28th Jun 2016 06:59
LONDON (Alliance News) - Housebuilder Redrow PLC on Tuesday said pretax profit for its financial year will be above the top-end of analyst estimates, after it sold more houses at a higher average selling price, and said demand appears to be remaining strong following the Brexit vote.
Redrow said its revenue for the year to the end of June was GBP1.38 billion, a 20% increase from the GBP1.15 billion posted a year earlier, on the back of a 17% increase in the number of homes sold, to 4,716 from 4,022, and the number of private completions rising to 3,882 from 3,451.
Redrow added that the average selling price of private homes was up at GBP328,000 from GBP297,300, and said its pretax profit will be ahead of analyst estimates which currently stand at GBP240.0 million.
The housebuilder noted that the new homes market remained strong throughout the period, and the value of private reservations achieved for the year was GBP1.56 billion, up 46% from the GBP1.07 billion recorded a year earlier. Its private order book at the end of June stands at GBP807.0 million, a 50% increase from a year earlier, Redrow said.
The sales rate for the financial year was 0.68 per week, Redrow said, in line with the previous year, and the number of active outlets at the year end increased to 128, from 117, in line with previous guidance.
Redrow noted that there was no impact on house sales or visitor levels in the run up to the UK referendum on EU membership, and said that whilst "it is too early to tell whether Brexit will have any effect on future sales, initial feedback is that sites remain busy, reservations continue to be taken and, indeed, we witnessed long queues and strong reservations at new sites launched last weekend".
At the end of its full year, Redrow said its net debt position was GBP139.0 million, down 10% from the GBP154.0 million posted a year earlier.
By Hannah Boland; [email protected]; @Hannaheboland
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