9th Feb 2016 08:17
LONDON (Alliance News) - Housebuilder Redrow PLC on Tuesday declared a doubled interim dividend as it reported a 14% increase in first-half pretax profit, bolstered by the completion of almost 2,200 new homes in the period, 18% higher than last year.
The company raised its interim dividend to 4.0 pence per share from 2.0p and said it intends to lift its final dividend to 6.0p from 4.0p, making 10.0p for the full year, up from 6p.
First-half pretax profit rose to GBP104.0 million in the six months ended December 31, from GBP91.0 million the corresponding half the prior year, as revenue rose to GBP603.0 million from GBP560.0 million.
"Demand for new homes remains robust despite recent turmoil in the financial markets," Chairman Steve Morgan said. "Private reservations since the beginning of January are 10% up on last year at 455."
Morgan welcomed UK government initiatives aimed at supporting first-time buyers. "The 40% Help to Buy Equity Loan Scheme for the London market has just been launched and we eagerly await the launch of the government's starter homes Initiative to help young people get on the housing ladder," he said.
"We have a strong pipeline of new sites in planning and our strategy to grow the business and increase the number of homes we build remains on-track. We are therefore confident that this will be another year of significant progress for Redrow," Morgan added.
The company ended the first half with a "record" order book of GBP655 million, up 51% on the same time a year before. In the first six weeks of the second half, the company has secured 455 private reservations, 10% ahead of last year.
Shares in Redrow were up 1.1% at 426.80 pence on Tuesday.
By Samuel Agini; [email protected]; @samuelagini
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