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Tough start for Redrow

House builder Redrow has reported a poor start to the year with a downturn in profits and turnover for the six months ended December 2007.

Pre-tax profits fell to £35.8 million for the period, down from £54.7 million the previous year. Turnover dropped to £353.1 million in the first half compared to £387.7 for the same period in 2006.

The firm revealed that the sale of its interest in steel frame manufacturer Framing Solution joint venture in January resulted in a post-tax loss of £1.9 million.

A further £400,000 was deducted for the loss of Redrow’s share after interest and tax.

Despite a reduction in completions from 2,214 last year to 2,111 the firm said its homes average selling price had been maintained at around £162,800.

Redrow chairman Alan Bowkett said: “We continue to promote our long term approach to land acquisition whilst in the short term we exercise caution in the current land market.

“Our overall expectation remains that 2008 will present a more difficult trading environment than the industry has experienced for many years with lower levels of confidence in the housing market.”