Ewloe based Redrow Homes see profits jump 63%
In the year to June, pretax profit was up 63 per cent to £70m with group revenue increasing 26 per cent to £604.8m.
The company said “Help to Buy” has made a significant contributions to forward sales but highlighted private completions of just 3 per cent.
The New Heritage Collection, a new set of homes inspired by the Arts and Crafts movement, represented 85 per cent of private turnover, compared with 67 per cent in 2012.
Steve Morgan, Chairman of Redrow, said:
“Redrow has today reported another set of strong results as we continue our journey towards more normalised profit levels.
As a consequence of this the Board is proposing the reinstatement of a final dividend of 1p per share.
Our strategy of focusing on high quality differentiated family housing product continues to pay off with The Heritage Collection firmly established as our primary brand accounting for 85% of our private turnover during the year.
[Tweet “”Market confidence is returning to more normal levels, and we have started the new year well” “]
However, Mr Morgan said the current planning system is a “bureaucratic mess” which has left his firm with 16,600 plots currently locked in the system.
Redrow said it is starting to see the first signs of material and labour shortages and is expecting to experience “cost pressures across certain materials and trades” in the coming year.
He hit back at critics who accuse house builders of land banking and put the blame on bureaucracy for slowing down construction starts.
Press release in full: Redrow
Image source: Guardian.com