Redrow (housing breaking out of a rectangle trading range at 220p on very high positive volume.

Resistance at 250p as shown on chart and then a move up to 300p on the cards?.

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Chart showing resistance points....

Why Redrow is best housebuilder since Brexit vote - By Lee Wild | 8th February 2017
Why Redrow is best housebuilder since Brexit vote A long-awaited government housing white paper, published yesterday, offered ideas to speed up development by the big housebuilders, and open up the market to smaller ones. It generated a mixed response, but sector share prices responded well on a day that Bellway's (BWY) results also triggered upgrades. Now, Redrow's (RDW) forecasts look conservative after impressive half-year results.
Redrow is doing its bit to tackle the country's housing crisis. It increased legal completions by 13% in the final six months of 2016 to 2,459, and at an average selling price of £344,000, 12% more than a year ago.

While higher prices stretch potential buyers financially, some of that increase was down to location, with 47% of turnover now generated in the South East of England where property tends to be more pricey. Last year it was just 38%.

And more potential homeowners are, at least, taking advantage of the government's Help to Buy scheme, up from 746 to 865 of private reservations in the six months.

Brisk business was great for Redrow's top line, with first-half revenue surging 23% to a record £739 million. That shift south alongside natural house price inflation beefed up operating margin by 130 basis points to 19.5%, driving pre-tax profit up 35% to £140 million and earnings per share (EPS) to 31p.

And there's very good reason for investors to remain optimistic. "We entered the second half of the current year with a record order book, with many of our sites sold five to six months in advance," said the firm, and both customer traffic and sales "remain robust".

Given that Redrow's sales rate of 0.73 so far in 2017 is also in line with last year, chairman Steve Morgan has "every confidence this will be another year of significant progress".

Factor in all this, plus lower net debt and the recent purchase East Midlands builder Radleigh Homes from former Derby County owner Peter Gadsby, and Redrow is more bullish on medium-term prospects.

It now tips turnover to hit £1.9 billion in 2019, up from £1.38 billion last year, and increase operating margin to 19.5% and EPS to 77p, from 18.9% and 55.4p in 2016, respectively.

But even management's new target "looks cautious," according to Numis Securities analyst Chris Millington. If market conditions remain favourable it "could be comfortably beat", he says, arguing that the shares appear "too cheap relative to the market".

He's upgraded pre-tax profit forecasts by 14% both for this year and next to £297 million and £325 million. EPS is expected to be 66.5p then 73.4p.

Up over 4% Wednesday to 471p, Redrow shares are now higher than at any time since the dying days of 2015. They're also the best-performing housebuilder since the Brexit vote, up 15% in the past seven months.

However, they still trade on just seven times forward earnings, dropping to an uber-pessimistic 6.4 for the year to June 2018. The dividend yield isn't as impressive as Taylor Wimpey (TW.) or Barratt developments (BDEV), true, but a 50% hike to 6p for the half-year gives a prospective yield of around 4%.

Millington thinks the shares are worth at least 500p.

StockMarketWire.com
House builder Redrow booked a 21% rise in annual profit after the completion of more properties and higher selling prices boosted revenue.

Pre-tax profit for the year through June rose to £380m, as revenue rose 16% to £1.92bn.

The company declared a full year dividend of 28p per share, up 65% on-year.

The revenue improvement was driven by a 9% increase in legal completions and a 7% increase in the average selling price to £332,300.

Operating margin rose to 19.9%, up from 19.4% on-year.

'Redrow is committed to growing our output to help the country's requirement to increase the number of new homes built,' chairman Steve Morgan said.

'We have a very strong forward order book, first class land holdings, an excellent balance sheet and we are able to react quickly to changing circumstances.'

'However, there is no doubt that clarity over Brexit and the future of Help to Buy would improve market sentiment.'

'Given that clarity, we will continue to deliver.'

Despite Brexit uncertainty and the exceptional summer weather, sales revenue in the first nine weeks of the new financial year was in line with last year.

'We expect to continue to grow our land holdings and increase the number of average outlets in the current year by 5% to 130,' Morgan said.

Good results, good yield.

Deutsche Bank today reaffirms its hold investment rating on Redrow PLC (LON:RDW) and raised its price target to 638p (from 622p).

Some info for construction share holders.

The Government risks "pulling the rug out" from beneath the construction industry and would struggle to meet its target of building 300,000 new homes per year if it imposes strict migration rules after Brexit, house builders have warned. The Federation of Master Builders called upon ministers to ensure European bricklayers and carpenters can continue to come to Britain amid rising concern over skills shortages. - Telegraph.

StockMarketWire.com
House builder Redrow said its sales rate in the year-to-date had fallen due to Brexit uncertainty hurting the London property market.

The company also announced that executive chairman Steve Morgan would stand down at the end of March, to be replaced by current chief executive John Tutte.

For the first 18 weeks of the company's financial year, the sales rate per outlet per week was 0.64 compared, down from with 0.67 on-year.

The reduction was entirely due to the London market, Redrow said.

The value of net private reservations inched higher to £588m, up from £586m.

The average selling price of private reservations rose 4.6% to £388k.

Redrow's total order book was p 11% on-year at £1.2bn.

'For the first 18 weeks of the current financial year, Redrow has traded in line with expectations,' executive chairman Steve Morgan said.

'We continue to see good demand in our regional businesses with most sites sold well in advance.'

'However, the London sales market has remained subdued affected by excessively high stamp duty tax and Brexit uncertainty.'

Redrow also announced that the head of its southern business Matthew Pratt would become chief operating officer at the end of March.

Redrow declares special payout as profit rises 5%
StockMarketWire.com
House builder Redrow posted a 5% rise in first-half profit and declared a special payout to shareholders after it completed more homes compared to a year earlier.

Pre-tax profit for the six months through December rose to £185m on-year, as revenue climbed 9% to £970m.

The company declared an interim dividend per share of 10p per share, up 11% on-year, and an additional cash payment of 30p per share.

Legal completions increased 12% to 2,970, while the company's order book rose 11% to £1.16bn.

'The market during the run up to the festive period and the first two weeks of 2019 was subdued by macroeconomic and political uncertainty,' chairman Steve Morgan said.

'However, sales over the last three weeks have bounced-back with reservations running at similar levels to last year's strong market activity.'

Private sales for the first five weeks of 2019 were £156m, down from £166m on-year.

'Nevertheless given our record £1.2bn order book, our strategy remains on track giving me every confidence that this will be another year of significant progress for Redrow,' Morgan said.



Story provided by StockMarketWire.com

Thats a cracking chart there Fred.

One of my lucky ones b at 297 including costs.