Redrow said on Wednesday it expected its profit to more than halve in fiscal 2024, after the UK homebuilder posted a 4% decline in annual earnings ahead of estimates amid a pronounced slowdown in the housing market.
British house prices have fallen at the fastest pace since 2009 over the past year, data from mortgage lender Halifax showed last week, while Rightmove data showed asking prices for homes in Britain had fallen sharply in August, a key indicator of the intensifying housing meltdown.
"Whilst the market did partially recover in spring 2023, the further rise in mortgage rates combined with the cost of living crisis means the market remained subdued," Chairman Richard Akers said in a statement.
Reflecting the challenging sales conditions, the FTSE 250 firm forecast profit before tax in the range of 180 million pounds to 200 million pounds ($224.2 million to $249.1 million) for fiscal 2024.
The Wales-based builder, which constructs bigger houses than rival housebuilders and sells them to second or third-time movers, posted underlying profit before tax of 395 million pounds for the full-year ended July 2, compared with company-compiled analysts' consensus estimates of 367 million pounds.
($1 = 0.8028 pounds) (Reporting by Aby Jose Koilparambil in Bengaluru and Suban Abdulla in London; Editing by Rashmi Aich)