Redrow Plc swung to an £8.5m pre-tax profit in the first half from a previous £8.7m loss on the back of an increase in revenue and margins.
Revenue for the six months to December was up 15% to £216.1m from the previous £187.2m, despite difficult market conditions.
Average private selling prices rose by 16% to £170,500 from £147,300.
Gross margin increased to 13.4% from 7.2% as a result of both volumes and average selling prices increasing.
The group’s operating profit of £12.1m represented an operating margin of 5.6% and compared with a 2010 loss of £1.6m.
Net debt at the period end was £51.5m, up from £49.3m a year earlier, with gearing rising to 12% from 11%.
Redrow said its New Heritage Collection was proving a great success. The average New Heritage Collection private selling price was £196,000, 7% higher than equivalent homes in the previous Signature range.
The group had a half-year landbank of 13,140 plots, against the June level of 13,170.
Chairman Steve Morgan said, ‘In spite of the challenging conditions, Redrow’s decision to return to our traditional values with the introduction of the New Heritage Collection proved to be a great success for the business.’
‘While it is still too early to call the spring market the second half has started encouragingly with reservations during the first six weeks comfortably ahead of the same period last year…
‘Given the improved quality of our land bank, the roll out of the New Heritage Collection and the unquestionable housing shortage, I feel that Redrow is in good shape to continue to make progress.’
If you are a house builder and need assistance with your commercial requirements or a subcontractor looking for an introduction to major house builders such as Redrow Homes then contact Andrew Fella at Onyx Construction Consultants Ltd 0n 01473 743682