Redrow has posted record pre-tax profits for the third consecutive year, with Group revenue up 20% to £1.38 billion driven by a 17% increase in legal completions and a 7% increase in Average Selling Price to £288,600. Pre-tax profits surged 23% to 204 million.
“Redrow entered the new financial year with a record private order book of £807m, up 54% year on year,” Steve Morgan, Chairman of Redrow, said. “Sales in the first 10 weeks are very encouraging and up 8% on a strong comparator last year. “Our strategy of continued growth for the business is on track and I am confident this will be another year of significant progress for Redrow.”
Demand for new homes was strong throughout the year, Morgan said. “Our growth in output has benefitted from the Government’s Help to Buy scheme which has continued to be a major support, not only to Redrow, but to the industry as a whole,” he commented.
According to Morgan, the higher end of the market, and in particular Central London, had slowed down, principally as a result of the Stamp Duty changes that came into effect last year and further hikes that came into effect in April this year. Redrow reported that activity in this section of the market remains sluggish; however, Redrow’s exposure is very limited and all other areas in which we operate, including Outer London, have shown strong growth. “We have seen very little impact as a result of the Brexit vote,” said Morgan.