Redrow Homes have reported an impressive rise in pre-tax profits. The Welsh housebuilder announced record results for the year to June 2017, including a pre-tax profit increase of 26% to £315m.
“Redrow has continued to build much-needed new homes across England and Wales with completions up 15% to over 5,400,” commented chairman Steve Morgan.
“Our growth strategy has delivered record financial results for the fourth consecutive year. Pre-tax profits were £315m, up 26% on the prior year, with a 27% increase in earnings per share to 70.2p.” Redrow began the current financial year with a record order book, up 14% year on year to £1.1bn. Sales in the first nine weeks have also been very encouraging for the housebuilder – up 8% when compared to the same period last year.
“Our growth strategy has delivered record financial results for the fourth consecutive year. Pre-tax profits were £315m, up 26% on the prior year, with a 27% increase in earnings per share to 70.2p.” Redrow began the current financial year with a record order book, up 14% year on year to £1.1bn. Sales in the first nine weeks have also been very encouraging for the housebuilder – up 8% when compared to the same period last year.
“Based on the strength of our current performance and the robust demand that we are seeing, we are today updating our medium term guidance,” continued Morgan. “We now expect turnover in 2020 of c£2.2bn and pre-tax profit of c£430m. We expect the dividend in 2020 to rise to 32p per share.” Redrow also increased its number of employees by 12%, and now employs amtotal of 2,200 people. In addition, the housebuilder added 5,419 plots to its current land bank – of which over 60% were converted from forward land.
“These exceptional results were achieved against an uncertain political and economic backdrop as a result of Brexit and also an ongoing requirement to manage an industry-wide shortage of skills to meet our build programmes,” added chief executive John Tutte. But he added that Redrow’s rate of growth would: “moderate over time as divisions reach optimal scale and our scope for divisional expansion reduces.”
