Record annual results for Redrow
Housebuilder Redrow has hailed a record set of results, defying fears over a housing market slowdown and a volatile political and economic environment.
The firm, whose chairman is former Wolves owner Steve Morgan, saw revenue rise 20 per cent to £1.66 billion in the year to June 30, while pre-tax profit rose 26 per cent to £315 million.
Redrow saw completions rise 15 per cent to 5,416 in the period and the average selling price of its homes increased seven per cent to £309,800.
Chief executive John Tutte said: "These exceptional results were achieved against an uncertain political and economic backdrop as a result of Brexit and also an ongoing requirement to manage an industry-wide shortage of skills to meet our build programmes."
The results come amid mounting signs that the wider property market is cooling amid sluggish economic growth.
Recent figures from Nationwide Building Society showed house prices dropped by 0.1 per cent in August, signalling that pressure on household finances from Brexit-fuelled inflation is hitting buyer confidence.
Mr Tutte said that while Redrow's strategy is to continue to grow the business, the rate of growth is expected to "moderate over time".
Nevertheless, Redrow has increased its medium-term guidance and now expects turnover in 2020 of circa £2.2bn and pre-tax profit of £430m.
Chairman Steve Morgan added: "Demand in the new homes market remains robust and we have not seen any impact from recent domestic and international political events."
