Redrow plans Scottish divestment as sales rise

UK-BASED housebuilder Redrow said yesterday that because of its positive sales so far this year, it plans to offload its Scottish operations to focus more on the South-East and London markets.

Britain’s sixth largest housebuilder by market value said it averaged 0.70 sales per site since the start of 2011, compared with 0.65 per week in 2010. Yet its Scottish business, which had a turnover of £31m and made 185 sales in 2010, was not as profitable as the company had hoped.

“Sales per outlet are at the top of industry comparables and reservations since the beginning of January are encouragingly ahead of last year,” Redrow said in an interim management statement.

Redrow’s private order book stood at £139m, a six per cent increase compared to the same period last year. Market expectations for Redrow’s full-year profit range between £15.4m and £25.5m, with the consensus at £18.2m.