Reporting on their full year results, chief executive John Tutte said that the government's successful equity loan scheme, which is in place until 2021, “should carry on as it is”. With more than 80% of recipients being first time buyers, Steve Morgan, Redrow’s chairman, said it was “better young people are helped into home ownership” than have the burden on the social housing sector increased.
In the past financial year, 1,794 of Redrow’s private reservations were aided through Help to Buy, similar to the previous year. During the year to June 30 2018 its legal completions (including JVs) rose 9% to 5,913 against 2017, with the average selling price lifting 7% to £332,300.
Redrow’s revenue and pre-tax profit hit “record” levels during the year. Its revenue increased 16% to £1.92 billion, and pre-tax profit climbed 21% to £380 million. Operating margin increased to 19.9% from 2017’s 19.4%.
The group secured just under 4,500 private reservations, representing £1.7 billion of revenue.
Redrow entered the current financial year with a “strong” order book of £1.14 billion, a rise of £110 million over the previous year. Sales revenue for the first nine weeks of the new financial year was in line with 2017 “despite Brexit uncertainty and the exceptional summer weather.”
Steve Morgan, said: “If we don’t build enough houses, we’re criticised. If we build homes and make profits, we’re criticised. We’re just getting on with our job. Thousands of people own homes thanks to Help to Buy. It’s far better to ease the burden on social housing.”
Tutte said the housebuilder’s full year results were achieved “by doing what we do best, building much needed new homes across England and Wales. But this is about more than just numbers. It’s about creating thriving communities.”
