Redrow’s Profits Drop

Redrow’s interim results for the half year to December 2007 reveal declining market conditions. Pre-tax profits fell 34 per cent to £35.8 million on a turnover of £353 million. The profit is down 9 per cent on the previous year. Completions were down from 2,214 to 2,111 and turnover from homes sales fell by 11 per cent to £319 million.

The average selling price across the group during this period was £162,800. Group finance director David Arnold said, “Conditions which had deteriorated since the credit crunch of autumn 2007, remained very challenging. When we look at the wider market conditions, latest British Bankers Associations figures shows mortgage approvals were down 31 per cent in January 2008. Our transactions are clearly showing a downturn.

From a sales perspective, sales rate per site are 35 per cent down on last year. It’s very tough. The company will continue to focus on quality of product, along with supply chain cost and overhead reductions, to improve margins.”

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