 revealed impressive half year results on Wednesday, detailing a record pre-tax profit of £140 million.){kind=link}
Housebuilder Redrow (LON:RDW) revealed impressive half year results on Wednesday, detailing a record pre-tax profit of £140 million.
Group revenue also rose 23 percent to a first half record of £739 million, boosted by a 13 percent increase in house sales in the six months to December. Profits rose 35 percent, with revenue from new homes increasing 26 percent to a first half record of £733 million.
The housebuilder’s gross margin rose to 25 percent, up from 24.2 percent in 2016, with an operating margin of 19.5 percent.
Steve Morgan, Redrow’s chairman, commented on the results:
“Redrow delivered a robust performance in the first half, producing another set of record results. In the last six months legal completions increased by 13 percent to 2,459 adding to the country’s much needed supply of new homes.
“At the beginning of February we purchased Radleigh Homes, a regional housebuilder based in the East Midlands. Radleigh is an excellent fit given its geographical location and high quality market position. Radleigh will form the basis of a new division for the Group.
“We entered the second half with a record order book, and customer traffic and sales remain robust. Given the strength of our sales position and land holdings our growth strategy is firmly on track, giving me every confidence this will be another year of significant progress for Redrow.”
The strong results come as Redrow stands accused of ‘landhoarding’ in the wake of Tuesday’s government White Paper on housing. Chairman Steve Morgan rejected the accusations on BBC Radio 4’s Today programme on Wednesday, saying the White Paper was “disappointing” and the planning system was the biggest barrier to new houses.
The suggestion that housebuilders were sitting on landbanks in order to maximise profits was “completely incorrect”, he added.
Shares in Redrow are currently trading up 3.70 percent at 469.90 (0929GMT).