StockMarketWire.com - House builder Redrow more than doubled its annual profit after construction markets bounced back as lockdowns eased.

Pre-tax profit for the year through 27 June jumped to £314 million, up from £140 million year-on-year, as revenue rose 45% to £1.94 billion.

Redrow reinstated its final dividend at 18.5p per share, bringing the payout for the full year to 24.5p.

Legal completions climbed 39% to 5,620, with house-price inflation more than offsetting build cost increases, the company said.

Redrow said trading so far in the new financial year had been 'encouraging' and reinstated its medium-term guidance.

Revenue was expected to rise to more than £2.2 million by 2024, with an operating margin of around 19.5% and earnings per share of at least ≥ 90p.

EPS in the year just gone by was 73.7p.

'The buoyant housing market has moderated in recent months and we anticipate sales rates will return to historically average rates over the course of the current financial year,' chairman John Tutte said.

'It is on this basis we have planned for the future and we are confident our timely investment in land, combined with strong demand for our Heritage homes, will support our longer-term growth aspirations.'

'Additionally, our record order book also provides us with an excellent platform for the future with over £1.3 billion of revenue already secured for the current financial year.'

'As a result, the business is well-placed to deliver another set of strong results.'





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