Redrow profit soars to £250m on 17% completions hike

Aaron Morby 8 years ago
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Volume house builder Redrow has outpaced its rivals delivering the biggest rate increase in housing completions last year to enjoy record-breaking profits up 23% to £250m.

Chairman Steve Morgan ramped up the business over the year lifting legal completions 17% to deliver over 4,700 much-needed new homes.

The ambitious growth strategy over the past three years has paid off with legal completions up 67%, turnover more than double and profits skyrocketing 262%.

To meet growth Redrow expanded its workforce over the year from 1,600 people to just under 2,000 adding over 300 direct jobs.

The rise in completions and 7% growth in average selling price helped to lift Redrow turnover by 20% to a record £1.38bn in the year ending June 30.

Morgan said the only weak area nationally remained London, where Stamp Duty hikes had created a sluggish market and Redrow now had little exposure.

“Redrow entered the new financial year with a record private forward order book of £807m, up 54% on the previous year; including social housing, the total forward order book is £897m, up 51%. “

He said: “Sales in the first 10 weeks are very encouraging and up 8% on a strong comparator last year.

“We have recently launched a number of significant new sites and have a strong pipeline in the planning process.  Our strategy is to continue to grow the business, increasing the number of outlets and hence the number of homes we build.”

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