Redrow shows optimism as profits jump in first half
House builder Redrow saw a strong rise in profits in the first half and seems cautiously optimistic about the housing market during the rest of the year.
House builder Redrow saw a strong rise in profits in the first half and seems cautiously optimistic about the housing market during the rest of the year.
Pre-tax profit jumped 80% from £8.5m to £15.3m, ahead of expectations of £14m (Panmure Gordon), helped by increased average selling prices, improved margins and lower financial expenses and net financing costs. Gross margins improved from 13.4% to 15.4%.
Meanwhile, revenues rose 8% from £216.1m to £232.8m, exceeding Panmure's £210m estimate. Excluding the sale of the Scottish business in June 2011, like-for-like revenues were 16% higher.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The average selling prices of Redrow's homes increased from £164,000 to £194,000, while the price of its private homes jumped from £171,000 to £204,000.
"Redrow has again delivered a strong set of results with a significant improvement in performance against the backdrop of a challenging marketplace," said Chairman Steve Morgan.
"Although sentiment remains fragile, I detect increasing confidence in the housing market, particularly amongst first time buyers. This trend should be helped when the availability of up to 95% mortgages kicks in under the NewBuy scheme towards the end of March," he said.
No dividend is being declared, as the group believes it should reach an "appropriate level of earnings" first.
BC
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.
-
MoneyWeek news quiz: How much could you get in car finance compensation?
The car finance scandal, inheritance tax, and house prices all made headlines over the past few days. Test your knowledge while reviewing this week’s top stories with MoneyWeek’s news quiz
-
The biggest fossil fuel financing banks – is yours on the list?
You may not know it, but your savings could be being used to finance the fossil fuel industry. We look at the banks with the best and worst climate policies.