Redrow builds up record annual sales and profits

Housebuilder Redrow today said the Help to Buy initiative accounted for more than a third of sales as it unveiled record full-year revenues and profits.

The firm, which sold its Scottish division in 2011, posted a pre-tax profit of £132.6 million for the year to the end of June, almost double the previous year’s total of £69.4m.

Revenues soared 43 per cent to £864.5m, helped by a 13 per cent increase in average selling prices to £239,500. Sales using the Help to Buy scheme, which allows people to buy a property with a deposit of just 5 per cent, made up 35 per cent of its legal completions.

Chairman Steve Morgan said: “November marks the 40th anniversary since I founded Redrow, therefore it is quite fitting that I am able to report a significant increase in turnover and pre-tax profits, both of which are a record for the group.”

Redrow proposed a final dividend of 2p a share, double that of a year ago, to be paid on 14 November.