For the year to 30th June 2017, Redrow has reported group revenue up 20% to a record 拢1.66bn. Revenue growth was driven by a combination of a 7% increase in average selling price to 拢309,800 and a 15% rise in completions to 5,416 units.
Pre-tax profit also reached a new record high for the company, up 26% to 拢315m (2016: 拢250m).
Operating margin rose to 19.4% (2016: 18.9%) and return on capital employed was up 10% to 26.0% (2016: 23.7%).
Chairman Steve Morgan said that the current financial year had also started well and the outlook was strong. 鈥淩edrow began the current financial year with a record order book, up 14% year on year to 拢1.1bn. Sales in the first nine weeks are very encouraging, up 8% on a strong comparator last year,鈥� he said.
鈥淏ased on the strength of our current performance and the robust demand that we are seeing, we are today updating our medium term guidance. We now expect turnover in 2020 of c.拢2.2bn and pre-tax profit of c.拢430m.
鈥淥ur strategy of continued growth for the business is on track. I am confident this will be another year of significant progress for Redrow.鈥�
Steve Morgan, who founded the company in 1974 when he was 21, is once again stepping back from day to day control, as he did once before. In 2000 he reduced his stake in the company and stepped aside before staging a comneback in 2009, increasing his shareholding again and taking back control.
鈥淓ight years after returning to Redrow, I have decided to ease back from a full time executive role towards a non-executive role,鈥� he said today. This transition will take place during the current financial year, giving chief executive John Tutte more authority.
鈥淚t is my intention to continue to focus with the board on the strategic development of the business and I will retain my keen involvement with the product and key important projects,鈥� Mr Morgan added.
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