Your browser is no longer supported

For the best possible experience using our website we recommend you upgrade to the newest version of your browser.

Your browser appears to have cookies disabled. For the best experience of Construction News, please enable cookies in your browser.

Welcome to the Construction News site. As we have relaunched, you will have to sign in once now and agree for us to use cookies, so you won't need to log in each time you visit our site.
Learn more

Housebuilder results: Redrow hits £1bn, Cala targets same

Redrow has broken through the £1bn turnover barrier for the first time after growing revenue by 33 per cent in 2014/15 to £1.15bn.

The housebuilder also saw its pre-tax profit rocket by more than 50 per cent from £133m to £204m, while operating profit stood at £213m, giving Redrow an operating margin of 18.5 per cent for the year to 30 June 2015.

The strong performance has seen the board propose a dividend of 4p per share, double last year’s dividend of 2p.

The government’s Help to Buy scheme helped Redrow grow legal completions by 12 per cent to 4,022, while employee headcount was also up significantly, jumping 23 per cent to 1,650.

Redrow chairman Steve Morgan said: “Looking ahead, we have a strong pipeline of attractive sites in excellent locations and a high-quality industry-leading product.

“We have entered the year with a record order book and reservations to date are running 5 per cent ahead of last year at 0.68 sales per outlet per week.

“We have secured 820 private reservations in the first 10 weeks, some 28 per cent ahead of last year.

“Redrow is in great shape and I am looking forward to another year of significant progress.”

The strong set of results comes after fellow housebuilder Cala Group revealed it was targeting £1bn in annual revenue by 2020 in the wake of record results this year.

Cala posted a 79 per cent rise in turnover for 2014/15, rising to £512m from £285m last year.

The group’s pre-tax profit was up 90 per cent for the year to 30 June 2015 before exceptional items, growing from £26.8m to £50.9m.

Cala’s target revenue rise over the next five years is expected to be driven by increases in completions and average selling price, aided by a burgeoning landbank.

In 2014/15, completions were up 34 per cent to nearly 1,000 homes, while its average selling price broke the £500,000 barrier after rising 20 per cent year on year.

Cala chief executive Alan Brown said the projected growth of the company “has led us to continue our recruitment programme apace”, with 169 new staff members joining through the year.

Mr Brown added: “Our focus now is on driving operational efficiency improvements throughout the group.

“This will in turn flow through to improved operating margins and return on capital employed, as we target group revenues of £1bn within the next five years through the delivery of high-quality sustainable homes and communities in prime locations across the UK.”

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Links may be included in your comments but HTML is not permitted.