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Annual Results

Redrow sales up 20%

05 September 2017 07:27

Redrow reported group revenue rose 20% to a record £1.66bn, driven by higher legal completions and a 7% increase in average selling price to £309,800 in the year to 30 June 2017.

FINANCIAL HIGHLIGHTS:

- Operating margin rose to 19.4% (2016: 18.9%)

- Record pre-tax profit of £315m, up 26% (2016: £250m)

- Earnings per share up 27% to 70.2p

- Record Order Book, up 14% to £1.1bn

- Return on Capital Employed up 10% to 26.0% (2016: 23.7%)

- Net debt reduced from £139m in June 2016 to £73m in June 2017

- Proposed final dividend of 11p per share, making 17p for the full year, up 70%

OPERATIONAL HIGHLIGHTS:

The company said it continues to deliver on growth strategy:

- Legal completions up 15% to 5,416 (2016: 4,716)

- Outlets increased 3% to 132 (2016: 128)

- Number of employees up 12% to 2,200

- 5,419 plots added to the current land bank of which over 60% were converted from forward land

Chairman Steve Morgan said: "Redrow has continued to build much-needed new homes across England and Wales with completions up 15% to over 5,400.

"Our growth strategy has delivered record financial results for the fourth consecutive year.

"Pre-tax profits were £315m, up 26% on the prior year, with a 27% increase in earnings per share to 70.2p.

"Redrow began the current financial year with a record order book, up 14% year on year to £1.1bn.

"Sales in the first nine weeks are very encouraging, up 8% on a strong comparator last year.

"Based on the strength of our current performance and the robust demand that we are seeing, we are today updating our medium term guidance.

"We now expect turnover in 2020 of c£2.2bn and pre-tax profit of c£430m. We expect the dividend in 2020 to rise to 32p per share.

"Our strategy of continued growth for the business is on track.

"I am confident this will be another year of significant progress for Redrow."

Story provided by StockMarketWire.com

Related Company: RDW

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