Archived article
Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
Redrow PLC on Wednesday reported a surge in annual profit, but said it expects a plunge in revenue and profit in its next financial year.
The Ewloe, Wales-based housebuilder said pretax profit in the financial year ended July 2 climbed 61% to £395 million from £246 million, due to ‘cost inflation exceeding house price inflation’.
Revenue fell slightly by 0.5% to £2.13 billion from £2.14 billion a year prior, but the firm noted it was ‘stable due to the increase in average selling price that was already embedded in the order book’.
Redrow lowered its final dividend per share by 9.1% to 20.0 pence from 22.0p year-on-year, bringing the company’s full year dividend to 30.0p, down 6.3% from 32.0p.
Looking ahead, Redrow said the financial 2024 market is still ‘challenging’ but is well-positioned to respond. It expects to generate lower revenue of between £1.65 billion to £1.70 billion in the next financial year, while pretax profit is expected at between £180 million and £200 million.
Chief Executive Officer Matthew Pratt said: ‘Cost of living and mortgage affordability continue to have a negative impact on the market. Where appropriate, we’ve used targeted sales incentives to convert buyer interest into reservations.
‘Following several consecutive Bank of England base rate increases, we remain hopeful that, as inflation eases, we will see some stability in mortgage rates. The reduction in mortgage volatility will enable potential customers to progress the purchase of their home with financial certainty.’
Shares in Redrow were up 3.8% at 490.84p each in London on Wednesday morning.
Copyright 2023 Alliance News Ltd. All Rights Reserved.