Morgan’s changes pay dividends

Redrow founder Steve Morgan said the housebuilder’s turnaround plan was going from “strength to strength” after an 80 per cent leap in profits yesterday.

The owner of Wolverhampton Wanderers, who three years ago rejoined the company he founded in 1974 after it posted its worst ever results, has been buoyed by its strategy to build more family homes rather than flats.

The firm’s New Heritage Collection now accounts for 60 per cent of private sales and pushed average selling prices past the £200,000 barrier following a 19 per cent rise in the six months to 31 December, helping profits to £15.3 million.

Reservations in the first seven weeks of 2012 are up 11 per cent to £69m as confidence returns to the market.

Morgan made family housing the company’s priority because this was where the “overwhelming market demand lay”.

He added: “These results show that our change of strategy is paying off with private average selling prices of around £200,000.”

Redrow sold its Scottish operations to Elgin-based Springfield Properties last year.