Redrow reinstates dividend after profits jump 63 per cent

HOUSEBUILDER Redrow posted a 63 per cent jump in full year profit, hitting the top end of analyst expectations, and said it was reinstating its dividend on the back of the performance.
By The Newsroom
Published 18th Sep 2013, 09:54 BST

The company said on Wednesday pre-tax profits for the year to the end of June rose to £70m from £43m in the year before, on the back of a 26 per cent rise in group revenue to £604.8m.

“Redrow has today reported another set of strong results as we continue our journey towards more normalised profit levels,” chairman Steve Morgan said.

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“As a consequence of this the board is proposing the reinstatement of a final dividend of 1 pence per share,” he said.

Redrow, which has a base in Wakefield, said market confidence was returning to more normal levels and that it had started the year with reservations up 54 per cent, due to an increased number of outlets and higher sales rates.

Housebuilder profits have surged as they reap returns from a strategy of buying land cheaply during the downturn, building more lucrative family homes than flats and focusing on parts of England where prices have stayed strong.

The sector has also been helped by Government schemes to free up mortgage availability.

Related topics:WakefieldEngland