REDROW, the Flintshire housebuilder headed by Liverpool entrepreneur Steve Morgan, posted increased sales and profits for the six months to December 31, today.
Revenues rose 10% to £257.0m driven by a 10% increase in the private average selling price to £224,000, and pre-tax profits soared by 50% to £23m.
Private net reservations were up 24%, while the group’s top-selling New Heritage Collection now makes up 87% of private turnover, compmared with 60% a year ago.
The average number of sales outlets rose to 83, up from 72 in 2012, and is expected to grow to 90 by June this year.
Operations in the London region are making good progress and 700 plots have now been acquired with a gross development value of £450m.
Redrow’s current land bank at the end of December was 13,295 plots compared with 12,356 in June last year, and the volume of private net reservations in the first eight weeks of 2013 was up 8% to 443.
Chairman Mr Morgan said: “Redrow has delivered a strong set of results with another significant improvement in profitability.
“The backdrop remains challenging, but the stability of the housing market, the gradual improvement in both the planning environment and the mortgage market, together with our distinct focus on our high-quality, differentiated family housing range has meant that we have continued to make good progress.”
He said: “We applaud the Government’s attempts to improve the market through the NewBuy, extension of FirstBuy, and Funding for Lending schemes, and if the current trend in reduction of mortgage rates continues, it will undoubtedly assist in the housing market’s gradual return to more normalised conditions.
“The National Planning Policy Framework has also stimulated some positive changes in the planning environment, albeit this has still got a long way to go.”
Looking forward, he said: “We have started the second half well, with reservations up 8% on the same period last year.
“Additionally, we are on track to increase the number of outlets from 82 to around 90 by June.
“Given the strong pipeline of new sites and the modest improvement in market conditions, I am cautiously optimistic that Redrow’s strong recovery is set to continue.”