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Redrow says housing market is finding a new normal

9 Feb 23 Half-year results from house-builder Redrow suggest remarkably little change between 2021 and 2022.

Redrow's interims show revenue similar to the record first-half last time at £1,031m (2022: £1,052m). Pre-tax profit was also down only fractionally at £198m (2022: £203m).

The numbers relate specifically to the 26 weeks to 1st January 2023, which is the first half of Redrow’s 2023 financial year.

Chief executive Matthew Pratt said: “Redrow’s proven business model has played an important role during a time of significant political and economic uncertainty. We have award-winning homes and places, a strong forward order book, land acquired in the last few years at good margins, and current cash reserves of £107m. This is despite completing a £100m share buyback exercise on 13th January 2023, just after the financial half-year under review.

“We have experienced a positive start to second half trading. Whilst 2023 will be a challenging year as the market resets, early indications are better than anticipated and the market appears to be finding a new, natural level.

“We entered the second half with a total order book of £1.1bn, of which £0.8bn was private. Our net private reservation rate for the first 5 weeks of the second half was an encouraging 0.51 compared to 0.38 in the first half.  We therefore expect to achieve revenue of around £2.05bn for the full financial year, with an operating margin in the region of 18% to 18.5%.”

Redrow recently became the first large house-builder to begin selling homes fitted with air source heat pumps as standard. Underfloor heating will also now be standard on the ground floor in Redrow’s detached homes.

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