Redrow order book close to record levels at £1.5bn

Flintshire-based house building giant Redrow plc said on Friday its homes turnover for the 18 weeks to October 30 was up 48% up on last year at £657 million and its order book remains close to record levels at £1.5 billion, a 10% increase on this time last year. 

The company said it continue to expect to reinstate dividend payments at the half year.

In an AGM statement, Redrow chairman John Tutte said: “We entered the new financial year in a position of strength and this has been reinforced with strong trading since the start of the year.

“There has been resolute demand for homes with more space to live and work as customers reflect on their lockdown experiences …

“The value of net private reservations in the 18 weeks to 30 October 2020 was 5% ahead of last year at £630m (2020: £598m excluding £119.5m PRS sale at Colindale Gardens).

“Demand in the regions has been particularly strong with the value of reservations 17% ahead. 

“The private revenue per outlet per week on a like-for-like basis (excluding the PRS sale) was £302k compared to £262k last year.

“Pricing has remained firm with modest gains in the regions.

“The average selling price of private reservations for the first 18 weeks was 2% up on last year at £396,000 (2020: £389,000 excluding the PRS sale).

“Homes turnover for the 18 weeks to 30 October 2020 was 48% up on last year at £657m. 

“This strong performance has not depleted the total forward order book which currently remains close to record levels at £1.5bn, a 10% increase on this time last year. 

“Our balance sheet is strong and at the end of week 18, we had net cash of £115m (2019: net debt £32m).

“We continue to expect to reinstate dividend payments at the half year and to be cash positive for the remainder of the financial year.

“I am pleased to report we are making good progress on scaling-back our operations in London.

“We have now exited three of the six sites we decided not to develop and we continue to make headway on the balance …”

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