North East Wales

Flintshire builder Redrow reports £25m pre-tax profit

House builder Redrow Plc has reported a better than expected annual pre-tax profit, on the back of a 12% rise in its house sale prices.

But the Ewloe-based firm warned the outlook for the property market was challenging.

Redrow posted a pre-tax profit of £25.3m in the 12 months to the end of June, compared with £700,000 for the same period last year.

Redrow said its average house price was up from £154,800 last year to £174,100.

Redrow, run by its founder Steve Morgan who returned to the group more than two years ago at the bottom of the property crash, said the market remained uncertain as sales rates were flat year-on-year.

"The nature of our land acquisitions over recent times will continue to drive the average selling price in an upwards direction," said Mr Morgan, who also chairs Premier League football club Wolverhampton Wanderers.

He added that the company delivered a robust performance "in spite of the difficulties facing the home-building industry".

Strong sales

Redrow said the improvements were driven by strong sales of its New Heritage Collection, a range of two to four-bedroom houses launched in February 2010.

These homes made up 41% of total sales in the second half of the year for the firm.

Redrow's pre-tax profit of £700,000 last year came a year after the company made a pre-tax loss of £44.2m.

The company is one of the UK's largest house builders.

It was founded in 1974 when it was a small civil engineering concern specialising in drainage sub-contracting.

The firm moved into house building in the 1980s.

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