House builder Redrow reported a 66% slump in full-year profit after the Covid-19 crisis weighed on the construction sector. Pre-tax profit for the year through June dropped to £140m, down from £406m on-year, as revenue fell 37% to £1.34bn. Redrow scrapped its final dividend, but added that, based on trading to date and its forward order book, it expected to resume dividend payments in 2021. The company said it had experienced an encouraging start to the new financial year, with reservations up 12%. 'The Covid-19 pandemic had a profound impact upon the group's performance in the 2020 financial year but we entered the new financial year in a position of strength,' chief executive John Tutte said. 'We have a record order book and brought forward very high levels of work in progress.' 'This was due in part, to increased investment earlier in the year in anticipation of strong demand for the Help-to-Buy scheme ahead of changes to the scheme next year.' 'We have completed substantially more homes in the first few weeks of the new financial year than during the same comparable period last year whilst maintaining a record order book. 'This, combined with reduced investment in London, will deliver strong operating cash flow over the coming months to support our regional growth plans and, subject to market conditions, allow dividend payments to resume in 2021.'
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