Poor housing sales reduce pre-tax profit to 拢120.5m
Housebuilder Redrow has seen profits drop 13% in the year ending June 2006, due to weaker housing sales.
Pre-tax profit at the company was down to 拢120.5m from 拢139m in 2004/05. Turnover also fell slightly to 拢770.1m, down 1% from 拢780.4m in 2004/05.
Redrow's Homes arm fared slightly better with a small increase in turnover up nearly 2% to 拢765.5m from 拢753.8m in 2004/05.
Robert Jones, chairman of Redrow, blamed a difficult market and said the company was positioning itself for future growth. He said: 鈥淭he results reflect a sound financial performance against the backdrop of a challenging market. The second half achieved good momentum in turnover and operating profit with increased profits in the Homes operations.鈥�
The company said low turnover in mixed use and regeneration was largely responsible for the slump. Turnover in this sector fell by more than 80% to 拢4.6m, compared with 拢26.6m in the year ending June 2005.
Plans for the upcoming year include pushing sales of the Debut affordable home and developing a forward land bank. Redrow鈥檚 current land bank increased more than 20% in the year ending June 2006 to 21,000 plots, compared with 17,300 in June 2005.
