This morning Redrow shrugged of Brexit woes after it reported its 3rd year of record results, with pre-tax profits jumping over 20%. Despite the fact that their share price tumbled 30% from pre-Brexit levels, chairman Steve Morgan said there was an “over reaction to Brexit, and has not seen any blip whatsoever”. It’s strategy to develop more affordable homes in the outskirts of London is proving very fruitful as the top end market in Central London seems to be where the biggest hit is taking place post Brexit. Their share price has indeed bounced significantly from the Brexit lows. After another 5% rally today, their share price is back above the 400p mark, only 20p from its pre-Brexit closing price.
It’s not just Redrow that has shrugged off the pain from Brexit. Last week Persimmon also reported strong results, and also suggested that the vote to leave the EU had little impact on its sales. Barratt Developments are also due to report his week, and it’s fair to say the Housebuilding sector is definitely one to watch at the minute.
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