Housebuilder Redrow's profits buoyed by Help to Buy

Redrow doubled its final dividend to 2 pence per share

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Housebuilder Redrow has almost doubled its annual profits in its fortieth year after sales were boosted by the government's "Help to Buy" scheme and a booming market.

The company posted a pre-tax profit of £132.6 million in the year to June 30, up from £69.4 million a year earlier after receiving a “positive impact” from the housing scheme.

Redrow doubled its final dividend to 2 pence per share.

Redrow increased the number of homes it build by 27% to 3,597 and expanded its workforce by 21% to 1,346. Revenue jumped 43% to £864.5 million.

Redrow chairman Steve Morgan said: “November 2014 marks the 40th anniversary since I founded Redrow, therefore it is quite fitting that I am able to report a significant increase in turnover and pre-tax profits, both of which are a record for the group.

“Whilst this is clear evidence of the success of our strategy it also shows the positive impact of the Government's Help to Buy Scheme.”

He added: ”Market conditions have returned to a more seasonal pattern of activity. We have substantially increased our land banks, 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.”