Redrow touts ‘record’ order book as revenue climbs towards pre-Covid levels
Revenue at housebuilder Redrow has begun climbing towards pre-pandemic levels, as it touts a “record” order book after reinstating a dividend for loyal shareholders.
Revenue hit £1.94bn in the year to 27 June, just eight per cent behind 2019, after it soared 45 per cent from 2020’s supressed figure.
Profit before tax surged 124 per cent to £314m from the year before, which lagged 23 per cent behind its pre-pandemic profit.
While the housebuilder’s record order book, although it rebounded in 2020 despite restrictions, has grown by a further £420m on 2019’s orders.
After a slight dip this morning, shares lifted 0.5 per cent to 703.6p per share by 4pm on Wednesday.
Redrow has forecast an at least £2.2bn revenue for 2024, as the housebuilder felt confident that “we have returned to a normal market”.
The property developer has also reinstated a dividend of 18.5p this year, some 2p less than its pre-Covid-19 dividend.
The group’s chairman, John Tutte, said that despite the backdrop of uncertainty that many businesses in the UK faced at the beginning of the year, the group has performed “better than expected”, completing some 5,620 homes in the period.
“The group reversed an opening net debt position of £126m to end the year with net cash of £160m after making a significant investment in new land.
“The buoyant housing market has moderated in recent months and we anticipate sales rates will return to historically average rates over the course of the current financial year.”
Tutte added that the group’s investment in land, combined with a strong demand for homes, means the market is ready to support Redrow’s “longer-term growth aspirations”.
“Additionally, our record order book also provides us with an excellent platform for the future with over £1.3bn of revenue already secured for the current financial year.”