Record half year profits for Deeside based Redrow Homes
Redrow the Ewloe headquartered housebuilder has revealed this morning it has nearly doubled its profits for the half year to 31 December.
Defying talk of a housing market slowdown Redrow has been buoyed by low interest rates, rising house prices and the governments ‘help to buy’ scheme in the last six months of 2014.
Revenue growth from homes sales and one-off commercial sales resulted in the group delivering record first half revenues of £560.6m, 54% higher than the same period last year.
The impressive increase in turnover, combined with house price inflation exceeding of build cost inflation has seen operating profit for the first half of the 2015 financial year increase by 95% to £95.4m.
Redrows’ current growth has also seen the number of directly employed people working for the company reach a record high to 1,550, up 900 from 2009 levels.
Steve Morgan, Chairman of Redrow, said
“I am delighted to report Redrow has again generated outstanding results. Our policy of retaining capital to concentrate on growth continues to reap the benefit, with a further substantial rise in both turnover, up 54% and pre-tax profits, up 92%.
As a result of this strong performance, whilst we continue first and foremost to invest in the ongoing growth of the business, we have also doubled the interim dividend to 2p per share.
Whilst we are only at the beginning of the spring selling season, demand for new homes is strong and the welcomed changes to stamp duty will undoubtedly help home buyers within our market segment.
We started the second half with a very strong order book and are expecting to increase the number of active outlets to 115 by June 2015, a 12% increase. Redrow is in great shape and I am confident this will be another strong year of growth for the business.”
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