Redrow posts record interim revenue, ups 2024 guidance
Housebuilder Redrow posted a jump in interim profit on Thursday and record revenue amid strong demand, as it lifted its guidance for 2024.
In the 27 weeks to 2 January, pre-tax profit rose 17% to £203m, on revenue of £1.05bn, up from £1.04bn in the same period a year prior. The interim dividend per share was lifted to 10p from 6p and the total order book grew to £1.5bn from £1.3bn.
The value of first-half reservations increased 6% to £884m and the operating margin came in at 19.5%, up from 17.1%.
Chief executive Matthew Pratt said: "Redrow continued to perform strongly in the first half, delivering record revenue for the period, which demonstrates the ongoing success of our strategy. Our premium quality product is more in demand and attractive to customers than ever before and is perfectly suited to accommodating the blending of family and work life that many of us are experiencing.
"By continuing to evolve our highly successful Arts & Crafts style Heritage Collection, we have capitalised on strong demand, improved sales margins and continued to invest for growth."
Redrow bumped up its guidance for 2024. It now expects revenue of between £2.3bn and £2.4bn, compared to previous guidance of more than £2.2bn. The operating margin is seen coming in at 19.5% to 20%, compared to around 19.5% previously. Earnings per share guidance was raised to equal or above 92p, up from 90p, and return on capital employed is now seen at between 22% and 25%, versus more than 22%.
The housebuilder hailed a strong start to the second half, with the value of private reservations per outlet per week for the 5 weeks to 6 February averaging £417,000 in total, and £367,000 excluding a bulk deal in London.