Redrow sees 10% rise in FY revenue on new home completions

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Housebuilder Redrow saw a 10% increase in annual revenue to 'record' levels on the back of an increase in completed new homes and was confident about its 2020 prospects even as it remained cautious about the post-Brexit future.

Revenue increased 10% to £2.1bn while pre-tax profit climbed 7% to £406m for the year ending 30 June 2019.

The firm also reported an 8% increase in operating profit to £411m.

Redrow said it was continuing to deliver on its growth strategy with legal new home completions up 13% to 6,443, driven by a 55% increase in social housing output which accounted for the average selling price falling by 2% to £324,500.

Further, the number of affordable homes delivered was up 55% and Redrow added 7,379 plots to current land holdings, 40% of which were converted from forward land.

'We are understandably cautious about the post-Brexit future and also the eventual impact of the impending changes to the Help to Buy scheme,' said executive chairman John Tutte, adding that the firm had a clear growth strategy focused on its popular Heritage collection.

'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. 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,' added Tutte.

The company said it would pay a final dividend of of 20.5p per share, giving a full-year dividend of 30.5p per share, a 9% increase on prior-year levels.


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