Redrow sees 2022 revenues exceeding £2bn

The company on Wednesday forecast turnover of around £1.94bn for the year to June 27, up from £1.34bn last year as the Covid-19 pandemic battered the economy, but lower than 2019’s £2.11bn.

Demand for new homes soared during the periods driven by locked-down Britons seeking larger properties with outdoor space and the tapering of the stamp duty holiday benefit to £2,500 from £15,000.

Redrow said it expected an operating margin of more than 15.5%, compared with 11.1% last year and 19.5% in 2019. Its total order book stood at £1.43bn, in line with June 2020.

The business ended the financial year with a net cash balance of £160m compared with net debt of £126m a year ago.

Weekly reservations rose to 0.70 from 0.67 in 2020 while revenue per outlet per week was £288,000, up from £259,000 a year ago.

"This high sales rate has been achieved despite the reduction in the use of Help to Buy which only accounted for 13% of private reservations in the second half of 2021 (2020: 50%)," Redrow said in a statement.

The Halifax price index survey on Wednesday showed house prices dipping slightly in June, the first monthly fall since January.