(MENAFN- ProactiveInvestors - UK) Housebuilder Redrow (LON:RDW) unveiled higher first-half sales and profit but said the lucrative central London market was slowing.
Redrow reported a 14% rise in pre-tax profit to a record 104mln on an 8% increase in revenue to 603mln in the six months to December 31.
Legal completions in the period lifted 18% and the group doubled its interim dividend to 4p per share against the same time last year. Full-year dividend guidance was 10p against 6p last time.
Chairman Steve Morgan said demand for new homes was still robust despite it being only the start of the spring selling season.
But Redrow's shares fell 24.4p or 5.78% to 397.6p as the group said revenue from commercial and land sales being 27m lower than in the first six months last year.
It added that the central London property market was facing a slowdown although the market further out of the capital was still strong.
Morgan said: "This is only having a limited effect on the group as we made the decision some time ago to re-focus our London business on outer London where the demand is from the local market and remains robust."
He added: "We have a strong pipeline of new sites in planning and our strategy to grow the business and increase the number of homes we build remains on track.
"We are therefore confident that this will be another year of significant progress for Redrow."
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