Redrow doubles dividend as first half profit rises

Housebuilder Redrow posted a rise in first half pre-tax profit as revenue and completions grew.

In the six months to the end of December, pre-tax profit increased 14% to a record £104m, on revenue of £603m, up 8% from the same period in 2015. Earnings per share, meanwhile, were 15% higher at 22.9p and the operating margin was 18.2% versus 17% the previous year.

Legal completions were up 18% in the period to 2,178, with Help to Buy continuing to support demand.

In addition, the company announced an interim dividend of 4p per share, which was double that of last year, and guidance of 10p for the year, compared to 6p in 2015.

Chairman Steve Morgan said: “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.”

Redrow said the average selling price of its private homes rose 2% in the half due to the shift of its London business away from high priced Central London apartments to concentrate more on the Outer London commuter market where demand remains strong.