Redrow plans to reinstate dividend as London exit progresses
Redrow announced it has made progress on pulling out of the London market as the developer focuses on the post-pandemic changes in consumer behaviour, saying it will reinstate its dividend at its half-year results.
The housebuilder said it has exited three of the six London sites it had decided not to develop and is continuing to make headway with the plan.
The decision to leave the capital was made due to the “resolute demand for homes with more space to live and work as customers reflect on their lockdown experiences”.
In an update to the market ahead of Redrow’s annual general meeting this morning, the FTSE 250 company said the value of net private reservations in the 18 weeks to 30 October was five per cent ahead of last year at £630m.
Demand in the regions has been “particularly strong”, with the value of reservations surging by 17 per cent.
Redrow said pricing has remained firm with modest rises in the regions, and the average selling price over the 18 weeks was up two per cent on last year at £396,000.
Meanwhile, home turnover during the period soared 48 per cent on last year, reaching £657m and the total forward order book stood at £1.5bn, a 10 per cent increase on last year.
Redrow had net cash of £115m, compared to debt of £32m last year, and said it expects to reinstate dividend payments at the half-year period, and will be cash positive for the remainder of the financial year.
Chief executive John Tutte said: “The Group’s strategy to focus its future growth in the regions means it is well-positioned to capitalise on the evident shift in buyer priorities as a result of lockdown experiences.
“This, combined with our disciplined approach to operations, a healthy balance sheet and a strong forward order book, creates a solid platform for the future and puts Redrow on course to deliver a robust set of results this financial year.”