Redrow buoyed by £8.5m half year profit

Housebuilder Redrow has boosted its revenues and turned a £8.7m loss into a £8.5m profit in a buoyant half year trading update this morning.

Revenues were up 15% to £6.1m in the six months to 31 December, while the average private selling price leapt to £170,500 from £147,300.

Real-time Share PriceThe only negatives for Redrow were a slight increase in its gearing, from 11% to 12%, and a lack of dividend to shareholders, which had been previously announced.

Redrow chairman Steve Morgan said: “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.”