Redrow swings back into profit

British housebuilder Redrow swung to full-year pretax profit, well ahead of analyst expectations, thanks to an overhaul of the business, higher selling prices and more home sales.

The company reported a full-year pre-tax profit of £0.7m, against last year's pre-tax loss from trading operations before exceptionals of £44.2m and a total pre-tax loss of £140.8m.

Market expectations had ranged between a loss of £13.4m and £4.5m.

Economic uncertainty from government spending cuts and tax increases have hit consumer confidence since the general election in May, denting house sales.

"In volume terms Redrow has seen a small reduction in the number of reservations in the first ten weeks of our financial year," Redrow's chairman Steve Morgan said in a statement.

Redrow said the average selling price in the period rose nine per cent to £149,300 while legal completions rose 22 per cent to 2,587 homes.