6th Nov 2020 09:49
(Alliance News) - Redrow PLC, ahead of its annual general meeting on Friday, said it still plans to reinstate dividend payouts for the first half of its financial year, after reporting a strong performance for the period to date.
The FTSE 250 housebuilder said in the 18 weeks to the end of October, the value of net private reservations was GBP630 million, up 5.4% from GBP598 million in the same period a year before, excluding a private rented sector sale at Colindale Gardens.
Private sector revenue per outlet per week on a like-for-like basis rose by 15% to GBP302,000 from GBP262,000 the prior year. House turnover increased by 48% year-on-year to GBP657 million. Despite this, Redrow's forward order book has remained close to record levels at GBP1.5 billion, it said.
The average selling price of private reservation for the 18-week period was GBP396,000, up 1.8% from GBP389,000 the year before.
Looking ahead, Redrow said that during the lockdown its sales offices will remain open in all locations, except for in Wales which has been in a separate lockdown set to end on Monday.
However, Redrow noted that ongoing planning delays have affected the rate at which outlets are coming on-stream.
Redrow has an average of 116 outlets in operation in the year to date, down from 125 in the prior year. However, it expects the average for the financial year to be 118, in-line with guidance given in September.
Alongside the pledge to resume dividend payouts, Redrow also expects to be cash positive for the rest of its current financial year ending June 30, 2021.
"We entered the new financial year in a position of strength and this has been reinforced with strong trading since the start of the year. There has been resolute demand for homes with more space to live and work as customers reflect on their lockdown experiences. In the Heritage Collection, we have an award winning product that meets these changing priorities and is attractive to a wide range of buyers," said Chair John Tutte.
Redrow will publish its interim results on February 10, 2021.
Shares in Redrow were up 3.0% at 454.00 pence on Friday in London.
By Dayo Laniyan; [email protected]
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