The housebuilder has reported an 80% leap in pre-tax profit to £15.3m for the six months to 31 December 2011 on sales up 8% to £232.8m.
Operating margin increased from 5.6% to 7.5%.
Mr Morgan, who in 2009 returned to head up the business he founded, attributed the success to his repositioning of the business.
“When I returned to the business in 2009 my first priority, after putting the company on a sound financial footing, was to return Redrow to its traditional focus of a high quality differentiated family housing product, where the overwhelming market demand lay. These results today show that our change of strategy is paying off with the New Heritage Collection going from strength to strength and Private ASPs of circa £200,000. At the same time, return on capital employed, a key metric for us, has increased further to 6.4%.”
The New Heritage Collection comprised more than 60% of private turnover, up from 30% the previous year.
Sounding almost optimistic, Mr Morgan added: “While the outlook for the industry undoubtedly remains fragile, there is increasing confidence in the housing market, including first time buyers. This should be helped further when the availability of 95% mortgages kicks in under the NewBuy scheme at the end of March.”
He concluded: “Provided we can overcome the delays in the planning system and short of a crisis in the Eurozone damaging confidence Redrow is set to continue along our path of recovery."
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