Record results for Redrow

Pre-tax profit nearly doubled, reaching £132.6m (2013: £69.4m).

Spurred by the government’s Help to Buy policy, which was used on 35% of private sales during the year, Redrow sold 3,597 new homes in the year, which was 27% up on the 2,827 sold in fiscal 2013.

Chairman Steve Morgan, who founded the company nearly 40 years ago, in November 1974, said: “Market conditions have returned to a more seasonal pattern of activity.  We have substantially increased our land bank, which should see a good growth in the number of outlets during the year.  This, combined with our strong order book, leaves me confident that the group will see another year of significant progress."

Mr Morgan said that the Help to Buy scheme was “providing assistance where it is needed most” as a large proportion of Redrow customers using Help to Buy were first time buyers and more than half were in the north of England. 

Redrow’s turnover has now grown 80% in the past three years. It is targeting turnover of £1.3bn for fiscal 2017.

“We forecast margins will continue to rise as we work out the remaining impaired land and we achieve more efficient recovery of operating expenses,” said group chief executive John Tutte. “We are targeting operating margins of 18% in 2017.”

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