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Fri September 20 2019

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Redrow sales pass £2bn for first time

5 Sep House-builder Redrow has declared its sixth successive record year with sales topping £2bn for the first time and annual profit of more than £400m.

Redrow soars
Redrow soars

In the year to 30th June 2019 Redrow made a pre-tax profit of £406m (2018: £380m), an increase of 7%. Revenue was up 10% from £1.9bn last time to £2.1bn, driven by a 13% increase in legal completions to 6,443 units, passing the 6,000 milestone for the first time (2018: 5,718).

The operating profit margin was slightly down at 19.5% (2018: 19.9%), reflecting the investment in the new Thames Valley division which became fully operational at the beginning of July 2019.

Executive chairman John Tutte said:  “Since the start of the new financial year, trading has been encouraging and the demand for our homes is strong with reservations running ahead of last year. Additionally, we have exchanged contracts for a further PRS scheme at Colindale Gardens adding 347 plots to an already substantial order book.”

He added that although residential property transactions across the UK are running well below historical levels, “the new homes market has been less affected and remained comparatively resilient”.

He said: “Notwithstanding the political and economic uncertainty we face, we have every reason to be confident that 2020 will be another successful year for the group.”

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MPU

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