Partner Article

Redrow profits jump 70%

Property developer Redrow has reported a surge in profits up 70% to £43m “against a backdrop of a challenging marketplace.”

Revenues for the house seller saw a slight increase from £452.7m to £478.9m, which Redrow said was driven by a 15% rise in average selling.

Redrow design and develop properties in the UK and sell to individual customers, landowners, suppliers, subcontractors and investors.

Steve Morgan, Chairman of Redrow, said: “Redrow has once again delivered a strong set of results with a significant improvement in profitability against the backdrop of a challenging marketplace.

The company’s New Heritage home collection currently accounts for 67% of the firm’s annual turnover after Redrow focussed on its family housing products.

Mr Morgan continued: “The average selling price of a New Heritage home is now £215,100, which is a 7% increase on the previous year.”

“We are encouraged by the recent Government Housing and Growth announcement, however the outlook for the industry remains challenging.

Supply of mortgages, although slightly improved on last year, remains a significant constraint, as does public confidence due to the country’s fragile economic state.“

The organisation’s chairman expressed his confidence for the coming year, after Redrow performed strongly over the last 12 months.

Increased sales since the economic downturn improved margins outside of Scotland from 7.5% to 10%, while improvements in product mix and high profits on land sale also widened margins.

This was posted in Bdaily's Members' News section by Miranda Dobson .