Housebuilder says second half of the year will see a return to profit and that sales are ahead of last year

Housebuilder Redrow is expecting to return to profitability in the second half of this year according to an interim management statement released today.

The company says sales activity since the start of the year is comfortably ahead of the same period last year.

It said that although house prices have remained stable since the beginning of January, the average selling price of private homes has increased in comparison with both the previous year and the first half of the year.

The company expects to legally complete in excess of 2,500 homes for the full year, which will result in a return to profitability for the second half period.

According to the statement there has been a noticeable increase in activity in the land market over the last few months and since 31 December 2009 Redrow has secured or agreed terms on around 2,500 plots on 18 new sites.

Net debt is currently around £50m, well within the group's committed bank facilities of £250m and it expects net debt to rise over the coming months as our land bank increases.