Redrow (RDW) shrugged off weak housing data and Brexit uncertainty to deliver record pre-tax profits, rewarding shareholders with an additional 30p a share. The additional dividend will be paid via a B share scheme and amount to £111m, with payment also expected in April 2019.
The housebuilder made 2,970 legal completions in the first half, up 12 per cent on the comparable period last year. Impressive, given that the total volume of new-build transactions conducted across England and Wales in 2018, excluding Greater London, rose just 3.6 per cent, according to real estate advisors London Central Portfolio. But incoming chief executive John Tutte did caution that, during November and December, Brexit uncertainty "took hold of everything". It meant Redrow "probably didn’t generate the leads" desired. Indeed, during the first five weeks of the current year, private sales were down roughly 6 per cent.
Analysts at Peel Hunt forecast full-year pre-tax profits and earnings per share of £400m and 89.7p respectively, up from £380m and 85.3p in 2018.
| REDROW (RDW) | ||||
| ORD PRICE: | 603p | MARKET VALUE: | £2.2bn | |
| TOUCH: | 602-603 | 12-MONTH HIGH: | 652p | LOW: 456p |
| DIVIDEND YIELD: | 4.8% | PE RATIO: | 7 | |
| NET ASSET VALUE: | 422p | NET CASH: | £101m | |
| Half-year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2017 | 890 | 176 | 39.5 | 9.0 |
| 2018 | 970 | 185 | 41.5 | 10.0 |
| % change | +9 | +5 | +5 | +11 |
| Ex-div: | 07 Mar | |||
| Payment: | 09 Apr | |||
| *Dividend does not include 30p additional cash return | ||||
