Three things you need to know in the financial markets this morning from investment writer, Tony Cross.
Housebuilder Redrow [LON:RDW] has published full year numbers this morning, noting that COVID-19 has had a profound impact on the business but that it also starts the new financial year in a strong position. Completions and with that revenues were both off by more than a third, whilst pre-tax profits were down by almost two thirds. Reservations in the first 11 weeks of the year are however well above comparables, although the company notes that uncertainty remains in terms of the outlook. Despite that, expectations are for dividend payments to resume next year.
Sticking with construction, Galliford Try [LON:GFRD] has published its final results today. Again COVID-19 took a toll here, with revenues down by around a quarter, amplifying last year’s pre-tax losses. The outlook however is rather more upbeat – the company is now free of debt and has an order book around 10% bigger than it was a year ago. 90% of revenues for the financial year have been secured and the company believes it is well positioned to benefit from the government’s announcements on capex. Dividend payments have however been suspended and these won’t resume until profitability returns.
And still in the building trade, AIM listed Brickability [LON:BRICK] has full year numbers out today as well. These cover the period to March 31st so the impact of the COVID pandemic is masked. Revenues rose 15% whilst pre-tax profits advanced by more than 40%. These numbers are in line with market expectations at IPO and the company believes that on the basis fundamental demand for new build homes remains strong, its own outlook continues to be positive too. That stands against the downturn in completions seen by the housebuilders, so if the company can navigate this and see revenues advance in the current financial year, that’s certainly worthy of note.
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