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Record performance from Wolves owner Steve Morgan's Redrow

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Wolves owner Steve Morgan's housebuilding company Redrow has enjoyed a record-breaking first half performance, boosted by continuing demand for new homes across the UK.

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In the first six months of its financial year, to the end of December, pre-tax profits were up 14% to £110 million, while revenue rose 8% to £603m – both records for the business.

It sold 2,178 homes, an 18% increase on the same period a year ago.

The only slowdown it has seen has been in Central London, but Redrow has already shifted its focus to building homes in Outer London and the commuter belt.

Outside of London, the average selling price of Redrow's homes has risen 11% over the last 12 months, to around £300,000.

Mr Morgan said the Government's Help to Buy scheme, set to run until at least 2020, has given the company the confidence to build more homes. It has also invested heavily in new sites, building up its land bank to 21,325 housing plots.

Demand has continued to be strong since the start of the year, while Redrow 'eagerly awaits' the launch of the Government's Starter Homes Initiative aimed at helping young people get on the housing ladder. It also expects to benefit from the recently launched 40% Help to Buy Equity Loan Scheme for the London market.

Steve Morgan said this morning: "I am delighted to report Redrow has again generated outstanding first half results. We legally completed almost 2,200 new homes in the period, 18% higher than last year, leading to record first half pre-tax profits of £104m.

"As a result of this strong performance, whilst we continue to invest in growing the business, we have also doubled the interim dividend to 4p per share.

"We are only at the beginning of the spring selling season, however demand for new homes remains robust. We ended the first half with a record order book up 51% on this time last year, and in the first six weeks of the second half have secured 455 private reservations, 10% ahead of last year.

"I am confident this will be another strong year of growth for Redrow."

Meanwhile the shortage of skill labour has remained a problem for the building industry, but Redrow says it now has 304 apprentices under training among its 1,818-strong workforce. That workforce has increased by almost 1,200 since the depths of the post-credit crunch housing crisis in 2009.

Mr Morgan resigned as Wolves chairman last year and put the club up for sale but said last month there had so far been 'no firm talks' with any potential buyer for the club.