Housebuilder Redrow's revenues and profits rise to record

Jasper Jolly
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Redrow completed a record number of homes in the first half (Source: Getty)

Housebuilder Redrow recorded record profits and revenues after completing it highest ever number of homes in the first half of its financial year.

The figures

Profits before tax rose by 26 per cent year-on-year in its first-half accounting period to hit £176m. Revenues rose by 20 per cent to £890m.

Legal completions from by 14 per cent to 2,811 during the period, while order books were up by five per cent year-on-year at £1.05bn.

Read more: What house price slowdown? Redrow profits jump by a quarter

Operating margins rose slightly to 19.7 per cent, while return on capital employed rose to 25 per cent.

Redrow's interim dividend was 9p per share, up from 6p in 2017.

Why it's interesting

This time last year Redrow was chasing Bovis Homes for a merger. That fell through after Bovis rejected their advances, so the FTSE 250 firm has had to look for growth through other means.

The Flintshire-headquartered builder has since defied the slowdown in house prices to post a string of strong profits.

Economists are not confident about the state of the UK housing market, after an extended period of real wages being squeezed and uncertainties around the Brexit process.

What Redrow said

Steve Morgan, chairman of Redrow, said: "Reservations in the first five weeks of the second half have been in line with the strong comparable period last year. We entered the second half with a record order book, and customer traffic and sales remain robust.

"Given the strength of both our order book and land holdings, together with the robust sales market, our growth strategy remains on track. This gives me every confidence it will be another year of significant progress for Redrow."

Read more: Redrow stops pursuing Bovis Homes

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