The Deeside housebuilder saw its pre-tax profit rise by 11% year-on-year in the second half of 2020, as both revenue and legal completions surged during “a period of intensive activity to rebuild output”.
Slightly more than 3,000 homes were completed in the six-month period, while incoming revenue hit £1.04bn, up 20% year-on-year, according to Redrow’s interim results today. First-half pre-tax profit was reported at £174m, while the business built its net cash position to £238m.
Redrow said reservations were up 6% year-on-year at £819m, and the company is 95% forward-sold for the current financial year.
Group chief executive Matthew Pratt said: “The group delivered a strong first-half performance whilst continuing to operate under strict Covid-secure procedures.
“During a period of intensive activity to rebuild output, it is pleasing to report we have maintained high levels of customer satisfaction and I am grateful to our teams for their ongoing hard work and commitment during these challenging times.
“We have seen a strong sales market during the first half driven by a combination of pent-up demand from the first national lockdown, the introduction of the Stamp Duty holiday and the impending end of the Help to Buy scheme for existing home owners.”
Given the strong cash position and order book, Pratt announced the resumption of dividend payments, with an interim dividend of 6p per share.
Pratt continued: “The acceleration of changing buyer trends, which are completely aligned to Redrow’s strategy, point to a positive outlook for the business. Our private forward sold position of £750m beyond the end of both the original Help to Buy scheme and the Stamp Duty holiday, demonstrates the resilience of our target market and the desirability of our product and the places we create.
“These fundamentals mean we can look confidently to the future and fulfilling our ambitions to rebuild and grow the business.”