Redrow PLC (LSE:RDW)'s profits more than doubled in its latest financial year but the housebuilder said the market is cooling after the recent mini-boom.
“The buoyant housing market has moderated in recent months and we anticipate sales rates will return to historically average rates over the course of the current financial year," chairman John Tutte said.
House price inflation was strong everywhere except London over the year to the end of June 2021, the FTSE 250 housebuilder said.
Prices increased on average 5% across the financial year, particularly in the final quarter, which had offset build cost inflation of around 5%.
Steel, timber and cement-based products were in short supply but work had continued uninterrupted at its sites, it said, adding the supply issues should ease as more capacity is brought on stream.
As it had earlier reported, revenues over the year rose by 45% to £1.94bn, with completions up 39% at 5,620.
Profits jumped 124% to £314mln though are still 23% less than it made in 2019.
The final dividend was restored at 18.5p, making 24.5p for the year, while the group also swung into a cash position of £160mln.
Redrow also resumed guidance for the medium term, predicting revenues of more than £2.2bn for 2024 and EPS of at least 90p per share compared to 73.7p for the year just ended.
Tutte said the group was planning for less exceptional trading conditions going forward.
“It is on this basis we have planned for the future and we are confident our timely investment in land, combined with strong demand for our Heritage homes, will support our longer-term growth aspirations.
“Additionally, our record order book also provides us with an excellent platform for the future with over £1.3bn of revenue already secured for the current financial year. As a result, the business is well-placed to deliver another set of strong results.”