Redrow announces 35% pre-tax profit increase

The Flintshire-based housebuilder posted revenue of £739m for the six months to December 2016, a 23% increase on the same period in 2015, and said that its pre-tax profits had reached a record level of £140m.

The figure is an increase of 35% compared to the £104m profit achieved in the six months to December 2015.

The financial results are for Redrow’s first half of its 2017 financial year.

The housebuilder said that its current land bank was up 18% to 25,300 plots, compared to 21,430 in December 2015.

Legal completions rose 13% to 2,459, and the average selling price of private homes increased by 12% from £306,000 to £344,000, which Redrow said was mainly due to a shift in geographical mix, with 47% of turnover being generated in the South of the UK, compared to 38% in the first half of last year.

Steve Morgan, chairman of Redrow, said: “Redrow delivered a robust performance in the first half, producing another set of record results. In the last six months legal completions increased by 13% to 2,459 adding to the country’s much needed supply of new homes.

“We entered the second half with a record order book, and customer traffic and sales remain robust. Given the strength of our sales position and land holdings our growth strategy is firmly on track, giving me every confidence this will be another year of significant progress for Redrow.”