Redrow: Great progress through the global pandemic

Redrow released its H1 2022 results this morning

What they said

Record first-half revenue £1,052m 

Average selling price of private homes p 8% to £419,000

Build cost inflation is expected to be around 6% for the full year

Value of private reservations up 6% to £884m

Medium-term guidance increased

Southern division on track to open in Summer 2022

Twindig take 

Redrow's strategy, with a focus on family homes with limited exposure to apartments and city centres, has delivered a winning formula throughout the COVID-19 pandemic.

The race for space and the shift for many to work some or all of the time from home has led to increasing demand for Redrow's homes. Their average price of £419,000 places them firmly in the second mover market. Their buyers are typically more affluent, have sizable deposits and are well insulated from affordability issues and the cost of living increases.

Redrow is predominately a builder of family homes and therefore has less exposure than some to high rise apartment schemes. However, it has increased its fire safety (cladding) provision by £10m to £36m for estimated remediation work where Redrow is the Principal Contractor.

Redrow has made a strong start to the second half, and its increased guidance and launch of a new division implies they believe in the long-term prospects of the housebuilding sector. As a country we are not currently building enough homes to meet demand and Redrow is playing its part to deliver the additional homes we need.