Redrow PLC (LSE:RDW) has lowered its sales and dividend outlook for the full year and withdrawn its guidance for next year after a mixed half-year performance.
The FTSE 250-listed housebuilder posted £1.03bn of revenue, down 2% year-on-year, and £198mln of pre-tax profit, down 2.5%.
The company said private reservations dropped to 0.38 per outlet per week, from 0.64 last year, but in the first five weeks of the second half they rebounded to 0.51. The second half started with the total order book standing at £1.1bn, versus £1.5bn a year ago, it added.
Full-year revenue guidance was trimmed to £2.05bn from £2.1bn, but the operating margin was nudged up to 18-18.5% from 18%. Underlying earnings per share of 84p is expected, down from 96p last year.
The company is paying an interim dividend of 10p, flat on the previous year, but expects to cuts its full-year dividend to 28p, down from 32p in the previous year.
In a statement, Redrow chief executive Matthew Pratt said: “Whilst 2023 will be a challenging year as the market resets, early indications are better than anticipated and the market appears to be finding a new, natural level.”
He emphasised the company’s sustainability push, which included the recent announcement that it would become the first UK housebuilder to commit to installing heat pumps rather than gas boilers in new-build homes as part of efforts to reduce carbon emissions.
In early morning trading, Redrow shares were 0.6% lower at 541.50p.