The Redrow PLC Board has proposed a 2021 final dividend of 18.5p per share which will be paid on 17 November 2021 to Shareholders on the register on 24 September 2021, subject to Shareholder approval at the 2021 Annual General Meeting. The full year dividend is therefore 24.5p (2020: nil p) on earnings per share of 73.7p. This is a return to a payout ratio of 33% of earnings following a pause in dividend payments last year due to the uncertainty surrounding the pandemic.
Based on a corporation tax rate of 25% in FY2024, they are targeting earnings per share of at least 90.0p and therefore a dividend per share of at least 30.0p. This represents a like for like increase on FY2021 dividend levels of 32%.
Other financial highlights:
Heritage Collection Homes perfectly aligned to the increased demand from customers for high quality, well designed homes in locations which are great places to live
Revenue increased by 45% to £1.94bn, only 8% below 2019
Legal completions increased by 39% to 5,620
Strong cash generation with net cash at 27 June 2021 of £160m (June 2020: net debt of £126m)
Significant progress in the land market with c8,300 plots added to current land and 7,749 to forward land
Encouraging trading since the start of the new financial year
House price inflation more than offsetting build cost increases
Long term supplier relationships ensuring a constant build output