In the six months to 31 December 2012 pre-tax profit was up 50% to £23.0m (2011 H1: £15.3m). Revenues rose 10% to £257.0m driven by a 10% increase in private average selling price to £224,000
Chairman Steve Morgan said: "Redrow has delivered a strong set of results with another significant improvement in profitability. The backdrop remains challenging, but the stability of the housing market, the gradual improvement in both the planning environment and the mortgage market, together with our distinct focus on our high-quality, differentiated family housing range has meant that we have continued to make good progress.
“We applaud the government's attempts to improve the market through the NewBuy, extension of FirstBuy, and Funding for Lending schemes and if the current trend in reduction of mortgage rates continues, it will undoubtedly assist in the housing market's gradual return to more normalised conditions. The National Planning Policy Framework has also stimulated some positive changes in the planning environment, albeit this has still got a long way to go.”
Mr Morgan added: “We have started the second half well, with reservations up 8% on the same period last year. Additionally we are on track to increase the number of outlets from 82 to around 90 by June. Given the strong pipeline of new sites and the modest improvement in market conditions, I am cautiously optimistic that Redrow's strong recovery is set to continue. In line with this, we expect to propose a modest final dividend at the year end."
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