Redrow Chairman: “planning system is still failing” despite profit growth of over 100%

Deeside based house builder Redrow saw  pre – tax profits more than double in the six months to 31 December 2013 – pre-tax profits of £47.5 million, up 107 per cent on the same period in 2012, sales rose 41 per cent to £363m

image: times.co.uk

Redrow`s performance was buoyed by the strength of the housing market in the first half of the financial year having been assisted by the Government’s Help to Buy scheme and increased mortgage availability. 

In the last six months the average selling price of Redrow homes has risen 9 per cent to £232,000, this was primarily due to what Redrow describe as their ‘first meaningful contribution’ from London and a further change in geographical mix, with almost 50 per cent of revenues generated in London and the south of England.

In the chairman’s statement Mr Morgan said;

“I am delighted to report another period of strong growth for Redrow, and that we will be paying an interim dividend for the first time in six years.

We have started the calendar year well with private reservations since January up 24 per cent on last year from 12 per cent more outlets. We expect the housing market to remain robust and for consumer confidence to improve in line with the economy.

We have a strong pipeline of new sites in planning and we believe the Government is committed to continuing to speed up the process of obtaining implementable planning permissions.

We therefore remain confident that this will be another year of significant progress for Redrow.”

Despite the positive performance Steve Morgan criticised the speed of planning applications saying;

“The planning system is still failing to deliver implementable planning permissions at a fast enough rate to meet demand for housing.  We therefore welcome the initiatives in the planning consultation launched by the Government in December aimed at speeding up the planning process and look forward to their implementation as quickly as possible”

You can read the report here : Half yearly report