Demand for new homes robust despite Brexit uncertainty says Deeside based Redrow as it posts record profits
Redrow the Ewloe based housebuilder has revealed this morning record annual revenues and profits
Revenue for the year to June 30 increased by 16% to £1.92bn from £1.66bn the previous year due to an increased number of houses completed and a 7% increase in Average Selling Price to £332,300.
Legal completions rose by 9% to 5,913 with Redrow posting a record pre-tax profit of £380m, up 21% from £315m 2017.
The company said that despite the uncertainty surrounding Brexit, demand for new homes continues to be robust, and overall house price inflation has “moderated to a sustainable 2%.”
Redrow entered the current year with a record order book of £1.14bn, an increase of £110m over the previous year, land holdings have also increased by 4,300 plots to 30,700 up from 26,400 in 2017.
The housebuilder created a further 100 jobs in 2018 and now directly employ 2,300 people, it has also recruited 173 new apprentices, trainees and graduates in the last year making 343 in total, “an industry leading 15% of the workforce” Redrow said.
Commenting on the results Steve Morgan, Chairman of Redrow, said:
“I am delighted to report that Redrow has delivered another year of strong growth and record results, achieved by completing 5,913 new homes a 9% increase on the previous year. Revenues reached £1.92bn and pre-tax profit increased by 21% to £380m.
This excellent trading performance enabled us to achieve strong cash generation such that we ended the year with net cash of £63m. As a result we are proposing a final dividend of 19p which would give a full year dividend of 28p per share, 65% up on last year.
Redrow is committed to growing our output to help the country’s requirement to increase the number of new homes built.
We have a very strong forward order book, first class land holdings, an excellent balance sheet and we are able to react quickly to changing circumstances.
However, there is no doubt that clarity over Brexit and the future of Help to Buy would improve market sentiment. Given that clarity, we will continue to deliver.”
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