Housebuilder Redrow’s revenue has climbed above pre-Covid-19 levels, as it continues its withdrawal from the London market.
Revenue grew 10 per cent to a record £2.14bn in the year to 3 July. While profit before tax hit £246m, down from the £314m, it reported a year prior due to one-time fire safety costs of £164m.
The group is expected to have completely exited the capital’s property market, except the Colindale development in north west London, by the end of the year.
“In addition to the record revenue achieved, the group still ended the year with an order book of £1.44bn,” non-executive chairman Richard Akers said in a statement.
“Excellent progress has been made during the year executing our strategy to grow in the regions. The new Southern business, based in Crawley, officially opened at the end of June but the team has been active in the land market for some time. This division is expected to make a positive contribution to profits in the current financial year.”
The London-listed company, like most housebuilders in the UK, has been boosted by rising house prices and demand.
Charlie Huggins, head of equities at investment firm Wealth Club, cautioned: “Make no mistake – the biggest reason for Redrow’s success is high house prices, and the general strength of the housing market.
“That is something over which it has no control, and the big bad wolf of recession could be about to blow away the good times.”