Business

Strong trading at Redrow sets platform for future growth

Property Reporter
|
9th November 2020
construction 7

Housebuilder, Redrow, has announced that it has seen strong trading since the start of its financial year, revealing that reservation values and homes turnover are both up on the equivalent period last year.

According to the firm, during the 18 weeks to October 30 2020, its homes turnover climbed 48% against last year to £657m. The value of its net private reservations rose 5% to £630m, with demand in the regions particularly strong, increasing the reservation value by 17%.

The private revenue per outlet per week on a like-for-like basis was £302,000 against £262,000 last year. During the period, Redrow’s average selling price of private reservations rose 2% to £396,000.

The housebuilder said its robust performance had not reduced its total forward order book, which remained "close to record levels" at £1.5bn, 10% up year-on-year.

It is also making good progress on scaling back its London operations, having exited three of the six sites it is no longer developing in the capital.

But the business pointed to ongoing planning delays. These were affecting the rate at which outlets could become available "during a period when closures have come forward due to the strong sales rate".

Its sales offices will remain open during the latest lockdown, apart from in Wales where restrictions have temporarily closed them.

John Tutte, Redrow’s chairman, comments: “The group’s strategy to focus its future growth in the regions means it is well-positioned to capitalise on the evident shift in buyer priorities as a result of lockdown experiences.

“This, combined with our disciplined approach to operations, a healthy balance sheet and a strong forward order book, creates a solid platform for the future and puts Redrow on course to deliver a robust set of results this financial year.”

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