Redrow’s share price jumps as it announces record results
Redrow's share price jumped five per cent in morning trading after the housebuilder announced a record set of results.
The figures
Redrow's revenue was up 20 per cent to £1.38bn, which the company said was down to a 17 per cent increase in completions and a seven per cent increase in the average selling price of units.
For the year ending 30 June, the housebuilder made a pre-tax profit of £250m, an increase of 23 per cent on last year's figure.
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In the first 10 weeks of the year, sales were up eight per cent.
Why it's interesting
The government's Help to Buy scheme boosted Redrow's completions, the company said, helping it to continue to deliver growth.
Anthony Codling at Jefferies Bank said: "Once again Help to Buy takes a leading role in today's results. Help to Buy (for those with access to it) is a fine antidote to Brexit Blues."
Read more: Berkeley Group's home reservations hit by stamp duty and the Brexit vote
The good news from Redrow comes as Berkeley Group – which has been relegated from the FTSE 100 due to its share price tumble after the Brexit vote – said its customers had become less committed due to stamp duty tax changes and the EU referendum.
What Redrow said
Steve Morgan, chairman of Redrow, said: "I am delighted to report that for the third consecutive year Redrow has delivered a record set of results.
"Our strategy of continued growth for the business is on track and I am confident this will be another year of significant progress for Redrow."