Redrow has announced a 25% increase in turnover to 拢187.2m for the six months to 31 December 2009, but it still turned in a pre-tax loss.
The house builder鈥檚 revenue rose on the back of increased volumes and prices.
Legal completions increased by 21% to 1,266, with an average selling price 3.6% higher at 拢145,500. The gross margin rose to 7.2% from the previous 5.6%.
The pre-tax loss of 拢8.7m was 81% down on the 拢46.2m reported a year.
Net debt fell to 拢49.3m from 拢269.1m and net assets rose to 拢434.4m from 拢369.4m. Completion of a 拢150m rights issue strengthened the balance sheet and helped reduce gearing to 11.3% from 73%.
Chairman Steve Morgan said his first priorities on returning to Redrow had been to refocus the business towards a high-quality family housing product.
The house builder launched the New Heritage Collection in February which Morgan said had been well received:
鈥淭he only negative point is that the roll-out is being constrained by the time taken by local authorities to give planning permission on both existing and new developments.
鈥淭he housing market has continued its steady recovery and as a result we have increased our legal completions by 21.5% to 1,266. However, it is difficult to see further substantial progress until mortgage availability improves significantly.
鈥淲ith the launch of the New Heritage Collection and our low level of gearing we are well placed to take advantage of opportunities as they arise.鈥�
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