Views Article – Sharenet Wealth

Europe, News

Homebuilder Redrow’s annual profit slumps, to resume dividend payout in 2021

(Adds details on results, background)

Sept 16 (Reuters) – British homebuilder Redrow Plc reported a 66% plunge in annual profit on Wednesday, while promising to renew dividend payouts next year as it halts investments in London and focuses on its Heritage Collection homes.

A shift in consumer demand after the COVID-19 pandemic prompted Redrow to shrink its London operations in June to focus on higher return giving regional businesses and its ‘Heritage’ line – suburban homes designed in period style features that have more spacious interiors.

“We have completed substantially more homes in the first few weeks of the new financial year than during the comparable period last year whilst maintaining a record order book as a result of keen demand for our Heritage Collection homes,” the company said in a statement.

Redrow said that reduction in home completions, revenue, costs related to temporary closure of its developments and impairment costs arising contributed to profit fall.

The company completed 4,032 homes in the full year ended June 30, compared with 6,443 in the previous year, while pretax profit slumped to 140 million pounds ($180.54 million) from 406 million pounds it reported last year.

Revenue tumbled 37% to 1.34 billion pounds.

($1 = 0.7754 pounds)

(Reporting by Samantha Machado in Bengaluru; Editing by Rashmi Aich)

© 2019 Thomson Reuters. All rights reserved. Reuters content is the intellectual property of Thomson Reuters or its third party content providers. Any copying, republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. "Reuters" and the Reuters Logo are trademarks of Thomson Reuters and its affiliated companies.