As Redrow (RDW) gears up to celebrates its 40th birthday in November, founder and chairman Steve Morgan said he was "delighted" to announced a record set of results. A 27 per cent increase in the number of houses sold to 3,597, combined with a 13 per cent rise in average selling prices, delivered a huge jump in revenues. Margins also improved significantly, resulting in a near doubling of pre-tax profit.
Redrow's order book also swelled by 85 per cent to £482m as the number of sales outlets increased from 92 to 103. With 6,092 plots bought last year, the land bank expanded by a fifth to 16,724 plots, representing about £4bn of future revenue. Accordingly, Mr Morgan said he expected to see "significant progress" this year, but that the sales rate would return to more normal levels, following last year's frenzied growth.
The London division made its first significant contribution to the group, and the group's expansion into the southern counties has continued: after the year-end, Redrow opened a new office in Exeter. Current trading looks strong: private completions, together with the current order book, are running some 40 per cent ahead of last year.
Peel Hunt expects pre-tax profit of £157m this year, giving EPS of 34p.
| REDROW (RDW) | ||||
|---|---|---|---|---|
| ORD PRICE: | 284p | MARKET VALUE: | £1.1bn | |
| TOUCH: | 283-284 | 12-MONTH HIGH: | 352p | LOW: 218p |
| DIVIDEND YIELD: | 1.1% | PE RATIO: | 10 | |
| NET ASSET VALUE: | 188p | NET DEBT: | 25% | |
| Year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2010 | 397 | 0.7 | 0.2 | nil |
| 2011 | 453 | 25.3 | 4.4 | nil |
| 2012 | 479 | 43.0 | 9.7 | nil |
| 2013 | 605 | 69.4 | 14.6 | 1 |
| 2014 | 865 | 132.6 | 28.3 | 3 |
| % change | +43 | +91 | +94 | +200 |
Ex-div:24 Sep Payment:14 Nov | ||||
