Redrow hits records with £2.1bn revenue, £406m profit

Flintshire-based house builder Redrow said on Thursday its revenue rose 10% to a record £2.1 billion in the year to June 30 and pre-tax profit climbed 7% to a record £406 million, all driven by a 13% increase in legal completions as it built 6,443 homes.

The house builder did concede however it is worried about the UK’s post-Brexit future and also worried about the eventual impact of impending changes to the Help to Buy scheme.

Redrow is proposing a final dividend of 20.5p per share giving a full year dividend of 30.5p per share, 9% up on last year.

Redrow Executive Chairman John Tutte said: “I am delighted to report that Redrow for the sixth consecutive year has delivered record results.

“The group completed 6,443 homes, 13% up on the previous year and passing the 6,000 milestone for the first time.

“Revenue reached £2.1bn and pre-tax profit increased by 7% to £406m.

“This excellent trading performance led to strong cash generation and we ended the year with net cash of £124m after making the ‘B share’ payout in April.

“As a result we are proposing a final dividend of 20.5p per share giving a full year dividend of 30.5p per share, 9% up on last year.

“We are understandably cautious about the post-Brexit future and also the eventual impact of the impending changes to the Help to Buy scheme.

“We do however, have a clear strategy to continue to grow centred on our award winning Heritage Collection that is so popular across a broad range of buyers.

“Since the start of the new financial year, trading has been encouraging and the demand for our homes is strong with reservations running ahead of last year.

“Notwithstanding the political and economic uncertainty we face, we have every reason to be confident that 2020 will be another successful year for the group.”

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