Citing a strong order book and an increase in demand driven by Help to Buy and the Stamp Duty holiday, the national housebuilder said it had “better than expected results” for the fiscal year ending 27 June in a London Stock Exchange report.
Redrow also credited its success to purchasing around 8,300 plots for its land portfolio. Its order book for 2021 was £1.43bn, compared to £1.42bn the year before and £1.01bn in 2019. The company also said that house price inflation was “more than offsetting build cost increases”.
To that end, Redrow also reported revenue of £1.94bn for its 2021 fiscal year, a 45% increase from 2020. However, revenue was still down 8% from the £2.11bn earned in 2019.
Revenue was driven from the completion of 5,620 homes and from £37m in land sales. Average sale prices for homes also increased by 2% to £338,500, according to Redrow.
One of the greatest gains this year compared to 2020 was in net cash, where Redrow reported £160m compared to a net debt of £126m the year before.
After taking into account net financing costs, Redrow said that its profit before tax was £314m in 2021, compared to £140m in 2020.
Looking ahead, Redrow chairman John Tutte said: “The buoyant housing market has moderated in recent months and we anticipate sales rates will return to historically average rates over the course of the current financial year. It is on this basis we have planned for the future and we are confident our timely investment in land, combined with strong demand for our Heritage homes, will support our longer-term growth aspirations.
“Additionally, our record order book also provides us with an excellent platform for the future with over £1.3bn of revenue already secured for the current financial year. As a result, the business is well-placed to deliver another set of strong results.”
Tutte also said that the group would largely withdraw from the London market to focus on regional business and its heritage collection.
This was Tutte’s final report as chairman for Redrow, as he is stepping down and retiring. He is being replaced by Richard Akers.
Redrow Group chief executive Matthew Pratt emphasised Redrow’s commitment to reduce its overall emissions and to improve the energy efficiency of its buildings.
“We are also collaborating with several major manufacturers to assess the practical and design implications of air-source-heat-pumps,” Pratt said. “These trials form part of our wider product development and specification strategy to meet the forthcoming Future Homes Standard and the phasing out of gas boilers from 2025, and as we look beyond to deliver genuine net zero carbon homes that are both comfortable and affordable.”
Redrow shares were down 3.2 pence on the morning of the announcement.