(Reuters) - British homebuilder Redrow Plc (L:RDW) reported a 66% plunge in annual profit on Wednesday, while promising to renew dividend payouts next year as it halts investments in London and focuses on its Heritage Collection homes.
A shift in consumer demand after the COVID-19 pandemic prompted Redrow to shrink its London operations in June to focus on higher return giving regional businesses and its 'Heritage' line - suburban homes designed in period style features that have more spacious interiors.
"We have completed substantially more homes in the first few weeks of the new financial year than during the comparable period last year whilst maintaining a record order book as a result of keen demand for our Heritage Collection homes," the company said in a statement.
Redrow said that reduction in home completions, revenue, costs related to temporary closure of its developments and impairment costs arising contributed to profit fall.
The company completed 4,032 homes in the full year ended June 30, compared with 6,443 in the previous year, while pretax profit slumped to 140 million pounds ($180.54 million) from 406 million pounds it reported last year.
Revenue tumbled 37% to 1.34 billion pounds.