Redrow signs off strong financial year with completions growth

British house builder Redrow plc (LON: RDW) booked a strong set of fundamentals for the full-year, with growth across profit indices and operational progress.

The Company posted revenue growth of 13% on a year-on-year comparison for the full year ended 30 June 2019, up to £2.1 billion. This pushed operating profit up 8% on-year and profit before tax up 7%, to £411 million and £406 million respectively. The Group’s headline fundamental though, was its 13% on-year growth in legal completions, up to 6,443.

There was similar progress for Redrow shareholders, with EPS up 8% to 92.3p, a final dividend of 20.5p and 0.5p cash return per share, up 116% on-year.

The Group added that it had added 7,379 plots to their current land holdings, and delivered 1,712 affordable homes, up 55%.

Redrow comments

Executive Chairmain, John Tutte, stated,

“I am delighted to report that Redrow for the sixth consecutive year has delivered record results. The Group completed 6,443 homes, 13% up on the previous year and passing the 6,000 milestone for the first time. Revenue reached £2.1bn and pre-tax profit increased by 7% to £406m.”

“This excellent trading performance led to strong cash generation and we ended the year with net cash of £124m after making the ‘B share’ payout in April. As a result we are proposing a final dividend of 20.5p per share giving a full year dividend of 30.5p per share, 9% up on last year.”

“We are understandably cautious about the post-Brexit future and also the eventual impact of the impending changes to the Help to Buy scheme. We do however, have a clear strategy to continue to grow centred on our award winning Heritage Collection that is so popular across a broad range of buyers.”

“Since the start of the new financial year, trading has been encouraging and the demand for our homes is strong with reservations running ahead of last year. Notwithstanding the political and economic uncertainty we face, we have every reason to be confident that 2020 will be another successful year for the Group.”

Investor notes

The Company’s shares rallied 3.53% or 20.00p to 586.00p 09/08/19 16:35 BST. Analysts from Peel Hunt reiterated their ‘Buy’ stance on Redrow stock. The Group’s p/e ratio is 6.32, their dividend yield stands at 5.02%.

Elsewhere in property development and estate agency news, there have been updates from; U+I Group PLC (LON: UAI), Hunters Property PLC (LON: HUNT), GCP Student Living plc (LON: DIGS), Barratt Development Plc (LON: BDEV), Belvoir Group PLC (LON: BLV), Tritax Big Box REIT PLC (LON: BBOX) and Intu Properties plc (LON: INTU).


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Senior Journalist at the UK Investor Magazine. Also a contributing writer at the Investment Observer, UK Property Journal and UK Startup Magazine. Postgraduate of King's College London with a specialisation in Business Ethics. Interested in Development Economics and David Hume.