Redrow experiences delays but reservations, turnover top last year’s levels

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Redrow PLC (LON:RDW) has warned that planning delays are affecting the rate at which outlets are coming on-stream while sales closures have come forward due to a strong sales rate.

The FTSE 250 construction firm said it will continue operating during the current lockdown in respect of safety measures.

READ: Redrow profits plummet but new year is different story as sales surge

The group operated from an average of 116 outlets in the year to date and expects the average for the financial year to be 118, in-line with guidance.

Sales offices will remain open during the lockdown, other than in Wales where they are temporarily closed due to restrictions, though customers can progress transactions online so the handover of homes should not be affected.

The company is scaling back its London operations and has exited three of the six sites it has decided not to develop.

The value of net private reservations in the 18 weeks to October 30, 2020, was £630mln, 5% ahead of last year, while the value of reservations in the regions was 17% higher.

The private revenue per outlet per week on a like-for-like basis was £302,000 compared to £262,000 last year. The average selling price of private reservations rose 2% to £396,000 while homes turnover jumped 48% to £657mln.

At the end of the period, Redrow had net cash of £155mln.

“We entered the new financial year in a position of strength and this has been reinforced with strong trading since the start of the year,” Redrow chairman John Tutte will tell shareholders in Friday’s annual general meeting statement.

“There has been resolute demand for homes with more space to live and work as customers reflect on their lockdown experiences. We continue to expect to reinstate dividend payments at the half year and to be cash positive for the remainder of the financial year,” he will add.

Shares rose 2% to 447.6p on Friday morning.

–Adds shares–

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