Redrow profits soar 70% to £43m

Aaron Morby 12 years ago
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Redrow has joined the swelling ranks of major house builders reporting big profit rises and margins back into double figures.

Chairman Steve Morgan, who launched a bid to take the firm private last month, saw pre-tax profits jump 70% to £43m for the year ending June 30.

Revenue increased by 5.8% to £479m, driven by a 15% increase in average selling prices. The improvement saw operating margins rise from 6.9% to 10%.

Steve Morgan, Chairman of Redrow, said: “Total private reservations in the first 11 weeks of the financial year are up 16% as a result of a year on year increase on outlets from 73 to 84.

“We are encouraged by the recent Government Housing and Growth announcement, however the outlook for the industry remains challenging.”

The average selling price of private homes increased by 17% to £204,100 as the firm increased the proportion of its family Heritage homes.  Legal completions for the year were marginally up to 2,458.

Redrow said it was pressing ahead with its expansion plans in London completing the first two houses at Ealing and started construction of its first of two major flatted schemes, One Commercial Street in Aldgate and Kingston Riverside in Kingston upon Thames.

The business bought a further four sites for around 1,000 plots. The biggest acquisition was the Woodford Aerodrome near Stockport where consent is being sought to create a new Garden Village of 550 homes.

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