With the government鈥檚 Help to Buy programme boosting forward sales, Redrow has grown its net debt from 拢14尘 a year ago to 拢91尘 to fund land buying.
鈥淲e expect net debt to increase further in line with our ongoing investment in inventory,鈥� the company said.
Redrow has reported a 63% rise in pre-tax profit to 拢70.0尘 for the year to 30 June 2013 (2012: 拢43.0尘). Revenue was up 26% to 拢604.8尘 (2012: 拢478.9尘).
Revenue growth was due to a combination of a 15% growth in legal completions to 2,827 (2012: 2,458) and an 11.8% increase in average selling price to 拢212,300 (2012: 拢189,900) largely as a result of a change of product mix.
The board said that while Help to Buy added just 3% to private completions, it made 鈥渁 significant contribution鈥� to forward sales. 听The value of private reservations is up 42% from 拢472m to 拢668m.
As of June 2013 the land bank amounted to 14,162 plots, up 15% on a year before, with average plot cost at 拢57,000 (2012: 拢50,000).
Chairman Steve Morgan repeated his familiar frustrations with the planning system but was otherwise glad of government support.
鈥淢arket confidence is returning to more normal levels, and we have started the new year well with reservations up 54%,鈥� he said. 鈥淗owever, the pace at which we can continue to increase output is very much dependent on our ability to increase the number of outlets through the planning system, which continues to be bureaucratic, costly and time consuming.
鈥淲ith the ongoing assistance of good mortgage availability and Help to Buy, we expect Redrow will continue to make further strong progress."
|
Redrow plc |
2013 |
2012 |
Change |
|
Revenue |
拢604.8尘 |
拢478.9尘 |
+26% |
|
Operating Profit |
拢73.6尘 |
拢48.0尘 |
+53% |
|
Profit before tax |
拢70.0尘 |
拢43.0尘 |
+63% |
|
EPS (adjusted) |
15.7p |
10.8p |
+45% |
|
ROCE |
12.2% |
8.7% |
+40% |
|
Net Debt |
拢91尘 |
拢14尘 |
拢77尘 |
|
Dividend |
1p |
n/a |
听 |
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