11th Nov 2022 11:10
(Alliance News) - Redrow PLC on Friday reported a rise in homes turnover for the first few weeks in the new financial year, with a "strong" order book.
For the first 18 weeks that ended on November 6, the Ewloe, Wales-based housebuilder said the value of net private reservations was down 19%, amounting to GBP515 million from GBP639 million the year before.
Private revenue per outlet per week was GBP238,000 compared to GBP310,000 last year.
Homes turnover during the period was 1.7% above last year at GBP650 million, up from GBP639 million. The total forward order book at 6 November is GBP1.36 billion of which 74% is exchanged, compared to GBP1.49 billion at the same time last year with 73% exchanged.
Chair Richard Akers said: "We entered the new financial year in a strong position with a record order book of GBP1.44 billion. The housing market had returned to normal following the elevated sales rate in the previous two years. However, recent instability in financial markets has had a negative impact on the housing market and the business has had to adapt to the changing economic outlook."
Redrow said it has operated from an average of 120 outlets in the year to date, up from 115 last year. It said it expects the average outlets for the full financial year will be 120, in line with guidance.
Looking ahead, it continues to estimate that overall build cost inflation will be about 7% for financial 2023. It also continues to expect to have net cash of over GBP150 million at the end of June 2023.
Redrow expects annual revenue to be around GBP2.1 billion, roughly in line with financial 2022. Its operating margin is expected to be 18%, down from 19.3% a year prior.
In September, Redrow said revenue rose 10% to GBP2.14 billion for the year that ended on July 3 from GBP1.94 billion, but pretax profit fell 22% to GBP246 million from GBP314 million after booking exceptional fire safety costs of GBP164 million.
Redrow shares were 0.4% higher at 473.80 pence each on Friday morning in London.
By Xindi Wei; [email protected]
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