Redrow has raised margins at Tay Homes, which it bought in January, from 6% to 16%. Chief executive Paul Pedley said this had been achieved by reducing Tay’s cost base from £6m per year to £1m through redundancies and office closures.
Redrow as a whole had an operating margin of 17.7% for the year to 30 June compared with 17.9% the year before. The average selling price rose 18% to £141,900.

The increase in Tay margins and the group’s average selling price helped Redrow record an 18% rise in pre-tax profit from £72.1m to £85.1m. The group’s turnover rose from £421.3m to £573.3m, an increase of 36%.

Pedley said integrating Tay had cost the group £4.3m. “But it really boosted what we’re doing in Yorkshire and Scotland,” he added. “We’re now seen as a major player and we get more opportunities.”

Redrow increased its land bank significantly during the year. The group, which spent £110m on land during the period, had 15,600 plots at 30 June compared with 14,300 the same time last year.