Help to Buy demand helping Redrow to build profits

HOUSEBUILDING firm Redrow – whose chairman is Wolverhampton Wanderers owner Steve Morgan – has seen a marked increase in both revenue and profit.

Its first half results for the six months to 31 December 2015 reveal revenue increased by 8% to £603m on a year on year basis (H1 2015: £560m) while profit before tax was up by 14% to £104m (H1 2015: £91m).

The new revenue total is a half year record for the Flintshire-based firm.
 
Homes revenue increased 14% to a half year record of £584m driven by an 18% increase in legal completions.

During the period in question legal completions rose 18% to 2,178 (2015: 1,850), with Help to Buy continuing to support demand.

The firm now has a number of employees at 1,818, up almost 1,200 from 2009 levels.

It currently has a land bank of 21,435 plots (Dec 2014: 16,950).

Morgan said: “I am delighted to report Redrow has again generated outstanding first half results.  We legally completed almost 2,200 new homes in the period, 18% higher than last year, leading to record first half pre-tax profits of £104m.
 
“As a result of this strong performance, whilst we continue to invest in growing the business, we have also doubled the interim dividend to 4p per share.
 
“We are only at the beginning of the spring selling season, however demand for new homes remains robust.  We ended the first half with a record order book up 51% on this time last year, and in the first six weeks of the second half have secured 455 private reservations, 10% ahead of last year.
 
“I am confident this will be another strong year of growth for Redrow.”

Yesterday it was announced Redrow is to build 1,100 new homes on a former golf course near Tamworth.

It has acquired the 148-acre former golf course in Amington near Tamworth from the town’s borough council.