Record interim sales for housebuilder Redrow
Housebuilder Redrow reported record interim sales today, with an £11m improvement in first half revenues of £1.052bn for the period to January 2, 2022, and a £29m improvement in pre-tax profits of £203m.
The interim dividend rises from 6p per share to 10p.
Net cash, at the end of the period, stood at £242m, up from £238m the previous year, and the group, based in Ewloe, near Chester, boasts a £1.5bn order book, against £1.3bn the same time last year.
The builder revealed that it added 3,316 plots to its current land reserves and 2,945 plots to forward land reserves.
It also confirmed that house price inflation continues to exceed build cost inflation, and that its Southern division is on course to open this summer.
The group has also increased its revenues forecast for fiscal year 2024, up from £2.2bn to between £2.3bn and £2.4bn, due to its housing mix and house price inflation.
Chief executive, Matthew Pratt, said: “Redrow continued to perform strongly in the first half, delivering record revenue for the period, which demonstrates the ongoing success of our strategy. Our premium quality product is more in demand and attractive to customers than ever before and is perfectly suited to accommodating the blending of family and work life that many of us are experiencing.”
He said the value of the group’s first half reservations was £884m, an increase of six per cent on the same period last year.
Mr Pratt also highlighted the 93.7% customer satisfaction score and that all its divisions are currently achieving a five star recommend score.
He added: “We have made a positive start to the second half and are delivering against our strategy. In the five weeks to 6th February, private reservations in terms of value have averaged £417,000 per outlet per week and £367,000 excluding a bulk deal in London (2021: £301,000). We have also appointed the leadership team for our new Southern division, which will open this summer and is currently acquiring its first sites.
“With the ongoing popularity of our Heritage collection, strong land bank, and commitment of our teams across the country, I am confident the business will deliver further progress in the second half.”
