Redrow land bank hits £4bn after record year

Shares in Redrow were up after it posted record turnover in the year to July of £864.5m and nearly doubled profit to £132.6m.

The Ewloe-based group's revenue was up 43%, driven by a 27% rise in the number of sales to 3,597 legal completions and 13% increase in average price to £239,500. Gross profit margin was 21.7%, compared to 18.8% at June 2013.

The current owned and contracted land bank increased by 2,562 plots to 16,724 plots, representing £4bn of future revenue.

Steve Morgan, chairman of Redrow, said: "November 2014 marks the 40th anniversary since I founded Redrow, therefore it is quite fitting that I am able to report a significant increase in turnover and pre-tax profits, both of which are a record for the group.

"The number of homes we built has increased by 27% and as a consequence of this ongoing growth, the number of people we employ has risen by 21%. Whilst this is clear evidence of the success of our strategy it also shows the positive impact of the Government's Help to Buy Scheme.

"Market conditions have returned to a more seasonal pattern of activity. We have substantially increased our land bank, which should see a good growth in the number of outlets during the year.

"This, combined with our strong order book, leaves me confident that the group will see another year of significant progress."

Redrow said the value of private reservations was up 53% from £668m to £1bn. Help to Buy represented 35% of private completions. Net debt increased to £172.6m compared to £91m in 2013, due to ongoing investment in land and work in progress. Redrow is active on 103 sites.

The board proposed a final dividend of 2p a share, double that of the dividend paid in 2013. Shares in Redrow were up 5p to 285p.

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