Redrow reinstates dividend after profits jump 63 pct
LONDON, Sept 18
LONDON, Sept 18 (Reuters) - British housebuilder Redrow posted a 63 percent jump in full year profit, hitting the top end of analyst expectations, and said it was reinstating its dividend on the back of the performance.
The company said on Wednesday pretax profits for the year to the end of June rose to 70 million pounds ($111.3 million) from 43 million pounds in the year before, on the back of a 26 percent rise in group revenue to 604.8 million pounds.
Analysts had expected Redrow to post pretax profits of 52.2-70 million pounds, according to Thomson Reuters data.
"Redrow has today reported another set of strong results as we continue our journey towards more normalised profit levels," Chairman Steve Morgan said.
"As a consequence of this the board is proposing the reinstatement of a final dividend of 1 pence per share," he said.
Redrow said market confidence was returning to more normal levels and that it had started the year with reservations up 54 percent, due to an increased number of outlets and higher sales rates.
Housebuilder profits have surged as they reap returns from a strategy of buying land cheaply during the downturn, building more lucrative family homes than flats and focusing on parts of England where prices have stayed strong. The sector has also been helped by government schemes to free up mortgage availability.
Shares in Redrow closed Tuesday at 230.8 pence, valuing the company at 853.5 million pounds.
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