Financial highlights
Group revenue increased 26% to £604.8m driven by a 15% growth in legal completions and an 11.8% increase in Average Selling Price to £212,300 (due to mix)
Gross margins rose to 18.8% from 17.3% at June 2012
Pre-tax profit up 63% to £70m and adjusted earnings per share up 45% to 15.7p
Value of private reservations up 42% from £472m to £668m
Help to Buy made a significant contribution to forward sales, but just 3% to private completions
Return on Capital Employed of 12.2% (2012: 8.7%)
Net debt increased to £91m vs £14m in 2012, due to our ongoing investment in land and work in progress. We expect net debt to increase further in line with our ongoing investment in inventory
On the basis of these strong results, the Board is proposing the reinstatement of a final dividend of 1p per share
Operational highlights
Legal completions rose 15% to 2,827 (2012: 2,458)
The Heritage Collection now firmly established as primary brand and represented 85% of private turnover during the year (2012: 67%)
Opening of new outlets remains a priority. In the year to 30 June 2013 our outlets increased from 82 to 92.
A significant increase in output is anticipated during the current year, with a number of new sites either commenced or in the pipeline
The owned and contracted land bank at the end of June 2013 was 14,162 plots
(June 2012: 12,350 plots)
Private reservations per outlet per week in the current year to date are 40% ahead at
0.77 (vs 0.55)
Steve Morgan, Chairman of Redrow, said:
"Redrow has today reported another set of strong results as we continue our journey towards more normalised profit levels. As a consequence of this the Board is proposing the reinstatement of a final dividend of 1p per share. Our strategy of focusing on high quality differentiated family housing product continues to pay off with The Heritage Collection firmly established as our primary brand accounting for 85% of our private turnover during the year.
Market confidence is returning to more normal levels, and we have started the new year well with reservations up 54%. However, the pace at which we can continue to increase output is very much dependent on our ability to increase the number of outlets through the planning system, which continues to be bureaucratic, costly and time consuming.
We have an excellent product range and a significant increase in output is anticipated during the current year, with a number of new sites either commenced or in the pipeline. With the ongoing assistance of good mortgage availability and Help to Buy, we expect Redrow will continue to make further strong progress."
