Redrow profits soar
Published: 27 February, 2012
EWLOE: Redrow founder Steve Morgan said the house builder's turnaround plan was going from "strength to strength" reporting an 80% jump in profit this week.
Mr Morgan, who three years ago rejoined the company he founded in 1974 after it posted its worst ever results, has been buoyed by its strategy to build more family homes rather than flats.
Redrow's New Heritage Collection now accounts for 60% of private sales and pushed average selling prices past the £200,000 barrier following a 19% rise in the six months to December 31, helping profits to £15.3m. Reservations in the first seven weeks of 2012 are also up 11% to £69m as confidence returns to the market.
Mr Morgan made family housing the company's priority because this was 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 average selling prices of around £200,000."
Redrow said there were encouraging signs from the market and that a government-backed scheme to encourage mortgage lenders to extend 95% loans to first time buyers next month offered further hope.