7th Jul 2021 10:14
(Alliance News) - Redrow PLC said Wednesday it expects annual turnover to be close to the GBP2 billion mark as a "strong" housing market drives sales growth.
Shares in the FTSE 250-listed housebuilder were trading 2.3% higher at 644.00 pence each on Wednesday morning in London.
Revenue for the recently ended financial year is now expected to be around GBP1.94 billion, up from GBP1.34 billion the year before and approaching financial 2019's pandemic-free total of GBP2.11 billion.
Redrow said reservations per outlet per week for the financial year that ended June 27 amounted to 0.70, compared with 0.67 for the 2020 year and 0.63 for the 2019 one. The continuing strong sales market, combined with the tapering of the UK stamp duty holiday at the end of June, has resulted in Homes turnover in the regional businesses being ahead of expectations, it said.
Redrow expects an operating margin in excess of 15.5%, compared with 11.1% the year before and 19.5% two years ago. Legal completions are expected to grow 39% year-on-year to 5,620.
"The group has entered the 2022 financial year with a very strong order book and the sales market remains robust," the company commented.
"The group expects 2022 turnover to be above GBP2 billion."
By Will Paige; [email protected]
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