Giving a trading update on the day of its AGM covering the 18 weeks to November 6, the housebuilder said its weekly private reservations per outlet were 0.49 compared to 0.68 during the equivalent period last year.
The value of net private reservations fell 19% against the previous year to £515 million, with private revenue per outlet per week at £238,000 compared to last year’s £310,000.
During the reporting period, Redrow’s private average selling price grew 6.9% on 2021’s equivalent period to £483,000. This was driven by the company’s Heritage range of high-quality homes, “combined with geographical and product mix and general house price inflation”.
Redrow expects revenue for 2023 to be £2.1 billion as with the previous year, even with its recent reduced sales rate. This was, it said, thanks to the strength of its order book and the private selling price increase. For 2023, it anticipates an operating margin of 18%, down from the previous year’s 19.3%.
In the financial year to date, the business operated from an average of 120 outlets (2022: 115). It expects average outlets for its full financial year to be 120, mirroring guidance given in September.
Its total forward order book as of November 6 stood at £1.36 billion of which 74% is exchanged. This compares to £1.49 billion at the same point last year with 73% exchanged.
Redrow continues to estimate that overall build cost inflation will be around 7% for the current financial year.
Richard Akers, Redrow’s chairman, said: “We entered the new financial year in a strong position with a record order book of £1.44 billion. The housing market had returned to normal following the elevated sales rate in the previous two years.
“However, recent instability in financial markets has had a negative impact on the housing market and the business has had to adapt to the changing economic outlook.”
