Redrow H1 Earnings Fall, Lowers FY24 Outlook
LONDON – Redrow plc (RDW.L), a housebuilding company, has reported a decline in earnings and revenues for the first half of the year, citing a subdued housing market. The company also stated that it anticipates its fiscal 2024 results to fall towards the lower end of its previous outlook range.
During the first half of the year, Redrow saw its earnings before tax decrease from £198 million to £84 million, compared to the previous year. After-tax, earnings declined from £150 million to £60 million, resulting in a drop in earnings per share from 45.3 pence to 18.6 pence.
Revenues also saw a significant reduction, decreasing from £1.03 billion to £756 million, due to fewer outlet openings.
Looking ahead to the full year, Redrow now expects its Underlying Profit Before Tax for fiscal 2024 to range between £180 million and £200 million, which is lower than previously anticipated. The company also predicts a lower revenue range of £1.665 billion to £1.70 billion for the same period.
In addition to these updates, Redrow has declared an interim dividend of 5 pence per share. The dividend will be paid on April 8 to shareholders on record as of February 23.
Despite these results, Redrow shares are currently performing well in the market, trading at 672.80 pence, representing an increase of 12.13% in London.
Redrow’s financial performance is reflective of the challenges faced by the housing market in recent times. However, the company remains optimistic about its future prospects and is actively working towards improving its position in the market.
It is worth noting that the COVID-19 pandemic has significantly impacted the housing industry, with factors such as lockdown restrictions and economic uncertainty affecting buyer demand and construction activities.
Redrow is just one of many companies grappling with these challenges, as the housing market continues to navigate through uncertain times. Industry experts will be closely monitoring future developments to assess the overall health and recovery of the sector.
As Redrow adjusts its outlook for fiscal 2024, it is clear that the company is taking a cautious approach in light of the ongoing market conditions. Investors and stakeholders will be closely watching how the company navigates these challenging times and adapts its strategies to meet changing consumer demands and economic circumstances.
