Builder Redrow reveals 'robust' performance and 'record' order book
Housebuilder Redrow has said it is on track to notch up a 22% rise in profits this year, revealing a record order book and a better than expected increase in selling prices.
The firm, which is locked in a takeover tussle with Galliford Try for rival Bovis Homes, expects to deliver "at least" £306 million in pre-tax profits in 2017, also fuelled by an increase in legal completions.
In an unscheduled trading update, the group said: " Redrow is pleased to announce that its trading and performance continues to be robust, as a consequence of a record order book and a further increase in legal completions, combined with better-than-anticipated increases in average selling prices.
"Given the strong year-to-date performance the Board is confident that Redrow is on track to deliver at least £306 million profit before tax for the financial year ending 30 June 2017, an increase of 22% compared to the prior financial year of 2016."
Earlier this month, Bovis confirmed Galliford Try and Redrow had made offers for the firm.
It rebuffed a cash-and-shares offer from Redrow and snubbed an all-share transaction from Galliford Try.
But talks with Galliford Try continue and, if successful, would create one of Britain's biggest housebuilders capable of producing 7,000 homes a year, with a combined market capitalisation of £2.4 billion.
However, shareholders are pressing for Bovis to reopen merger talks with Redrow with experts expecting the firm to return with another bid.