Redrow offloads Scottish operations to focus on more lucrative markets

Published 19th Apr 2011

Property developer Redrow announced on Tuesday it will offload its loss-making Scottish division to focus on the more profitable London and South East market.

The company, which is the sixth largest housebuilder by market value, said the performance by the Scottish arm, which had a turnover of £31million and made 185 sales in 2010, as not acceptable.

The news came as Redrow said it averaged 0.7 sales a week since the beginning of 2011, up from 0.65 at the end of last year.

Net reservations rose 2 per cent to 1,189 between January 1 and April 17, while Redrow’s private order book stood at £139million, a 6 per cent increase compared to the same period last year.

‘Sales per outlet are at the top end of industry comparables and reservations since the beginning of January are encouragingly ahead of last year,’ the company said in an interim management statement.

Redrow also said it expected its average number of sales outlets to increase from 79 to 85 by the end of June, despite the sale of the Scottish business.

Shares in the company rose by more than 1 per cent after it said it expects this year's results to show 'significant further process'.

Analyst Mark Hughes, of broker Panmure Gordon, said: ‘Redrow has released a relatively positive interim management statement. Sales rates are ahead year on year, while cancellation rates and underlying prices are stable. We are encouraged that the recovery story continues.’

Source: ' ThisIsMoney '

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