Source - SMW
House builder Redrow said its annual sales had slipped 36% and its profit would be substantially lower after Covid-19 lockdowns had a 'profound' impact on results that were meant to be second-half weighted.

Revenue for the year through 28 June was seen falling to £1.34bn, down from £2.11bn on-year.

Redrow said it completed 4,032 homes in the year to the end of June, down from 6,443 in the previous year.

On the bright side, it had entered the new financial year with a record order book, of £1.42bn, up from £1.02bn, of which around 70% in terms of revenue was contracted.

Redrow commenced a phased return to construction and began re-opening sales offices on 18 May. Sales offices in Wales remained closed until 22 June.

The company said it was currently undertaking construction activities across 124 developments and had 113 sales offices open, compared to 129 year ago.

In the five weeks since reopening sales offices, it had achieved a net sales rate per outlet per week of 0.56, down form 0.59 on-year, which it said reflected strong pent-up demand.

As a one-off hit, costs and related 'significant' impairments associated with a scaling-back of the company's London business would be provided for in the June 2020 accounts.

'As a consequence of the impact of Covid-19 and making these provisions the profit for 2020 will be substantially below 2019,' Redrow said.

'The prospects for the wider economy and its impact upon the new homes market remains uncertain,' it added.

'Despite this, as lockdown restrictions have eased, trading has been encouraging, driven by high customer demand for Help to Buy as more buyers look for support as the mortgage market and economy recovers.'

'The group's output will inevitably continue to be affected by the ongoing fallout from the Covid-19 pandemic.'

'Notwithstanding this, the group's record order book, excellent product range and dedicated team of talented people, means it is well-placed to deliver a robust performance against an uncertain outlook.'

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