Redrow-Housebuilder profits increase for full year

With house prices still dropping at the lower end across most areas of the UK and mortgages too tight to mention, companies building houses have had a tough time of it in recent years but Redrow has managed to increase the bottom line for the last year's trading, in these challenging conditions.

Revenue increased by 5.8% to £478 million to the end of June, on the back of improved margins by around 15% and high profit land sales.

Pretax profits were up by 70% to £43 million and debt has been reduced by £61.4 million to £14 million.

With the first time buyer struggling to get on the housing ladder due to the difficulty in obtaining morgages without enormous deposits, it would appear that Redrow's strategy of focusing on products more affordable by the mature buyer in it's branded "New Heritage collection" is paying off, accounting for 67% of Redrow's private sales.