Housebuilder Redrow boosts dividend after record revenues and profits

Housebuilder Redrow made record revenues of nearly £1.7 billion helping it hike its dividend by 70%, its latest annual results show.

The company, which has 15 active developments across Kent, sold 5,416 homes nationally in the year to the end of June, up 15%, at an average selling price of £309,800, up 7%.

This helped it boost revenues by 20%, giving it a record pre-tax profit of £315 million, an increase of 26%.

A Redrow development, the Parsonage, at Marden
A Redrow development, the Parsonage, at Marden

Across Kent it sold nearly 500 homes. It expects around 650 will be completed this year.

It has led to a bumper payday for shareholders, who saw their full-year dividend rise from 10p to 17p a share.

The company, which employs about 2,200 people, was helped by the “good” availability of mortgages and continuing record-low interest rates.

It has a record £1.1 billion order book, up 14%.

Bosses said the government’s Help to Buy scheme had “boosted housing supply” – it made 1,882 reservations under the initiative – and said they would work with ministers to “consider the future of the scheme beyond 2021”.

Chairman Steve Morgan said he expects turnover to reach about £2.2 billion next year, boosting pre-tax profits to about £430 million. He predicted dividends would rise to 32p a share.

"I am confident this will be another year of significant progress for Redrow..." - Steve Morgan, Redrow

He said: “Based on the strength of our current performance and the robust demand that we are seeing, we are today updating our medium term guidance.

“Our strategy of continued growth for the business is on track. I am confident this will be another year of significant progress for Redrow.”

The company is building 950 homes at Ebbsfleet Garden City, of which 63 have been completed so far.

Chief executive John Tutte added: “Our major Garden Village developments at Woodford in Cheshire, Ebbsfleet in Kent, Tamworth in the Midlands and Plasdwr in Cardiff are designed to create attractive and great places to live.

“They are well-located to take advantage of excellent transport links but more importantly, are set in landscaped environments where families can live and enjoy a healthy lifestyle.”

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