In the six months to 31 December 2010, revenues were £216.1m, compared to £187.2m in the same period of the previous year. Pre-tax profit was £8.5m, turning around a loss of £8.7m last time.
With net debt of £51.5m, gearing is 12%.
The success is attributed to the New Heritage homes, focused on the mid-market rather than first time buyers. New Heritage Collection accounted for 30% of turnover and 34% of private reservations. The average selling price was £196,000, which is 7% higher than equivalent size homes in the previous Signature range. New Heritage homes are now on 50% of Redrow developments and should rise to around 70% by June 2011.
Chairman Steve Morgan said: "Redrow continued to make good progress in the first half of the financial year, against the backdrop of a housing market overshadowed by economic uncertainties, tax rises and government cutbacks.
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"In spite of the challenging conditions, Redrow's decision to return to our traditional values with the introduction of the New Heritage Collection proved to be a great success for the business. Redrow has been transformed over the last two years. The New Heritage Collection is proving to be an aspirational product for our customers and it has undoubtedly played a major part in repositioning the Redrow brand and lifting the group's margins.
"While it is still too early to call the spring market the second half has started encouragingly with reservations during the first six weeks comfortably ahead of the same period last year. These figures must be treated with a degree of caution however as they undoubtedly include some "catch up" from the December freeze. Looking ahead, house prices have been stable for some considerable time now and we do not share the pessimism of some commentators that there will be a major fall in house prices during the coming year.
"Given the improved quality of our land bank, the roll out of the New Heritage Collection and the unquestionable housing shortage, I feel that Redrow is in good shape to continue to make progress."
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