Redrow revenues top £1bn as help-to-buy and stamp duty holiday spark sales rush

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Redrow PLC’s (LON:RDW) first-half revenue topped £1bn as house sales were pulled forward to catch the stamp duty holiday and help-to-buy scheme availability.

Revenue jumped by a fifth to £1.04bn in the six months to end-December 2020, said the FTSE 250 housebuilder, as sales completions rose by 20% to 3,065 units.

Reservations in the second half also been strong, it said, with a rise of 6% over this time a year ago to £819mln with the total order book now worth £1.3bn.

Interim profits rose by 11% to £174mln with the dividend reinstated at 6p per share.

Matthew Pratt, chief executive, said the first-half performance had been helped by a combination of pent-up demand from the first coronavirus lockdown, the introduction of the Stamp Duty holiday and the impending end of the Help to Buy scheme for existing homeowners.

In the six weeks to 5 February, private reservations in terms of value averaged £265,000 per outlet per week (2020: £298,000).

Pratt added that this compares to a very strong period last year and is also being affected by reduced availability of product created by the strong forward sales position.

“Our private forward sold position of £750m beyond the end of both the original Help to Buy scheme and the Stamp Duty holiday, demonstrates the resilience of our target market,” he added.

Redrow had net cash of £238mln at the end of the period.

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