Business

Redrow announce “encouragingly resilient” trading despite tough market conditions

Warren Lewis
|
7th November 2019
construction 998

Housebuilder, Redrow, has announced that it has seen strong trading since the start of its new financial year, despite challenges arising from continuing uncertainty.

During the 18 weeks to November 1, the value of the housebuilder’s net private reservations – excluding a £119.5 million private rented sector sale at Colindale Gardens - was 2% up on the equivalent period last year at £598 million.

Its sales rate per outlet per week (without the PRS sale) was 0.67 against last year’s 0.64. Redrow’s average selling price of private reservations increased marginally, from £388,000 the previous year to £389,000.

John Tutte, Redrow’s chairman, said the housebuilder’s outlet growth continued to be impacted by planning delays and the company’s cautious approach to land acquisitions, triggered by “this unceasing period of economic and political uncertainty”.

The business remains set to operate from an average of 131 outlets this financial year, despite numbers being slightly down so far - 128 against last year’s 129.

And revenue, profit and cash generation would be “considerably more weighted than usual” to the second half of the year, Redrow added, thanks to subdued outlet growth and the timing of block completions in London.

Tutte commented: “The further uncertainty created by the general election and the impact this will have on the terms of the UK’s withdrawal from the EU leave the prospects for the economy and housing market in an unpredictable state.

However, the group is well positioned and focused to deliver in these turbulent political times: we have an award-winning product that is attractive to a broad range of buyers, a disciplined approach to operations, a robust balance sheet and a strong forward order book.”

Redrow also announced the appointment of Nicky Dulieu as a non-executive director. “Nicky’s extensive knowledge of retailing and customer service will complement the existing board’s wealth of experience,” Tutte said.

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