Redrow Swings to £8.5m First-half Profit

Housebuilder Redrow plc swung to an £8.5m pre-tax profit in the first half from a previous £8.7m loss on the back of an increase in revenue and margins.

Revenue for the six months to December was up 15% to £216.1m from the previous £187.2m, despite difficult market conditions.

Average private selling prices rose by 16% to £170,500 from £147,300.

Gross margin increased to 13.4% from 7.2% as a result of both volumes and average selling prices increasing.

The group’s operating profit of £12.1m represented an operating margin of 5.6% and compared with a 2010 loss of £1.6m.

Net debt at the period end was £51.5m, up from £49.3m a year earlier, with gearing rising to 12% from 11%.

Redrow said its New Heritage Collection was proving a great success. The average New Heritage Collection private selling price was £196,000, 7% higher than equivalent homes in the previous Signature range.

New Heritage Collection homes accounted for 30% of private sales revenue in the half and the collection now featured on 50% of developments, due to rise to around 70% by June.

Current trading was in line with expectations.

Chairman Steve Morgan said, ‘In spite of the challenging conditions, Redrow’s decision to return to our traditional values with the introduction of the New Heritage Collection proved to be a great success for the business.’

‘While it is still too early to call the spring market the second half has started encouragingly with reservations during the first six weeks comfortably ahead of the same period last year.

‘These figures must be treated with a degree of caution however as they undoubtedly include some catch up from the December freeze.

‘Looking ahead, house prices have been stable for some considerable time now and we do not share the pessimism of some commentators that there will be a major fall in house prices during the coming year.

A full copy of the statement from Redrow Homes can be obtained from their website http://www.redrowplc.co.uk/corporate or the following link Statement Report

If you are a house builder and need assistance with your commercial requirements or a subcontractor looking for an introduction to major house builders such as Redrow Homes then contact Andrew Fella at Onyx Construction Consultants Ltd 0n 01473 743682

UK’s 20 Biggest House Builders by Turnover

The Top 20 house builders league table ranks the UK’s 20 biggest house builders by turnover and profit.

2010 Rank by turnover

2010 Rank by profit

Company

Latest turnover (£m)

Previous turnover (£m)

Latest pre-tax profit (£m)

Previous pre-tax profit (£m)

Latest margin (%)

Previous margin (%)

2009 Rank by Turnover

2009 Rank by Profit

1

20

Taylor Wimpey

2,596

3,468

-700

-1,970

-27.0

-56.8

2

25

2

19

Barratt

2,285

3,555

-679

137

-29.7

3.9

1

2

3

2

Persimmon

1,421

1,755

77.8

-780

5.5

-44.4

3

24

4

12

Bellway

684

1,150

-36.6

34.8

-5.4

3.0

4

4

5

1

Berkeley

615

702

110

120

17.9

17.1

5

1

6

8

Bloor *

311

335

-1.5

-51.9

-0.5

-15.5

13

18

7

17

Miller

310

646

-157

52.9

-50.6

8.2

12

21

8

16

Redrow

302

650

-141

-194

-46.7

-29.8

7

22

9

6

Bovis Homes

282

282

4.8

-78.7

1.7

-27.9

15

20

10

10

Stewart Milne

276

420

-27

25.1

-9.8

6.0

11

6

11

13

Crest Nicholson **

238

544

-50.7

-383

-21.3

-70.4

8

23

12

14

Galliford Try

235

486

-53.8

10.6

-22.9

2.2

6

8

13

3

McCarthy & Stone ***

226

457

19

114

8.4

24.9

10

3

14

7

Fairview

224

223

0.4

-32.3

0.2

-14.5

17

17

15

9

Countryside

188

518

-25.7

26.5

-13.7

5.1

9

5

16

11

Cala

168

175

-33.9

-266

-20.2

-152.0

14

11

17

5

Telford

159

107

7.3

4.3

4.6

4.0

24

12

18

15

Kier

151

312

-62.4

-21.2

-41.3

-6.8

16

15

19

18

McInerney

127

256

-164

-175

-129.1

-68.4

22

14

20

4

Morris

112

163

11.9

17.3

10.6

10.6

18

9

 

 

Totals

10,910

16,204

(1,901)

(3,410)

 

 

 

 

All companies ranked according to their most recently filed accounts.

* Bloor Holdings only publishes an operating profit (before exceptional items) for its house-building business.

** Crest Nicholson results cover period 23 January to 31 October 2009. The company was incorporated on 23 January 2009.

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