Quitting London market pays off for Redrow

Grant Prior 2 weeks ago
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Pulling out of the London market is paying off for Redrow as the house builder posted results back to pre-covid record levels.

Redrow decided to quit the capital two years ago with only one major scheme in Colindale still to be completed.

Non-executive chairman Richard Akers said: “The group has continued its withdrawal from the London market and that is expected to be complete by the end of calendar year 2022, other than the ongoing Colindale development.

“Excellent progress has been made during the year executing our strategy to grow in the regions.

“Capital released from London in the last two years has been reinvested in land to help grow the regional businesses.”

For the 53 weeks to July 3 2022 Redrow recorded a pre-tax profit of £246m from turnover of £2.14bn as completions edged up to 5,715.

Headline profits were reduced by an exceptional charge of £164m to meet Government demands for developers to fund the replacement of unsafe cladding on buildings of 11m and above.

Akers is confident Redrow will continue its strong performance despite headwinds in the economy.

He said: “Given rising inflation and higher interest rates it is not surprising the buoyant housing market has moderated recently and demand has returned to historically average levels.

“It is on this basis we have prepared our medium term plan and we are confident our timely investment in land, combined with strong demand for our Heritage homes, will support our continued growth.

“In addition, our opening order book of over £1.4bn has put us in an excellent starting position for the 2023 financial year. As a result, the business is well placed to deliver another set of strong results.”

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