(Adds chairman's comment from statement, details, share
Sept 2 British housebuilder Redrow Plc's
full-year profit soared 91 percent, spurred by the UK
government's 'Help-to-Buy' housing scheme and strong consumer
Shares in the company, which doubled its final dividend to 2
pence per share, rose 1.4 percent to 285.57 pence in early trade
on Tuesday on the London Stock Exchange.
"We have substantially increased our land bank, which should
see a good growth in the number of outlets during the year.
This, combined with our strong order book, leaves me confident
that the group will see another year of significant progress,"
Chairman Steve Morgan said in a statement.
However, the company cautioned that the Bank of England's
decision to introduce new rules to help curb the surge in
Britain's housing market and limit mortgage lending had
moderated the market, forcing housing activity back to a more
The bank said in June it would cap mortgages worth 4.5 times
a borrowers' income from October, and that the changes would
apply to 85 percent of total new home loans, sending shares in
leading British housebuilders down more than 4 percent on the
Pretax profit rose to 132.6 million pounds ($219.9 million)
in the 12 months ended June 30, from 69.4 million pounds a year
Full-year revenue jumped 43 percent to 864.5 million pounds,
the mid-sized residential and mixed-use property developer said.
The FTSE-250 company's total legal completions rose 27
percent to 3,597, encouraging it to add 230 direct employees to
its workforce. 'Help to Buy' represented 35 percent of Redrow's
private completions during the year.
'Help-to-Buy' scheme helps people buy homes priced up to
600,000 pounds with a deposit as low as 5 percent, largely to
encourage first-time buyers to get on the property ladder.
Redrow said the value of private reservations increased 53
percent to 1.021 billion pounds, with its average selling price
rising 13 percent to 239,500 pounds.
($1 = 0.6030 British Pounds)
(Reporting by Esha Vaish in Bangalore; Editing by Gopakumar