Financial highlights
Group revenue rose 43% to a record £864.5m driven by a 27% increase in legal completions and a 13% increase in Average Selling Price to £239,500
Gross margins rose to 21.7% from 18.8% at June 2013
Record pre-tax profit of £132.6m, up 91%
Adjusted earnings per share up 83% to 28.6p
Value of private reservations up 53% from £668m to £1,021m
Help to Buy represented 35% of private completions
Return on Capital Employed of 18% (2013: 12.2%)
Net debt increased to £172.6m vs £91m in 2013, due to ongoing investment in land and work in progress
On the basis of these strong results, the Board is proposing a final dividend of 2p per share, double that of the dividend paid in 2013
Operational highlights
Legal completions rose 27% to 3,597 (2013: 2,827) spurred by Help to Buy
Number of employees up 21% to 1,346 to meet growing demand
Number of apprentices increased 14% to 84
London Division contributed £124m of turnover from 293 legal completions
Order Book up 85% at £482m
Outlets increased 12% from 92 to 103
The owned and contracted land bank at the end of June 2014 was 16,724 plots
(June 2013: 14,162 plots)
Steve Morgan, Chairman of Redrow, said:
"November 2014 marks the 40th anniversary since I founded Redrow, therefore it is quite fitting that I am able to report a significant increase in turnover and pre-tax profits, both of which are a record for the Group.
The number of homes we built has increased by 27% and as a consequence of this ongoing growth, the number of people we employ has risen by 21%. Whilst this is clear evidence of the success of our strategy it also shows the positive impact of the Government's Help to Buy Scheme.
Market conditions have returned to a more seasonal pattern of activity. We have substantially increased our land bank, which should see a good growth in the number of outlets during the year. This, combined with our strong order book, leaves me confident that the Group will see another year of significant progress."
