Redrow eyes dividend payout as profits soar 50%

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Housebuilder Redrow today said it hopes to announce a “modest” dividend at the end of the year after delivering a 50 per cent jump in first-half profits.

The group said pre-tax profits in the six months to December soared to £23 million, from £15.3m a year earlier.

Revenues grew 10 per cent to £257m, boosted by a 9.8 per cent rise in average selling prices to £224,000.

Redrow chairman Steve Morgan said the Bank of England’s £80 billion Funding for Lending scheme and government initiatives to help those without a large deposit buy new homes will “undoubtedly assist in the housing market’s gradual return to more normalised conditions”.

He added: “I am cautiously optimistic that Redrow’s strong recovery is set to continue. In line with this, we expect to propose a modest final dividend at the year end.”