Redrow says its profit climbed by 11% in the fiscal first half

Redrow plc (LON: RDW) said on Wednesday that its profit in the fiscal first half jumped 11% as the ongoing Coronavirus pandemic fuelled demand for spacious suburban homes. The COVID-19 crisis has so far infected more than 3.9 million people in the United Kingdom and caused over 113 thousand deaths.

Redrow said in a statement on Wednesday:

“Demand in the regions for our Heritage homes has been particularly high as more buyers reflect on their lockdown experiences and prioritise space in their homes and access to green areas.”

Redrow shares jumped more than 3% in premarket trading on Wednesday but lost a broader 7% on market open. Including the price action, the stock is now trading at 553 pence per share.

In comparison, it had plummeted to as low as 314 pence per share in the first week of April when the COVID-19 restrictions were at their peak. The price action should come in handy if you are interested in investing in the stock market.

The housebuilder is now more than 95% forward sold

For the current financial year, the British housebuilder said that it was now more than 95% forward sold. In its report published in September, Redrow had posted a 66% year over year decline in its pre-tax profit. At £1.34 billion, its revenue last year had tanked 37% on an annualised basis.

Redrow said that its pre-tax profit in the six months that concluded on 27^th December came in at £174 million. The company refrained from divulging numbers separately for London and regional businesses. Last year, Redrow started pulling out of its London operations in a bid to expand its footprint in high-return regional businesses.

Redrow declares 6 pence per share of interim dividend

The Ewloe-headquartered company’s board declared 6 pence per share of interim dividend on Wednesday. Redrow valued its order book at £1.3 billion as of the start of the end of December versus the year-ago figure of £1.2 billion.

In related news from Britain’s housebuilding sector, Persimmon plc said that it set aside £75 million for a few of its buildings that are affected by cladding issues.

Redrow performed fairly downbeat in the stock market last year with an annual decline of close to 25%. At the time of writing, the FTSE 250 listed company now has a market cap of £1.93 billion and a price to earnings ratio of 16.74.