Redrow profit falls 66% but orders hit record £1.4bn

Flintshire-based house building giant Redrow plc said on Wednesday its profit before tax fell 66% to £140 million in the year to June 28 as revenue slumped 36% to £1.34 billion.

But Redrow said it has enjoyed encouraging trading since the start of its new financial year with reservations 12% ahead and a “record” order book of £1.42 billion.

The company said that subject to market conditions, it plans to resume dividend payments in 2021.

“The COVID-19 pandemic had a profound impact upon the group’s performance in the 2020 financial year but we entered the new financial year in a position of strength,” said Redrow executive chairman John Tutte.

“We have a record order book and brought forward very high levels of work in progress.

“This was due in part, to increased investment earlier in the year in anticipation of strong demand for the Help to Buy scheme ahead of changes to the scheme next year.

“We brought forward an order book of £1.42bn: up 39%, and reservations, in terms of value, in the first eleven weeks of the new financial year, are 12% ahead.

“The group is well-placed to deliver a robust performance.

“We have completed substantially more homes in the first few weeks of the new financial year than during the same comparable period last year whilst maintaining a record order book.

“This, combined with reduced investment in London, will deliver strong operating cash flow over the coming months to support our regional growth plans and, subject to market conditions, allow dividend payments to resume in 2021”.

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