Redrow Homes has reported “record” first half year results, with its legal completions rising 18% to 2,178 homes during the six months to December 31 2015 against the previous half year.
As a result of the strong legal completions, the housebuilder’s homes revenue grew 14% to £584 million, with its pre-tax profit for the half year increasing 14% to £104 million. Redrow’s operating margin lifted to 18.2% from 17% the previous year.
Outside of London, Redrow’s private average selling price rose 11% to £300,000. The company said that demand during the six months was robust with central London the only area cooling off. But this was having a minimal effect as “we made the decision some time ago to refocus our London business on outer London where the demand is from the local market and remains robust”.
During the half year, Redrow worked from an average of 121 outlets, up from 101 the previous year.
Steve Morgan, Redrow’s chairman, said: “I am delighted to report Redrow has again generated outstanding first half results.”
“We are only at the beginning of the spring selling season, however demand for new homes remains robust. We ended the first half with a record order book up 51% on this time last year, and in the first six weeks of the second half have secured 455 private reservations, 10% ahead of last year.”