Redrow profit soars to £314m, but housing moderates

Flintshire-based house building giant Redrow plc said on Wednesday its revenue increased 45% to £1.94 billion, only 8% below 2019, in the year to June 27, 2021, and profit before tax rose 124% to £314 million — but warned the buoyant housing market has moderated in recent months.

Legal completions increased by 39% to 5,620.

Redrow is proposing a final dividend of 18.5p, making a total of 24.5p for the year, in line with the company’s policy of three times dividend cover.

“The buoyant housing market has moderated in recent months and we anticipate sales rates will return to historically average rates over the course of the current financial year,” said Redrow chairman John Tutte.

“It is on this basis we have planned for the future and we are confident our timely investment in land, combined with strong demand for our Heritage homes, will support our longer-term growth aspirations.

“Additionally, our record order book also provides us with an excellent platform for the future with over £1.3bn of revenue already secured for the current financial year.

“As a result, the business is well-placed to deliver another set of strong results.”

The company’s medium-term revenue forecast for financial year 2024 is above £2.2 billion.

 

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