Redrow: Great progress through the global pandemic
Redrow released its H1 2022 results this morning
What they said
Record first-half revenue £1,052m
Average selling price of private homes p 8% to £419,000
Build cost inflation is expected to be around 6% for the full year
Value of private reservations up 6% to £884m
Medium-term guidance increased
Southern division on track to open in Summer 2022
Redrow's strategy, with a focus on family homes with limited exposure to apartments and city centres, has delivered a winning formula throughout the COVID-19 pandemic.
The race for space and the shift for many to work some or all of the time from home has led to increasing demand for Redrow's homes. Their average price of £419,000 places them firmly in the second mover market. Their buyers are typically more affluent, have sizable deposits and are well insulated from affordability issues and the cost of living increases.
Redrow is predominately a builder of family homes and therefore has less exposure than some to high rise apartment schemes. However, it has increased its fire safety (cladding) provision by £10m to £36m for estimated remediation work where Redrow is the Principal Contractor.
Redrow has made a strong start to the second half, and its increased guidance and launch of a new division implies they believe in the long-term prospects of the housebuilding sector. As a country we are not currently building enough homes to meet demand and Redrow is playing its part to deliver the additional homes we need.