Redrow Reports First-Half Profit After House Sales Increase - Bloomberg

Redrow Reports First-Half Profit After House Sales Increase - Bloomberg

Redrow Plc, the smallest publicly traded U.K. homebuilder by market value, reported a first-half profit after selling more homes for higher prices.

Net income for the six months through December was 3.5 million pounds ($5.6 million), or 1.1 pence a share, compared with a loss of 6.3 million pounds, or 2.6 pence, a year earlier, the St. David’s Park, Wales-based company said today in a statement. Revenue rose 15 percent to 216.1 million pounds.

U.K. house prices have fluctuated over the last several months as a shortage of supply supports values while weakening consumer confidence, government budget cuts and reduced mortgage lending hurts demand. Former Bank of England policy maker Kate Barker said U.K. house prices may extend their drop this year on lending restrictions and uncertainty with consumers.

“While it is still too early to call the spring market, the second half has started encouragingly with reservations during the first six weeks, comfortably ahead of the same period last year,” Chairman Steve Morgan said in the statement.