Housebuilder records £120.5m pre-tax profit for year to June 2007, identical to 2006

Housebuilder Redrow has reported no change in its profit levels since last year, in a further sign of increasingly difficult conditions in the housing market.

Redrow recorded a pre-tax profit of £120.5m for the year to 30 June 2007, the same as in 2006. Margins were down slightly to 17.1% from 17.5%, although legal completions increased by 1.9% to 4823 homes. Turnover rose 3.3% to £795.7m.

Alan Bowkett, chairman, said that inefficiencies in the planning system had delayed bringing new outlets on stream, and that increasing interest rates were beginning to have an impact.

He said: “Some lead indicators suggest that the increases in interest rates since August 2006 are beginning to have a dampening effect on the market and we have positioned the business to best respond to prevailing conditions.”

He added: “We entered the new financial year with a much stronger position in terms of implementable planning consents so that the outcome for Redrow in 2007/8 will largely depend on the strength of the markets in which we operate.”