Redrow profit slips 13% as housing market tightens

Profit at housebuilder Redrow has fallen 13% in the year ending in June. The firm blamed the fall on the weak housing market in the first half of the year.

Pre-tax profit was £120m compared with £139m in 2004/05. Turnover was down 1% to £770m.

Robert Jones, the chairman of Redrow, said: “The results reflect a sound financial performance against the backdrop of a challenging market.”

The company said most of the decline was in the mixed-use and regeneration sectors. Turnover here fell more than 80% to £4.6m, compared with £27m in the year ending June 2005.

Neil Fitzsimmons, Redrow’s chief executive (pictured above), said the firm intended to focus on the design quality of its output, and that there would be no more product launches in the near future.

Redrow’s last big development was in March last year, when it premiered its Debut range, aimed at first-time buyers.

He said: “We’ve given ourselves the objective of 2000 Debut homes a year by 2010 and we already have a total of 1100 plots with planning.”

Fitzsimmons refused to be drawn on Redrow’s interest in acquiring David Wilson’s stake in housebuilder Wilson Bowden.

He added that Redrow had committed itself to increasing its dividend 20% for the next two years.

• Bovis Homes has reported an 18% profit rise for the first half, boosted by a steady housing market.

Pre-tax profit rose to £53m for the six months to 30 June, compared with £45m last year. Turnover increased 17% to £250m, with housing turnover rising 22% to £238m.