Redrow optimistic about recovery

Housebuilder Redrow said half year revenues rose ten per cent, despite a challenging market, and is cautiously optimistic its recovery is set to continue.

Housebuilder Redrow said half year revenues rose ten per cent, despite a challenging market, and is cautiously optimistic its recovery is set to continue.

Pre-tax profit rose to £23.0m for the six months to December 31st 2012 from £15.3m the same time a year earlier. Revenue for the period increased to £257.0m from £232.8m.

Pre-exceptional operating profit jumped to £26.2m during the half year from £17.4m. Adjusted EPS rose to 4.8p from 3.7p.

Legal home completions increased to 1,202 from 1,168 while the private average selling price rose to £224,000 from £204,000 previously.

Chairman Steve Morgan commented: "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."

"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."

Underlining its confidence in future trading, Redrow expects to propose to a modest final dividend at the year-end.

Net debt reduced to £65.2m from £98.8m. Volume of private net reservations rose 24% and in the first eight weeks of 2013 climbed 8% to 443.

Morgan added: "We have started the second half well...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."

CJ

Recommended

Share tips of the week – 28 January
Share tips

Share tips of the week – 28 January

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
28 Jan 2022
Which assets will benefit as the “jam tomorrow” bubble pops?
Investment strategy

Which assets will benefit as the “jam tomorrow” bubble pops?

With tech stocks, cryptocurrencies and many other “long duration” investments crashing hard, the “jam tomorrow” bubble looks to be bursting. John Step…
24 Jan 2022
Three innovative Asian stocks to buy now
Share tips

Three innovative Asian stocks to buy now

Professional investor Fay Ren of the Cerno Pacific Fund highlights three of her favourite Asian stocks to buy now
24 Jan 2022
Share tips of the week – 21 January
Share tips

Share tips of the week – 21 January

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
21 Jan 2022

Most Popular

Shareholder capitalism: why we must return power to listed companies’ ultimate owners
Investment strategy

Shareholder capitalism: why we must return power to listed companies’ ultimate owners

Under our system of shareholder capitalism it's not fund managers, it‘s the individual investors – the company's ultimate owners – who should be telli…
24 Jan 2022
Amazon halts plans to ban UK Visa credit card payments
Personal finance

Amazon halts plans to ban UK Visa credit card payments

Amazon has said that it is to shelve its proposed ban on UK customers making payments with Visa credit cards.
17 Jan 2022
Temple Bar’s Ian Lance and Nick Purves: the essence of value investing
Investment strategy

Temple Bar’s Ian Lance and Nick Purves: the essence of value investing

Ian Lance and Nick Purves of the Temple Bar investment trust explain the essence of “value investing” – buying something for less than its intrinsic v…
14 Jan 2022