Redrow, the FTSE-250 listed house-builder has warned that lock down and site closures in March have had a ‘profound impact’ on the profits of the firm.
In an update to the market ahead related to the year ending June 28th (annual results due in September) – Redrow noted that its expectations for the year were heavily skewed towards the second half. But then COVID-19 and lock downs struck.
This will translate to a sizable impact on revenues and profits. For the year ending June, 4,032 homes were completed compared to 6,443 on a like-for-like basis. Turnover has been earmarked for £1.34bn compared to £2.11bn last year.
“This has been a challenging period for the industry and prevented the Group from delivering another set of record results.”John Tutte, Executive Chairman
Changes in house-buyers wish-lists have also seen Redrow adapt its strategy. It is now intent on scaling back its London operations to place greater attention to Colindale Gardens development and higher returning regional businesses. The scaling back of the London businesses will be associated with write-downs to be recorded in June.
Numerous studies have shown that buyers of homes are now looking for more space and greener spaces.