Redrow doubles its 2016 interim dividend

DividendMax Ltd.

Redrow doubles its 2016 interim dividend

Financial highlights

Group revenue rose 8% to a half year record of £603m

Homes revenue increased 14% to a half year record of £584m driven by an 18% increase in legal completions

Gross margin rose to 24.2% (2015: 22.3%); operating margin of 18.2% (2015: 17.0%)

Record first half pre-tax profit of £104m, up 14%

Earnings per share up 15% to 22.9p

Return on capital employed of 21% (2015: 21%)

Net debt of £183m (June 2015: £154m) giving gearing of 20% (June 2015: 18%)

Interim dividend of 4p per share, double that of last year; guidance of 10p for the year (2015: 6p)

Operational highlights

Legal completions rose 18% to 2178 (2015: 1850), with Help to Buy continuing to support demand

Average number of outlets increased to 121 (2015: 101)

Record number of employees at 1818, up almost 1200 from 2009 levels

Current land bank 21435 plots (Dec 2014: 16950)

Private order book up 51% at £655m (Dec 2014: £435m)

Steve Morgan, Chairman of Redrow, said

"I am delighted to report Redrow has again generated outstanding first half results. We legally completed almost 2200 new homes in the period, 18% higher than last year, leading to record first half pre-tax profits of £104m.

As a result of this strong performance, whilst we continue to invest in growing the business, we have also doubled the interim dividend to 4p per share.

We are only at the beginning of the spring selling season, however demand for new homes remains robust. We ended the first half with a record order book up 51% on this time last year, and in the first six weeks of the second half have secured 455 private reservations, 10% ahead of last year.

I am confident this will be another strong year of growth for Redrow."

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