North West housebuilder reports another record year

Housebuilder Redrow continues to build on its strong foundations, reporting better revenues and profits in the year to June 30, today.

Base in Ewloe, near Chester, the company saw turnover rise 10% to £2.1bn, while pre-tax profits increased by 7% to a record £406m.

Legal house completions improved by 13% to 6,443 in the reporting period.

Strong cash generation delivered net cash of £124m, compared with £63m last year, while the proposed final dividend of 20.5p per share, makes a 60.5p cash return per share to shareholders for the full year, up 116%.

The group built 1,712 affordable home, which was a 55% increase, and added 7,379 plots to current land holdings, 40% of which were converted from forward land.

Since the year-end, Redrow opened a new Thames Valley division in July.

John Tutte, executive chairman, said: “I am delighted to report that Redrow, for the sixth consecutive year, has delivered record results.

“The group completed 6,443 homes, 13% up on the previous year and passing the 6,000 milestone for the first time. Revenue reached £2.1bn and pre-tax profit increased by 7% to £406m.

“This excellent trading performance led to strong cash generation and we ended the year with net cash of £124m after making the ‘B share’ payout in April. As a result we are proposing a final dividend of 20.5p per share giving a full year dividend of 30.5p per share, 9% up on last year.”

He added: We are understandably cautious about the post-Brexit future and also the eventual impact of the impending changes to the Help to Buy scheme. We do, however, have a clear strategy to continue to grow centred on our award-winning Heritage Collection that is so popular across a broad range of buyers.

“Since the start of the new financial year trading has been encouraging and the demand for our homes is strong with reservations running ahead of last year.

“Notwithstanding the political and economic uncertainty we face, we have every reason to be confident that 2020 will be another successful year for the group.”