between them. While these rights issues aren't quite as serious as Taylor Wimpey's desperate scramble for funds earlier in the year, on analyst told me that they would have "no choice" but to hold a rights issue and drive down some of that debt.
Although Morgan said the company is "fully engaged" in new land opportunities, any talk of buying new land is likely to prove a little optimistic until debt levels can be reduced and the company can shore up its position.
I just spoke with Steve Morgan on the phone, and discussed this idea of "refocussing" the company. The straight-talking Wolves FC owner (I didn't mention my Birmingham City allegiance) said he is replanning sites where possible to replace high density flats with family housing, and basically put Redrow "back to the company it was when he left it."
His contempt for the shape his business was in after nine years away was very thinly veiled.
