Deeside based Redrow shrugs off Brexit uncertainty posting record half year profits as Chairman gets set to step down

Deeside based house Redrow has posted a 5% rise in first-half profit with sales reaching nearly £1bn during a record period for the housebuilder.

The company says that cost pressures reduced in the first half of the year as subcontract, materials and labour markets eased.

Pre-tax profit rose to £185m in the six months to December 31 with turnover for the same period up 9% to £970m

Redrow said the market, in the run-up to the festive period and the first two weeks of 2019, was subdued by “macroeconomic and political uncertainties.”

However, sales bounced back over the last three weeks, with reservations running at similar levels to last year’s strong market activity.

In his final report before he steps down as Chairman of Redrow Steve Morgan said:

Sales were negatively affected towards the end of the calendar year as a result of the political uncertainty surrounding Brexit and the effect of high Stamp Duty Tax.”

However, sales over the last three weeks have bounced-back with reservations running at similar levels to last year’s strong market activity.

It is nearly 45 years since I founded Redrow and when I step down as Chairman next month it will be exactly 10 years since I returned to the business.

I am proud of the legacy I leave behind having completed over 6,000 homes for the first time in 2018 and handed over our 100,000th Redrow home last October.

Redrow has a very strong team, an excellent balance sheet and the Heritage Collection product which I believe is the best in the industry.”

Redrow was set up by Steve Morgan in 1974 he stepped down for the first time in November 2000.

Morgan rejoined the firm which has its head office in Ewloe in March 2009.

He will be replaced as executive chairman by Redrow’s current chief executive John Tutte.