Redrow swings to profit as house prices improve

9th Sep 2010 07:26

Higher house prices helped home builder Redrow move back into profit in the year to June 30, but the outlook remains uncertain.The company posted a pre-tax profit of £0.7m against a loss of £44.2m the previous year, as revenues jumped to £396.9m from £301.8m.Average selling prices rose to £149,300 from £137,400 as the economy recovered after the 2008-2009 global financial crisis. Redrow completed 2,587 homes during the period, up from 2,113 the previous year. 'While we remain in a period of tough economic conditions and political uncertainty the work that we have done over the past year means that Redrow is in good shape to continue to make progress,' said chairman Steve Morgan.He pointed in particular to the company's 'New Heritage Collection' of homes that are inspired by the Arts and Craft movement, which has helped lift average selling prices.'Short of a collapse of market conditions from those we have experienced to date, I expect the Group to make further progress during the current year,' he said.Redrow's improved results come the day after fellow house builder Barratt also reported an improvement in house prices.