Redrow posts another record year as completed home numbers rise

Redrow has reported record annual profits, as it delivered higher numbers of completed homes.

The builder said pre-tax profits were up 7% at £406 million for the year to June 30.

Revenue was up 10% to £2.1 billion, driven by a 13% increase in legal completions to 6,443.

The number of affordable homes delivered surged 55% to 1,712 during the period.

It marked the sixth consecutive year of record results for the firm, which celebrated with a 9% uplift in the full-year dividend to 30.5p per share.

Shares in Redrow were trading 1% higher on Thursday.

Looking ahead, chief executive John Tutte said: “We are understandably cautious about the post-Brexit future and also the eventual impact of the impending changes to the Help to Buy scheme.

“We do however have a clear strategy to continue to grow, centred on our award-winning Heritage Collection that is so popular across a broad range of buyers.”

With reservations running ahead of last year, Redrow said it was confident that the current financial year would be “successful”.

Michael Hewson, chief market analyst at CMC Markets UK, said the results had defied a weaker industry outlook.

“Despite the slowdown in the housing market, it would appear that some house-builders are performing better than others, with Redrow outperforming its peers,” he said.

The accounts came a day after fellow house-builder Barratt also brushed off property market worries to deliver record annual profits.

But others have been having a tougher time, with Persimmon recently posting a decline in profits amid efforts to improve its quality and customer service.

Taylor Wimpey also saw half-year profits decline in July as rising building costs took their toll.