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Commercial Property News
Redrow report H1 loss of £8.7 million as volumes and margins improve
Redrow Plc, the housebuilder, said its pre-tax loss narrowed 81% to £8.7 million in the first half of fiscal 2010 on revenue up 25% at £187 million. Like other housebuilders, Redrow has been able to raise margins from 5.6% to 7.2% as average selling prices have increased 3.6% and legal completions were up 21.5%.
The firm, having raised £150 million from a rights issue now has net debt of £49.3 million with gearing of 11.3% down from 73%.
Steve Morgan, Chairman of Redrow plc, said:
"My first priorities on returning to Redrow were to refocus the business towards a high quality differentiated family housing product, which is where the overwhelming market demand lies. Having reduced gearing to 11%, the New Heritage Collection was launched on 11 February 2010 and brings traditional family housing back to the forefront of the Redrow product range. It has been greeted with huge enthusiasm by our customers, staff, subcontractors and suppliers alike. The only negative point is that the roll out is being constrained by the time taken by local authorities to give planning permission on both existing and new developments.
The housing market has continued its steady recovery and as a result we have increased our legal completions by 21.5% to 1,266. However, it is difficult to see further substantial progress until mortgage availability improves significantly.
With the launch of the New Heritage Collection and our low level of gearing we are well placed to take advantage of opportunities as they arise."
The shares rose 0.1 pence, or 0.1%, to 138.2 pence.
The firm, having raised £150 million from a rights issue now has net debt of £49.3 million with gearing of 11.3% down from 73%.
Steve Morgan, Chairman of Redrow plc, said:
"My first priorities on returning to Redrow were to refocus the business towards a high quality differentiated family housing product, which is where the overwhelming market demand lies. Having reduced gearing to 11%, the New Heritage Collection was launched on 11 February 2010 and brings traditional family housing back to the forefront of the Redrow product range. It has been greeted with huge enthusiasm by our customers, staff, subcontractors and suppliers alike. The only negative point is that the roll out is being constrained by the time taken by local authorities to give planning permission on both existing and new developments.
The housing market has continued its steady recovery and as a result we have increased our legal completions by 21.5% to 1,266. However, it is difficult to see further substantial progress until mortgage availability improves significantly.
With the launch of the New Heritage Collection and our low level of gearing we are well placed to take advantage of opportunities as they arise."
The shares rose 0.1 pence, or 0.1%, to 138.2 pence.
Thu, 25th Feb 2010