Redrow increases profit as order book hits £1.5bn
Redrow, one of the UK’s largest house builders, has reported a 16.6 per cent increase in profit as the order book hit £1.5bn.
In the 27 weeks to 2 January, the FTSE-250 group registered a record revenue of £1.052bn, with operating margins returning to normalised levels of around 19.5 per cent, one year ahead of previous guidance. Redrow’s interim dividend also went up 4p to 10p, leading the company to return to a 33:67 payout.
“We have capitalised on strong demand, improved sales margins and continued to invest for growth,” commented Matthew Pratt, Redrow’s chief executive.
“The value of our first half reservations was £884m, an increase of 6 per cent on the same period last year (2021: £836m), and our total order book increased to £1.5bn (2021: £1.3bn), leaving us well placed for the future.”
Redrow’s momentum has continued in the last month with private reservations averaging around £417,000 per week, while house price inflation continues to exceed build cost inflation.