Redrow sees return to profit in second half
HOUSE-BUILDER Redrow expects the market to remain tough this year despite having been encouraged by recent sales activity.
The company based at Ewloe, near Chester, said that it expects to complete in excess of 2,500 homes for the full year which will return it to profitability in the second half of the year.
An interim management statement said that its house prices were remaining stable.
Since the start of the year, it has also secured or agreed terms on 2,500 plots on 18 new sites and it intends to purchase more sites before the end of 2010.
Its sales rates per outlet were now “comfortably” ahead of what they were last year with both visitor levels to its sites and cancellations remaining “consistent”.
The company expects 2010 to be more buoyant after launching the ‘New Heritage Collection’ of family homes which combine a traditional Arts and Crafts style exterior with high specification open plan interiors.
It says that customer response has been extremely positive and the collection is now featured in 13 show areas around the country, which will increase to 20 by June.
The statement reads: “Given the uncertainties surrounding the election, the economic environment and continued restrictions on mortgage availability, we expect the market to remain challenging throughout 2010.
“Nevertheless, with our strong management team, re-focused business, robust finances and the launch of The New Heritage Collection we are confident the business will continue to make progress.”
Redrow was founded by its Liverpool-born chairman Steve Morgan who retired in 2000 but returned following a boardroom coup last March.
As previously reported by TheBusinessDesk.com, in the half year to December 31 sales at the house-builder increased by 25% to £187.2m while legal completions rose 21.5% to 1,266.
