The market cap of British homebuilder Redrow has doubled in value over the last two years on the back of investment that has boosted its growth profile. Latest results released today confirm those trends.
Yet our preliminary SEO audit also suggests that the company isn’t doing much to attract new clients online. It could surely offer them a better online experience.
Preliminary SEO Audit
Our SEO analysis indicates that its .com domain has been registered but is not active; in fact, it retrieves the GoDaddy hosting page. There’s no redirect to its main domain, redrow.co.uk, which is a very small website for a company whose market cap is north of £1.7bn.
We have identified a low level of investment in the industry, which presents an opportunity for the market leaders.
The domain and subdomains of redrow.co.uk present some basic technical issues; a proper on-page strategy has not been detected.
Redrow could enlarge its reach by devoting a dedicated budget to raise its profile, while improving speed metrics for mobile and desktop, which are just a tad above average. This should be the company’s main concern.
Finally, its hierarchy structure isn’t optimised and on-page strategy is virtually inexistent. Our comprehensive SEO audit will be published on Wednesday.
Financials
Final results for the year ended 30 June 2015 showed:
- Revenues rose 33%, hitting a record £1.15bn
- Gross margin rose to 23.8% from 21.7% in 2014
- Record pre-tax profit of £204m, up 53%
- Earnings per share up 56% to 44.5p
- Return on Equity of 26.4% (2014: 20.5%)
- Return on Capital Employed of 22.8% (2014: 18%)
- Net debt reduced to £154m vs £172m in 2014
“The board is proposing a final dividend of 4p per share, double that of the final dividend paid in 2014,” Redrow said.
My quick take?
Well, its balance sheet carries some leverage, which is manageable. Moreover, at 11x forward net earnings, its stock doesn’t look expensive, particularly if the group keeps up with its outstanding growth rate while paying attention to its dividend policy, which will likely reward savvy investors.
(Alessandro Pasetti and Hedging Beta are not invested in any of the companies mentioned in this article.)