Builder Redrow’s rich Heritage helping to push up profits

The Flintshire-based group reported pre-tax profits of £25.3m in the 12 months to June 30, compared to £700,000 the previous year as average selling prices of private homes increased to £174,100 from £154,800.

Redrow said the improvements were driven by strong sales of its New Heritage Collection, a range of two to four-bedroom houses launched in February 2010, which made up 41 per cent of total sales in the second half of the year.

Chairman Steve Morgan, who also chairs Premier League football club Wolverhampton Wanderers, said the company delivered a robust performance “in spite of the difficulties facing the home-building industry”.

House prices saw steep declines in August, according to lenders Halifax and Nationwide, but the overall trend is fairly stable.

Redrow has managed to boost its average price by improving the mix of its housing offer to include larger properties with bigger price tags.

Average selling prices for the New Heritage Collection increased 11 per cent to £201,000, around seven per cent higher than its old Signature range.

As well as seeing prices increase the company sealed more legal completions in 2011, with the number improving to 2,626 from 2,587.

Redrow saw flat cancellation rates of 18 per cent in 2011, with the “overwhelming” cause being mortgage issues. Mr Morgan said that the lack of mortgages, particularly for first-time buyers, was dragging on the mar- ket.

Redrow added 2,367 plots in the year, resulting in a land bank of 11,190 plots at the end of this June.

Redrow has developments in Malton, Selby, Doncaster and Halifax.

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